The business definitely keeps pace with the times — land casinos seen a fair share of enhancements throughout the years while live-streamed online gambling now resembles the real-life experience.

Still, the gambling industry has been lagging behind in adoption of technologies that simplify operations, cut costs, and remove roadblocks in the customer experience. Today, many casinos don’t even use accounting software, moving winnings is highly uncomfortable, all the while online and land casinos are disintegrated. As modern users demand a simpler and faster experience, the casino business will have to face all these issues at once sooner or later. 

From blockchain-based accounting and cash outs in cryptocurrency or tokenized fiat, to enforcing responsible gaming, let’s explore the ways blockchain helps to solve the biggest casino industry challenges and help it evolve in a meaningful way. 

Blockchain Based Casino Accounting, Cash-In/Cash-Out & Casino Cryptocurrency

Accounting is the crux of casino management. Still, many land casinos approach their financial affairs and cash-in/cash-out management in a straightforward and, truth be told, downright obsolete way. 

Here is how the cash-in/cash-out process looks in some gaming houses during tournaments:

1. A player enters the casino using the established Know Your Customer (KYC) method;
2. Verifies their identity at the cashier’s desk to cash in/cash out;
3. If the requested sum exceeds the set limit, the cashier calls the manager;
4. The manager invites the player to their office;
5. In a spreadsheet, the manager checks the player’s balance, approves the transaction, and then adds to or subtracts from the total sum;
6. The manager gives out or accepts the player’s cash. 

Such a first-hand approach may seem reliable when a cash-out of a big sum is in question, but systems like that still lack in flexibility, functionality, and security compared to accounting solutions in other industries. So, six steps in total, two steps of verification, and three employee encounters (count in the casino guard if the house’s KYC includes them) separate the player from their money. 

Some might say: if the system pulled through the times when every business transferred its operations to various software systems and legacy solutions, there must be a reason it still exists, and maybe casino accounting should be left well enough alone?

But let’s look a bit further.

When a casino chain has properties and hosts tournaments across the world, accounting issues become all the more evident.

• If a person plays in a chain’s property in a different country, transferring money is complicated, slow, and entails transactional fees. There is no simple way one can move big sums of money. 
• Gambling laws differ from country to country. A player may win a substantial sum in a foreign country, but might not be able to cash out or transfer all of it back to the bank in the home country.
• The player does not control their own money like they do in their bank’s app.
• The money is not liquid. If a player gambles in casinos of one chain, but they are located in different countries, they must make calls to verify the money are in one casino to access it in the other. 
• The player cannot borrow money, and if a player borrows money from another player, the operation cannot be tracked, as it is in cash.  

That’s a big bag of challenges.

How Blockchain Helps

One blockchain solution can help casinos tackle all of the issues above. Let’s look at an example. First, the casino’s financial documents are moved to a blockchain ledger, which can be accessed from anywhere in the world. Second, a custom blockchain-based wallet is developed for players. Finally, a custom casino token is created for the house, allowing players to cash in and cash out the winnings to crypto, which can then be exchanged at a certain rate to the currency or crypto of the player’s choice. So, a blockchain casino is also a cryptocurrency casino.

Tying everything up is an access/permission management system based on a KYC database and working on smart contracts, a set of pre-programmed automated actions that are a part of the blockchain. With smart contracts, employees would get a secured, limited and transparent access to the player’s account to enable their transactions throughout the gaming process. If a player borrows from another player, the process is similarly secured, limited, transparent, and can be carried out in a few clicks in a dedicated mobile app.

If a player wants to cash in or cash out at one of the casinos, they would simply need to scan a QR code and verify the transaction with their fingerprint/face on a tablet or mobile app of a casino employee (which would also be a part of the blockchain casino software). All of this will be managed by smart contracts in a matter of seconds and not require any actions from the users involved. All the transactions and user identities will be saved to the blockchain ledger, shared by all the casinos in the chain. 

This brings many benefits to casinos: 

• Blockchain basically unhackable, so the casino gets the highest level of financial security
• Fast cross-border transactions without fees in the blockchain network 
• Players have full ownership of their money, as this information is registered on the blockchain ledger. The data cannot be tampered with in any way
• Playable money becomes liquid and easier to manage
• Blockchain enables P2P transactions
• Biometric security (enabled by a mobile app).
• Players can be allowed to borrow money from other players. 

Merging Land & Online Casinos Into a Single Blockchain Casino

Many land-based casinos have extended their business online, but the land and online parts are disintegrated. This is an old norm in the gambling world. So, if a person plays Baccarat in a land-based house of one company and wants to continue playing at home after the visit, there will be no data shared between the online and land casino experiences. The player will have different accounts, balances, track records, loyalty points and bonuses, and so on. 

The root of the issue is similar to how accounting is managed in the industry — there is no software in the land casino while the software behind the online part is too old. Here, blockchain provides a solution that’s similar to the accounting process, but with a twist. The processes powering up online and land casinos are transferred to a shared blockchain ledger, users access services on mobile devices and desktop, there may be a cryptocurrency or tokenized currency involved, and access management at different points of user experience is managed by smart contracts. All of this comprises a blockchain casino that connects both the physical and digital gambling worlds. 

So, what’s the twist?

In most casinos, the system behind the online part is too complicated and sensitive to new integrations. Casinos consider only a simple and light integration between online and physical experiences. On top of that, the process is risky: any bug or issue may lead to downtime. No matter how long it takes, any downtime in the gambling industry is extremely expensive to the business.  

Still, online casinos are highly popular, most land casino players heavily use different cryptocurrencies, and casino management themselves acknowledges the need to make the transition and merge both experiences. In a time where businesses try to remove as many hurdles in their customer experiences as possible, merging online and land into seems like a long-delayed move. Like many industries before, the gambling business is just waiting for one major player to make a successful transformation into a blockchain casino, and then follow suit. 

Enforcing Responsible Gambling on Blockchain

Some jurisdictions, for example Macao, impose daily gambling limits on players to prevent excessive gambling. Still, as online and land are disintegrated, the law works only as a sort of half-measure. One can gamble too much in a land casino, and then simply continue playing online.  

Enabling gambling on blockchain solves the issue. After land and online casinos are transferred to one blockchain ledger, a casino can enforce this policy across the chain. The data on time players spend in the casino will be saved to a single blockchain, and If a player exceeded one’s limit online, the doors of the land casino will close for them — and vice versa. 

The doors could close quite literally, as a blockchain casino can be connected to the security system: cameras will recognize those who exceeded their limit and block them access to the entrance. This concept can be extended to a gambling jurisdiction if all of its operators agree to be part of one open blockchain ledger. 

Blockchain gambling can help players limit themselves as well (in some countries, this option is enforced by law). If a player binge-gambled for a certain period of time and spent a lot of money, they can choose to limit themselves for a set term by pressing a single button in the casino’s app. The money will be securely locked by way of smart contracts until the end of the term, according to the law, and inaccessible to no one, including the player. 

Summing it Up: Blockchain in Casino Industry & Gambling 

Blockchain can solve critical challenges of the casino industry in accounting, cash-in/cash-out management, security, regulation, as well as bridge the gap between online and land experiences. Although the risks of replacing obsolete software with blockchain stops casinos from making a step towards meaningful digital transformation, the industry will still need to evolve to become more leaner, more secure, and address the demands of modern customers. The benefits of blockchain technology for gambling are evident, and the industry understands that, so we will definitely see how the blockchain casino concept becomes a reality in the near future. 

The post Blockchain in Casino Industry: On the Verge of Eruption appeared first on Intellectsoft Blog.

As 2018 has come to a close, it is time to remember the highlights of the blockchain industry, how it managed to succeed, and where it is going. At first glance, it might seem that 2018 was a bad year for the industry, especially amid the problems on the cryptocurrency market. As always, we at Intellectsoft Blockchain Lab emphasize that the most valuable benefit of Bitcoin was that it brought blockchain to the forefront of the tech world’s conversation and beyond the crypto world.

Indeed, when we look at the advances of blockchain technology, its adoption and existing infrastructure, the picture is entirely different.

Let’s explore it below.

1. The World of Public Blockchain

1.1. ICO Projects

Fatigue from blockchain overhype could be felt in the public blockchain sector throughout the entire year. Then, there was a calm after the storm on the ICO market: some projects were in development and not yet showing real value, while other were shut down due to undeveloped infrastructure, the current state of the industry, and other factors.

The atmosphere in crypto space of 2017 and early 2018 was over-enthusiastic, with the word “craze” flashing in blockchain-related headlines almost daily. ICO projects raised tens of millions even before what would normally be Series A, slowing down, losing focus and motivation. Shortly, the craze started affecting even the expert teams, pushing them into spending a significant amount of time and money to keep token prices up and satisfy investors.

1.2 Public Blockchain Networks

The public blockchain created in 2017 were aimed at improving performance, which led to chasing vanity metrics like transactions per second and discussions about on-chain governance that seemed to have no end. The solutions we saw in 2018, on the other hand, have put the emphasis back to real developer usability and native use case discovery.

1.3 Ethereum leads the way…

Ethereum has a bright future, and 2018 only supported the fact (see our article dedicated solely to its huge potential). The year has seen the Ethereum community grow by no less than 200 000 developers, while 94 percent of all blockchain projects in 2018 were based on integrated on top of Ethereum.

…but has competition

Still, the Ethereum community will not have a monopoly on blockchain solutions. 2018 has seen a number of alternative blockchain protocols emerge to compete with Ethereum, with potential to evolve into leading platforms. For example, the entire blockchain world followed the launch of EOS — a blockchain protocol that is often branded as “Ethereum Killer.” EOS’s focus on decentralized applications has already helped the protocol gain significant market value and presence in the global market.

The other side of Ethereum’s success

The Ethereum community faced a serious problem in 2018: the number of active users had dropped from 719,093 in January to 232,085 in December. Currently, the blockchain community waits for eight teams to release the Serenity update with a new PoS protocol and new scaling potential. For all its achievements in 2018, it became clear that Ethereum needs a substantial upgrade — and the sooner, the better.

2. Enterprise World

In 2017, the concept of private blockchain was a mysterious uncharted territory. It seemed that many companies attempted not to leverage the technology, but to spoil or rebuild its concept into something unviable and old-fashioned.

That has changed in 2018. Today, we can clearly see the transforming value of private blockchains and how they fit into the modern enterprise infrastructure, bringing cheaper and faster transactions, secure data sharing worldwide, and a significantly higher level of security.

Private/Consortium Chains

In a major shift, businesses have gone from testing private/consortium chains to applying them. While this was expected, Deloitte notes another key change: instead of only exploring blockchain as a technology that streamlines or disrupts business processes, companies have started integrating blockchains into their ecosystems.

Embracing private blockchains is more common for highly tech-driven, digital-first enterprises, but the changes indicate that more and more companies accept blockchain as a powerful technologic driver, and with more confidence.

Meanwhile, the first industries to implement consortium blockchains were the Supply Chain and Finance (solutions with blockchain based payments) — no surprises here.

2.1. Blockchain as Basis for Digital Transformation

In my opinion, blockchain drives the second wave of infrastructure upgrade, digitalization, and global collaboration improvement in enterprises. That is, blockchain will be in the driver’s seat of the Digital Transformation of the Enterprise, no less. SMBs have already gone through this phase, and now comes the time for bigger players.

Such full-scale transformations already happened elsewhere and seem inherent to our daily life today. The always accessible, almost lightning-speed internet available right in our pockets or bags is just like blockchain, only for consumers.

There is a low chance of you meeting someone with a bulky Nokia phone from the nineties on a street today, but big airlines, supply chain companies and manufacturers still use mainframes, matrix printers, and Windows 98 on some of their locations.

It was very unlikely they would consider upgrading to anything: the security standards are too high, the scale too big. But 2018 showed clearly that the standards and opportunities of blockchain can meet and even exceed those demands, helping them migrate to new and more secure infrastructures.

2.2. The Segment is Growing

All of this is backed up by statistics. Private blockchain segment has grown from 20% in 2017 to 64% in 2018. This would not have been possible without well-developed enterprise tools and frameworks. And the Hyperledger foundation and their product set are the favorites here.

2.3. Hyperledger Becomes an Industry Standard

The Hyperledger foundation definitely understands the real power and importance of collaboration and decentralization in blockchain space, and that is why they are on top of the competition.

Dedication and constant development are other reasons. In 2018, Hyperledger’s IT has grown significantly and on-boarded many big names, including Alibaba and Citi Group, and the expansion continues. The Hyperledger progressed by new release and adding features to its tool set — as well as helping big enterprises build their first POCs.

We at Intellectsoft Blockchain Lab have used Hyperledger in many efforts this year — choosing Fabric for consortium setups and Sawtooth for supply chain projects.

2.4. Blockchain in Government

The technology got a lot of attention from politics around the world as well. Many countries’ attitude turned from suspicious to positively curious and deeply interested in the technology.

The U.S. government has tripled investments into blockchain analysis firms in 2018, which includes institutions like IRS, FBI, and SEC; the state of Ohio started accepting Bitcoin for tax payments; while West Virginia’s Secretary of State reported that blockchain-based voting in 2018 Midterm Elections was successful.

Across the world, the Australian government has signed a $740 million deal with IBM to upgrade data security systems with blockchain.

European Union also took a big step forward with the technology. Thirty-one country signed a partnership on analysing the potential of blockchain and its applications on national level. This was truly a major move towards large-scale blockchain adoption.

Blockchain is a great opportunity for Europe and Member States to rethink their information systems, to promote user trust and the protection of personal data, to help create new business opportunities and to establish new areas of leadership, benefiting citizens, public services and companies”

Mariya Gabriel, commissioner for the Digital Economy and Society

2.5. Creation of More Consortia

Each successful blockchain implementation counts in the technology’s mass adoption. Still, big-player consortia are the real engines of this advent. And 2018 saw many serious partnerships emerge worldwide and across industries.

We.trade, a blockchain platform that gathers twelve big European banks (including UniCredit, Deutsche Bank, and Nordea), aims at reducing operational friction and simplifying the trading process for participants.

Walmart, Nestle, Dole, Unilever, and four other large retailers have joined forces for a pilot blockchain project that would improve food safety worldwide.

Logistics giants — UPS, FedEx, BNSF Railway, and Schneider Trucking — are one of two hundred companies in a freshly formed BITA partnership, which explores blockchain applications in freight transportation, to be converged in a single framework.

Another prominent example comes from the automotive industry, where long-standing leaders (Ford, BMW, General Motors, Renault) and parts manufacturers (Bosch, ZF, IBM, Accenture) have formed Mobility Open Blockchain Initiative, or MOBI.

Final Thoughts: Blockchain Passed an Important Milestone

As cryptocurrency craze died down, the real potential of blockchain finally came to the fore in 2018. Enterprises across industries, governments across the world, and the blockchain community have focused on the technology’s far-reaching transformative power in many operations, in saving costs, and in security — while cooperating with each other on POCs, blockchain implementation, and efforts to fasten large-scale adoption. And all of this in only one year. With more and more companies joining forces on real-life applications in many industries, and with more governmental support, it is safe to assume that 2019 will be less about planning blockchain projects and more about bringing them to life — and putting them to use.

About the Author:

Tim Kozak is the Head of Technology @ Intellectsoft Blockchain Lab, a unit focused on blockchain development and tech consultancy for enterprises and startups.

Find out more about Intellectsoft Blockchain Lab.

The post Blockchain Trends 2018: In-Depth Industry & Ecosystem Analysis appeared first on Intellectsoft Blog.

On November 15, the top experts of Intellectsoft Blockchain Lab went live for a 45-minute webinar on Tokenization, one of the enterprise blockchain concepts that lived up to expectations through the years. The webinar also welcomed one of the founders of Distributed Lab to explore the subject as comprehensively as possible. “Transforming the Enterprise with Blockchain Tokenization” tackled the areas of implementation, real-life examples, constraints, and more regarding the Tokenization concept, while also touching upon the state of affairs in the blockchain world in general.

The speakers of the webinar include:

• Pavel Kravchenko — Co-founder of Distributed Lab, who received a PhD in Cryptography in 2012 from the Kharkiv National University of Radioelectronics, after publishing a pioneering thesis on public infrastructure security (connect with Pavel on LinkedIn)

• Nick Kurat — Director of the Intellectsoft Blockchain Lab (connect with Nick on LinkedIn)
• Tim Kozak — Head of Technology at Intellectsoft Blockchain Lab (connect with Tim on LinkedIn)

See the video:

After the webinar, the speakers entered a Q&A session with the participants, which allowed for exploring the topic further. Here are some questions from the audience with answers from our speakers.

Is Hyperledger a permissioned ledger that has the purpose to replace crud databases?  

The most interesting thing about blockchain — it’s more than a typical ledger or database. It is also better to understand blockchain as a next-generation application. The reason is, blockchain serves multiple purposes: it is a database, a business logic, a permissions system, and an infrastructure. So, it won’t replace crud databases, it is a new concept and evolution of application architecture.

I’m interested in use of blockchain for facilitating cash payments in refugee communities. Which blockchain system would you recommend?

There are some existing examples for your case, for example a blockchain-based refugee camp in Jordan. But in general, it depends on the requirements and functionality. From what we’ve seen, Ethereum works fine in cases where currency or token economy is required. Still, you can use Fabric if you want a closed permissioned network.

Which platform do you recommend for financial tokenization?

There are many good platforms out there that fit: Stellar, Fabric, R3 Corda, maybe even Ethereum would be suitable for your case. But the complexity of the process is not in the tokenization itself, but in the ease of use and the integration in your current processes. That’s actually why we created TokenD — to make it much simpler.

Pegasys announced a new Enterprise-ready Ethereum сlient — Pantheon. In an article, Pegasys claims that with Pantheon they’ve rebuilt Ethereum from scratch.  If Ethereum was rebuilt from “scratch,” is Pegasus really new protocol? Or is it a new version of Ethereum.

Thanks for the question. In this case, when they say they’ve rebuilt Ethereum, it’s not about the protocol but about the client application. So what they are doing is similar to Parity, they created a client that is compatible with Ethereum protocol, but in addition to that they have created their own configurations on top for permissions layer, etc. So it means that you can mine it in the main net (one of the Ethereum test nets is running on Parity clients), but also make a custom setup in permissioned environment.

How the movement of physical assets and the ensuing changes in ownership are corresponding with a digital tokenization system? How the blockchain system knows that physical assets have changed, left the company, if an inventory item was sold? Are there any IoT sensors that communicate with that digital system?

All security measures for physical assets, including sensors, are covered by the custodian. Without those measures, the entire system would fail, compromising the security of the blockchain itself. In a perfect world, a tokenization network should trust and transfer the responsibility for the physical asset to custodians — with legal binding, of course.

Which blockchain platform have you used for a tokenization system/product?

Our TokenD product is built on customized Stellar blockchain engine. We’ve chosen it because of its solid architecture, performance, multi-asset support, wide range of tools, and comprehensive customization possibilities.

Find the answers to other questions by watching the webinar.

In you have any questions left, or want to propose a topic for our next webinar — please send an email to blockchain@intellectsoft.net

For even more on blockchain tokenization:

• Download the book “Theory of tokenization”
• Download TokenD Technical Brief
• Get a consultation from Intellectsoft Blockchain Lab

The post Video — Enterprise Blockchain Tokenization: Expert Webinar with Q&A appeared first on Intellectsoft Blog.

Nevertheless, when you choose what blockchain company to hire, it’s always a challenge. First, you want to find a company that would cater to the needs of your business. Then, blockchain-related questions would start amounting: What platform and programming language to choose? Which of the modifications are crucial and which are optional? What’s of the highest priority for your blockchain solution — scale, speed, or multifunctionality?

xTo help you choose the right partner quicker, we have compiled a comprehensive list the best blockchain companies based on a number of criteria.

How Did We Pick The Best Blockchain Development Companies

We considered the following factors:

• • Years in the market

• • Size of the team

• • Geography and access to local pools of developers

• • Reference by customers, media, and other companies

• • Delivered solution and satisfied customers

• • Cost of the service

• • Expertise in and understanding of the market and business development

• Flexibility and variety of use cases

IBM Blockchain Enterprise Blockchain Solutions And Services

IBM has been a leader in bridging security gaps in the enterprises for decades. No wonder the corporation was among the first organizations to support the Hyperledger project, popularising the flexible blockchain network. IBM has also partnered with a number of businesses from other industries to experiment with distributed ledger technology (DLT) and build the new blockchain solutions that also leverage the Internet of Things (IoT).

One of the top blockchain companies, IBM envisions a fully transparent food system, identity security worldwide, and efficient financial management with tools. The corporation has sponsored and took part in many educational events related to blockchain, including Intellectsoft’s “Blockchain: Rethink Trust” conference in Amsterdam in June 2018.

Founded: 1911

Employees:  380,000+

Headquarters: Armonk, NY

Focus: Starter Services, Acceleration Services, Innovation Services

How to reach out: https://www.ibm.com/account/reg/us-en/signup

Intellectsoft Blockchain Lab: Delivering Blockchain Development Services With The Largest Pool Of Software Developers

As part of Intellectsoft Group, Intellectsoft Blockchain Lab has access to the biggest pool of blockchain engineering, cryptography, and cybersecurity talent in Eastern Europe. The lab’s expertise has already helped dozens of SMBs and enterprises including E&Y, London Stock Exchange, and many more.

The lab’s services include product vision and technical design workshop for startups, private and public blockchain development, smart contracts development and audit, and hybrid systems development. A top blockchain company, the Lab also assists enterprises with Proof of Concept vision and technical design workshops, establishing consortium networks, and integrating blockchain solutions with legacy infrastructures. The core technologies of the blockchain development company include Parity, EOS, and Stellar.

Founded: 2007

Employees: 350+

Headquarters: Palo Alto, CA

Focus: Blockchain Technology Consulting, Public and Private Blockchains Development, Distributed Applications (DApps), Blockchain and Cryptocurrency Forks

How to reach out: blockchain.intellectsoft.net

LeewayHertz Blockchain Development Company For Startups and Enterprises

LeewayHertz builds applications using a selection of emerging technologies, like IoT,  Augmented Reality (AR), and Artificial Intelligence (AI). Also providing mobile and web development services, this blockchain company has gathered an extensive portfolio. The company caters to startups and enterprises and has already applied blockchain in the following fields:

• • Healthcare

• • IoT

• • Aviation

• • Peer-to-peer lending

• • Insurance

• Legal industry

The range of distributed ledger solutions is also wide: the blockchain company offers services based on Hyperledger, Ethereum, and even Hedera Hashgraph (a directed acyclic graph, or DAG, solution).

As one of the top blockchain companies, LeewayHertz applies blockchain technology for data capturing, streamlining business processes, and enabling higher levels of privacy, automation, and usability.

Founded: 2007

Employees: 100+

Headquarters: San-Francisco, CA

Focus: Blockchain Development and Consulting Services, Hyperledger, Ethereum Development, Hedera Hashgraph, ICO Launch, Internet of Things, Augmented Reality

How to reach out: info@leewayhertz.com

Innovecs: the All-in-one Blockchain Software Development Outsourcing Company

Innovecs is a large Ukrainian multi-disciplinary software firm with blockchain expertise. Innovecs specializes in blockchain application development, distributed document management, money transfer solutions, loyalty programs, and enterprise cryptocurrency platforms. Innovecs caters to e-commerce, retail, high tech, and healthcare organizations. The best blockchain development company must obtain a deep domain knowledge, and this is exactly what Innovecs has managed to do over the years in various business verticals.

Their expertise extends to business intelligence and Big Data, AI, QA automation, hybrid apps, and DevOps. As blockchain solutions often require expertise in several other IT domains, this is another plus for Innovecs. Paired with the amount of available experts and their wide-ranging skill sets, Innovecs can be an option for large enterprises looking into big blockchain solutions and vast blockchain ecosystems.

Founded: 2011

Employees : 400+

Headquarters: Kyiv, Ukraine

Focus: Blockchain, Bl & Big Data, AI, QA

How to reach out: marketing@innovecs.com

Coinfabrik Blockchain Development Company

Coinfabrik has more than 20 years of experience in developing and reviewing security applications. Since the emergence of Bitcoin they have also been very active in the cryptocurrency space, designing new cryptocurrency protocols and discovering a large number of security vulnerabilities in blockchain technology. The services of this blockchain development company expand to assisting customers with defining product specifications, creating UI & UX designs, integrating applications, deploying hybrid cloud environment products, and providing QA services along with continuous support. The company offers a couple of core blockchain services, including smart contracts development and audit, as well as proof-of-existence (PoE) platforms, blockchain-based exchanges and wallets.

Why one may consider Coinfabrik as a blockchain company of choice? It has deep technical expertise in the blockchain development. The case studies of one of the best blockchain companies include a multi-cryptocurrency wallet, peer-to-peer loans project, anti-fraud system using Sig3 Multi-signature, and identity verification solution with smart contracts TrustStamp. The company also implemented merge-mining and the BIP-R10 Bitcoin improvement proposal with segregated witness support (segwit). All of this makes Coinfabrik a top blockchain development company with a solid knowledge of and experience in the field.

Founded: 2014

Employees : 20+

Headquarters: Buenos Aires, Argentina

Foсus: Smart Contract Development, Smart Contract Audit, Loan Data Sharing, Exchanges and Wallets, Proof-of-Existence (PoE)

How to reach out: https://www.coinfabrik.com  

Empirica Fintech and Blockchain Software Development Company

Believing that blockchain is becoming an important part of the financial transactions infrastructure, Empirica has delivered a large number of FinTech projects, fully embracing software development of distributed systems based on blockchain. The Empirica software solutions range from a cryptocurrency algorithmic trading platform to crypto asset management to ICO investor portal. This blockchain company also uses the technology for arbitrage, and other trading applications of cryptocurrencies.

The company’s services include blockchain systems development, like multi-signature wallets and exchanges, ICO services if a client is planning to raise money by issuing tokens, and smart contracts on Ethereum. Empirica software is one of the few blockchain companies that addresses a wide spectrum of financial categories where blockchain technology can be used, including trade finance, loans, equity post-trade processing, peer-to-peer (P2P) systems, automated compliance auditing, and more.

Founded: 2009

Employees: 40+

Headquarters: Wroclaw, Poland

Focus: Smart Contracts, Exchanges and Wallets, Cryptocurrency Development

How to reach out: michal.rozanski@empirica-software.com

Microsoft Steps In As A Blockchain Development Company

Microsoft is another IT giant that addув its name to the line “top blockchain development company.” Given their widely used cloud computing solution Azure, this step is logical. Microsoft blockchain offering is a combination of several frameworks:

• • Corda

• • Ethereum

• Hyperledger Fabric

By combining these tools, the blockchain company can offer its clients a distributed ledger platform to deploy a multi-participant, multi-node network — with a network map, notaries, and peers. Microsoft Azure also allows for arranging a variety of network topologies in minutes while managing nodes with cross-region deployments, monitoring, and virtual machine scale sets. It can also establish services for membership, ordering, and validating peers.

The management behind this leading-edge blockchain development company believes that blockchain should primarily enable IoT-driven asset monitoring. Examples include multi-party blockchain networks for supply chains in the food and pharmaceuticals industries. Microsoft offers this and other solutions to large enterprises to introduce higher safety, automation, and efficiency — all in a distributed cloud.

Founded: 1975

Employees: 131,000+  

Headquarters:  Redmond, WA

Focus: Distributed Multi-Model Database, Blockchain Workbench, Supply Chains

How to reach out : https://azure.microsoft.com/en-us/overview/sales-number/

Ciklum: Empowering Collaboration And Blockchain Development Services

Ciklum is an innovative IT outsourcing company that specializes in nearshore software development in Eastern Europe, particularly in Ukraine and Belarus. According to the Washington-based consulting company Clutch, blockchain development represents only two percent of their overall services. On the other hand, Ciklum’s business model relies on the company’s immense expertise in software development. In addition to providing knowledge-sharing activities to clients, Ciklum has its own R&D lab to foster an efficient working environment. This makes it one of the top blockchain development companies.

Founded: 2002

Employees: 3000+

Headquarters: Kyiv, Ukraine

Focus: Smart Contracts, Supply Chains

Contact: ciklum@ciklum.com

Infosys Reimagines Itself As A Blockchain Development Company

Infosys is a global leader in consulting, developing, and outsourcing emerging technology services. The company has been deploying software solutions for its clients in more than fifty countries for almost four decades. Given the company’s far-reaching engineer base and long-standing technological expertise, embracing blockchain was a logical step for Infosys. Second, Infosys recognizes the importance of building solid client relationships. With over 100 development offices, this top blockchain company can afford blockchain R&D centers and incubators for research, assessment, and prototyping.

This top blockchain development company stands on three pillars. Infosys accelerates the realization of a project concept with a pre-built blockchain platform and further supports it. The firm achieves advanced interoperability and allows for high-level security and privacy of shared data, consensus management, data exchange standardization, as well as the re-alignment of business processes among the network participants. The company has developed proofs of concept for Energy, Communications, Corporate Bonds, Cross-Border Payments, Global Remittance, P2P Payments, Health Records and Pharma, Airplane damage tracking IP, Supply Chain Transparency, and more.

Founded: 1981

Employees: 187,000+

Headquarters: Bengaluru, India

Focus: Blockchain Incubation as a Service, Technology Advisory, Blockchain Consulting, Blockchain Development, Integration and Testing Services

How to reach out: askus@infosys.com

BR Softech: Blockchain Development Services

BR Softech is an award-winning web, mobile, and game apps development company with offices in USA, Canada, Australia, and India. This blockchain development company has a comprehensive intelligence system across various industries and domains and is dedicated to offering the skills needed for a particular IT solution, including shared ledger solutions. BR Softech relies on the excellence in project management, instantaneous 24/7 customer support, and focus on customer demands. The company has made it a priority to deliver the most complicated and advanced web and mobile solutions to satisfy clients around the globe.

In terms of blockchain development, this company devotes only a fraction of the resources to it. BR Softech focuses on Hyperledger Fabric and its modifications. Therefore, by consulting with BR Softech blockchain company and ordering a software development service form them, one receives a clear set of technical specifications for the project, along with the opportunities and limitations of the technology.

Founded: 2010

Employees : 180+  

Headquarters: Jaipur, India

Focus: Hyperledger, Blockchain Development, Cryptocurrency Development, Bitcoin Mining Development

How to reach out: nitin@brsoftech.com  

MLG Blockchain Development And Consulting Company

MLG blockchain company provides a turn-key approach to an information technology outsourcing (ITO) and helps companies streamline the process of hiring experts. What’s the company’s focus? First, MLG blockchain development company provides security audit of smart contracts. Then, this blockchain company can also help with SAFT investment agreements, ITO Liquidation, and general capital management.

MLG blockchain development company can also deliver a token-curated registry (TCR) and support a company’s token marketing and bounty campaign. Apart from that, a company can turn to MLG for accounting and consulting, strategic planning services, and executive blockchain training.

Founded: unspecified

Employees: 30+

Headquarters: Toronto, Canada

Focus: Blockchain Consulting, Token, Development, Token Marketing, Token Distribution, Blockchain Capital

How to reach out: hello@mlgblockchain.com

How To Choose Your Partner Among The Best Blockchain Companies?

Ultimately, our list of top blockchain companies of 2019 is not definitive. Despite its evolution and increasing adoption across industries, blockchain is a relatively young technology. There might be more reliable firms that can be regarded to as the best blockchain companies that didn’t gain traction yet.  

Finding your blockchain partner is similar to finding a reliable partner for any other project: make an initial research, ask as many questions as you need, expect your potential partner to answer abundantly and be curious about your blockchain plans, and ask them to tell about their projects in detail. Your potential partner will consider whether your business needs blockchain at all, too. Look carefully: in an field still full of hype, finding the right partner takes time and effort, more so if you plan that blockchain will be a big gear in your business.

If you can’t postpone your blockchain solution any longer, get in touch with the experts of Intellectsoft Blockchain Lab.

The post Top Blockchain Development Companies 2019: Where You Can Hire Top Blockchain Developers appeared first on Intellectsoft Blog.

Intellectsoft took a pivotal part in the expo. It was the first event our recently announced Blockchain Lab took part in, and the first time we shared our massive blockchain project in detail — our Board Director Michael Minkevich delivered the keynote.

Nick Kurat, Director of the Lab, answered questions and discussed all things blockchain with the attendees, sharing the expertise from the impactful blockchain solutions we delivered over the last two years. Joining him was Tim Kozak, Head of Technology at the Lab, who also delivered a talk about the history of blockchain.

Meanwhile, the event had many highlights, from extensive blockchain solution showcase from Porsche — to numerous compelling panels that discussed blockchain implementation across industries.

Read the story of the two-day expo in our post-event coverage.

Day 1 — The History of Blockchain Unfolding Before Us

Though a lot of people consider that blockchain is still in its young years, the progress the technology has made since 2015 is nothing but astonishing. From recounting the history to numerous use cases to panels that were rooted in reality, Day 1 of Blockchain Expo put the cryptocurrency talk aside to show how much has been achieved in the blockchain world.

This was the main aim of the keynote by Tim Kozak, Head of Technology at Intellectsoft Blockchain Lab. His “Witnessing the Evolution of Blockchain” keynote speech brought to attention a number of facts that are easily lost in the overwhelming blockchain hype: bitcoin was only worth $220 in 2015, and that it has been only three years since Ethereum, Hyperledger, R3 consortium, and Lightning Network have seen the light of the digital day.

Tim also stated that the last three years were immensely challenging for blockchain as a technology. First, it has prompted a massive technological shift in a rapidly changing environment. Second, educational info, documentation, tools, and blockchain specialists were scarce. Nevertheless, in less than three years, the world has seen the first blockchain technology uses cases. These were not small scale projects: companies like EY, Maersk, and Comcast have already used the immense benefits of blockchain technology, coming in conjoint usage of smart contract code and IoT in a single, meticulously developed software platform. Terms like “sidechain” will not leave the territory of the blockchain world anytime soon, but other, for example DLT (Distributed Ledger Technology), are becoming increasingly common.

Tim also mentioned that governments and businesses around the world gradually grapple with the first wave of blockchain laws. He also stated that there are significantly more opportunities for blockchain-related education and talent development today than it was half a year ago.

Finally, the fact that blockchain is quickly going from oddity to basic technology was also emphasised by the blockchain expo itself, with an enormous number of attendees from different countries and industries gathering to network and discuss how the technology will reshape the enterprise, and the world.

Kozak’s keynote was partly based on the book he co-wrote. It covers the history of blockchain technology, cryptocurrency, existing blockchain solutions (including the Estonian blockchain based governmental services), as well as the future of blockchain solutions for business. You can download it for free.

Tim Kozak (upper row, in the middle) and other leading experts of Intellectsoft Blockchain Lab hold a discussion with the guests of our booth

Meanwhile, Tim Kozak’s talk was preceded by a keynote from Eileen Lowry, Global Program Director, IBM Blockchain Garage. She shared Garage’s first projects early on, establishing that the expo will be more about blockchain’s high potential than confounding hype. Lowry urged to dream big with blockchain technology solutions, and use them to change the future; to always consider business value at the start of a blockchain project; and to approach blockchain like a team sport, that is to actively make connections.

Blockchain Expo Provides Concrete Cases

The event continued with an extensive keynote on the food supply chain of the future from Vincent Doumeizel, Vice President Food & Sustainability, Lloyd’s Register. The keynote made it evident that the promise of blockchain solutions can help the humanity face the future challenges in the food industry (population growth, food fraud, and other) as well as address key customer demands — healthy food, fair trade, animal welfare, social responsibility, food security. What is more, a blockchain platform would protect the food system from bioterrorism. Making a solid case, Vincent Doumeizel argued that the current blockchain hype should be followed by the hope that emerging technologies can make the world a better place — citing positive statistics on how significantly the poverty level has dropped in the last two hundred years.

Earlier in the day, Yan Li, CEO, GXS Foundation Ltd, delivered a compelling talk on building data economy ecosystems that give the users full control of their data and its monetization. Such a system relies on three cornerstone components — users, a mobile application (more specifically a decentralized application, or DApp), and a data exchange platform. According to Li, a well-built blockchain platform with these underlying elements will allow to address current key challenges: invasion of privacy, no incentive scheme for a data owner to share their data, no copyright protection. Finally, Yan Li shared two blockchain development solutions from China, one of which is a blockchain city in a decentralized blockchain app, on its own blockchain platform.

Another impressive keynote came from Porsche. The legendary vehicle-maker has been embracing the latest tech decisively and profusely, including blockchain. The company has been developing a blockchain ecosystem with vehicles and user privacy at its heart. Porsche aims to establish a blockchain solution with a decentralized autonomous organization (DAO), tokens, and Ethereum-based smart contracts — to elevate the smart car concept to the the highest point possible. Apart from the high level of privacy offered by blockchain solutions, Porsche drivers will enjoy easier access to car services, control over their data, and over the car in general. For example, Porsche’s blockchain solution will allow drivers to give access to their trunk, so that a delivery service employee can put the parcel into it; share their car on blockchain with friends, colleagues, and family members; charge the car; and other. Although the project is in early stages, the scale is ambitious; it seems Porsche is concrete about using the potential of blockchain to the fullest.

Towards the end of Day 1, there also was a lively discussion on the “Blockchain in the Healthcare System” panel. Moderated by Tina Woods from Collider Health, and with Stewart Southey from NHS, the participants discussed moving patient data within the blockchain, the importance of patient privacy and security in data sharing, as well as automated patient consent. The healthcare industry will be among the first to reap immense benefits of blockchain technology.

Nick Kurat (left) answers the questions of our booth’s guests

Going back to Intellectsoft, our leading experts had been answering questions all day long. Tim Kozak and Nick Kurat, director of the Lab, were busy sharing the experience, answering questions, and holding blockchain discussions with the guests of our booth. Still, the most anticipated event was scheduled for Day 2: Intellectsoft’s Board Director Michael Minkevich would share the details of our massive blockchain project in detail for the first time.

Day 2 — Fruitful Discussions About Blockchain Technologies

Michael Minkevich’s keynote was dedicated to our ambitious blockchain project — a multi-category ecommerce platform based on digital tokens.

Michael started off with providing a long list of challenges of the traditional ecommerce that blockchain solutions similar to ours can solve, including high commissions, low customer engagement, security risks, and obscure matching and ranking models. Then, Michael named the fundamentals of our platform that helped provide the solutions to these problems: the decision to use a private blockchain as a backbone; easy access for merchants; ensuring there is no fiat money inside the platform; establishing a platform-wide loyalty program based on digital tokens; white-label solutions for larger merchants and brands; and more.

After this, Michael dived deeper — sharing details about how the blockchain platform’s merchant ecosystem works, its token economy, and the platform architecture, adding the statistics on the steady and consistent growth of customers, merchants, and orders along the way.

Finally, Michael shared the history of the blockchain platform, pinpointing the advantages and challenges of building the two previous versions. A slide about the current version followed, and Michael made the last clicks of the remote, preparing to answer the questions of the visitors of Blockchain Expo 2018.

Blockchain Platform as a Foundation for Business

The second day had many memorable moments, coming in exciting and diverse panels whose experts discussed blockchain usage in a number of industries.

The first prominent panel of Day 2 of Blockchain Expo 2018 was “Blockchain for Manufacturing,” which had Neil Marshall, Global Director, Quality & Food Safety at The Coca-Cola Company, among its participants. The experts started off with discussing the general applications of blockchain in manufacturing. They got to details quickly, conversing about how the technology could help in supply chain visibility, anti-counterfeiting, and airworthiness certificate tracking. The experts also brought to attention the higher level of efficiency and better cost optimisation with blockchain as a platform and blockchain solutions in general, concluding with thoughts on how the technology will influence the future of the industry.

The next panel was dedicated to blockchain solutions for business in the property market. Experts from Juniper Research and The Bitfury Group set forth how blockchain can be used to follow the entire transaction history of property, and the benefits of the technology in this case. As the panel continued, it quickly became clear that blockchain is the means that will significantly elevate the property industry. This includes immediate transactions with smart contracts from anywhere in the world, reduced fraud risks, more secure digital databases and identifications — the industry could leverage all the tools offered by the technology, in one platform.

Meanwhile, Day 2 also raised the crucial question of current blockchain regulation. A panel of experts discussed the development of standards for interoperable blockchain technology solutions; whether regulations need to adjust the classification of cryptocurrencies and address taxation, money laundering and security; examined the challenges of deploying blockchain solutions for business. To briefly sum it up, the majority of countries want to heavily regulate cryptocurrency, but not the blockchain technology. You can also read our extensive summary on the current state of blockchain regulation.

Continuing on the subject of blockchain and finance,  Oliver Volk, Allianz Blockchain Expert and Keynote Speaker at Allianz Re, moderated a panel dedicated to the insurance industry. The experts concluded that blockchain platforms can help drive innovation in insurance business by making it more effective in fraud detection, pricing, and lowering administrative costs; by improving customer engagement and allowing for more cost-efficient offerings on emerging markets; as well as by helping address the many trends of digitalisation in mature markets. The paired power of blockchain and IoT in one platform was also brought to attention of the attendees.

Taking Care of User Experience in Blockchain Solutions

As Blockchain Expo 2018 was coming to a close, Chris Tse from Cardstack gave his “Humanizing the Blockchain” keynote, which primary dealt with the importance of UX in blockchain technology solutions.

Dedicating a separate keynote to the subject was essential. With strong hype, the speed with which blockchain technologies evolve, and the increasingly competitive blockchain market, it is important to remember that users come first. Tse argued that, in 2018, the best interfaces still needed improvement — to offer a consistent and cohesive experience, and deliver on the promise of control of digital living.

This is especially important if the blockchain community really sees the technology as a massive force for change that would eventually reach mass adoption. In other words, when the talks about what cryptocurrencies to watch come to an end and blockchain becomes part of our daily lives, the developers need to ensure that blockchain technologies are almost as easy to use as current online stores, digital payments, or even coffee makers. Tse raised important questions: How can we design solid DApps and deliver on the promise of decentralization in full? What conceptual obstacles in users’ minds developers need to overcome to built such an app? Could we go beyond even the most bold solutions discussed at any blockchain technology conference? Tse’s talk proved to be exciting, gripping, and thought-provoking.

Meanwhile, Blockchain Expo 2018 was coming to a close. The evening speakers made the last clicks on their remotes and prepared to answer the final questions of the event, while attendees were still holding blockchain discussions here and there. In an hour or so, Blockchain Expo 2018 will be over, with Olympia hall empty, waiting for the next conference full of daring minds and decisive entrepreneurs.

Indeed, this year’s attendees of Blockchain Expo held talks on topics like the difference between cryptocurrencies. Still, the event has shown that the immense potential of blockchain technology is steadily emerging from the hype as a technological force to positively change the enterprise, and the world.

If you missed Blockchain Expo, join our Blockchain: Rethink Trust conference that will take place in Amsterdam in June. The event will be focused exclusively on business use cases of blockchain. Learn more at https://rethinktrust.org/

If your blockchain solution can’t wait any longer — get in touch with us. We have already delivered several impactful blockchain solutions to our clients.

The post Less Bitcoin, More Business Value: Blockchain Expo in London appeared first on Intellectsoft Blog.

Blockchain Regulation — Always the Long Road

Bitcoin has remained in the shadow for several years since its release in 2009, which is a long time for our fast-paced world that quickly embraces new technology.

According to blockchain advocate Andreas Antonopoulos, people met cars, cellphones, and internet with the same level of suspicion as bitcoin and blockchain. Before a revolutionary technology reaches widespread adoption, a lot of people predict its downfall, while governments introduce wide-ranging regulation. Such technologies are perceived as unfitting in the first place, with many branding them too slow or too complex.

Still, if a technology holds immense potential, the adoption will continue. Blockchain is currently in the middle of this process. Now, let’s look at the adoption timeline of blockchain and how governments around the globe made their first steps in regulating the technology.

Blockchain Technology Regulation — The Timeline

The term “blockchain” was first used in the fall of 2015. In the following year, the craze over this new concept of storing data in a secure and immune way, as well as Bitcoin cryptocurrency it provides the foundation for, spread across the globe with initial coin offerings (ICOs), an issuance of virtual tokens for the primary investment. ICOs gave way to the companies of a new breed: they avoided a traditional venture capital and promised to disrupt every industry with blockchain technology.

Notably, programmable money was the first application of blockchain, with projects like Monero and Litecoin following the steps of Bitcoin. The immense hype accelerated the growth of cryptocurrencies’ value and increased the number of people investing in them. In 2017 alone new and experienced cryptocurrency investors spent over $6 billion on ICOs, not taking into account billions of dollars invested in purchasing more bitcoin, ethereum, and other decentralized currencies. The popularity of ICOs has also led to the proliferation of illegal financial activities known as “pump-and-dumps”.

Consequently, China and a few other countries banned ICOs in 2017. Regulatory meetings happened very often, and governments started issuing new laws with similar regularity.

This has led to creation of BitLegal — an online map that tracks the constantly evolving regulatory landscape of cryptographic assets and distributed ledger technology (DLT), as well as reflects how governments around the world regulate cryptocurrencies and blockchain technology.

Now, let’s start reviewing blockchain regulation across the world in depth. Concurrently, it is important to understand that, in most cases, only one particular blockchain application captured the attention of lawmakers — blockchain in finance.

Regulation of Cryptocurrency Around the World

Whereas the global community is seeking consensus on cryptocurrency regulation, the national governments are making their own maneuvers, and it is important to understand the intentions behind them.

For instance, small countries like Gibraltar, Bermuda, and Lichtenstein are all seeking to attract new capital and become crypto-friendly as a result. The Republic of Marshall Islands and Venezuela even issue their own tokens to oppose external financial influence.

According to Edward Snowden, the National Security Agency (NSA) of the US had been extensively tracking Bitcoin users for years. Allegedly, this was carried out to prevent money laundering and counter terrorism financing with ICOs. Meanwhile, the US government has equated this type of fundraising to IPO in the majority of cases. The country also looks into developing procedures and licensing for blockchain-related instruments. As blockchain technology regulation is an ongoing process worldwide, it is more convenient to stay updated with corresponding resources.

On March 20, 2018, G20 countries gathered in Buenos Aires to discuss the possible regulation of cryptocurrency. Argentina, Australia, Turkey, South Africa, and the United Kingdom proclaimed that they decided not to regulate cryptocurrencies. Mark Carney, the head of The Bank of England, was a chairman of G20’s Financial Stability Board and mentioned that “cryptoassets do not pose risks to global financial stability at this time,” citing the relatively small capitalization of the market.

On the other hand, Russia is drafting a bill that will allow the registration of cryptocurrency exchanges only on official government websites. This June, G20 members will meet again to share “very specific recommendations on not what to regulate but what data they need for this,” as CoinDesk reported.

Authorities in Indonesia have ruled out the usage of cryptocurrencies. Indonesia Central Bank insisted that Indonesian rupiah is the only currency permitted for transactions inside the country, referring to the country’s currency act.

Meanwhile, Saudi Arabia is working on establishing legal norms for blockchain technology implementation without prohibiting cryptocurrencies. The country cooperated with the UAE on a pilot project to explore cross-border digital currency payments on blockchain. In October 2017, the Saudi Arabian Islamic Development Bank ordered its researchers to develop blockchain-based products.

Some Italian banks are considering to issue their own cryptocurrency, while the government wants to determine the number of commercial companies accepting payments in cryptocurrency.

France warns its citizens of risks associated with the new class of digital assets and prepares a law on ICOs and cryptocurrencies.

South Korea is against anonymous transactions and currently develops a tax law, whereas Japan and Germany acknowledged bitcoin as an eligible currency and have taxed it, too.

Finally, India prohibits cryptocurrency payments, considering them illegal. Brazil prohibits investing in bitcoin as well.

Blockchain Government Regulation

As mentioned earlier, the regulations are mostly limited to cryptocurrencies and ICOs. While blockchain is still in its infancy, governments around the world recognize the value of distributed ledger technology.

Switzerland has been among the pioneers in the blockchain field. One of its cities — Zug — hosts several blockchain startups and offers a flexible taxation and solid legislative protection to the companies of the blockchain breed.

Canada is another example of how regulators can embrace the technology. Recently, the Canadian government allowed to issue an ETF for blockchain technologies, which can now be traded on the Toronto Stock Exchange. Apart from that, the National Research Council (NRC) of Canada utilizes blockchain technology to better track and publish information about grant funding.

China might see to be harsh “on the current blockchain hype [which] is focusing on fundraising and speculation,” says Hu Danqing, a technology product specialist from Alibaba, in an interview. Still, the country’s officials believe that the blockchain technology can solve real-world problems.

Similarly, the United States, the UK, Singapore and Japan do not intend to scare away the blockchain industry professionals, admitting the need for proper blockchain regulation.

During the hearing in the US on February 6, 2018, the Securities and Exchange Commission (SEC) chairman Jay Clayton and the Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo spoke before the Senate Banking Committee on the topic of virtual currencies. They recognized the numerous ways of blockchain implementation across dozens of industries, from finance to health and to media, and even said that “there could be no blockchain without bitcoin.”

The EthNews summarized the hearing’s with most important statements. For instance, both commissioners agree there is no systematic risk coming from cryptocurrencies, since their market capitalization remains a small part of the global economy. The officials also admitted they lacked economists in the blockchain field and that blockchain regulation on the state level is still chaotic. Thus, a solution to the current status quo, as well as blockchain implementation in the government sector, are welcomed. Marco Santori of Cooley once emphasized that blockchain and cryptocurrency regulation depends on the applications of the technology.

Blockchain Government Regulation — European Blockchain Partnership

In a standout announcement, 22 European countries have recently signed a Declaration on establishment of a European Blockchain Partnership. The partnership “will be a vehicle for cooperation amongst Member States to exchange experience and expertise in technical and regulatory fields and prepare for the launch of EU-wide blockchain applications across the Digital Single Market for the benefit of the public and private sectors.” The partnership will also ensure that Europe “continues to play a leading role in the development and roll-out of blockchain technologies.”

In 2018, The European Commission also launched the EU Blockchain Observatory and Forum, investing over €80 million in blockchain projects that support the use of blockchain in technical and societal areas, with €300 million more to be allocated to blockchain implementation by 2020.

Courtesy of Digital Single Market

List of countries who signed the Declaration includes UK, Norway, Germany, France, Finland, Portugal, Poland, Austria, Belgium, Bulgaria, Czech Republic, Estonia, Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Slovakia, Slovenia, Spain, Sweden.

Mariya Gabriel, Commissioner for Digital Economy and Society, welcomed the signature of the Declaration, stating the following: “In the future, all public services will use blockchain technology. Blockchain is a great opportunity for Europe and Member States to rethink their information systems, to promote user trust and the protection of personal data, to help create new business opportunities and to establish new areas of leadership, benefiting citizens, public services and companies.”

Conclusion — Future of Blockchain Regulation

Blockchain technology implementation and regulation poses minimal to no danger to businesses wanting to embrace the technology, while we still have to see what the future holds for the global adoption of cryptocurrencies and ICOs. Furthermore, Western governments encourage blockchain implementation in public services and welcome the usage of technology in the corporate sector.

Need a solid blockchain solution that complies with the laws of the country your business operates in? Get in touch with Intellectsoft. We have already completed several blockchain projects for our clients.

The post Blockchain Regulation: Technology Is Welcomed, Cryptocurrency Regulated appeared first on Intellectsoft Blog.

Joining the keynote speakers from companies like Coca-Cola, IBM, and PWS, are our top-level executives and leading blockchain experts.

Michael Minkevich, Board Director at Intellectsoft, will share a case study about the development of a multi-product eCommerce platform based on digital tokens and a shared blockchain during ‘’Transforming Financial Services” session at 16:00 PM on Day 2.

Tim Kozak, Head of Technology at Intellectsoft Blockchain Lab, will be at “Developing Blockchain Applications” session at 12:20 PM on Day 1 — to tell the attendees about the evolution of blockchain.

Blockchain Expo is a series of top-level keynotes, interactive panel discussions, and case studies with a focus on learning and building partnerships in the emerging and highly dynamic blockchain space.

Join Intellectsoft at the booth #38 to discuss how emerging technologies disrupt traditional businesses, as well as learn more about how to get access to the extensive expertise and big pool of engineering, cryptography, and cybersecurity talent at Intellectsoft Blockchain Lab.

Discover all the capabilities of our Blockchain Lab.

The post Intellectsoft, Established Experts in Niche Tech, to Showcase at the World’s Largest Blockchain Event appeared first on Intellectsoft Blog.

In 2017, the word “blockchain” was mostly associated with cryptocurrencies. Many people gaped at everyday Bitcoin price leaps, even if they did not invest in it. Established media started to write abundantly about initial coin offerings, cryptocurrency farms, and the Ethereum Project. Famous people from the tech and entertainment businesses joined the conversation about Bitcoin and made investments into the most promising cryptocurrencies. More and more people found out what Monero is. In one year, decentralized virtual money have travelled a path from a vague tech term to worldwide phenomena.

Concurrently, the backbone of cryptocurrencies — blockchain — also got more traction, and for a good reason. The technology offers the highest level of security and automation available to date to enterprises in any industry. For example J. P. Morgan has built a blockchain-based mobile payments system, while Maersk and EY have built a marine insurance platform that automates the insurance process with blockchain-based smart contracts. Comcast, Disney, and other big companies across industries have extended the list of blockchain platforms that bring business value.

Cryptocurrencies and blockchain platforms are transforming the world as we know it. But where did it all start? And, more importantly, what is the next step in blockchain technology adoption?

First Generation — Cryptocurrencies

The subprime mortgage crisis of 2008 was a devastating event for the world economy. In the book “Cryptoassets,” Chris Burniske and Jack Tatar argue that the lack of a transparency and immutability of complex financial instruments were the reasons the crisis occured in the first place.

To prevent a similar event from happening again, an individual (or group of individuals) under the alias of Satoshi Nakamoto have shortly, in 2009, created a decentralized virtual currency called Bitcoin. The backbone of Bitcoin — blockchain — has allowed for the seeked level of transparency and immutability, as well as eliminated the middleman (a bank, a government, a financial institution) from the payment process.

Serving as a new payment medium was the only purpose of Bitcoin at the time. The publicly verifiable virtual money gradually gained popularity among IT enthusiasts and the Dark Web users. Soon, the media began to refer to Bitcoin as  “the first cryptocurrency.” As Bitcoin continued to gain traction worldwide, new cryptocurrencies started to emerge.

Eventually, the IT enthusiasts helped to engage a broader audience with cryptographic money.

Although the benefits of cryptocurrencies began and ended on providing a secure payment method fit for the tech-savvy times and the demands of modern users, the list of cryptocurrencies has been growing steadily. People chose to mine and invest in new decentralized money that mimicked Bitcoin. Other chose alternatives like Monero, which provides a higher level of anonymity than other platforms.

Second Generation — Blockchain Platforms with Smart Contracts

The success of cryptocurrencies brought together IT intellectuals to review the potential of the distributed ledger technology (DLT). Vitalik Buterin proposed a wider use of blockchain — smart contracts. Computer code on blockchain that automatically executes and enforces a set of actions and involves Bitcoin like tokens, the concept of a smart contract became the basis for Buterin’s blockchain platform name Ethereum. If Bitcoin was a monetary revolution, Ethereum revolutionized and decentralized the Internet, resulting in the rise of decentralized apps (DApps), decentralized autonomous organizations (DAOs), and the development of new platforms with blockchain smart contracts.

Consequently, developers across the world soon joined the new technological revolution, using Ethereum to launch their own tokens and raise money from the public with initial coin offerings, which provided an alternative means to raise venture capital. NEO, NEM and other blockchain platforms joined the cohort of the new wave of second-generation blockchains, letting developers create new projects on top of them, as well as launch blockchain-based businesses and organize decentralized governance.

The Third Generation — Scalable, Interoperable Ecosystems

The third blockchain generation is currently in its infancy. Projects that aspire to meet the requirements of this category invision global applications of everything blockchain technology has to offer. These will be enormous blockchain platforms that automate organizational structures like cities, every organizational body in them blockchain-based and connected to other bodies.

This mega-blockchain will strive to satisfy the following requirements:

1. Blockchain onboarding of the general public.
2. Seamless integration with existing blockchains.
3. Removing scale and speed limits.

Improbable only a few years ago, the technology was already described in white papers of Cardano and TON. In 2019-2020, we will witness a blockchain of blockchains, with million transactions per second, as well as the tokenization of many businesses across the majority of industries. These enormous blockchain platforms will bring in new levels decentralization and data accessibility, as well as new waves of technological disruption.

Ten years passed since the inception of Bitcoin. Although this might seem like a long time in our fast-paced world, the opposite is true. Given the novelty and complexity of blockchain technology and cryptocurrencies, they have made a tremendous leap in terms of innovation and adoption in ten years time. And very soon, blockchain will make one more leap, from fractional adoption — to everyday omnipresence.

If you want to realise your blockchain ideas — get in touch with us. We have already helped our clients with impactful blockchain-based software.

The post Blockchain Generations: Cryptocurrencies, Blockchain Platforms, Decentralized World appeared first on Intellectsoft Blog.

From J. P. Morgan to Walmart to Maersk, big businesses have started implementing blockchain solutions. They leverage blockchain’s promise of security, transparency, and smart automation to improve the client experience, prevent fraud, optimise the supply chain, and more.

We have gathered an array of enterprise blockchain examples in FinTech, retail, ecommerce, and advertising to illustrate how the “next Internet” began changing the business.

Take a look below.  

Blockchain in FinTech

J.P. Morgan and mobile payments

The financial services company has created a vast blockchain-based mobile payments network — the Interbank Information Network. The Royal Bank of Canada and Australia and New Zealand Banking Group Ltd. have already joined the INN.

Blockchain impact

The network removes a number of participants from the payment process. This allows to decrease the costs required to deal with payment delays, as well as the delay itself — from weeks to hours. With blockchain, J. P. Morgan is planning to significantly improve the client experience.

“Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks,” says Emma Loftus, Head of Global Payments and FX at J.P. Morgan Treasury Services.

Blockchain Capital and fundraising

Launched in 2013, Blockchain Capital was the first VC firm dedicated to investing into blockchain technology. Later on, the fund issued an initial coin offering (ICO, the blockchain alternative to IPO), selling their own digital token to raise money for their latest venture fund.

Blockchain impact

Blockchain capital has thirty six active investments at the moment and ten exits. Digital tokens are a particularly liquid VC investment, as they are easily resold. This and the promise of blockchain security alone make ICOs the new way to raise big funds. In 2015 and 2016, seventy five entities raised over $250 million through ICOs. In 2017, a staggering $1.3 billion was raised through coin offerings by the beginning of August.

EY, Microsoft, Maersk, and insurance

The three industry-leading companies have joined forces to create a blockchain-based marine insurance platform, which will be released in 2018.

Blockchain impact

The platform will improve the efficiency of marine shipping operations by automating the insurance process with smart contracts. It will also introduce a higher level of security and transparency. From shipping companies to brokers and from insurers to suppliers—all the participants of the insurance process will be able to see each others’ actions on the blockchain. More so, the blockchain database can be integrated into insurance contracts.

Blockchain in Supply Chain Management

Everledger and fraud prevention in supply chains

The company uses blockchain smart contracts to help track the provenance of luxury items from the place of origin to the buyer by items’ serial numbers (which are linked to the item’s attributes).

Blockchain impact

Smart contracts prevent fraud in the supply chain. In Everledger’s case, all the participants of the deal — banks, insurers, open market places, and stand-alone consumers — can track the authenticity of a luxury item on the blockchain (and whether it was obtained through reputable means). For example, a diamond can be traced from a mine to the client in the luxury store.

Walmart and supply chain optimisation

Walmart is testing smart contracts for the Chinese market to track pork movement within the supply chain.

Blockchain impact

As pork often goes bad, blockchain smart contracts will help Walmart to target recalls and reduce food waste. Additionally, the smart contracts will introduce transactional transparency to suppliers and farmers.

Alex-Paul Manders, Technology Business Management practice lead at Information Services Group, predicts that Amazon will shortly begin using smart contracts for food products tracking in their chains, as the competition between Amazon and Walmart continues to grow.

Blockchain in Advertising

Comcast and more effective advertising

Comcast leads a group of top TV companies (including Disney and NBCUniversal) in an effort to bring blockchain into advertising and premium TV. Their “Blockchain Insights Platform” will be released in 2018.

Blockchain impact

With the blockchain platform, programmers and advertisers can do the following:

• Match data sets more effectively to build and execute more complex media plans.
• Target all users groups more precisely and effectively.
• Discover new revenue streams from resulting data insights.
• All involved parties keep their business and user data private.

Blockchain in Ecommerce

OpenBazaar and decentralised ecommerce

Built on top of Bitcoin blockchain, OpenBazaar is a peer-to-peer online marketplace. Customers can pay for a wide variety of goods (as well as short-term rental services) in over fifty currencies. In turn, the sellers get the payments in Bitcoin.

Blockchain impact

The trade is secure, private, and there are no fees for either side.

Final Thoughts

We did not include a number of companies, as they are only exploring how blockchain will improve their operations, Cisco among them. More so, a lot of companies build private blockchains on top of Bitcoin, Ethereum, and other blockchain networks.

Add the examples above, and the lie of the land becomes clear. Next year will be the year of full-scale enterprise blockchains — the start of a more secure, transparent, and more efficient enterprise.

Intellectsoft creates comprehensive enterprise blockchain solutions. If your business can’t afford to postpone your blockchain project any longer, get in touch with us.

The post How Big Enterprises Use Blockchain appeared first on Intellectsoft Blog.

After examining blockchain technology and Bitcoin blockchain, we tackle another important topic connected to blockchain — smart contracts.

In this post, we give our definition of smart contracts, go through their functions and benefits, and describe various usage cases.

What Are Smart Contracts

A smart contract is computer program code on a blockchain that executes and enforces a set of actions the involved parties agreed upon.

To get the full picture, let’s turn to an example on a blockchain marketplace straight away.

A trader finds a buyer for one of their items. Now, the trader and buyer sign a smart contract with the following logic encoded into it: as soon as the buyer receives their item, their payment is automatically transferred to the trader. Neither of the sides has to do anything: the process is fully automated with code. They just agree upon the terms and put their digital signatures on the smart contract. Other nuances can also be coded into a smart contract. For example, if an item arrives damaged, the trader receives only a part of the sum.  

Consequently, if a standard legal contract would include terms of relations enforced by law, a blockchain-based smart contract enforces the relations between all involved parties with cryptographic code.

Unlike a legal contract, a smart contract doesn’t have legal power. Instead it relies on blockchain technology:

• Smart contracts are stored on a blockchain and visible to every node, like a blockchain block. As blockchain is an append-only database (blocks cannot be deleted, only added), all agreements are always open to audit.
• If someone decides to change the contents of a contract, everyone on a blockchain will see it.
• When a smart contract executes an operation encoded into it (for example, transfers the payment), this information is updated to every party. As a result, every party can follow the process of contract execution.
• Nodes validate smart contracts like blocks. If a smart contract is questionable (for example, coming from a node that looks malevolent), it won’t become a part of a blockchain.

Smart contracts can perform the following functions:

• Manage agreements between users.
• Function as multi-signature accounts (payment is sent only when all nodes agree)
• Store information.

The benefits of smart contracts:

• Accuracy. If a smart contract is well-coded, there’s a negligible chance of error.
• Speed. Smart contract automate processes and don’t require any manual operations.
• Fewer risks. Blockchain is a decentralised database, so smart contracts don’t entail the risks, costs, and issues of legal contracts.
• Fewer mediators. Smart contracts remove or gradually reduce the role of trust services providers.

Smart Contracts Usage Cases

Now, we will explore how the usage cases of different complexity.

Small agreements on an existing blockchain

If one needs to arrange small agreements like the example above and they don’t need to do it often, they can create smart contracts on an existing blockchain with smart contracts support. One of them is Ethereum, where the concept of smart contracts was introduced to public.

Smart contracts with more than 2 parties

A company delivers a shipment of products to their client. This time, the order was made to a faraway region, and the company doesn’t have a vehicle or partner in the region to transport the goods safely.

The company hires a transporter. As client trust and a substantial sum of money are at stake, the company wants to ensure everything goes as planned — the goods will reach the client safely and on time.

Here, smart contracts become the solution. All parties create and sign an agreement with the following logic:

1. The transporter is paid their share when the goods are safely delivered to the client.
2. The client’s payment is transferred to the company when the client confirms that the goods are safely delivered within the set deadline.

Smart contracts in crowdfunding

Crowdfunding is an effective, current-day way to raise money. Blockchain-based smart contracts improve it further.

Let’s take the Kickstarter crowdfunding platform as an example.

A company puts out a project they need to raise money for to Kickstarter. The people who are interested in the project will start transferring funds to Kickstarter, which acts as an intermediary. If the project reaches the set money goal, Kickstarter transfers to the company. If it doesn’t, the funds go back to the investors.

Blockchain-based smart contracts translate this logic into code and eliminate the intermediary, automating the entire process.

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Smart contracts are a relatively new approach to business operations. As of today, each business case requires a custom solution for the most effective outcome.

As smart contracts continue gaining traction in various industries, the upcoming years will bring out the following possibilities:

1. Custom smart contract templates for different industries and usage cases.
2. Smart legal contracts — documents that combine smart contracts and standard legal contracts, as well as a legislative base to allow businesses use them.
3. Smart contracts that leverage IoT to automate complex business processes.

We will dedicate our next post to how smart contracts work with IoT and explore different examples in detail, as the convergence of smart contracts and IoT is already happening in a wide range of industries.

Meanwhile, if you are already considering deploying smart contracts on blockchain in your enterprise, get in touch with us. We have already helped our clients with impactful blockchain-based software and can create smart contracts tailored to your business operations.

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