Bitcoin: Why major banks misunderstood the block chain

Bitcoin evangelist, software developer and journalist Chris DeRose looks back on the year 2015 and explains the current state of Blockchain applications and is already looking forward to what 2016 will bring.

To get an overview of the current state of private blockchains, there is no better way to do this than through this year’s Blockchain-Panel conference.

In front of a group of renowned financial experts, „Bitcoin secret experts“ and the audience agreed

Bitcoin secret is the future, even if some lacked knowledge about the basic idea behind Blockchain technology. With every new year a new audience appears, which wants to solve our everyday problems with the Bitcoin secret. As in every year, the boring „notarial certification via Blockchain“ was made a big issue.

If one reads through the marketing brochures of private blockchain providers, one quickly gets the impression that they have discovered a technology that handles complex calculations in such a short time that the entire current financial system would succumb.

Certifications have never been a feature of the blockchain and have even been seen as one of the biggest bugs. If you ask a Bitcoin developer about the biggest problems of the blockchain, he will probably answer with „fungibility“ as the biggest weakness.

Even though many headlines say that the big banks support and test the applications of blockchain technology, it seems that the newcomers do exactly what newcomers usually do: they start their own blockchain and start selling their own tokens.

What is unique among the new market participants, however, is that the tokens are seen as „bad“ and the shares in the circulating blockchains as „good“. The difference between tokens and shares in the blockchain remains a daring one, but apart from the nuances, everyone wants to get support for their investment.

The biggest winners in 2015 are and remain those who have secured the largest investment sums.

Blockchain cryptosoft Propaganda

Computerised transactions, certifications and checksums are a mature industry whose efficiency has never been hampered by anything other than cryptosoft regulation. These cryptosoft regulations are usually efficient and reduce the risks in the financial sector. The software in the sector works as precisely as the regulatory framework allows. Some may even think that a traditional bank transfer takes so long because the servers can’t work faster.

From the initial hype to today’s private blockchins, the blockchain was sold as „the technology behind Bitcoin“. Many of the newcomers in 2015 have taken the propaganda to heart while ignoring the most important part: Reducing the risks of a transaction between untrusted participants.

Whether you think Bitcoin is a fad or not, it seems that this fundamental segment has not been questioned by any of the 2015 newcomers.

Towards the end of 2015, it seems, the argumentation is gradually beginning to lift.

Remarkably, the established payment networks are beginning to understand the true purpose behind the blockchain.

American Express recently conducted a large financing round with the innovative regulatory arbitrage company Abra. Shortly thereafter, Visa presented its own (well-considered) Bitcoin Proof of Concept application.

What does the future hold?
So what can we expect for the blockchain in 2016?

Only a few sectors are as active as the blockchain sector and thus the success is already obvious. The successful companies already include the older startups BitPagos and Backpage.

Among the start-ups that seem to have most efficiently implemented the blockchain technology are Nitrogen Sports, a platform for sports betting online games and the addictive games platform BitKong.

Applications that successfully implement and use blockchain technology will be successful. Not because people want to use the blockchain, but because they have to. There are many more „Gamechanger applications“ waiting on the horizon that may sound very ambitious with today’s standards, but Gamechangers are the startups that make up the FinTech sector.

Certainly the private blockchains also have a future in 2016, but it will be difficult to find a market for authentications that is not yet covered by or Google Docs.

Dubai – a Smart City through the Blockchain

Autonomous construction workers, panoramic learning environments, high-tech spas – the Dubai government presents all this and more in a vision of everyday life in a smart city around 2035.

Among the groups already working today on this tomorrow is the Museum of the future, a project supported by the Dubai government to showcase the technological innovations that make this vision possible. Bitcoin in particular and blockchain applications in general could play a key role.

We are not afraid of the Bitcoin revolution

According to Noah Raford, COO of the Museum of the Future Foundation, the Blockchain is becoming the focus of current scam in Dubai and the United Arab Emirates in general; it could play a key role in Bitcoin revolution government services.

The Museum of the future has therefore founded the Global Blockchain Council, an initiative of 32 members headed by CEO Saif Al Aleeli Blockchain to push technology. This group also includes members of the Smart Dubai Office and the Dubai Smart Government, two organizations dedicated to exploring the possibilities of a Smart City.

„Dubai is investing an incredible amount in the Smart City and wants to find out how to build a government for it. In the medium term, the blockchain technology can do much more than just enable a tool for a transfer of digital assets. The potential for the use of smart contracts is definitely there and this is where we see the long-term value of blockchain technology“.

According to Raford, one of the goals of the GBC is to develop use cases that show how the blockchain can be used in different industries – real estate market and general remittances are just two examples.

One of the related case studies has already been completed, presenting a local Bitcoin startup called BitOasis and the Dubai Multi Commodities Centre (DMCC). While BitOasis wants to create a convenient way to buy Bitcoin in the UAE, the DMCC focuses on storing personal data on the blockchain as part of its work in the GBC.

Steps to the Bitcoin loophole

Although Raford sees potential for the Bitcoin loophole, he emphasized that the first steps were being taken. The GBC has completed its second meeting, the content of which, according to Bitcoin loophole, was primarily introductory.

„The GBC wants to bring the technologies closer to primary stakeholders through private projects. Even though I don’t consider digital currencies to be futuristic at all, but already an important part of the economy, that’s unfortunately not the opinion of the rest of the Council.“

The Council also includes some of the region’s largest banks, which see digital currencies as an attack on their business and are accordingly sceptical.

Raford has also had to admit that talks about the blockchain are often characterised by ignorance and rumours. For example, it has been seen that parts of the GDC see the blockchain primarily as a tool for know-your-customer and anti-money laundering approaches.

Although Raford admitted that a digital currency does not necessarily have to be part of the GDC’s strategy, he stressed that this would not mean that Bitcoin would not be discussed.

The roots of the GBC lie in the Bitcoin community. Raford’s own interest also began with Auroracoin, which developed into a good case study of the coexistence of crypto currency and government.

When later Bitcoin Foundation executive director Bruce Fenton wanted to host the Dubai Bitcoin Conference, the Raford motivated him to work out how governments could enable blockchain technology.

He was primarily interested in non-financial applications.

Optimistic Perspectives for Blockchain Development
The members of the GBC will meet every quarter, with individual working groups meeting on a monthly basis to discuss issues such as regulation, pilot projects, conferences, workshops and other educational activities.

The GBC would also like to identify economic metrics to measure the value of their efforts.

Ultimately, Raford is optimistic: „He believes the GBC will drive innovation in the region.

Asked about its long-term goals, he replied that the Museum of the Future’s primary goal is to raise people’s awareness of future developments.

Blockchain Jobs: Graduates in hot demand

The last weeks and months have been anything but rosy for the crypto market. Falling prices and bad news have strongly impacted the mood in the crypto ecosystem – the catchword FUD (Fear, Uncertainty and Doubt) has made waves. In some reports the impression could be quickly gained that the crypto economy is at an end. We consider this a misjudgement and would like to outline in our 10-part article series why 2018 can develop into an outstandingly good year. Today: Blockchain jobs.

In the 5th part of the Goodbye-FUD-series we met Prof. Dr. Blockchain. He studied, did his doctorate and now passes on his knowledge to students. But what do they do after their training? Together, we take a look at the time after graduation and clarify today: How does the labour market react to the blockchain and what potential does this offer for employees?

Rationalization Machine Blockchain

Whoever first hears about blockchain technology and its possible effects could actually get a little scared: From the Internet of copies to the Internet of originals – is this the next wave of digitization? Could it cost me my job? And here the answer is: yes – it could, of course! The good news, however, is that as with the Industrial Revolution and the development of the Internet, there will be new jobs, many of which will be filled by people – even if they lose their jobs as a result. In addition, the blockchain will create some entirely new jobs. Therefore, we present jobs that have opened up in the meantime. Although the crypto market has cooled down somewhat in recent weeks and months, this is by no means the case for job offers in this area.

Blockchain employees: more than just techies and math freaks

Some myths spin around the jobs and the people in the crypto world: It is rumored that our new favorite technology is being worked on by overly cunning tech freaks, programmers and mathematicians who rarely see the light of day. In any case, highly talented people are working on this technology. Graduates from the natural sciences such as computer science and mathematics are very popular. In addition, a position in software development requires programming skills and the use of current development tools & methods (e.g. Java, Solidity, Go, Scrum). In order to land the most talented people, blockchain companies and those who want to become blockchain companies can come up with some ideas. In addition to sometimes horrendous salaries, there are other advantages: Employees are recruited with flexible working hours, flat hierarchies, intensive introduction and further training opportunities as well as attractive social benefits. Otherwise, many are motivated by the fact that they are part of a digital revolution.

Jobs for career changers
Companies are not only looking for employees for IT-heavy jobs. There are also good opportunities as an economist or as a career changer with a feel for the industry. In the area of consulting or marketing and business development, people with an understanding of the blockchain are sought. If you take a look at the job exchange of the online career network Xing, you will currently find 137 blockchain jobs. A good 50% of these are jobs in IT and software development. 16% of the offers are advertised in consulting and the rest are in the fields of marketing, research and miscellaneous.