BLOCKCHAIN SOLUTIONS for a DECENTRALIZED FUTURE
For many of us Blockchain and Decentralized Future are concepts which are trendy at the moment but there is still many doubts around them. The best way to accompany this disruptive moment, the 4th Industrial Revolution is to educate, to make people aware of what it is and to make them conscious and confident with the change by providing trustful information.
Broadly speaking, tokenization is the process of converting some form of asset into a token that can be moved, recorded, or stored on a blockchain system. That sounds more complex than it is. To put it simply, tokenization converts the value stored in some object – a physical object, like a painting, or an intangible object, like a carbon credit – into a token that can be manipulated along a blockchain system. Source: https://blockonomi.com/tokenization-blockchain/
Topic 1: Lessons Learned from Blockchain Consortiums & the Emerge of a New Type of Network
Speaker: Guillaume Dechaux_Head of Strategic Partnerships - ConsenSys
Link to a minibook: Blockchain in Capital Markets https://content.settlemint.com/blockchain-in-capital-markets
The consortium's success has to do with: Adoption, revenue and Equity Value. Strategic - Business Governance are important topics. Operational and Network Governance.
Top 10 DeFi Tokens:
https://eblockchainconvention.com/
This disruptive change tends to minimize the intermediaries and optimize the business and processes.
In the enterprise context, the purpose of the group of technologies
that has come to be known as DLT (in this report, sometimes
referred to simply as “blockchain”) is to address the challenge of
sharing business and operational data efficiently and alleviating
the need for constant reconciliation.
The primary capabilities of the technologies available are:
- Distributed storage of data
- Immutability of stored data
- Self-executing smart contracts
Source: Blockchain in Capital Markets https://content.settlemint.com/blockchain-in-capital-markets
Non Fungible Tokens (NFTs): the blockchain technology is also reaching this market. It is expected that the development will be towards: ADD Words, art works, digital art piece, rare objects, game industry, IP of an object(to be able to be reproduced anywhere). The old fashion way will slowly follow the trend and the main remaining questions are:
- What make a good asset for tokenization?: use, real security, game, collectable.
- Is it the NFTs a bubble now?
Topic 2: Tokenization of Financial Assets is Finally Here. Are you ready?
Speakers: Hadrien Zerah -Adoption Manager- Nomadic Labs, Nadia Filali - Head of Blockchain, Groupe Caisse des Depots- Dotun Rominiyi-Blockchain Strategy London Stock Exchange, Jan Karnath-Co-Founder & CEO, Timeless, Sebastian Kraft- Senior Product Owner DLT, Commerzbank, Thomas Borrel- Chief Product Officer, Polymath
It was an interesting discussion between legendary institutions of more than 100 years old and start-ups of 3 years old. Although it is clear tokenization of assets will take time and that there are still a lot of doubts about how blockchain will be implemented, these are the highlights of the session:
The advantage of the tokenization: legal secured network, securitization of assets, more players in the market, automatization and saving costs (cost/efficiency), enabling assets to be more negotiable and contribute to spread and the economic growth. Tokenization of physical assets would be also possible but there are doubts if it will really develop.
Public or Private Blockchain: at the end will be the decision of the users to work in private or public Blockchain Ecosystems. It is foreseen that will develop first in the private sector and then connected to the public.
Type of assets to be tokenized: cryptocurrencies, electronic securities (bonds, etc). The shift will allow flexibility and the possibility to reach more users.
Important topics for regulators (like central banks): Compliance, Transparency, Cyber Security, Securities.
Central Bank Digital Currency (CBDC): Digital Euro €. The development of digital currencies can be a mean to make awareness about tokenization between users. Risk-free cash. There is obviously concern from regulators about leadership and governance of currencies.
Topic 3: What's Next for Payment Regulations in Europe?
Speakers: Gonzalo Perez del Arco-Director Government Affairs South Europe, American Express, Doris Dietze
Head of Digital Finance, Payment Services and Cybersecurity, German Ministry of Finance, Peter Kerstens
European Commission
Typical instances of a Change: USA innovates, Asia copies and Europe Regulates
Topic 4: How to Issue a Central Bank Digital Currency
Speaker: Thomas Moser-Swiss National Bank
It is actually simple and the topic has been investigated by the Swiss National Bank.
https://eblockchainconvention.com
See also: Project Hevetia (Video) https://www.bis.org/publ/othp35.htm
Tokenization of bank notes has the impact of disintermediation. To create a CBDC is not necessary Blockchain, but Blockchain needs CBDC to operate.
A way could be to use CBDC for payment but not for keeping real assets.
With the retail of CBCD there is risk of disintermediation (of the bank sector). The added value could be not counterparty and liquidity risk. There are also privacy concerns.
Payment Systems: in a traditional payments system (banks) the transfer occurs by means of banks deposits (payer and payee). In a tokenized system, there is a transfer of value itself or a token that represents the monetary asse.
The regulators also have responsibility for Compliance, AML (Anti Money Laundry) etc that could be outsourced.
A simplistic CBDC design would be that Central Bank accounts for all but it will be in direct competition with commercial banks. A token-based CBDC requires that electronic tokens cannot be easily copied.
The Blockchain Trilemma is: Decentralization, Scalability and Security
Chinese CBDC doesn't use Blockchain
Topic 5: Trends in CeFi & DeFi
Speakers: Mariana Gospodinova - General Manager, Europe, Crypto.com
Cryptocurrencies are not considered a legal currency as they are not issued by a Central Bank or regulator.
Germany, Switzerland, France, Ukraine and Russia are the top crypto investors.
At the moment there is 106 M users. https://assets.ctfassets.net/hfgyig42jimx/5u8QqK4lqjEgL506mOx4m3/d44d8e204aecfc75a839e2a9d505f5d1/Crypto.com_Data_Report_-_On-chain_Market_Sizing.pdf
Differences between CeFi & DeFi:
It is not yet clear how decentralized systems will control abuse, terrorism, money laundry etc. In case that strict control is necessary, probably, a centralized system may be adopted. I am wondering if Blockchain could be implemented in Decentralized Education?
It is expected that by 2030 we will see the crypto wallet in many of the pockets.
Topic 6: Creating Equitable Access to the Global Financial System
Speakers: Sheraz Ahmed- Crypto Valley Association, Julien Le Goc-Director of Policy, Diem Association, Denelle Dixon-CEO, Stellar Development Foundation, Mai Santamaria-Head of Financial Advisory team Republic of Ireland
How do we help unbanked individuals to get access to the system? There are approximate 1.7 Billion unbanked people in the world.
There are current projects helping corridors like Argentina, Nigeria, to increase options to participate in the financial system. It is extremely important to bring conscience to people and educate them with this topic so that they will be confidence to and open to change an new opportunities.
A challenging aspect in developing countries is infrastructure, mobile network, communications, availability of devices. What if infrastructure of communications have been affected by natural disasters? How to get these people helped?
The use of blockchain technology may bring humanitarian aid was part of the discussion by creating y Crypto-Philanthropy is an option.
Collaboration of governments (by means of CBDC, less bureaucracy ), use of feature phones, Satellite Communications may enhance the opportunities for unbanked people to be part of the financial systems.
Topic 7: How can Blockchain Support the Energy Transition?
Speakers: Sabine Brink-Blockchain Lead, Shell, Barbora Greplova-Co-Chair WG Energy, INATBA, Miguel Angel Rojas-Blockchain Expert
The main points are:
- Using blockchain to optimize processes in the companies (producers, etc)
- Decentralize the relation between producers and consumers
- Allow equipment traceability, integrity of the equipment
- Increase the transparency of energy produced
-Energy ecosystem is sceptic about decentralization - Need for education and awareness to regulators
Interesting links:
https://www.greentechmedia.com/articles/read/wepower-is-the-first-blockchain-firm-to-tokenize-an-entire-grid
A project from Austria on energy tokenization: https://riddlecode.box.com/s/sl7polhds14lkvi2tvwz27fgci2yoch7
Topic 8: Fireside Chat with Lily from “Lili’s SHOW”
Raising awareness about Blockchain and Cryptos in kids. The story of Lili.
https://www.kryptokeskus.fi/lkk/
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