🎤 Interviews Masha Beetroot

EOS’s Ricky Shi: Could Governments Hold EOS by the Balls? I Don’t Think So

🎤 Interviews
Could governments hold EOS by the balls? EOS block producer shares his view on the future of the platform
EOS’s Ricky Shi: Could Governments Hold EOS by the Balls? I Don’t Think So

EOS, fondly referred to as Ethereum on Steroids, is tipped to emerge as one of the leading cryptocurrencies in the nearest future.

Ricky Shi, co-founder of EOS Cannon, gave us an exclusive interview touching the base on EOS approach to governance, the role of Block.one, building EOS community and ecosystem,  and the perspectives of  EOS.  

A string of positive news is making EOS and EOS-related tokens a good investment. Founded in 2016 by Brendan Blumer and Daniel Larimer, EOS worked with Michael Novogratz and a known VC investor Christian Angermayer.

Recently Peter Thiel, a business partner of Angermayer and Bitmain’s founder Jihan Wu participated in the new fundraising round of the EOS backbone Block.one.

So far, EOS has been the basis mostly for development tools and some simple games. Nevertheless, the potential of this system is widely regarded as pretty high. For example, KickCoin (KICK), an ERC20 token for a crowdfunding platform, went up the charts when rumors hit the crypto market that the company negotiates with EOS Block Producers its possible migration from Ethereum to EOS.

EOS approach to governance

CryptoComes: Critics often say that EOS is not, in fact, a decentralized network, but subject to control by something akin to a government. They specifically mention the recent decision by the EOS centralized body to ban transactions from the specific 27 wallet addresses. What would you respond to the critics?

Ricky Shi: Well, there is not anything akin to a government, otherwise it won’t take some long and so many community calls to make a collective decision to freeze these accounts.

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CryptoComes: How will you describe the EOS approach to governance, on a scale between a totalitarian state and the complete anarchy?

RS: I would say 6, but right now 4. A few important governance pieces are not yet fully functional.

CryptoComes: Do you have a closed telegram group for 21 block producers or some similar venue for communication and making decisions?

RS: There is a mainnet BP telegram with 415 members if that is what you mean. There are weekly calls among top BPs to discuss and make decisions only related to BP part of duties.

Role of Block.one

CryptoComes: What is the role of Block.one now? What happens if some producers will join forces to challenge the principles ingrained by Block.one into the system?

RS: Block.one is one of the important contributing community members. Anyone can propose different ideas, but you need to get your voice heard, discussed and agreed upon (by vote, not by Block Producers) before there will be a change in the system.

CryptoComes: How big is the community you are working with? How will you describe it?

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RS: 2,000+, a very active elite group with a deep appreciation of EOS principles and are all believers in EOS vision.

CryptoComes: What are your major principles in working with your community?

RS: The principles are simple: community first, tier by proof of stake, free will & free to join, communication & daily coaching.

Preventing losses

CryptoComes: According to recent research, theft in the crypto industry is booming, with the volumes stolen this year times exceeding similar numbers in 2017. Can EOS tactics of fighting them be described by the words “scar them out”?

RS: Not exactly sure about the term. EOS has some design to prevent such loss. As for the EOS Cannon community, we coach our members to use the safest approach and developed our own version of offline wallet tools.

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CryptoComes: Could the principle of the delegated proof of stake and on the whole the EOS consensus mechanism change with time?

RS: IMO, there will be adjustment at implementation level, but not in the principle.

CryptoComes: Are you a pragmatic or a moralist yourself as it comes to the community principles? Moralist means the man or principles, such as decentralization, and pragmatic is a person who may be more flexible if circumstances require immediate action and the principles stand in the way.

RS: I think I am a bit of both. Maybe more towards moralist a bit when a critical situation doesn’t demand an immediate pragmatic approach to resolve.

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Still great experiment

CryptoComes: Nick Szabo insists that the centralized aspect of EOS leaves the project vulnerable to attacks and security holes. Some say that by having or introducing centralized bodies, crypto platforms are bound to become more vulnerable to hostile regulation. What would you say to that?

RS: Then what would he say about the current government system we all live in? As for the more vulnerable part, I think we will see how it goes.

It is a great experiment in mankind history after all.

CryptoComes: Related question: governments now can hold big exchanges by the balls. Could big exchanges, in their turn, could have EOS by the balls? Meaning that governments will eventually control EOS?

RS: Big exchanges are centralized. EOS has dPos and quite dispersed geographically. I don’t think so.

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EOS voting

CryptoComes: What, if anything, needs to be changed in the EOS voting system?

RS: You probably need to be specific on voting for what. Quite a few parallel efforts are carried out related to voting. If you are talking about BP voting, it is currently working, except we need more voters participation. If you are talking about how many votes per EOS, that is still an open discussion as of now.

Dethroning Ethereum

CryptoComes: When do you think EOS will dethrone Ethereum, or it’s not on the current agenda?

RS: I don’t have a comparison or agenda there. Let us stay focus and make EOS better.

CryptoComes: With the lack of regulation, are the smart contract-based platforms simply preposterous for now?

RS: I don’t think so. It is in its infancy and needs time to evolve and mature.

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AI and the future

CryptoComes: What is the place for AI and machine learning in future decentralized networks?

RS: IMO, it will be a natural marriage. But hold onto that idea before we have the supercomputer running at its full speed.

CryptoComes: What do you think of the future of EOS?

RS: Bright, promising and it is just the dawn!

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David Dinkins

News Outlets Suggest Bitcoin Mining About to Become Unprofitable But They’re Wrong

Media sources are saying that the cost of producing Bitcoin is about to outweigh the profits, suggesting that mining could be on the decline. But that isn’t entirely accurate
News Outlets Suggest Bitcoin Mining About to Become Unprofitable But They’re Wrong

Thomas Lee of Fundstrat suggests that when taking into account all of a Bitcoin miner’s costs, including electricity and the cost of mining equipment, the cost of mining one Bitcoin is $8,083. With the price of Bitcoin bouncing between $7,600 and $8,550 over the past few days, miners are dancing dangerously close to the breakeven point.

Shone Anstey of the Blockchain Intelligence Group points out that miners won’t operate at a loss indefinitely:

"In some cases, the miners may simply turn off the machines until the price comes back a bit. It's got to be getting to the point that some of them may be losing money."

Of course, this is what we saw in 2014-2015, as Bitcoin sunk from its November 2013 highs. As the value of Bitcoin dropped, miners began turning off their oldest and least energy efficient machines. Fundstrat believes that same thing could happen around a price of $3,000-$4,000 this time around.

Other options

It’s important to note that Bitcoin mining tends to be clustered in areas with low electricity costs, such as China, Iceland and the US Pacific Northwest. Many of these locations also have cool climates, reducing the need for energy-draining air conditioning to cool down all those miners. China tends to have lower labor costs as well, which adds to profit margins. However, in recent months the Chinese government has been raising rates for Bitcoin miners, causing many to flee to other jurisdictions.

Politico reports that the US Pacific Northwest has become a veritible hotbed of Bitcoin mining due to the extremely low cost of hydroelectric power in the region. While Fundstrat’s model for estimating the cost of mining is based on electricity costs of six cents per kilowatt-hour, miners in the Pacific Northwest enjoy rates as low as 2.5 cents per kilowatt-hour. While falling Bitcoin prices will definitely knock some miners out of business, others will continue to thrive for some time.

Sunk costs

Fundstrat’s model also includes the cost of mining equipment in its estimate. While this is an important factor in determining the profitability of setting up a new mining operation, it’s less useful when calculating the break-even point for existing miners. That’s because the cost of miners (which have already been purchased) is a sunk cost, meaning that it’s already been paid and cannot be recovered. The cost of building purchases or leases and upgrades to a facility’s electrical supply and air conditioning are also sunk costs.


Since sunk costs cannot be recovered simply by ceasing operations, miners will continue to mine as long as they can. Economics tells us that production will continue until marginal revenue equals marginal cost. That means that existing miners will continue operations until the cost of inputs (electricity, labor and maintenance) exceeds the value of the Bitcoins that are produced. For miners with ultra-cheap electricity, production will likely continue for some time. Politico estimates the cost of producing one BTC in the Pacific Northwest is about $2,000.

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Why Celebrity Coins Keep Failing: Another Flop as Ghostface Killah's Drops 96%

Celebrity backed and created coins were a huge fad at a stage, but many of them have not gotten off the ground
Why Celebrity Coins Keep Failing: Another Flop as Ghostface Killah's  Drops 96%

In the boom of ICOs it was popular to try and get a celebrity endorsement, or even for celebrities to use their way to start their own versions. However, as time as gone by, many of them have become pure failures.

The latest celebrity coin to become a major flop has come from Wu Tang Clan’s Ghostface Killah and his CREAM coin which as dropped 96 percent since its inception in January this year.

But CREAM is not the first coin to flop with Centra another, which was backed by Boxer Floyd Mayweather, having seen the SEC call it a fraud and charging its founders.

Not the CREAM of the Crop

CREAM was hopeful of raising $30 mln in its ICO however, things have not gone well for the music star-backed coin as it has dropped 96 percent. The token initially went on sale back in November of 2017, when coins were sold for as little as $0.02 per coin.

It then spiked in January to a high of $0.12, before being hit with a downward wave that struck the whole cryptocurrency market. The current value of the coin is just $0.0045.

Warning signals

While celeb-coins are nothing new, the warning that have come with them have been around for almost as long.

Andreas Antonopoulos, an early Bitcoin investor, and well-respected voice of cryptocurrency warned against such investments in these celebrity-backed coins. He said:

"The worst reason to make an investment is a celebrity endorsement. Unfortunately, this tactic works, and that's why they're doing it.”

Centra knocked out

Centra is another company that went the way of celebrity endorsement and felt the sting of basing their entire hope on one gimmick. Mayweather was pictured in September promoting Centra, a cryptocurrency project that raised over $32 mln during its ICO.

However, it only took six months for the project to fail as the SEC got involved and indicted the three co-founders for securities and wire fraud.

DJ Khaled was another celebrity that was in on the Cetra promotion racket as he made an Instagram post promoting Centra and its ability to be used in the same way as a debit card.

DJ Khaled

 

Bitcoiin2Gen pyramid comes crumbling down

Steven Seagal, the famous action movie actor, was also part of an ICO which was quickly labeled as a pyramid scheme which quickly came crashing down.

Bitcoiin2Gen was launched in January, with Seagal named as a brand ambassador. But just after the ICO ended, Segal and the coin’s founders parted ways, then, soon afterwards, Tennessee Department of Commerce & Insurance (TDCI) Securities Division issued a warning to consumers about the nature of the project.

Game over

The Game is another celebrity that endorses a Blockchain project that was focused on the emerging marijuana market growing in the US. Paragon Coin was going to build a marijuana Blockchain environment, however, the project ultimately flopped when they failed to register the ICO with regulators- leading to a lawsuit from investors.

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The best cryptocurrency investing solutions 2019: What should a beginner invest in?

Will cryptocurrency investments be beneficial in 2019? How to invest in cryptocurrency in the upcoming year? Read about the best investing opportunities in 2019
The best cryptocurrency investing solutions 2019: What should a beginner invest in?

With all major cryptocurrencies falling in price day by day, it may seem that the golden era of super-profitable crypto investments is gone, and there’s no point in buying crypto anymore. However, statistics are on the bright side, so it’s too early to surrender. What crypto enthusiasts need is to change their tactics and reconsider the object of investment. But which course should they embark upon?

Discover the best cryptocurrency investment solutions in 2019.

Trading volume will grow further

According to Satis Group analysis, the volume of crypto trading will grow by 50% in 2019. Until 2028, the number of transactions will increase by 9% annually. That’s why crypto investors still have a chance to get their riches: in 2017, their profit was $2.1 bln, while in 2019, it can exceed $3 bln.

Satis Groups expressed the following opinion:

“Platforms and projects need to improve their infrastructure to relieve the pressure of regulations. Although the crypto market has become more or less stable, services don’t comply with investors’ demands totally.”

Experts expect the volume of cryptocurrency trading to exceed the volume of corporate debt trading. Despite the long-term bearish tendency on the market, investments continue growing. As traders start understanding how the market works, the fiscal policy makes virtual assets even more attractive. Thus, crypto infrastructure has a striking development potential.

Top-5 Cryptocurrency to invest in 2019

The most promising ICOs by sphere
The most profitable spheres of ICO to invest

Judging by the picture, you might think that crypto projects in communications are the best solution for the new cryptocurrency to invest, but don’t rush to make conclusions.

Practice shows that the vast majority of the most valued cryptocurrency projects are developer platforms, such as Ethereum. The application developer platform provides users with the largest gamut of opportunities and features. Here are the most promising cryptocurrencies for you to consider:

EOS: A Better alternative to Ethereum?

The most recommended cryptocurrency to invest in 2018 is EOS. The team behind it continues improving their project, and now the speed of transaction processing has risen from 20,000 TPS to 50,000 TPS. From a performance standpoint, EOS is superior to Ethereum, which is why a lot of crypto projects may switch from Ethereum to EOS once their main net is launched. If the EOS team manages to attract enough crypto investors, it will definitely rise in price and be the top choice for 2019.

Quick facts:

  • Had EOS achieved Ethereum’s January 2018 valuation, investors getting in at the time of writing would enjoy 1,068% returns.

  • In June 2018, EOS’ market cap was $12.5 bln.

NEO: Favorite Chinese blockchain

NEO is Ethereum’s main rival in China. It can already boast a ready working product and applications being built on top of it. Although the number of apps on NEO foundation isn’t large, they’re mostly successful: Ontology alone has already reached $1 bln valuation. NEO’s speed is 1,000 TPS — way higher than Ethereum’s 15 TPS. Aside from performance, NEO has a few other advantages over Ethereum; for example, it supports common coding languages like Python and Java (while Ethereum works with Solidity only).

Another key benefit of NEO is the fact that its co-founders own the Onchain private company that provides blockchain solutions to the Chinese government and businesses. If the Chinese government decides to introduce a homegrown public blockchain in the future, it will most likely be NEO. That gives investors the opportunity to get rewarded greatly.

Let’s not forget that NEO is a source of passive income: if you store NEO in a NEON wallet, you will be rewarded with NEO Gas, the fuel of the NEO network. Right now, the dividend percent is 3.36% per year.

You can reap over a 3% benefit from Gas
Theoretical vs real NEO Gas profitability

 

ICON: A cryptocurrency with benefits for ICOs

Introduced on the market a year ago, ICON blockchain helps industries operate their own blockchain. It acts as a bridge connecting industries and establishes communication between them in a flawless and fast way. In layman’s terms, ICON automates the processes that were previously impossible to automate. ICON also leverages its own AI solution called DAVinCI. In addition, it introduces the so-called Blockchain ID for people to verify their identity.

The cryptocurrency is supported by the South Korean government even despite the local ICO ban (there’s a bill for re-legalizing ICOs in South Korea, and it’s likely to pass). Thus, it’s a great investment option for those who want to launch their own ICO. ICON provides investors with a myriad of benefits, including:

  • An ecosystem with governmental support.

  • A solution that establishes communication between different blockchains.

  • AI support.

  • Digital identity.

Power Ledger: The best solution for an eco-friendly investor

This project is actively supported and funded by the Australian government. The main aim of Power Ledger is to create a global green energy trading platform. The Power Ledger team has partnered with a few organizations to bring green energy trading to Thailand:

  1. Not For Profit Helpanswers – the supplier of clean energy trading to the US.

  2. Liechtenstein Institute for Strategic Development – the partner that will ensure Power Ledger’s presence in Europe.

  3. Origin Energy – Australia’s major energy provider that will add Power Ledger to its own infrastructure.

Extensive partnerships, government backing, and green mission of Power Ledger make it a top choice for savvy investors.

Ripple: The coin that continues conquering the market

While other cryptocurrencies are nosediving, Ripple is slowly making its way to the throne. So far, it’s the second world cryptocurrency by market cap with $49,3 bln value. Ripple is created for large institutions and banks rather than individual users: it’s a fast and reliable solution for cross-border payments. Ripple has already partnered up with a few large banks around the world, and more banks around are moving to adopt Ripple protocol. Thanks to institutional support and immunity to SEC regulations, XRP has all chances to survive in the current bearish market.

Ripple’s price doesn’t seem to change much
Unlike other cryptocurrencies, Ripple stays stable on the bearish market

 

Bitcoin investment isn’t an option anymore?

Considering how many cool altcoins and ICOs are around, Bitcoin doesn’t seem to be so attractive anymore. What can save it is wide adoption in real life: a lot of companies introduce Bitcoin payments, and some exchanges provide their own plastic cards with automatic conversion. The scenarios of Bitcoin development are diverse, and relying on one certain prediction might be a huge mistake. So, maybe it’s time to break your investment habits with a precedent?

Is ICO investing a chance to line your wallet?

Among thousands of useless ICOs, it’s hard to find genuine diamonds. However, there are still a few upcoming ICOs worth consideration.

Project name

Main goals and advantages

ICO details

CitiCash

Simple and fast conversion of fiat into crypto and back.

Develops a network between their wallets and debit card technologies.

September-November 2018. CitiCash coin (CCH) costs $0.15, minimal investment – 10 CCH.

Humancoin

Charity platform for trustless donations and clear distribution of funds raised. The team develops convenient means of the transaction for philanthropic industries.

September-November 2018.

1 Humancoin token costs $0.01. Minimum purchase is 0.1 Eth.

Code of Talent

The project is made to revolutionize the education sphere. The Code of Talent team will launch a micro-learning engine, merit-based incentives for teachers and students, establish flawless interaction between teachers and students, and create an immutable record for future employers.

Starts on October 15, 2018.

CODE token costs $0.10 and can be purchased with ETH only.

Akropolis

The project is made to introduce a new system of pensions and make pension funds management more transparent thanks to smart contracts.

TBA

Pro Tips

In order to make a profit, crypto investors should keep tabs on the market trends and products around. Here’s how you can adapt to ever-changing cryptocurrency world in 2019.

Bet on startups with real-world partnerships

Of course, most crypto investors opt for quick gains, but who said that crypto world is not the place for long-term investments? Virtual currency is very volatile, so it’s recommended to select the cryptocurrencies that have sold partnership with authoritative industry players and are backed by governments — they are more likely to bring profits in 2-5 years.

Pay particular attention to IOTA, Ripple (XRP), GoByte (GBX), IOST, and Stellar Lumens (XLM).

Let robots analyze exchange

A bird in the hand is worth two in the bush. Instead of trying to get 50-100% gains, try something a bit less profitable but more real. Let robots do the hard work: some cryptocurrencies fluctuate by1-2% a day, and crypto bots can track the fluctuations and do the trading for you 24/7.

At the moment, Gekko, Zenbot, and Crypto Trader are the most popular; you can also try a few new products: Cryptohopper, Gunbot, and Haasbot.

Master nodes: A way to get coins at the price of electricity

Instead of dedicating all efforts to trading, you can also consider operating a node. This is another way of earning passive income from the coins that may grow in price. However, you will need to invest in the node and cover electricity costs that might be huge.

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Most operators compensate contributors with 5-20% of block reward which is supposed to compensate operators for providing computing power. Today, GoByte (GBX) is one of the most affordable tokens to earn by running a master node.

Bottom Line

2019 renders a lot of investment opportunities for both beginners and professionals. You just need to sort out worthy cryptocurrencies and arm yourself with patience. The next years will bring profits to those who can wait.

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Ready Products Key to Blockchain Adoption by Small and Medium Enterprises: Opinion

Blockchain might become a penicillin for small businesses, but plug-and-play solutions will rise to the top as the more efficient and affordable generic pills
Ready Products Key to Blockchain Adoption by Small and Medium Enterprises: Opinion
  • SMEs problems overlook

  • Solutions available

  • Lacking expertise

  • New Business Framework

  • Key to adoption

Although Blockchain offers a strategic opportunity for small and medium businesses, even the most flexible SMEs are in no hurry to adopt this new data transaction tool. Moreover, the current high cost of сustomized solutions for enterprises is compounded by significant legal, technical, and financial issues preventing widespread Blockchain adoption.

SMEs problems overlook

SMEs account for more than 50 percent of the world economy’s GNP, in addition to over 99 percent of all enterprises, according to recent ATKearney research. For example, 62 percent of China’s GDP (6.9 tln US dollars) is produced by SMEs; small and medium-sized businesses produce about half of Germany's and the United States' GDP (57 percent and five percent respectively).

Financial barriers, difficulties in reviewing counterparties and chaotic document workflow limit an enterprise’s growth potential and complicate business processes. In sum, SMEs are forced to use the available resources inefficiently.

Financial problems mean that companies have difficulties attracting private investments and accessing banking and financial services due to the strict processes of proving a company’s reliability.

Services such as factoring and loans are usually used to cover the cash-flow deficiency, but obtaining them is complicated. Even if loans are obtained, the rates are usually higher than expected which makes the idea of traditional financial services for SMEs inefficient.  

There are also difficulties that arise when trying to verify new counterparties who do not have the requisite documentation. These difficulties lead to an increase in the human resources needed to audit and validate their activities.

According to financial cryptographer Ian Grigg, the cost of KYC can reach up to 30 percent of the transaction volume.

Searching, structuring and verifying documents is a significant time-thief for SMEs. This problem has been encountered for quite some time by both traditional and digital means.

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Solutions available

Today, small businesses use SaaS solutions, marketplaces, and B2B e-commerce platforms to expand their opportunities for growth.

The applications available allow companies to rapidly and easily adapt to changing business environments. Some of the most popular products include ERP and ERM systems, Digital Signatures, electronic document flow services, accounting and transport management systems (TMS), and various other tools for managing and monitoring a company’s activities. These solutions have created a real breakthrough in optimizing and synchronizing organizational workflow.

However, the solutions available on the market do not create an environment for seamless interaction among independent businesses within a single ecosystem. For example, data/document flow and circulation between counterparties in a single system does not take place due to a lack of trust.

SAP and Microsoft are creating solutions on the SaaS and ERP, while traditional banks try to design products respectively towards SMEs. Fintech startups such as Revolut and Srite are bringing financial ideas into the market.

Existing marketplaces are both a great help yet also a  costly partnership because of their various commissions and fees.

For example, Alibaba’s membership fee is $1,500 per year, on top of the obligation to pay commissions totaling five to eight percent of the value of each transaction. The subscription fee for the Ariba Network is $2,250, with a limited number of transactions (499 per year). There is also an additional commission fee if turnover exceeds $50,000.

Still, solutions based on internet server architecture (http/https) do not offer the opportunity to create fundamentally new processes with legal validity. This includes the guarantee of data integrity and authenticity, verification of the transacting parties’ ID, and lower risks of a data breach.

These solutions, commonly described as the Internet of Agreements, can be created using Blockchain protocols.

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Lacking expertise

Although many in the community strive for massive Blockchain adoption, there are still a small number of solutions for SMEs. Bringing technical as well as user-friendly functionality along with financial and legal solutions seems to be an ambitious goal for the community. Prudential (Singapore), one of the largest insurance companies in the world, along with StarHub announced a Blockchain-based digital trade platform to support their growth aspirations of SMEs in late 2017 with a public launch in early 2018 but there has been no word about it since.

The public ledgers that are traditionally used to create solutions for just about anyone, (SME’s included) are Ethereum and EOS. It is also possible that Codius by Ripple smart contracts implementation might work. The Chinese Nervos Network is developing a system which will allow businesses to connect a public Blockchain and private application chains, but that won’t be introduced for another year.

We still have to keep in mind that because many SMEs lack Blockchain expertise (or even not familiar with the tech), there is demand for products, not technologies. This critical moment defines most of the existing and upcoming solutions as being disjointed or unfocused and are not truly getting businesses out of the wheel of Samsara.

However, Blockchain R&D company Gravity Solutions is set to close the gap between SMEs and Blockchain products via its Business Framework, designed for use in off-the-shelf software and next-generation Blockchain applications which automate and optimize business processes for SMEs. The announced framework will consist of legal, financial and technical pillars which will be turned into tools or templates that can be easily integrated in existing products while also extending to existing SaaS solutions. We believe that this well-targeted approach is promising.


New business framework

SMEs lack Blockchain-related expertise and simply cannot afford custom-tailored solutions. Also, they have no time or resources to handle the legal aspects of Blockchain-based systems and smart contract use. The Gravity Business Framework (GBF) offers to address these issues and allow for a hassle-free, off-the-shelf experience.

The technical architecture of the framework is a set of components and modules based on the Gravity Protocol. Typical smart contracts (and later, turning complete smart contracts) are based on these components and modules. Gravity’s legal architecture provides for the “Extended Соntract” based on the Ricardian contracts. Furthermore, its financial architecture is a system of stable coins and gateways that allow businesses to avoid the huge expense of financial middlemen (banks and payment systems).

Note that the company is now at its testnet period, proving hypotheses and establishing partnerships. Since SME is such a wide sector, with different jurisdictions it is impossible to provide something that would fit everyone, legal issues could threaten good performance.

It is possible, however, to provide tools that can solve all of the most recurring problems, and it is up for integrators to customize them to reflect the reality of their country of residence. For instance, next month Gravity Solutions plans to introduce its pilot showcase toolset for factoring automation, the issue that no one has yet solved, but as everyone agrees, it needs a solution. Gravity intends to bring a product, not the technology to SMEs.

Key to adoption

Mass adoption of Blockchain can only happen by implementing market standards. Mass solutions based on these standards should be implemented instead of custom solutions.

In turn, this will only happen when Blockchain is used not only by major entities representing one percent of the market but by SMEs, which make up the remaining 99 percent.

Blockchain might become a penicillin for small businesses, but plug-and-play solutions will rise to the top as the more efficient and affordable generic pills.

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Credit Cards’ Days Are Numbered, Could Bitcoin Push Them Off the Edge?

Bitcoin may not be there yet, but the days of credit and debit card domination are coming to an end and it could well be spurred by the digital currency revolution
Credit Cards’ Days Are Numbered, Could Bitcoin Push Them Off the Edge?

The evolution of money, finance and technology have necessitated changes in payment options. Credit and debit cards were a product of a digitalizing world as plastic replaced paper in the form of checks, and to a lesser extent, cash.

Now, the world is moving so fast that it looks as if credit and debit cards are starting to look a bit outdated. The monopoly of companies like Visa and Mastercard has let them run wild with their fees and rules, and this has made them ripe for disruption.

Many are suggesting that Bitcoin is the thing to push these centralized money moving companies to the brink, but the digital currency is a long way from being a true force as it continues to find its feet in mainstream adoption.

But, what is certain is that Bitcoin and other cryptocurrencies certainly have the potential to be a disruptive force when it comes to being a digital currency, and it has the ability to take out the high fees and regulations that credit card companies impose.

The problem with cards

The digitization of payment was driven forward mostly by two companies in Mastercard and Visa. Because of their control of the market, they have become a real force that cannot be trifled- or dictated too. With not much competition they have been able to dictate all kinds of rules and regulations, as well as fees.

Outrageous transaction fees and ridiculous interest rates have shackled consumers into a world of debt which is inescapable. It is reasons like this that people are now seeking alternatives, and these include anything from PayPal to Apple Pay and mobile cash apps like Square and Circle (Who have already delved into cryptocurrencies).

Many have also suggested that cryptocurrencies in their pure form can the answer to disrupting this unfair and non-competitive environment that is owned by two companies.

The decentralized nature of cryptocurrencies, and the fact that they are much lower in fees and totally amoral means that payments can be done cheaply, quickly and easily without restriction.

Not there yet

The real issue is the Blockchain and cryptocurrency space is still finding its feet, as well as mass adoption and support. There are technological issues that need to be solved- like Bitcoin and its scaling issues if it is to become a leader in payments.

There are also issues of legitimization that need to be solved as many people are still unsure of the cryptocurrency space because of the scams and hacks that are still prevalent.

A lot still needs to happen in the cryptocurrency space before credit cards are knocked off by digital currencies, and a lot of it actually has to do with regulators striking a balance where Bitcoin and co. can flourish while also molding to the laws and norms of countries.

This will also help investors and users have faith that their money is safe in Bitcoin.

Big battle

Still, there is time for Bitcoin to find its feet, and in the meantime, users are getting more frustrated with credit cards, and thus it is unsurprising that these companies are anti-crypto.

This is the first real wave of competition for the likes of Visa and Mastercard, and while they talk cryptocurrency down, they are also applying for Blockchain patents on the side.

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