James Tylee from CyberFM

Welcome Digital Bytes which is being sent to you from sunny (not that sunny though)Sydney, as we have been visiting clients and presenting on How, Why and Where Blockchain Technology and Digital Assets are being used.

In this week's edition we have analysis on the following topics:

Invasion of Ukraine and a case for the neutrality of technology - Blockchain, cryptocurrencies or any other technology or innovation are usually neutral, posing as docile tools. Whether a technology is good or bad depends on its users. On the other hand blockchain, when applied to tackle problems with international payments and finance related problems, can also be used to evade accountability, such as Russia is doing presently. Some of the reasons for Blockchain technology and cryptocurrencies being criticised are the same as the reasons for which they are being adopted. The US is already looking at regulating cryptocurrencies with a new executive order - all in a bid to stem how Russia is evading sanctions.

Why the digital assets revolution also needs a revolution in secure custody solutions - how can the financial services leading institutions avoid adopting an instant global payments ecosystem that is virtually free, and a single source of truth database that is immutable? Identity, security, speed and scale have already been solved, and it is just a question of when the financial institutions choose to move. The danger is that some will be left behind if they are not heavily investing in the digital asset ecosystem and preparing for the inevitable demand from their customers.

NFTs: an alternative way to raise capital? - whilst big brands can easily raise capital, many other individuals and businesses cannot say the same. As Blockchain technology continues to permeate every area of human endeavour, what solutions do blockchain and NFTs have for those raising capital? This article offers an insight into what is required when using NFTs to raise capital.

Web 3.0 and digital identity - digital identity and, in particular, self-sovereign identity (SSI) is key to enabling Web 3.0 since it is all about decentralisation and data privacy. If Web 2.0 has been characterised by careless data sharing and its uncontrollable exploitation for commercial purposes, Web 3.0 shifts that paradigm towards enabling data owners to be in charge of their data. The latter is possible thanks to SSI - a method of identity that centers the control of information around the user, thus removing the need to store personal information entirely on a central database.

In this week's Digital Bytes we have analysis on the following topics:

Apple, Amazon, Facebook, Google, Microsoft see their staff resigning to join a host of Blockchain and Digital Asset-focused firms - the ‘great resignation’ trend in the US has seen over 33 million people leave their jobs as they seek higher pay and new companies which align with their personal goals. Many of Silicon Valley’s global titans are fighting to hold onto those staff who are leaving to join companies actively engaged in the development of Blockchain and Digital Assets services, a lot of whom champion a more decentralised way of doing business.

Decentralisation is bigger than Bitcoin - with the Commonwealth Bank of Australia (Australia’s largest bank) offering crypto trading in its mobile app together with CBDCs gaining interest, is there something more ominous on the horizon knocking on the doors of the decentralised token economy?

Not all FinTech firms, shops and on-line merchants are adopting cryptocurrencies (but many are) -growing interest in digital currencies is evident, including cryptocurrencies, given the increase in the number of digital wallets globally. Whilst the ‘fear of missing out’ (FOMO) is driving people’s attention, FinTech firms are making it simpler for users to buy and sell goods and services digitally - often bypassing the banks’ existing payments infrastructure.

Tokenisation will change society - tokens are certainly changing society. Tokenisation has the potential to open up the financial system to anyone around the world, as long as the infrastructure to exchange those tokenised assets is there. For adoption of tokenisation, it is important that the community and regulators work together to develop clear standards and regulatory frameworks. A robust regulatory framework will undoubtedly reduce regulatory risks, enable innovation by providing clarity around the rules of tokenised ecosystems and allow incumbents to open up for new companies. Standardised taxonomy and terminology and education of stakeholders is vital in achieving this.

Currently in Australia doing presentations for a series of clients here and interesting to see how much interest there is in Blockchain and Digital Assets.

Please do keep your feedback coming and if you have a topic that you would like us to cover do let us know.

Welcome to this weeks' edition of Digital Bytes where we have analysis on the following topics:

Blockchain and digital assets are effectively helping to develop the insurance industry - whilst Blockchain technology is still in its infancy, there are already a number of promising use-cases that drive efficiency, security and cost reduction across the insurance industry. Though still in its early stages, Blockchain technology is making headway and will undoubtedly be a part of the industry's growth.

Higher inflation and a call for greater decentralisation resulting from the Russian - Ukraine conflict? - prior to the conflict, inflation was already on the rise and the surge in many commodity prices will now only exacerbate what could prove to be a real problem for the global economy. Russia’s actions highlight the fact that centralised control structures create systemic risks for financial markets for which Blockchain technology now offers a solution, thus helping to maintain confidence and ensure investors are treated even fairer.

Social networks: the effect of digital assets and blockchain - social networks such as Facebook and Tencent are showing increasing interest in Blockchain technology. Digital assets (for example, NFTs) will define ownership on the metaverse and digital currencies are set to power this new digital economy. Traditional social networks are profit-driven companies, whilst decentralised social networks can be autonomously run organisations that improve and develop over time to benefit their users. How will some of today’s social network giants address the challenges they face, and what role will blockchains (and the digital assets they can create) play?

Financial Ghouls vs The Good: the ‘Battle Royale’ to kill mortgages - how digital assets are changing the mortgage industry forever and saving capitalism for the many... not the few.  The use of Blockchain technology is allowing us to alter the way that real estate is purchased, owned and even used as the backing for our own banking requirements, potentially unlocking and creating real liquidity in the global $326 trillion property market.

Welcome to this weeks' edition of Digital Bytes.

This is our fourth anniversary as we first published Digital Bytes back in March 2018 and have continued to do so each week. As well as being sent to a wide range of readers in Europe, South and North America, Africa, India, Digital Bytes is translated into Chinese and sent via WeChat to many Asian countries including China.

This week we have articles on the following topics:

How Blockchain and Digital Assets can impact the real estate sector - real estate is not immune to the effects of Blockchain technology. With offline real estate transactions frequently including face-to-face interactions between several parties, blockchain has made it possible to modify this. Assets such as real estate may now be tokenised and sold, like cryptocurrencies, thanks to the development of smart contracts on blockchain platforms. By tokenising real property assets can then be traded, much like stocks on an exchange, and transactions can be completed online.

Blockchain technology fuels the winds of change in the global payments industry - the global payments sector is facing new competition and radical change as never before. Blockchain-powered platforms and the digital currencies they can create from governments and companies are forcing the traditional payment platforms to make changes. Existing firms offering global payment solutions are changing their business and blockchains have ushered-in new FinTech firms offering competition in this once tightly controlled market.

Inflation is on the rise: what impact could it have holders on cryptos? - inflation rates are increasing globally, especially in the US, resulting in rising interest rates which is bad news for those governments, companies and individuals which have become addicted to debt as the cost of borrowings increases. Will Bitcoin prove to be an inflation hedge or, indeed, be truly uncorrelated with other assets such as equities and bonds, and actually rise in value as these traditional assets fall? The volatility of cryptos and traditional assets is likely to rise and so present a great opportunity for those who can and do know how to sell ‘puts and calls’ i.e., options.

Issuance and settlement of securities directly on the blockchain: now a reality in Luxembourg? - over the past months, Luxembourg has taken several important steps regarding the use of distributed ledger technology (DLT) applied to the financial world. Indeed, dematerialised securities may be issued and settled within or by virtue of DLT, thereby enabling the creation of native tokens. Following this, the regulator for the financial sector has provided useful guidance as to how and when regulated entities could invest in virtual assets and/or provide services in relation thereto. Finally, the Luxembourg Stock Exchange recently admitted to its Securities Official List financial instruments registered on a DLT.

Please do keep your comments and feedback coming and suggestions of further topics you would like us to cover in future editions of Digital Bytes.

Welcome to this week's edition of Digital Bytes which has analysis on the following topics:

Are NFTs crypto assets? If so, why does it matter? - the boom in NFTs is keeping many consulting firms, lawyers and accountants busy as we see owners of IP almost falling over themselves to launch their latest NFTs. However, what would happen if regulators were to decide that NFTs are indeed cryptos or even securities? Would those consultants, lawyers or accounting firms have valid PI or other types of insurance in place if their clients were to sue them for not having advised them accordingly?

Digital Asset Management (DAM): overview and how it is integrating Blockchain - although Blockchain technology is not limited to financial transactions, it has many advantages over traditional transactions. It is for this reason that Bitcoin, alongside many others, uses blockchain in the management of financial transactions. In view of this, it is fitting to surmise that blockchain and DAM platforms have matters in common i.e., management of digital assets.

Web 3.0: understanding the internet sensation - as the human race evolves, the need for developed technology is continually apparent. Factors such as convenience, productivity, effectiveness, etc have played a crucial role in the need for evolution. The web is not excluded since evolution takes place at an ever-increasing pace, and its progression has automatically led to the advanced technology of the internet. This evolution of the web has been in the form of Web 1.0, Web 2.0 and Web 3.0 - and Web 4.0 is almost upon us.

The growing importance of protecting our data and digital assets as our lives become ever more digitised - it is very well known and accepted by everyone that cyber threat is an evolving threat in every area of business and personal life. Cybercrime is the new burglary tool of choice for criminals. This is also true and even more pertinent where crime intersects the digital world. Crime, going back before fingerprints were matured and records stored on file, was difficult to solve and therefore security locks and alarm systems became the best way to prevent criminals from stealing goods and possessions. Since crypto wealth and assets only exist in the digital world, people have recognised that the current way to be secure is via new types of burglar alarms, such as system checkers, and move away from the old mantras of ‘remember to lock your doors and windows’ and instead have reminders to update and patch software, check for malware and lock down your exposure online.

How DeFi could challenge the ETF sector – The ETF sector is expanding as more mutual funds convert into ETFs. Recently, we have seen the launch the Hashdex DeFi Index ETF which it is the first regulated ETF to invest in DeFi investment tokens. ETFs were designed to group correlated assets together and DeFi can take this one step further and challenge the composability of these investment vehicles, putting users at the heart of financial instrument design. DeFi infrastructure and liquidity can make existing financial products and fund administration more efficient, in a similar fashion that ETFs have for mutual funds.

Is crypto the antidote to the West’s ills and a shot in the arm for the economy? - in parts one and two of this essay we discussed how the increasing digitality of society has coincided with a relative decline in US and Western hegemony and how this has led to a diminished level of trust in the institutions of security, governance, media and finance, as well as in trust as a general concept. In part three, we explore how cryptocurrencies and blockchain offer a technological solution to this socio-cultural challenge, and perhaps a wider opportunity for the west. Are critics of this emerging technology missing the point when they criticise its flaws?  Could crypto be the latest way to unleash a new wave of economic, cultural, political and military innovation and growth?

Bitcoin miners claim they are able to generate cryptos whilst improving their ESG credentials - the Bitcoin Mining Council has targeted 2030 as the date for its members to be net-carbon neutral. On this subject, we look at examples in Norway and the USA regarding how crypto miners are improving their ESG credentials.

The thorny issues about valuing NFTs - a review of some of the key issues when looking at how, or if, NFTs can be valued. This includes defining NFT rights and obligations, forecasting cash flows, the involvement of crypto currencies and market comparables, and concludes that the use of existing intellectual property valuation techniques should help with better informed values of NFTs.

Welcome to this week's edition of Digital Bytes which includes the following:

DeFi Yield Protocol: the massive boost yield farmers and the DeFi space need - over the years, there has been a steady growth of the blockchain space and, most notably, decentralized finance. Although DeFi isn’t new, the growth has been more aggressive since 2020 than it previously was. The introduction of yield farming protocols and distribution of COMP governance has, indeed, inspired a lot of conversations and hoisted DeFi’s stance in the blockchain industry. Being a boost to yield farming and DeFi space as a whole, it is important to look at the uniqueness of DYP.

The era of digital crime: can financial institutions combat the increased risks? - in today’s ‘digital-first’ world, financial institutions are transforming existing processes and adopting new technologies to remain competitive. However, ‘going digital’ presents many new challenges - primarily in security and compliance. The ever-increasing amount of digital crime will require legacy and new institutions alike to adjust their mindsets and embrace new technologies. While it’s difficult to find a ‘one-stop shop’, with the right assortment of cloud-based solutions, financial institutions can develop robust risk management processes fit for this era of digital crime.

Will Russia, UK and USA embrace crypto or try to kill it off with regulation? - Matt Hancock (ex-cabinet member in the UK government) believes the UK can be a dominate crypto jurisdiction, but the latest rules from HMRC are making it less so. Meanwhile, expect to see further guidance shortly out of America from the Officer of the Comptroller of the Currency (OCC) around regarding cryptocurrencies.

Is the erosion in trust in our institutions a sign of terminal decline? Or can they adapt to a changing context? - Part 2 of a 3-Part Essay: “After two years of the COVID-19 pandemic, and two decades of economic, political and social crisis, is crypto the ‘shot in the arm’ the West needs?” In part one of this essay, we discussed how the increasing digitality of society has coincided with a relative decline in US and Western hegemony. In part two, we try to understand why the tools and institutions that made liberal democracies successful in the 20th century are now failing them in this increasing digital landscape.

Please keep sending your suggestions for future topics for us to cover.

Welcome to this week's Digital Bytes where we cover the following articles:

Are we to see two versions of digital intellectual property - an NFT and a DDC? - as the Year of the Tiger roars in, it could be a big year for blockchain and Digital Assets in China. With China launching its digital Yuan (CBDC) and announcing that it is to officially back a new breed of NFT-style digital assets (called DDCs) using a blockchain-powered platform, will we see two versions of non- fungible Digital Assets being created?

After two years of the COVID-19 pandemic and two decades of economic, political and social crisis, is crypto the ‘shot in the arm’ the West needs? -  in part one of this essay we discuss how increasing digitality has coincided with a relative decline in US and Western hegemony, and how the tools that made democracies successful in the 20th Century appear to be undermining them in the 21st Century as the authoritarian regimes they compete with appear on the ascendancy.

Digital wallets for Digital Assets are on their way - whilst digital wallets from the likes of PayPal and Apple have been around for years, we are seeing a growing demand and, indeed, need for digital wallets to enable one to transact with Digital Assets. The Chinese currently have over 260 million people holding a digital wallet that enables them to use the Chinese digital Yuan, and this number is set to grow as the Chinese CBDC is positioned to be officially launched at the 2022 winter Olympics.

Where is crypto going? - crypto has been around for over ten years but is it still just Bitcoin, or is there a bigger strategic opportunity here and what's missing in terms of making that happen?

Welcome to this week's Digital Bytes which has analysis on the following topics:

How many more countries will make Bitcoin legal tender? - El Salvador has recently made Bitcoin legal tender and claims that 70% of its citizens who were previously unbanked now have digital wallets, thus making more people in the country financially included. In just 45 days this is a massive achievement, but will it encourage other countries to consider following El Salvador’s lead?

Blockchain’s utility season - this article argues that, while a ‘utility season’ for Blockchain technology may seem a far way off, it is in fact right around the corner - it only seems distant because we are currently in the ‘blind valley’ of exponential growth of a network technology. The article goes on to provide a more concise definition of utility token, itself being composed of two separate aspects: the ‘intrinsic’ and ‘extrinsic’.

Crypto Crashing: the test of endurance - for Bitcoin, dip isn’t unusual; cryptocurrencies are volatile and fluctuate from time to time. As rapidly as prices rise, they can tumble back down. For instance, Bitcoin went as high as above $64,000 in April 2021 but about three months later the cryptocurrency had lost more than half its value, diving to below $30,000. The volatile nature of cryptocurrency attracts traders looking to make profit but it is nail-biting, especially for new investors. Because of this, it is important to consider if you can handle the fluctuation before investing in Bitcoin or any other cryptocurrency.

Frontier challenges: bringing cryptocurrency investment to mainstream asset management - with more hedge funds and institutional investors participating in the cryptocurrency markets, questions are being raised about the infrastructure that underpins these markets. Whilst many large investors would like to allocate more to the asset class, they are worried about some of the operational issues which crop up.

In this article, Dave Shastri, Chief Strategist at hedge fund technology platform, Truss Edge, looks at what changes may still be needed for the cryptocurrency markets to be able to interact integrally with those existing financial structures in place for larger allocators. With many new fund launches coming onto the market (keen to act as a bridge between large investors and digital assets), resolution of many of these problems is urgently needed.

The Digital Assets domain, raising funding through tokenisation is rapidly developing. But will these new tokenised financing solutions be able to really help organisations when it comes to raising capital?

Teamblockchain is delighted to be working with 2Tokens in Holland  and would be most grateful to get your input on the attached short questionnaire. We would appreciate your thoughts and experiences about 'tokenised financing’, as they are very valuable for the further development of the tokenisation field.

This should only take 5 minutes of your time and will greatly help the further development of the market and related products. No prior technical knowledge of tokenisation is needed.

This is the link to the survey - https://docs.google.com/forms/d/e/1FAIpQLScuKyaak-r4BK1X0SgqVPPoMWe_F1ejuZqBjs9lrEe7HqXHpg/viewform

Thank you for your time and we will be publishing the results from this PanEuropean survey once all the submissions have been analysed.

Welcome to this week's edition of Digital Bytes which includes the following articles:

DAOs: a new-fangled term to bamboozle novices into parting with their cash, but what role can they really serve? - in the crypto sector, Decentralised Autonomous Organisations (DAOs) have only been around since 2015 but their DNA arguably harks back much further as groups of people collate and then mutually benefit from making investments without third parties taking huge management or performance fees on the profits generated. Could DAOs offer a challenge to the mighty asset management and venture capital industries?

2022: the year of further decentralization - despite the disruptions of the COVID-19 pandemic, 2021 saw a significant shift in gear for new technologies with record amounts of capital flowing into blockchain businesses. If 2021 showed us that even the best laid plans can go awry, it equally served as a demonstration of the extent to which innovation can continue and thrive, even during uncertain times. There is no doubt that this will also hold true for 2022. In this review, industry experts at cheqd look ahead to the top tech trends they expect to see take off in 2022.

Financial markets face an inflection point, but will regulators and organisations capitalise on the opportunities with which they are presented? - the amount of capital attracted to FinTech is huge. As we see more technology being harnessed, it is inevitable there will be some will be some winners and some losers in terms of corporates as well as at a national level. The benefits of a slew of new products and services will potentially impact across the whole economic landscape and the questions is, how quickly will governments and their regulators embrace this tidal wave of change surging upon them?

‘High Five’ for the digital assets road to HyFi - the digital transformation of the financial services industry has gained accelerated traction over the last few years with the increasing adoption of blockchain solutions and digital assets. Nonetheless, as the era of Finance 4.0 evolves, there is a growing demand to access and offer a full range of digital products and services alongside traditional ones. This suggests the need for some kind of dual approach. But how can this be achieved in practice when most financial participants are still off-chain? And even if they are on-chain, there is fragmentation as a result of multiple blockchains and lack of integration into their traditional systems to ensure a cohesive approach

Thank you for those that have sent suggestions for future topics you would like us to cover and for those that have not as yet but would like to, please do not hesitate to contact us.