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A Brief on China's Forthcoming "Cryptocurrency" - CYDigital
Shortly, China will be launching its own cryptocurrency, which may not be a cryptocurrency. China’s big four state-owned commercial banks (the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and the Agricultural Bank of China) will be the only issuers of China’s CBDC (Central Bank Digital Currency). It feels more like a digital replacement for the Yuan than a true cryptocurrency, and it will better facilitate the financial lifecycle for many Chinese citizens since they are heavy users of digital payment system like Alipay. Chinese officials have stated they want to strike a balance between anonymous payments and being able to track money flow to prevent money laundering. This may be disingenuous as China has moved away from anonymous transactions (cash exchanges) and to digital payments at a breakneck speed. It is more likely that the goal is deeper tracking of transactions. “It might be more accurate to say that the PBOC (The People's Bank of China) is looking to release digital cash with extra surveillance.”[1] Reporting notes that the CBDC could look akin to Libra, which may be reflected in two ways: (1) as a system capable of handling very high transaction rates, and; (2) it will be on a permissioned blockchain. It may be a fully private blockchain not just in who has the rights to execute the consensus protocol and decide the mining rights and rewards, but also who maintains and can audit the shared ledger. Some additional notes: - China has been dependent on the USD as the global reserve.
- The new CBDC will be backed by the yuan.
- The yuan is dependent on USD and CBDC is backed by yuan.
- Currency manipulation issues are the main worry for other governments.
- China wants to make CBDC a global currency.
- China’s big four state-owned commercial banks, as well as fintech giants Alibaba, Tencent, Union Pay, and an unnamed company, will be the first batch of organizations to receive the CBDC.
- The PBOC’s Digital Currency Research Lab:
- Launched Shenzhen Fintech Research Institute;
- Went on a hiring spree for blockchain architects and cryptography specialists;
- Filed more than 50 patent applications to detail the potential design of the state-backed digital yuan system but will strip off most cryptocurrencies’ anonymity and decentralization features.
[1] Roger Huang, “China's Digital Currency Is Unlikely To Be A Cryptocurrency,” Forbes, 8/14/19, https://www.forbes.com/sites/rogerhuang/2019/08/14/chinas-digital-currency-is-unlikely-to-be-a-cryptocurrency/#4d4a3f8c6a52
Much of what we term AI today results from the application of Machine Learning to extraordinarily large amounts of data. To be precise, it is the application of so-called Deep (Machine) Learning techniques that has enabled the rise of voice search and voice-activated assistants such as Siri, healthcare innovations in areas such as cancer diagnosis and treatment, face recognition such as AWS Rekognition and the broader areas of image and video analysis and recognition, machine translation including tools like Bing Translator, speech recognition tools and the emergence of the so-called self-driving automobiles and more. Technically, we should call this the Deep Learning resurgence, and not the AI resurgence.
Blockchain platforms have led to incredible advances in the design and development of decentralized applications and systems and have been applied to domains ranging from cryptocurrencies to enterprise supply chains. More importantly, there are two capabilities that blockchains enable due to their inherent decentralized implementation.
First, blockchains provide the ability for users to be in control of their data and to decide when, where, to whom, and for how long to provide access to their data i.e. blockchains are the anti-thesis of systems that intrinsically and automatically exploit the user’s private data. Further, with the advent of Zero-knowledge proofs, blockchains now have the ability to reveal nothing about a transaction except that it is valid.
Second, blockchains are designed without a central authority or system. Therefore, in order to achieve agreement on both data and transactions, blockchains use a variety of fault-tolerant consensus algorithms. While there is an assortment of consensus algorithms, all of them share similar characteristics with respect to achieving agreement across a decentralized set of nodes (or systems). In particular, a variant called Byzantine Consensus addresses the Byzantine Fault Tolerance problem referred to earlier. Blockchains enable the development of AI applications that are not reliant on a single-vendor implementation with all of their concomitant risks and faults.
Together, these two critical capabilities have the potential to enable today’s Machine Learning implementations to address their Achilles Heel and to enable AI applications that are both not privacy intrusive and not susceptible to the single-vendor Byzantine Faults.
Self-sovereign identity is the notion that rather than having our information held by third parties (often without us knowing what that information is), individuals and entities instead have the ability to store and ultimately control their own digital identities. They can choose to provide select data points about themselves under conditions that they set when there is a need for such information collection,7 without having to rely on a central repository to store this information.8
"Blockchain is not one thing: It includes a range of technologies from smart contracts to tokens to consensus models. Because these products will continuously mature and become available, CIOs should plan for incremental evolution of their blockchain strategies.
Gartner sees four phases in the evolution of blockchain technology:
- Blockchain enabling technologies
- Blockchain inspired
- Blockchain complete
- Enhanced blockchain
The industry is currently moving out of the second phase--blockchain inspired" and into the third phase--"blockchain complete." Gartner predicts that the final phase will start by 2030."
Gelernter thinks there's a better way: he envisions a social media that's collectively owned by its users, where terms of use are determined democratically and privacy is guaranteed by blockchain-based encryption.
Gelernter has teamed up with Rob Rosenthal, a 19-year veteran of Goldman Sachs, to launch the new social media, dubbed "Revolution Populi."
It may seem far-fetched, but they're counting on the general public becoming so fed up with Facebook — but still craving a social media outlet — that Revolution Populi becomes a global movement. A Facebook spokesperson did not immediately respond to Business Insider's request for comment.
Loyal customers are one of the primary drivers of any for-profit business. By building loyalty rewards programs, companies aim to heighten the customer experience. In many cases, however, the opposite has occurred. The implementation of blockchain can drive the customer experience to the next level, and here’s how:
Reducing costs
Enabling a frictionless system
Making the process near real-time
Providing a secure environment
Creating unique business opportunities
Given that blockchain’s adoption is in its near infancy in business categories beyond finance and manufacturing, it has the potential to evolve many aspects of marketing. Beyond the customer experience, the marketing industry could use it to create accountability in ad buys, improve a brand’s transparency, or understand customer engagement better.
As consumers realise the benefit of content that is personalised to their needs, many will join a company’s blockchain environment. And to further engagement, brands may incentivise consumers for their attention. Given that there might be a reduction in the need for media intermediaries, companies can afford to take some of their cost-per-thousand savings from media and transfer that to the actual audience.
If the bill were a law during Facebook’s privacy scandals, Mark Zuckerberg would face jail time, Sen. Ron Wyden says.
As programmatic advertising reaches adulthood and the advertising process becomes ever more automated, it’s not possible to simply sit back and blindly trust the measurement and attribution data. Instead, incorporating emerging tech solutions from AI to blockchain will be paramount in waging the war against bot fraud.
8. CIOs should continue to develop proofs of concept internally as well as part of market consortiums
In order to get grip on blockchain and what it can mean for their business, CIOs should continue to develop proofs of concept to test blockchain’s business worthiness. Thereby they should take into account that different industry domains (upstream, midstream, downstream and marketing) and functional areas (such as commodity trading, cash management, supply chains and data integrity) are expected to adopt blockchain on different timelines.
For enterprise success, blockchain needs to be a consortium effort – not something that is used only internally. CIOs should be aware that the transformative nature of blockchain works across multiple levels simultaneously (process, operating model, business strategy and industry structure), and its success will depend on coordinated action across multiple companies. The way to create a multi-company blockchain consortium however is a very difficult one.
According to the latest information, the New Balance Realchain network will be launched in alignment with the unveiling of OMN1S shoes on Friday. The project will help the new clients to record their shoes’ ownership on the decentralized chain. The purchasers of the OMN1S shoes will be given a Realchain card, which will be studded with an identity and security chip. After receiving their pair of basketball shoes, the owner can scroll through the New Balance app for scanning a QR code imprinted on the Realchain card. Also, one needs to scan the chip embedded within the card to get their shoe pair authenticated on the IOHK Cardano blockchain network.
The customers need to enter a code given on the tongue of the shoes into the app for claiming their ownership. By doing this, the particular person will be entitled to secured ownership of the shoes recorded on the New Balance Realchain platform.
On Wednesday October 9, in Revenue Ruling 2019-24 the IRS delivered on some of those promises, publishing a Revenue Ruling on the tax treatment of forks and related airdrops and posting an accompanying information circular on its website providing a list of frequently asked questions and answers (“IRS Q&A”) that, among other things, addresses methods for determining a taxpayer’s basis in cryptocurrency. While the IRS Q&A appears to be mostly non-controversial, the treatment of forks and airdrops is likely to be the subject of debate.
"Data centralization is core to digital marketing driven by data and analytics. The vulnerabilities of this data can be removed by the decentralized, and distributed ledger technology Blockchain. The security risks are taken care of by this technology, which also increases the transparency and traceability of the data. Apart from the security of the data, there are concerns related to the overall cost of analysis, storage and retrieval of data. As you need to offer something in return for the data available to the intermediaries such as Google and Facebook, you end up spending a lot of money. The ROI is negligible against the spending in certain cases, specifically from these channels. However, with Blockchain you can get your hands on the data without considering these middle channels. You own your personal data, and the scope for manipulation of this data reduces tremendously. As a marketer, you reduce the spend but, you also empower the consumer with a choice on sharing the data. The consumer gets the veto on the data that can be shared, and the ones that should be private. It works as a win-win situation for both, and eventually you get to score trust with the customers.
A decentralized ledger like blockchain can impact digital signage in many ways. First of all, it can help confirm impressions for digital signage advertisements. This kind of technology is already at work with the company VODXS.
On the customer level, DOOH advertisers can also incentivize customers to engage with campaigns through tokenization. For example, a campaign could encourage customers to take a picture of an advertisement and share it on their social media profiles in exchange for cryptocurrency, which can be delivered to an app.
- Blockchain Adoption Exempts Middlemen Involvement: It will end the role-play of the middlemen, Google, along with an increase in the profit margin and decrease in variable costs.
- Blockchain Ensures Trust And Transparency: Blockchain technology fosters transparency like no other medium as it gives them a sneak-peek into the production as well as supply chain pedagogy followed by the producer.
- Blockchain Renders Public Accountability: The use of smart contracts that are easily accessible to one and all makes it work as a platform that is accountable to the public for its actions.
- Owners Get Paid By The Advertisers
- Blockchain Supports Brand Imaging
"Welcome to the brave new world of tokenization, where digital tokens issued on blockchains are used to represent asset ownership and to efficiently facilitate asset exchange. By leveraging blockchain infrastructure, this digitalized form of currency uses digital tokens to control and exchange ownership in an asset or something else with perceived value. In doing so, tokens support transparent, immutable and frictionless transactions – and that is unlocking new models for engagement between businesses and consumers. Tokens are enabling new ways to purchase products and services, enhance customer experiences, and strengthen customer trust and brand loyalty, in addition to numerous value-driving business initiatives. While still in its early days of adoption, tokenization
is already reshaping commerce by enabling new ways to drive consumer behaviors to build trust and brand loyalty. Companies that ignore the potential of tokenization to transform business models and competitive landscapes may soon be leap-frogged
by bolder players who are harnessing tokenization to create competitive advantages. How? By pursuing new opportunities to drive real business value for organizations across industries."
Blockchain technologies like distributed consensus, tokenisation, self-sovereign identification and smart contracts coupled with AI and IoT offer a means to decentralise the running of society, not just business.
Enterprises have organised to compete in traditional societies with centralised control mechanisms. This type of organisation will struggle to be effective when it must deal with citizens and customers whose expectations will be reset by blockchain. They will expect the enterprise to respect the new power that blockchain confers on users — especially self-determination of economic value exchange at the micro level.
CIOs tell Gartner that blockchain is a technology they want to deploy. Sixty per cent expect some level of blockchain deployment within the next three years, according to the 2019 Gartner CIO survey.
Now blockchain and mobile wallets are disrupting the way companies do rewards. Blockchain is cutting out 3rd parties and giving full control directly to businesses. Blockchain is a new technology that is creating decentralized and encrypted programs. It is much faster, much more secure, and transparent; everything that the current rewards system needs. Blockchain also has brought us smart contracts which, in simple form are encrypted digital contracts.
Why Blockchain is perfect for the rewards industry.
Secure. Blockchain is more secure than any previous technology. With the use of smart contracts and blockchain; customers data is protected like never before.
Fast. Blockchain, if implemented correctly cuts transaction times down to mere seconds, allowing for more accurate reward programs.
Efficient. Reward programs have billions of transactions and very large amounts of data that needs to be stored. Blockchain brings efficiency unlike anything we’ve seen before and this means huge cost savings.
Blockchain for lead generation delivers the ability to source leads and share information using a decentralized platform in a peer-to-peer network. This is the first time blockchain is entering into the sales world, and it has the potential to have a transformational impact on the business and how sales organizations typically source leads and contact information.
Rather than sourcing from many unreliable third-party databases, users can instead take part in a network sharing system to source leads and contacts that fit their organization, while selling leads that do not conform to their ideal customer profile to other companies that may need that lead. Currently, sales leaders will not find many vendors offering blockchain for lead generation. However, in the meantime, they can learn more about its potential use cases and prepare for an increase in the vendor landscape.
Following the departure of PayPal from Facebook’s Libra project—a cryptocurrency that promises to “reinvent money” and “transform the global economy”—a new wave of departures has rocked the platform as eBay, Stripe, Visa, and Mastercard have all announced that they are abandoning ship.
Vitalik Buterin highlights Grants, Hdac announced new project and Terra proves that it owns Korea
Seoul, South Korea hosted the much anticipated Korea Blockchain Week from Sep. 27, 2019, to Friday, Oct. 4, 2019. The main conference of the event, known as D.FINE, took place between September 30th and
From a publisher’s perspective, AdEx’s goal is to help fledgling websites and blogs maximize the revenue from their ad space. Given how market-leading ad providers often take excessive levels of commission for the services they provide, the blockchain-based platform says it is determined to keep more money in the pockets of content creators. Another interesting twist comes in the form of micropayments, which means publishers are paid for each impression immediately after it happens. None of these features are at the expense of control, as websites can decide to decline adverts from companies that don’t fit in with their ethos.
Perhaps only middlemen care so much for themselves. Although online payment systems like PayPal and Venmo have cut out the drag of transferring money via banks with fewer clicks, they’ve only replaced other middlemen. With blockchain, middlemen are bypassed with the trust of a nearly invulnerable system. Marketers will reach consumers willing to accept ads with micropayments and coin systems that act like coupons. Not only does this incentivize consumers to spend more, it builds brand loyalty.
Social media advertising is cost-effective when a budget plan aligns with the bidding systems of big platforms like Google and Facebook, but return on investment (ROI) conversions are still somewhat difficult to assess. Unlocking the engagement recipe for platforms marred with privacy scandals and fake news has become somewhat of a stained course of action. Blockchain can create direct pathways from marketers to verifiable consumers.
"In the pilot that EXChain completed for Unilever/ADK in Japan, we tested the hypothesis of blockchain can be applied in providing advertising transparency, i.e. gaining full visibility of campaign spending elements and participating stakeholders. The pilot found out that a simple two-layer supply chain tested in the pilot took out a compound intermediary fee of 36%, and the total projected campaign spending efficiency is approximately 51% only, i.e. 49% of every dollar spent went to the tech and supply vendors. "
Global entertainment and media industry, currently worth at the US $2 trillion are being transformed substantially by the digital technologies in the areas of content production and distribution. Blockchain technology being one of these prominent technologies has the potential to overhaul the market framework and resolve many impending challenges by connecting various stakeholders e.g. authors, musicians, videographers directly with consumers in a way enhancing the efficiency tremendously.
The key driving forces like rising demand for eliminating intermediaries between content creators and end-users, increasing instances of data piracy in the media, entertainment, and advertising verticals, and the growing need for secure and faster transactions are fuelling the adoption and usage of Blockchain Technology Media, Advertising & Entertainment Market industry.
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Written by CYDigital's CTO, John Rizzo.
Curated by CYDigital: Empowering Marketers, One Blockchain at a Time https://cyd.digital #zeropartydata #martech #marketing