Category: Ethereum

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Manhattan property worth $30 million, tokenised with blockchain

Categories ICOs, E&S Group, Tokenomics, Ethereum, Real Estate, Property

Manhattan property worth $30 million, tokenised with blockchain

A new condo development in the heart of Manhattan is set to become the first to be tokenised via the Ethereum blockchain. The unit consists of 12 units, each at 1700sq ft, located in 436 & 442 13th St in the East Village, one of the most sought-after areas in the city.

Listed by Ryan Serhant, a celebrity real estate agent, he and the developer decided to turn to tokenisation as a new way of financing the project. This could pave the way for other projects to follow suit as well as offering a better alternative for both the project and the investors.

“The market in New York is always strong, but it can take some time to sell for the right price in a new construction building. With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders. Tokenization is paving the way for a new forefront in real estate development,” Serhant said.

Tokenisation is a way of representing ownership of a product or asset in a digital way on the blockchain. This new way of financing is the result of a collaboration between Fluidity and Propellr, two businesses that have come together to offer fully compliant services that enable the creation, distribution, and transfer of digital securities.

Todd Lippiatt, CEO of Propellr stated;

“Traditional securities structures and issuance frameworks haven’t evolved in a long time. With blockchain technology, a transparent and trustless ecosystem can start to solve the information asymmetry that hinders the market’s potential for liquidity. This asset, structure, sponsor, and sales team showcase this evolution. With proper discipline and respect, the future is bright for tokenized securities.”

Propellr is a management, creation, and servicing platform for digitally held assets and it is also the parent company of a FINRA registered broker/dealer called Propellr Securities. Their aim is to use their financial and capital market experience to both offers and sell tokenised securities under the Reg D Rue 506 (C).

Fluidity is the company behind AirSwap which offers technology services to broker/dealers, financial institutions, and issuers for tokenised securities. The partnership between Fluidity and Propellr means that they can now accept fiat payments as well as both solicit and sell securities in line with the law.

Investors in the project are able to choose between receiving analogue or digital assets in the securities which means that all kinds of investor are covered. AirSwap technology will also be utilised the process, as well as tokenising securities and helping a fully compliant secondary market to emerge.

“Along with our flagship AirSwap, we’re building a system that brings local assets online using blockchain technology. This makes them available for trade on a global marketplace—directly among buyers and sellers. Fluidity is forming the foundation of a new system of tokenization and trade,” Don Mosites, co-founder of Fluidity, stated.

E&S Group recently became the first business of its type to tokenise its services– this is also something we can help you do. Whether you want to tokenise your products and offerings or tokenise an asset such as property, our team of experts can guide you through the process, so get in touch by sending us an email at [email protected]

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Why businesses need to realise the importance of tokenisation

Categories Blockchain, Cryptocurrency, Tokenomics, Tokens, Ethereum

Why businesses need to realise the importance of tokenisation

One of the most important implementations of the blockchain technology is to reliably record and verify information monitoring when and where it was added to the network.

This combined with its ability to synchronize in real time with an unlimited number of nodes in any location, means that all involved parties can get the same information at the same time. This also means that all stakeholders can have the utmost confidence in the truthfulness of that particular information. The result of this breakthrough is that you can treat blockchains like an infallible digital notary that can record truthful information and share it in seconds. Whilst this is incredibly useful, it does have significant limitations.

Being able to know where and when a product was manufactured, and have an opportunity to trace its entire history is a powerful way of reducing fraud. Whilst this is incredibly useful, it is not an economic unit that can be bought or sold.

The power of digital tokens

Digital tokens, on the other hand, are designed for economic activity and blockchains are perfect for processing them.

Let us consider something complicated such as a packet of prescription medication. Not only is there a requirement to record when and how it was manufactured and packaged, but when the time sell it to pharmacies or distribution partners comes, we still need to keep track of it.

If we create a digital token that represents the packet of medication, we would be able not only to trace the full history of the packet, but also to buy and sell the token by moving the token in between accounts.

Public blockchains such as Ethereum are mainly based on the ability to combine both complicated business logic with smart contracts and an unlimited number of digital tokens. Tokens that represent money can be considered as fungible, whereas other types are unique. Either way, we can safely say that the future of business is in contracts that involve exchanging products and service tokens for money tokens.

Through the use of digital tokens, we can create a type of sophistication that exceeds the existing financial and operational business world by being cheaper and less complex – all using the same single system. The future of business contracting will involve the exchange of product and service tokens for virtual payment tokens.

When we combine tokenisation with the complicated business logic that is facilitated through smart contracts, we can represent very complex business transactions faithfully and much more reliably than companies do at the moment. It is not unusual for companies to discover that their ability to negotiate an agreement often far exceeds their ability to keep their side of agreed.

Example of use

A good example of use case would be a volume purchasing agreement. Generally, businesses beyond a certain size often have many different resource planning systems as well as numerous subcontractors and subsidiaries which can make executing simple tasks very complicated. If you cannot track volume, you cannot get discounts but with blockchain and a smart contract for procurement, it is possible to always calculate the correct price for each PO.

As the token economy matures and businesses put more and more products, services, and assets onto public blockchains, we can expect the delivery of complex financial services to be made digital as well.

Everything from receivables factoring to trade finance can be a one-click activity and once participants have created a trustworthy track record of doing business over the blockchain, a record of precision will far exceed the reliability and accuracy of a traditional credit report.

But to get there, the first and most important step is for businesses to embrace tokenisation and to move far away from just treating blockchains like a techy, digital notary.

At E&S Group, we can help you to understand the benefits of tokenising your business and services. Furthermore, we can take you through every step of the transition. Contact us today by sending us an email on [email protected] to find out more.

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TRON burns over half a billion tokens and moves to Malta!

Categories Blockchain, Cryptocurrency, Malta, Technology, Trading, Ethereum, Exchanges, DLT, Projects, TRON

TRON burns over half a billion tokens and moves to Malta!

At the last week of August TRON gained a good momentum obtaining almost half a billion of its old tokens that ran on the Ethereum network. They also celebrated their new wallet being launched on the iOS Apple Store.

TRX has built a name for itself as one of the most well-known cryptocurrencies and due to its success, it finally left the Ethereum network and set out on its own. To celebrate its disconnection from Ethereum, TRON has burnt four rounds of old, obsolete tokens as they have been replaced with tokens that are compliant with the new blockchain.

This latest round of burning was done at the same time that the TronWallet was launched in the iOS Apple Store after considerable work to gain the Apple seal of approval.

During the month of August, developments have been a nail-biter with the App Store issues and multiple bugs creeping up as a part of normal development of a feature that is almost entirely rewriting the foundations of the app. But with the help of the always helpful, strong Brazilian coffee and hard work, TRON team pulled through and they are ready to complete their most ambitious release yet.

Some of the features of the new app include:

  • Fully decentralised P2P wallet with no login or signup required
  • Local secret encryption and PIN
  • All Tron network operations supported except ‘create tokens’
  • Create multiple accounts and store contacts in one address book
  • Push notifications once transactions are processed
  • Open source privacy with private keys belonging to  the user only

The programme is backed by Tron’s accelerator as well as being developed by Getty/IO Inc; a front-end development firm that specialises in AWS, blockchain, and Javascript.

Recently, TRON shifted their operations to Malta, joining other established corporations also dealing with blockchain and cryptocurrencies. Due to Malta’s positive stance on the DLT sector, Malta will surely embark its sails to welcome all companies to set up shop on the island.

E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

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TRON launches MainNet, TRX tokens used to vote

Categories Blockchain, Ethereum, TRON, Platform, Proof-of-Stake

TRON launches MainNet, TRX tokens used to vote

Tron (TRX) is steadily becoming a force to be reckoned with in the cryptocurrency market. The blockchain platform aims at becoming the largest decentralized open-source protocol in the crypto space. The launch of the mainnet mid this year put Tron at the forefront of competition.

TRX is the 11th largest cryptocurrency in terms of its market cap and its so-called ‘independence day’ was celebrated on June 25th. Justin Sun, founder and CEO announced the day with a tweet inviting all to be a part of a “free, decentralised internet”.

The aim of the TRON network is to offer a fully functional, public blockchain that supports the creation and distribution of decentralised Apps. They also aim to give Ethereum a run for their money as their Odyssey release uses a Delegated Proof-of-Stake (PoS) consensus algorithm and relies on 27 block validators (Super Representatives) to produce blocks and verify transactions.

In addition to this, an official blog post added that a massive coin burn will take place to celebrate independence – a total of 1,000,000,000 TRX which at the time of writing is worth an impressive $50 million.

The celebrations of the 25th feast the migration of TRON away from the Ethereum blockchain which originally supported its ERC-20 compliant token. During the live activation of Odyssey, Justin Sun explained that the migration process is still a few days away from completion. Sun also added that the project has been able to complete the token swap for 1/3 of the crypto exchanges that are supporting the migration. This means that users are able to safely withdraw their tokens as soon as the remaining exchanges follow suit. The next step is to elect the Super Representatives in a phase that has been dubbed as the “Genesis Phase”.

Voting for SR’s started on the 26th of June and these individuals played a major role in the future functioning of the network as well as its development. Sun described it as “the ultimate phase of an independent Tron”. The elections took place over five days as those that voted need time to get their hands on their MainNet tokens. These SR’s were wholly responsible for verifying transactions as well as producing blocks.

The network’s daily transaction volume recently surpassed that of Ethereum platform. Tron clocked 599,354 transactions on October 18 while Ethereum recorded 565,791. The Tron explorer also sent a tweet detailing that 77% of all the transactions were smart contract-based. This positive indication is likely due to the recently launched TRONbet. The new platform allows users to earn TRX while playing, besides the founder Justin Sun said that 70 million TRX had already been given to winners.

 

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How crypto will run the venture capital show in the near future

Categories Blockchain, Cryptocurrency, ICOs, Tokens, Utility Tokens, Security Tokens, Ethereum, Exchanges, Venture Capital

How crypto will run the venture capital show in the near future

A future is being predicted by global venture capitalists is a future that will be run by cryptocurrencies and tokens. This future, however, needs a lot of work done before it can be truly realised. Regulations must be put in place, lines must be drawn, and steps must be taken to ensure that both coins and tokens are not categorised as securities.

Andreessen Horowitz, a venture capital firm is taking a leading position when it comes to spearheading these efforts. They have already formed a collaborative group consisting of lawyers and investors which has met with the SEC earlier in the year. If cryptocurrencies are going to be treated in the same way as securities it could significantly affect their value and this is something that must not happen. This group of stakeholders included Union Square Ventures and representatives from legal firms such as Perkins Coie, McDermott Will & Emery and Cooley along with Andreessen Horowitz, and its main goal is to create a crypto-investment fund.

The search for a safe harbour

The New York Times reported that regulators are looking for a “safe harbour” for some cryptocurrencies.

“We are seeing a watershed moment in which many firms in the digital asset community who may have been ignorant of the law — or poorly informed — are now coming to terms with the fact that they are subject to regulators,” lawyer Richard Levin claims.

Various entrepreneurs that have been involved in ICO processes have stated that as cryptocurrencies and tokens are being used as a means of payment, they should not be categorised as a security. The Chairman of the SEC, Jay Clayton believes the opposite to be right and states that every token must be registered as such.

If a cryptocurrency is to be treated as a security, there will be considerable paperwork involved and they will only be able to be traded on regulated exchanges. Bitcoins are produced on a daily basis and are not sourced from ICOs, unlike Ethereum which is solely responsible for all Ethers produced as a virtual currency. Lawyers from Andreessen Horowitz want Ethereum to be considered in the same way that Bitcoin is as the former has now been decentralised.

Union Square Ventures partner and venture capitalist, Fred Wilson has described the situation as a clear indication that crypto and tokens are still not fully understood. On the other side of the coin, the Coinbase CTO Balaji S. Srinivasan has noted that leaders such as Christine Lagarde and Larry Summers admit that these currencies deserve some merit and recognition.

The value of the token economy

This is where a staunch critic of Bitcoin, Warren Buffet just doesn’t get it. Wilson further explains that the value of the token economy lies on the token itself and not on the cash flow. Srinivasan envisages a future where entrepreneurs can create their own currencies:

“Blockchain is turning everybody into a venture capitalist. The internet will become the world’s biggest stock market. Where basically anyone in the world can put…money into crypto,” he added.

The safe harbour that is so sought after by lawyers would consist of three things: regulatory certainty, tokens not being categorised as a security, and clear ICO regulations in the future. Under the proposals, a token would only be able to be considered as a security if it meets some of the following criteria: a limitation of promotion, mandatory disclosure, detailed sales terms, token supply, and no equity rights involved.

 

If you have any questions in relation to ICOs, please contact us on [email protected]

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Decentralised technology is enjoying its first day at school

Categories Blockchain, Cryptocurrency, ICOs, European Commission, European Parliament, University, Technology, Ethereum

Decentralised technology is enjoying its first day at school

When we hear the word ‘blockchain’ most of us associate it with cryptocurrencies. Whilst this may be true to some extent, the real potential of blockchain far exceeds just transfers of value. Over the last 18 months, many more use cases for blockchain have been discovered and it seems to be gaining a foothold in a range of industries.

But when it comes to the education sector, blockchain has taken some time to find its feet and to even conceptualize, let alone become functional. Over the last couple of months, a handful of universities have started issuing degrees on the blockchain, but this is not even scratching the surface of its potential.

This could be for a couple of reasons – firstly, educational leaders and institutions have a reputation for being slow to adapt to new technology and secondly, learning is still a quintessentially human experience. But despite this, it seems that finally as we enter the last quarter of 2018, blockchain is enjoying its first day at school.

The sudden increase in interest of blockchain in education is due to the realization of some core issues.

Firstly, issuing transcripts and accessing records of academic achievement is an extremely labour intensive process and impossible to access any time and any place. Couple this with increased mobility and on-going and life-long learning and you find yourself in a situation where the necessity for having access to complete, multi-jurisdictional, and instantly accessible qualification records is a necessity. These needs are well served by blockchain technology and in the last couple of months, around 100 educational institutes have taken steps towards integrating such a system into their operations.

Now it seems that institutions within most EU states are looking at Ethereum-based blockchains to help them set up efficient and immutable record keeping systems that can be accessed on a permission-based basis. This system will be especially useful in countries where there are issues with certification and qualification fraud.

The promise for blockchain in the academic world is real and it is picking up some serious momentum as 2018 comes to a close – it is not a matter of its possibility to happen, but rather the timelines of its implementation.

 

If you have any questions in relation to ICOs, please contact us on [email protected]

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Why the SEC was right to reject nine BTC ETFs

Categories Blockchain, Cryptocurrency, Smart Contracts, Technology, Tokens, Wallet, Security Tokens, Ethereum, Securities

Why the SEC was right to reject nine BTC ETFs

When news broke that the US SEC had rejected a total of nine separate applications for Bitcoin Exchange-traded fund (ETFs), a key player in the industry feared the worst for not just the markets, but the future of the technology as well. But this may not actually be the bad news that everyone first thought it would be and this is why.

Whilst the cryptocurrency industry is pretty keen to launch exchange-traded funds (ETFs), regulatory bodies such as the SEC do not share their enthusiasm. For many, a crypto-ETF is seen as the next big milestone in the mainstream adoption of crypto and virtual assets.

Over the last few years, the US Securities and Exchange Commission has received a number of ETF proposals from companies and individuals such as the Winklevoss twins, none of which have passed its stringent sets of criteria. It seems that they are not convinced that the world of cryptocurrencies is ready for ETFs just yet.

Back in 2013, the Winklevoss twins were the first to file a Bitcoin-based ETF proposal and the agency mulled over its decision before rejecting the proposal around four years later. Then, in June, the twins filed another proposal which was swiftly rejected by the agency. Following the most recent round of rejections, the SEC has promised to review its decision but it seems unlikely that they are set to rule in favour of BTC ETFs any time soon.

The main reason for all of these rejections has been cited as the risk of market manipulation and the fact that the regulated market is not big enough to warrant such a decision. The issue of market manipulation remains as one of the biggest concerns in the crypto world. As a very small number of people own a very large amount of cryptocurrency (known as whales) this means that technically, prices can be artificially increased or decreased to suit the agenda of a few. The fact of the matter is that most creators of cryptocurrency retain large amounts of the coin, for example, Satoshi Nakamoto has 5.88% of all BTC, Ripple owns 60% of the XRP supply and the majority of ICO companies retain around 25% of all their tokens.

Couple this with the paranoia around regulation and lack of protection for investors and stakeholders and it is not hard to see why the SEC is wary.

The only way that cryptocurrencies are going to be able to enter such a regulated market is through widespread regulation on a global scale. Until this happens, Bitcoin and any other cryptocurrency can say goodbye to any kind of regulated ETF.

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Indiegogo lists its very first security token 

Categories Blockchain, Cryptocurrency, ICOs, Wallet, Security Tokens, Ethereum, Securities

Indiegogo lists its very first security token

One of the world’s leading crowdfunding sites, Indiegogo has announced it is expanding its ICO listing service to include what will be the world’s first security ICO token.

The first token of this type to be made accessible through the Indiegogo platform was created by the St Regis Aspen Resort, a super-luxury resort, located in the Rocky Mountains of Colorado. The offering which has been limited to accredited investors will allow them to purchase the Aspen Coin which represents a share of the single-asset real estate investment trust that was created to hold the $18 million of stock that is made available through the site.

“Security token offerings are the investment tool of the future, a mechanism designed to store wealth by utilizing income-producing digital assets,” said Stephane de Baets, founder and president of Elevated Returns, the asset management firm that owns the resort. “By allowing access to investing in traditional assets like real estate, we are creating a new opportunity for investors to explore an ownership stake in something previously only accessible to private investors and high net worth individuals. Indiegogo is a well known and trusted name in alternative funding and cryptocurrency, making them an incredible partner for us to leverage their influence, experience and global audience.”

Investors that meet the qualifying criteria are able to contribute to the ICO via means of USD, BTC or ETH. The Aspen Token is based on the ERC-20 platform, meaning they can be held in any Ethereum wallet in the world, but due to securities regulations in the US, they can only be traded on an SEC-approved trading system. In this case, that would be Templum Markets LLC, the broker who is overseeing the ICO with Indiegogo.

Co-founder of Indiegogo, Slava Rubin said:

“We have always strived to foster innovation and provide our users access to some of the most novel and interesting products and ideas from around the world. With the blockchain revolution fully underway, we are excited about the world-changing impact and potential of security tokens. Our goal is to provide an access point to our growing network of millions of customers and the opportunity to own a fragmented interest in the St. Regis Aspen Resort.”

The Indiegogo platform was originally launched back in December 2017 with the first project listing of Fan-Controlled Football League reaching its $5 million target in a very short time. But, despite lots of interest from companies wanting to list ICOs on the platform, Indiegogo declined to list any during the first two quarters of 2018.

 

Are you looking for ICO Legal Advice in Malta? Click this link to know more, or send us an email on [email protected]

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Why Stellar is the best platform for smart contracts?

Categories Blockchain, Cryptocurrency, ICOs, Smart Contracts, Ethereum, DLT

Why Stellar is the best platform for smart contracts?

When it comes to decentralised and highly scalable blockchain solutions, investors and developers are always looking for the next big thing. Whilst Ethereum has been the go-to platform of choice when creating smart contracts and tokens, a growing number of ICOs are considering other blockchains.

A team of researchers from the National University of Singapore, Singapore’s Yale-NUS College, and the University College of London discovered several flaws and vulnerabilities within the Ethereum smart contracts. In one particular incident, the team were able to single out an incident where a user was able to indefinitely lock-down over $200 million of ETH on the Parity Project blockchain. This, along with other incidences has led to developers considering other platforms such as Stellar (XLM) which prides itself on having its own type of smart contract.

It is a common occurrence to find flaws in new types of technology. After the ground-breaking release, the technology performs very well until a bug is discovered or a mistake is made. When these incidents occur, other mistakes and vulnerabilities are often found, especially in the case of Ethereum smart contracts.

The aforementioned research team carried out extensive testing over 970,000 live smart contracts and found that 34,200 of them had vulnerabilities of some description. The issues with the security of the smart contracts were all discovered within the first 10 seconds of testing.

Stellar Smart Contracts (SSC)

Because of this, Stellar Smart Contracts are providing a possible alternative for Ethereum based smart contracts. Whilst XLM contracts are more expressive than ETH based ones, they do have limitations and are not as flexible as their Ethereum counterparts. This does, however, mean that they are less accessible to hackers.

The fact that SSCs require multi-signature authentication on transactions is also another feather in their cap as this sort of precaution would have eliminated some of the vulnerabilities with the Parity project. Furthermore, SSCs have the ability to conduct Batching and Atomicity transactions which means they have the ability to put together several operations in one single execution. Atomicity is a guarantee that if one of the operations in the batch fails, the rest of them will not go through. The process of Sequencing that is also present with SSCs ensures that certain operations do not go through successfully if and when other transactions are submitted. Last but not least, time constraints ensure that all transactions are completed within a set time and if they fail, they will become null and void.

For a Stellar Smart Contract to work, a team must sit down and agree on conditions, design, and the overall purpose of the contract and a consensus must be reached in order for it to function.

 

If you have any questions in relation to ICOs, please contact us on [email protected]

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Why is data the new currency?

Categories Blockchain, Cryptocurrency, GDPR, Technology, Payments, Bitcoin, Data Protection, Ethereum

Why is data the new currency?

The EU GDPR came into force at the end of May 2018, and since then our data has become a currency. We now have the ability to earn money from our own data and this has to lead many to call it the “new oil”.

Before the GDPR, companies such as Facebook and Google-owned all of our data, so essentially they owned our currency. Now, this is no longer the case. The concept of Vendor Relationship Management has been around for some time, fuelled by the ambitions of those at places such as Harvard who believe that the internet giants use of our own private data is wrong.

All of our data has value and as the customer and owner of it, we should receive its value. Whether you are browsing for new clothes, a holiday, or cinema tickets, you should be able to publicise this fact and wait for the offers to come to you.

Killi is a new application owned by Freckle IoT which allows this to happen. Since its launch, big names such as Staceys, McDonald’s, and GM have already signed up and are paying money to people for the things that they sell them. Whilst Killi has its limitations, it is most definitely a step in the right direction.

Issues such as connecting to other sites through APIs that can be changed without warning can be overcome, and whilst it may not be paying out big bucks at the moment, this is just the beginning. The idea needs appropriate scale, and like the fax machine, it is useless if there is only one other person with the app. Whilst Killi has 70,000 subscribers and counting, it needs a lot more users before it will have any real value.

This is great news for those that were shaken by the Cambridge Analytica scandal or the fact that all internet companies have been shamelessly harvesting our user data without telling us.

What is really interesting about this concept, however, is the fact that it all takes place on the IoT via a blockchain platform. This is a great example of a real-world use case for both bits of tech and shows how easy it is to disappear this technology into everyday life. What’s more is, this is a great example of a company doing something sensible about the privacy issue rather than just writing an angry article or vowing to delete Facebook.

 

To learn more about ICO Legal Services in Malta please follow this link.

Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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