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  • Chinese Giant Tencent launches blockchain accelerator

    Chinese Giant Tencent launches blockchain accelerator

    Chinese tech giant Tencent has launched a Blockchain Industry accelerator and incubator program to advance the use of blockchain technology in China. Called, the “Tencent Industrial Accelerator” (腾讯区块链加速器) the program is open to only 30 blockchain startup applications. Successful projects will receive access to both funds and business partnership opportunities from Tencent. This comes as a direct response to China’s directive to spearhead the development of blockchain technologies – President Xi personally talked about the advantages of blockchain. Tencent’s entry into Blockchain is creating a lot of noise because they are known to incubate many successful breakthrough projects such as WeChat, League of Legends (Tencent is the biggest shareholder in Riot Games), and QQ. To qualify, startups must be financed for at least one round and their applications submitted before the June 6th cut off date. 

    China is a hotbed for Blockchain Development

    China has positioned herself as a leader in Blockchain development, with 45% of all blockchain projects coming from the nation. The industry was given a huge boost in October 2018 when President Xi Jinping voiced his admiration for the technology behind cryptocurrencies. China launched its blockchain service network (BSN) on April 27th, a network designed to boost the integration and adoption of Blockchain in big businesses. The network is set up for commercial usage and looks to provide a platform for enterprises and individuals wishing to make a blockchain application. Blockchain technologies are extremely powerful for enterprise applications as it allows for large scale data tracking with a guarantee on the authenticity of data. We’ve seen enterprise-focused Blockchain projects gain major partnerships in the past, such as Vechain’s partnership with logistics company DNV GL and auditing firms PwC.

    Xi Jinping
    President Xi personally called for Blockchain Development in China in 2019

    China’s Blockchain Service network is released alongside China’s National Digital Currency Electronic Payment (DCEP) Project. DCEP is a central bank national currency designed to replace paper RenMinBi (RMB) and improve the financial infrastructure in China. (Cymbalta) The project has received an official list of partners including McDonald’s and Starbucks. It is highly suggested that these projects will have a high degree of synergy, with the potential application of DCEP in Blockchain projects in China.

    Tencent is Accelerating Industrial Applications

    Projects which provide industrial blockchain solutions, data sharing applications, digital asset transactions, and supply chain financing are also encouraged to apply to the accelerator. Development areas were also highlighted, this time related to smart contract security, consensus algorithms, multi-party governance, and trusted identity and computer solutions. From the application, it would appear that Tencent is looking for projects related to various fields. The sectors which they are putting their focus on governance, education, energy, agriculture, public welfare, manufacturing, and logistics. 

    Mentoring and Opportunites

    It is not just the name recognition provided by the accelerator which would attract startups. The program also includes usage of Tencent’s blockchain as a service platform, four mentoring meetings across the year, numerous networking opportunities, and the chance to fly to a country of interest with regards to blockchain or their project. 

    Taking all these activities and experience in mind, it is no wonder the program sets you back a long way. The tuition fee is totaled at 100,000 RMB per person (14,100 USD), which is a similar figure to that of a master’s program at a US university.

    FISCO BCOS Blockchain

    The blockchain will use FISCO BCOS, an open-source protocol co-developed by Tencent, Huawei, and Shenzhen Securities Communication. Tencent has played an integral role in its development, with its digital bank, Webank, providing smart contract Digital Asset Modeling Language for FISCO BCOS. 

    The network has already shown itself to be popular in its initial Beta period which began six months ago. Reports have suggested that 2,000 developers had signed up to the test period, creating blockchain applications for public welfare charity and electronic invoices. 

    Both the DCEP project and the BSN are all key structures in China’s technological plan, called the “China Standards 2035”. The document, which is set for release later this year, will plot out how the technologies will shape the next decade. 

  • China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative

    China has start a country wide initiative to rapidly adopt Blockchain Technology and ‘urgently’ develop use cases. China’s President Xi Jinping personally appealed for a greater urgency to develop blockchain in-front of the Communist Party of China Central Committee. This sentiment was echoed in by state media People’s Daily published a front page article on “Placing Blockchain as one of the countries core initiatives, with a target on key breakthroughs“. On top of this, national TV station CCTV-2 had various news segments dedicated to discussion blockchain technology – with a key emphasis that Blockchain, not Bitcoin is China’s key focus.

    China’s leading newspaper, People’s Daily, calls for Blockchain Adoption

    This huge initiative to push Blockchain is clearly related to the launch of China’s National Digital Currency – “DCEP” (Digitial Currency / Electronic Payment). This new currency is issued by the People’s Bank of China (PBoC), and will act as both a replacement for Researve Money (M0) and as a digital cash. DCEP will initially be rolled out to banks affiliated with PBoC and eventually to the general public via Tencent and Alibaba.

    It is important to point out the DCEP will be a centralized & private blockchain. New currency on the network will be issued by the PBoC via authority from the Chinese Government. There will be no public participation in the network, unlike the decentralized Bitcoin network which uses Blockchain to form an open public consensus.

    Blockchain, Not Bitcoin

    One of the key areas of contention in the cryptocurrency space is whether a private or centralized Blockchains have value.

    • Opinion 1: Bitcoin, not Blockchain
    • Opinion 2: Blockchain, not Bitcoin

    Proponents of Bitcoin argue that Blockchain’s key value is that it allows for a decentralized network, a leaderless network where anyone can join, participate and verify transactions. The argument is that if the purpose of a Blockchain is record transactions like a database, centralized databases like MySQL or MongolDB will have higher efficiency than Blockchain. Thus, it would only make sense to use Blockchain when there is a need for public open consensus. Following this argument, cryptocurrencies like Bitcoin and Ethereum are neccessary for a Blockchain to function, as they play an intrinsic role in rewarding good actors on the network.

    Proponents of Blockchain argue that the Blockchain offers security and transparency, giving it a distinct advantage over traditional databases. China takes this argument one step further and actively discourages the use of cryptocurrencies and trading in cryptocurrencies (eg. Cryptocurrency exchanges are banned in China).

    Government condones “Air Coins” and Cryptocurrency Speculation

    State media People’s Daily have explicitly condoned cryptocurrency speculation and brought accusations against “air currency”. Air Currency, or air coins, is a chinese colloquial term used for cryptocurrencies that have no intrinsic value, very much like air. This move is designed to counter-act the surge in rushed venture capital investments into different cryptocurrencies in China, many of which don’t have a real use-case. In addition, the article explicitly called for illegal transactions and money laundering to be rectified, suggesting further enforcement actions against none state regulated cryptocurrencies. This heavy enforcement can be seen as a “stick” measure to push users away from decentralized cryptocurrencies into the centralized national currency, DCEP.

    “Blockchain is a Scam” is Censored by Social Media

    WeChat blocks articles calling Blockchain a Scam

    Experiments done by @cn_Ledger and other Chinese media sources have found that articles calling Blockchain a “scam” are actively being censored in China. Anyone posting these articles will find that they are quickly deleted and may face potential account suspensions. This type of media content control is standard in China once the Central Party issues a particular doctrine. Media platforms are quick to comply, or they will risk the removal of their ICP license.

    Cryptocurrency Mining is no longer “Banned” in China

    The Chinese Government is no longer pushing for the elimination of cryptocurrency mining (such as Bitcoin and Ethereum mining). This is a complete 180° reversal of government policy will take effect on 1 Jan 2020, meaning mining will a legal and taxable industry in China. Previously “Cryptocurrency Mining” was part of a list of industries to be eliminated. This change comes directly from the new edition of China’s Industrial Structure Adjustment Guidance Catalog, where an updated revision no longer mentions cryptocurrency mining as an industry to be phased out.

    Traditionally China has always played a major role in Bitcoin, Ethereum, Litecoin and DASH mining. This is mainly due to the abundant supply of cheap electricity in China (especially in the Sichuan and Mongolian regions), where electricity costs can go as low was $0.02 USD per kw/h. To find more about Bitcoin mining, check out our full Bitcoin mining guide.

    Overall this policy reversal sends strong positive signals about cryptocurrencies in China. This is a clear indicator that the Chinese Government recognizes the importance of mining and it’s role in decentralized public Blockchains. Such policy changes suggest a positive future where other policies halting cryptocurrency development could be reversed.

    Cryptocurrency trading is still banned

    China has banned cryptocurrency trading since 2017. The government has taken down chinese operation of big fiat exchanges such as OKex, Huobi and BTChina. Chinese exchanges no longer have fiat bank accounts. As users move to peer to peer trading. Alipay has made it clear that it will not tolerate crypto trading on it’s platform.

    What about Chinese Blockchain projects like Vechain and NEO

    Whilst China’s Blockchain Initiative explicitly discourages the speculation in cryptocurrencies – Blockchain projects are thriving in China. This is a Cryptocurrency is a core part of Blockchain – Satoshi Nakamoto created Bitcoin and Blockchain together in his 2009 white paper. So whilst the Publications by the central government tries the downplay cryptocurrency speculation, every public cryptocurrency network must have an associated platform token.

    Having the Blockchain initiative being pushed forward will greatly help the adoption of projects like Vechain in China. At the end of the day, the government validated the value proposition of Blockchain, answering many skeptics who are critical of Blockchain’s real life use case.

  • VeChain ToolChain: Blockchain secured anti-counterfeit for everyone

    VeChain ToolChain: Blockchain secured anti-counterfeit for everyone

    VeChain ToolChain could bring blockchain technology to the masses. Toolchain allows anyone to use the power of blockchain without complicated programming or engineering. We always hear a lot about blockchain projects including VeChain partnering with big names. Examples being DNVGL, BMW, PwC and others (Click here to find out more about Vechain and its partnerships).

    According to statistics from the United Nations, over 90% of firms worldwide are Micro-, Small and Medium-sized Enterprises (MSMEs).

    VeChain’s ToolChain seems to recognise their importance and is bringing its blockchain technology to them.

    What is VeChain?

    VeChain is a blockchain platform which supports the creation of smart-contracts. These are self executing contacts that have a guaranteed outcome without third party trust. This allows for the creation of decentralized applications which is intended to solve enterprise problems such as anti-counterfeiting and cold-chain logistics. To learn more, check out our article VeChain Explained or our VeChain in a Nutshell video below.

    https://youtu.be/wH2G_44x4vw
    VeChain in a nutshell

    For more nutshell videos, why not check out our Cryptocurrency in a Nutshell playlist to learn more about other projects?

    What is ToolChain?

    ToolChain is VeChain’s latest product. It was announced at the VeChain Summit 2019 (Click here for a recap).

    ToolChain hardware kit displayed at VeChain Summit 2019

    ToolChain is a kit containing all the necessary hardware, software and service protocols to onboard a business onto the VeChainThor blockchain.

    There are 3 Versions of the ToolChain kit: Standard, Developer and Channel Partner. This is so that businesses with any levels of technical capability can use VeChain’s technology.

    Standard Version

    The Standard Version provides standarized application modules, tools and Internet of Things (IoT) devices. It was designed for MSMEs without the capability to develop their own blockchain-based lifecycle management solution. Businesses can be onboarded onto the VeChainThor blockchain within 30 minutes.

    Developer Version

    The Developer Version is designed for enterprise customers with stronger technical capabilities. It will allow enterprises to develop various applications based on the VeChainThor blockchain tailored to their needs.

    Channel Partner Version

    Channel Partners will be able to have independent deployment and multi-dimensional customisation of ToolChain.

    VeChain ToolChain at a glance

    The ToolChain hardware kit contains:

    • QR code printer and application software to print QR codes.
    • NFC writer and software to create digital labels on NFC tags.
    • IoT devices, RFID chips and sensor devices
    • Handheld terminal devices which will enable ToolChain apps to bond and activate NFC chips, and transfer the data on them.

    In terms of software:

    • ToolChain Admin Center: this app is a command centre. One of its features is that business owners can use this software to configure NFC and/or RFID chips. The Company can ship these NFC and/or RFID chips directly to businesses.
    • VeChain Work App: this app allows business owners or third party manufacturers to “bind” the physical product to the NFC/RFID chip. To learn more about this app, check out Bsc44’s article here.
    • VeChain Pro app: this app is already available to download. It will be pre-loaded onto the NFC scanner. It allows anyone to view the entire story of the product including proof of authenticity and origin.
    Description of the ToolChain kit components

    Examples of VeChain ToolChain in use

    One of ToolChain’s notable users is SBTG Surplus & Co., a custom sneaker artist. SBTG uses NFC chips embedded into its limited edition sneakers. Customers can verify the sneakers’ authenticity, origin and other information by scanning them with the VeChain Pro app.

    SBTG have recently partnered with Adidas and HBO Asia to produce limited edition Game of Thrones sneakers. These sneakers are powered with VeChain Technology.

    SBTG x Game of Thrones sneakers with VeChain RFID chips

    Problems with authenticity and quality assurance

    MSMEs generally lack technical or financial resources. Hence they have difficulty in ensuring their products’ authenticity and quality. They are also vulnerable towards counterfeiters and bad actors in the supply chain. This in turn could seriously damage their reputation.

    Even for products from larger corporations, product authenticity and quality assurance is not transparent. We as consumers do not have easy access to information on the supply chain of our products.

    Consumers still rely on outdated authentication methods. This is true even for expensive luxury items. As an example, for luxury watches we would compare an items’ appearance or check its serial number. Meanwhile there are official databases of serial numbers. The numbers are only etched onto the watch and counterfeiters can easily copy this.

    Thus, authenticating a luxury watch requires significant expertise and experience. Whilst counterfeiters are always trying to make their watches look more authentic.

    Can VeChain ToolChain bring mass adoption through MSMEs?

    ToolChain can be a simple and cost effective supply chain management solution for MSMEs. ToolChain could finally give MSMEs the same ability as large corporations to ensure product quality.

    As mentioned above, most of the world’s businesses are MSMEs. ToolChain could finally bring blockchain to a substantial but overlooked group

    Moreover, customers will be able to scan the NFC/RFID chip embedded into the product and see information pertaining to their exact item.

    If you want to learn more about VeChain, check out our guide, VeChain explained.

    Want to find out more interesting happenings at the VeChain Summit? Check out these videos below!

    https://www.youtube.com/watch?v=ZRBuQ96ikPc
    Check out our livestream with VeChain’s with Sunny Lu (CEO) and Kevin (COO), and Patrick from Plair
    And don’t forget to check out our post VeChain Summit recap video!

    Mass adoption is starting through…milk?

    On 18th May 2019, VeChain announced that its enterprise partner, Bright Food (Group) Co., Ltd (“Bright Food”) has put its “Cupids Farm” milk on their BrightCode Commodity Confidence Index Platform (“BrightCode Platform”).

    Cupids Farm milk

    The BrightCode Platform is a blockchain-based commercial ecosystem built upon the Partner Version of VeChain ToolChain. To learn more about the Platform, check out Oliver’s article here.

    Bright Food was founded in 2006 and mainly produces milk products, sugar, wine, snacks and canned goods. Bright Food’s products can be found in over 4000 online shops in China. The Company was listed as one of the ten Chinese companies to watch in the international arena by Forbes Magazine in 2015.

    When customers can scan the QR code on bottles of “Cupids Farm” milk, they will be directed to the BrightCode Platform. There, key information on the bottle of milk’s lifecycle will be available. For example information on where it was produced, videos of the diary farm, production techniques etc.

    VeChain’s other partner, DNVGL will be responsible for verifying the source data and tamper proof technology. So customers can be assured that the information presented is authentic.

    Information shown to customers when they scan the QR code

    FREE trial now available!

    You can now register for a FREE ToolChain trial account by signing up with them! Link Here!

    Tweet from Kevin Feng, COO of VeChain
  • Blockchain Security: Hodlers Should Learn More About It

    Blockchain Security: Hodlers Should Learn More About It

    A Blockchain contains digitalized transaction “block” records where each block connects to a series of all the previous and future blocks. Although experts suggest that Blockchains are impenetrable, it does not elude the fact that hackers have found ways to paralyze impregnable walls. Therefore, security concerns continue to invade peoples mind. There exist various companies offering security services such as smart contract, penetration testing, and adequate knowledge regarding Blockchains. Many professionals advice interested parties to do thorough research and learn more about cryptocurrencies before joining the community. You can rely on the numerous training videos on YouTube or attend conferences. People and companies alike also need to understand Blockchain security from all angles.

    Security

    Individual curiosity is an integral part of understanding Blockchain security. You need a clear perception of who is in charge of your investment security and how third parties play their role. Note that, your CTO is not responsible for personal data protection. His/her area of expertise lies in scientific and technological issues within the organization like code and software development. Entrust your protection to a Chief Information Security Officer (CISO) because their task is to provide adequate data and technology security.

    Their services cost a fortune but if you cannot afford one, hire a consultant to evaluate your security measures. He/she will pay attention to various areas of interests such as two-factor authentication and cyber-security employee policies. For instance, most hackers illegally penetrate corporate systems via email, instant messages, or promotion/reward links. Their aim usually entails stealing sensitive information like credit card details, passwords, and usernames. In short, everybody who uses the internet to transact is vulnerable to hackers.

    Every transaction follows a specific set of agreement for security purposes. Cryptocurrencies adopt smart contracts to control digital currency transfer through blockchain technology. The computer program eliminates the need for third parties because it digitally facilitates and negotiates terms. It is also a significant security protocol whose transactions can be tracked and reversed. Hackers operate using smart strategies like targeting both the top management and employees as well.

    Therefore, you should not solely rely on corporate protection especially if your passwords, username, and cell phone numbers are connected to your account or assets. It is extremely risky to expose your data through various devices to multiple platforms. Programmers across the world have developed security management apps like Dashlane to secure your passwords and wallets. Another alternative solution includes adopting a comprehensive multifactor authentication using launch keys. You can also apply the most recent security key development like Titan to verify login details over Bluetooth.

    The bottom line is that if you are currently in the cryptocurrency business (individually or as an organization), you are a target and so are your employees. Create different passwords for every account and enhance the verification process. Most importantly, do not trust anyone with your information and that includes private keys, passwords, username, etc. Blockchain agencies should consider training workers and extending useful solutions to hacking issues. The strategy strengthens not only personal security but also the entire corporation. Various costs are usually involved, and therefore, the relevant officers must create a budget to accommodate security changes.

    Regulations

    According to various sources, most people have yet to understand how cryptocurrencies work and their potential. Even after dominating the world news for a decade, over half the global population is unwilling to take risks. The industry is still young and expanding at best. Its high growth rate has triggered the need for regulations in various countries. Japan is among the first nations to legitimize cryptocurrencies followed by the United States. However, most governments issue notices about investing in the industry.

    The warnings pertain to risks involved especially since transacting organizations have no legal responsibilities to their clients. Some reports suggest that the electronic cash system creates a perfect atmosphere for terrorism and money laundering (due to anonymity). As such, several states have expanded laws on various criminal activities to include crypto markets. Others restrict crypto investments while nations like Nepal have banned all crypto activities altogether. In Qatar, citizens cannot operate locally, but they are at liberty to do so beyond the borders.

    Cryptocurrencies have also tapped into fundraising using Initial Coins Offering (ICO). However, most states regulate ICOs while others like China have completely banned them. Strict regulations have also discouraged people from investing, but most governments are working towards creating crypto-friendly regulatory systems that will attract investment and offer maximum protection to clients. Luxemburg and Cayman Island are among the nations that hardly view Blockchain technology as a threat. They aim to create their own cryptosystems including Venezuela and Marshall Island.

    Taxation, at its best, has yet to categorize cryptocurrencies and all its tax-worth activities. But different countries have adopted various references to regulate Blockchains by taxing them as assets, financial assets, foreign currency, income tax, etc. in the United Kingdom, crypto firms pay corporate tax, individuals pay capital gains tax, and unincorporated agencies pay income tax. The mining of cryptocurrencies is mostly affected by power taxation rules.

    The bottom line is that Blockchain security has unlimited options. Cryptocurrency companies can adopt smart contract auditing or hire consultants. (https://casadelninobilingual.com) More so, they should offer cybersecurity training to their staff and regulate internet access. Individuals, on the other hand, can maximize personal data protection through launch keys and two-factor authentication methods. Regulation-wise, governments are responsible in that, they can create crypto-friendly regulatory systems, impose the tax, or ban cryptocurrencies altogether.