Adel ▲ Opinion ▲ 14 ▲ Crypto, For the People, By the People

Crypto, For the People, By the People

How Blockchain Subverts Today’s Entrenched Power Structures

By:  Gabriel Dusil, co-Founder & General Manager,
Adel Ecosystem Ltd.
&:  John McLeod, Founder,
JEA Associates Ltd.

Mankind has been shaped by borders, whether physical, geographical, technological or financial. Societies have found ways to structure themselves into coherent and ordered blocks. Over the last few centuries empires have risen and fallen, wars have been waged and physical borders have moved. Governments, institutions and multi-lateral structures underpinning political and financial borders have remained intact.

The financial crash of 2008 shook public confidence in banks and government-backed financial institutions that saw billions of dollars, euros, and pounds spent on shoring up the financial system through quantitative easing. Public confidence in financial institutions and governments was at an all-time low. It is no coincidence that Bitcoin emerged out of this economic crisis where traditional institutions failed. A viable alternative was needed without the oversight of big-brother.

Blockchain services undermine traditional forms of governance because it’s decentralized and its users are typically anonymous. This assumes impunity from government and central banks. Anonymous actors are micro components of a growing ecosystem. To date, this crypto sphere has been relatively left untouched by the authorities of the “real-world”, where regulation typically lags innovation.

This raises real questions about how crypto’s services should be managed. Techno-libertarians envision utopian self-regulation, with codified rules that evolve with the technology. Anyone who denies these programmatic rules essentially forfeits their right to participate in this space. Crypto-anarchists envision a free-rule zone for blockchain businesses and unconstrained virtual currency commerce. Within this zone, blockchain businesses would operate free from government intervention and regulation. Bitcoin is essentially a sandbox experiment that is demonstrating how crypto technologies will be successful and be applied to real-world scenarios.

Bitcoin is a sandbox experiment,
demonstrating how crypto will be successful.

Whichever form it takes, blockchain technology will need to entertain the notion of regulatory oversight, for it to gain mainstream acceptance. For this to happen, both the public and private sectors should have a seat at the same table, to establish a common ground for governance and enforcement.

Creating and adopting an agreed set of standards requires consensus from all major stakeholders. Internet’s protocols (e.g. TCP/IP, HTML, and Java) took years before reaching mass adoption. But eventually, this was achieved through well-constructed and easy to implement standards. Crypto coders redefining their own product lifecycle to accelerate adoption by excluding the powers-that-be from the socio-economic power pyramid. For the time being, they are at the pinnacle of this power hierarchy, with governments, banks and even citizens treated as outsiders. But history has shown that closed solutions are not scalable, to the same potential as standards. Any developer can set the rules of their homegrown blockchain. Have the geeks inherited the earth?

We have reached a unique point where the traditional power brokers who normally put the brakes on disruptive technologies have been sidelined in favor of a newly defined crypto power hierarchy. Governments nor banks control the crypto sphere, but they maintain partial control of cyberspace and the real world. Within the isolated world of crypto this hierarchy works, but if mass market adoption is the plan then consensus with the brick and mortar world is needed. The open question is whether this is in the interest of crypto coders, miners, and service providers.

Who could have predicted the spectacular rise in the value of Bitcoin and Ethereum just five years ago? A 100 US$ investment in Bitcoin in 2013 would now be worth 7000 US$ today[i]. Satoshi Nakamoto could not have predicted the creation of nearly 4000 virtual currencies on CoinLib[ii] ten years after releasing his white paper and over 100 thousand token contracts[iii] on the Ethereum blockchain. Only a brave person can envisage what the next five years have in store. It is safe to conclude, however, that crypto has proved its detractors wrong and its potential benefits to humanity are vast. Interoperability, scalability, security, and ease of use for the average person are all questions that need to be answered.

For the first time in history, people have the potential to break down the traditional borders that have divided them, whether geographically, technologically or economically. Individuals are empowered to create crypto services free from government regulation or any other centralized authorities. We have currency for the people by the people, and of the people, only time will tell which direction it takes, and who shapes its future.

About the Authors

Gabriel Dusil

Gabriel is a sales and marketing expert with over 25 years in senior positions at Motorola, VeriSign (acquired by Symantec in 2010 for 1.250 billion US$), and SecureWorks (acquired by Dell in 2011 for 612 million US$), and Cognitive Security (acquired by Cisco in 2013 for 25 million US$). He is a blockchain entrepreneur, with strengths in international business strategy. Gabriel has a bachelor’s degree in Engineering Physics from McMaster University in Canada and expert knowledge in blockchain incubation, cloud computing, IT security, and video streaming, and Over the Top Content (OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages a professional blog at https://dusil.com.

John McLeod

John has spent nearly a decade working for a number of leading public relations firms in London, focusing primarily on PR management in the financial services sector. John’s expertise includes blockchain technology and the evolution of cryptocurrencies in financial services. That’s why he recently founded his own consulting firm, JEA Associates Ltd., which is specifically positioned to communicate the value proposition of this burgeoning technology. John has spent the past year successfully executing campaigns for a digital currency consultancy, decentralized financial solutions, and online payments platforms.

About Adel

adel.io | Blockchain Agnostic Technology Incubator

Adel is a technology incubator for blockchain innovation. Our community collaborates on ideas and uses the AdelWiki™ to collectively create business plans. Members vote on projects and can become profit participates when they are launched. Expertise within the community brings mentoring, learning, and employment opportunities. Successful projects are re-invested for further growth or issued as rewards to members. Adel is blockchain agnostic and will harness the features of any open-ledger platform to showcase its potential. Our mission is to incubate projects that will positively change the world.

▲ Adelphoi | Digital Currency for Adel Ecosystem

Many virtual currencies are utility or equity tokens on their corresponding blockchains. The Adelphoi (ADL) coin is different, in that it uses a comprehensive process of Idea2Project incubation, to fuel its own ecosystem.

References

[i] https://www.xe.com/currencycharts/?from=XBT&to=USD&view=1Y

[ii] https://coinlib.io/coins

[iii] https://etherscan.io/tokens?p=10

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Opinion ▲ 13 ▲ Architecting Crypto Financial Instruments

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd., & John McLeod, Founder, JEA Associates Ltd.

Paving the Way for Crypto Financial Instruments.PNG

Since Blockchain technology entered the mainstream consciousness, its potential in traditional financial services and ability to disrupt existing industries has been widely discussed. Areas such as retail, trade, logistics and syndicated loans remain incredibly convoluted with many phases of verification and confirmations before transactions are completed. Blockchain tech can streamline these processes and bring similar value to what the internet did for the information age.

Less understood is blockchain’s potential in cryptocurrency transactions. By definition, their deployment is less evolved when compared to their regulated counterparts. Executing trades, hedging currency swaps, binary options, and posting contracts are more established with fiat services.

Peer-to-peer Decentralized Cryptocurrency eXchange (DCX) allow peers to hedge, speculate or trade different cryptocurrencies based financial instruments such as Spot, Swap, Forward, and Loans. DCX’s are typically based on Ethereum smart contracts, where trading parties agree on all parameters without the need for third-party remediation. Smart contracts aim to provide additional security to traditional contract engagements and reduce transaction costs.

As a crypto trading platform, DCX’s will evolve in step with rapid changes in the blockchain industry; its initial phase will offer a Crypto Spot financial instrument, meaning cryptocurrencies that are traded on-the-spot. The spot exchange rate is the price to exchange one currency for another for immediate delivery, representing the price buyers pay in one cryptocurrency to purchase a second one. The spot exchange rate is for delivery on the earliest value date. The aim is to complete this process in near real-time, revolutionizing the standard settlement offered by traditional banks, which can frustratingly take several days.

Forward contracts are another service DCX’s aim to disrupt. This instrument is when two parties buy or sell an asset at a specified price on a future date. A crypto forward can be used for hedging or speculation; however, its non-standardized nature makes it particularly appropriate for hedging. Unlike standard futures contracts, this one can be customized to any commodity, value and delivery date.

This new and relatively unexplored area of digital currency swaps is an area of crypto finance that DXC’s aims to address. Traditionally, foreign exchange swaps take place when bankers agree on a certain price for the currency to be exchanged. Crypto Swaps allows for digital currencies to be used to fund charges designated in another cryptocurrency, without acquiring foreign exchange risk, allowing companies to manage various digital currencies more efficiently. In addition, these instruments enable traders to sell a contract to option holders that give them the right, but not the obligation, to buy or sell a cryptocurrency at an agreed-upon price, during a certain time period. Crypto smart contracts enable traders to agree on when to buy and sell digital assets, currencies, and holdings when set parameters have been reached.

The impact of blockchain on traditional financial services will be huge. A recent report by Accenture1 cited that eight of the world’s largest banks could potentially save 8 billion US$ on a cost-base of 30 billion US$[i], by improved centralize finance reporting, savings on compliance, operational costs, and business operations. This costs saving doesn’t even take into account improved service times, stronger capital bases and greater accessibility for opportunities in unbanked areas of the world.

Services such as Adel’s iFin (www.adel.io) aims to evolve crypto trading beyond banks that are rooted in legacy supply chains and physical infrastructure. DCX’s have the potential to be the digital interface where anyone, irrespective of their geolocation and experience, can log in, execute trades, and agree on smart contracts that suit their individual needs. By doing this, DCX empower people to build their portfolio, without expensive intermediaries and weighed infrastructure inefficiencies. Crypto has exposed a market gap of users wanting unabated access to an interoperable cross-blockchain platform, enabling an ecosystem of users anywhere in the world to interact and trade, free from brick and mortar intermediaries. Its potential applications are limitless.

[i] Banking on Blockchain, a value analysis for investment banks: https://www.accenture.com/t20170120T074124Z__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Consulting/Accenture-Banking-on-Blockchain.pdf#zoom=50

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▲ Blockchain Will Transform Retail Lending

▲ The Next Evolution in Crypto Trading

▲ Paving the Way for Crypto Financial Instruments

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

John McLeod, Public Relations, Adel

  • John has spent nearly a decade working for a number of leading public relations firms in London, focusing primarily on PR management in the financial services sector. John’s expertise includes blockchain technology and the evolution of cryptocurrencies in financial services. That’s why he recently founded his own consulting firm, JEA Associates Ltd., which is specifically positioned to communicate the value proposition of this burgeoning technology. John has spent the past year successfully executing campaigns for a digital currency consultancy, decentralized financial solutions, and online payments platforms.
  • LinkedInhttps://uk.linkedin.com/in/john-mcleod-a323799

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Opinion ▲ 12 ▲ Crypto Trading for Everyone

Crypto Trading for Everyone.PNG

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.
John McLeod, Founder, JEA Associates Ltd.

For centuries, the exchanges of London, New York, Frankfurt and Tokyo have dominated the buying and selling of equities, commodities and other asset classes. Although technology has improved over the years and people can engage with these markets from the comfort of their own home, the core premise of a centralised exchange has remained the same. The dawn of Blockchain has the potential to radically disrupt the way traditional exchanges operate and the way in which clearing services carry out their functions. The ‘Distributed Ownership’ nature of blockchain could be transformative through the effective use of distributed ledgers.

Crypto Trading for Everyone 2.PNG

Given cryptocurrencies didn’t even exist a decade ago (unlike their traditional fiat exchanges which have operated for more than 200 years), existing exchanges are less evolved and unable to execute in heavy trading conditions, compared to more established equities. Brownouts and service blackouts are a reflection of the immaturity in crypto markets. Many exchanges experience service disruptions because they haven’t create an ideal load balancing architecture or high availability contingencies.

Despite these initial discrepancies, the design of Decentralised Cryptocurrency Exchanges (DCX) could provide insight into the future of equity trading and how people engage with markets and claim ownership of their assets. As it stands today, centralised exchanges are governed by laws and regulations in the countries where they are registered. Participants have to abide by a set of rules that may forsake the control of their assets, use of private data, or even risk devastating security breaches. It’s no coincidence that crypto liberalists avoid centralised platforms when building blockchain infrastructures.

Decentralised platforms, on the other hand, are still at the starting gate, in terms of development maturity. Regardless, they have the foundations to be adaptable and scale well, due to their inherent distributed architecture. Instead of having the oversight of national governments and regulatory bodies, they are governed by communities, and can adapt to exceed the resilience of the most advanced centralised platforms. By definition, this technology isn’t hardened from an IT or security perspective, compared to mainstream exchanges. For example, Nasdaq can process one million transactions per second (tps), where most crypto exchanges struggle to process up to 100,000 tps- however DCXs offer a viable alternative that enables tradable assets without the vulnerabilities of centralized control.

There are those who argue that introducing middle-men into the crypto supply-chain would help to facilitate widespread adoption. But crypto liberalists prefer to eliminate their function , even if they serve to increase ease-of-use, stability, reliability and other features that may not be easily accessible in their absence. Exchange services, for example, can be viewed as a classic middle-man service, directly in conflict with this core ideology. These intermediary services inevitably become the catalyst to global adoption where cryptocurrency trading needs to reach mass-market potential. Furthermore, decentralized exchanges can be accessible to anyone in the world. Challenges however, remain in the areas of market volatility, regulatory compliance, and security best practices before this can take place.

There are also legal issues, as investors suffer when an exchange is shut down due to non-compliance. The issue here is the single point of failure when centralized services store large sums of wealth, and sensitive information. Until relevant legal structures and safeguards are created, mainstream consumers will hesitate to trust the Blockchain as a repository for their money. Then there is looming threat of protecting personal wealth from hackers, phishing attacks, malware, and zero-day attacks, adding further Fear Uncertainty and Doubt (FUD).

In many ways the discussion regarding regulatory oversight and protective legal controls cuts to the core of the Blockchain debate. Crypto libertarians dream of a world free from big brother, and are willing to accept the risks that come with that. Will there be a balanced equilibrium of regulations that protect consumers in the wild-west of virtual currencies? Will governments allow their central banks be sidelined as virtual currencies grow from infancy to maturity?

The relationship between free markets and collective responsibility has been one of the driving economic and political forces in history. The advent of Blockchain technology has contributed yet another dimension. The impact of decentralised services on existing financial systems and regulatory oversight remains to be seen. In the meantime, stakeholders have never had a greater opportunity to take ownership of their financial future, even if that path remains volatile.

More Articles

Check out other articles:

▲ Blockchain Will Transform Retail Lending

▲ The Next Evolution in Crypto Trading

▲ Paving the Way for Crypto Financial Instruments

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

John McLeod, Public Relations, Adel

  • John has spent nearly a decade working for a number of leading public relations firms in London, focusing primarily on PR management in the financial services sector. John’s expertise includes blockchain technology and the evolution of cryptocurrencies in financial services. That’s why he recently founded his own consulting firm, JEA Associates Ltd., which is specifically positioned to communicate the value proposition of this burgeoning technology. John has spent the past year successfully executing campaigns for a digital currency consultancy, decentralized financial solutions, and online payments platforms.
  • LinkedInhttps://uk.linkedin.com/in/john-mcleod-a323799

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Opinion ▲ 11 ▲ The Next Evolution in Crypto Trading

The Next Evolution in Crypto Trading.PNG

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.
Jessica Zartler, Director of Marketing & Communications, Adel Ecosystem Ltd.

In the revolution of emerging blockchain technologies, shifting from legacy models and habits to embrace this paradigm shift, occurs in iterations. Arguably, the most significant aspect of blockchain is decentralization, which allows for programmable trust, distributed ownership, and removes the necessity for third-party arbitration.

Money is flooding into cryptocurrency, seen by a market cap increase from 18 billion US$ to more than 600 billion US$ just in 2017. That is a 240 fold increase. With 99 percent of transactions still residing in centralized exchanges (Coinmarketcap.com), the shift to fully decentralized platforms is just on the horizon. Several major catalysts are contributing to the move to decentralized cryptocurrency exchanges, also known as DEXs.

DEXs are superior in security and provide instant account creation. However, in their current state of development, they lack liquidity and their user experience and user interface (UX/UI) are still immature compared to their centralized counterparts. Generally speaking, the more liquid the market, the less volatility and price manipulation, making DEXs vulnerable at this stage. At the moment, investors are still walking a thin tightrope between friction and fluidity, causing growing pains before mass market adoption.

The Next Evolution in Crypto Trading 2.PNG

To understand the importance of this shift and what it means, we should understand how centralization affects the investment ecosystem, and explore the development steps needed for DEXs to reach their full potential. Centralized exchanges are platforms that allow investors and traders to buy, sell and exchange cryptocurrency against fiat or other crypto assets. Traders deposit funds and the exchange issues an IOU that is freely tradeable on their platform. When a trader wants to withdraw funds, the IOUs are converted back to currency and returned to the trader.

Centralized exchanges are an on-ramp for people with fiat currency (i.e. dollars, euros, yen or otherwise) to purchase cryptocurrency. While these exchanges allow movement from fiat to crypto, they are a prime target for hackers, and have been taken for billions of dollars. Exchanges which follow regulatory guidelines have lengthy registration processes which further hinders investment speed. They also have service lags (brownouts or blackouts), and may be susceptible to government shutdowns.

DEXs shift investments from a centralized third party, to peer-to-peer transactions, through proxy tokens or assets or a multi-signature escrow system, among other solutions being developed. This allows investors to remain sole custodians of their funds rather than relinquish their private keys (the passwords used to secure their accounts) to centralized exchanges. DEX benefits include instantaneous account creation, elevated privacy, and decentralized server resilience, ensuring that the infrastructure cannot be shutdown.

If DEXs are the next evolution, why only a one percent market adoption? To begin with, the DEX concept is brand new. As centralized exchanges proceed through their own market maturity lifecycle, decentralized services are only at the starting gate. Because DEXs are blockchain driven, account control resides solely in the hands of the trader. If they lose their private key, or make a mistake when entering a buy or sell order, then there is no recourse – liability resides exclusively with the account holder, and there can be no finger-pointing. In addition:

  • Margin lending and other more advanced trading options are not yet available on DEXs.
  • There is a chicken-egg effect at play, resulting in low liquidity. Since transactions happen on the blockchain itself, there may be issues of scaling pressure if the connected blockchains have not been architected well.
  • Miners can see the blockchain transactions before they are cleared, resulting in front-running risk and market manipulation.
  • Fiat to crypto trading in DEXs will require the cooperation of banks which introduces a new centralized point of failure.

The list of challenges for DEX developers is long, however, they are making quick progress. Developing user-friendly interfaces (UX/UI) continues. Issues like liquidity, scalability and front-running are being solved with new technology models such as relayers, off-chain transactions, hardware-wallets, as well as using a hybrid of centralized and decentralized exchanges to pool liquidity.

Although development is happening at lightning speed, trading performance highlights o a huge gap in the market. While NASDAQ processes one million transactions per second, centralized crypto exchanges average just ten thousand per second. If development is any indicator of velocity, crypto exchanges estimate a ten-fold improvement in the next 12 months.

Progress continues and the momentum is starting to shift in the direction of DEXs, the next evolution of cryptocurrency investment. Those who can iterate the quickest, will unleash full speed liquidity and capitalize on the decentralized nature of blockchains.

More Articles

Check out other articles:

▲ Blockchain Will Transform Retail Lending

▲ The Next Evolution in Crypto Trading

▲ Crypto Trading for Everyone

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

Jessica Zartler, Crypto Marketing

  • Jessica is an award-winning multimedia journalist, content strategy expert and digital marketing consultant with more than ten years of experience. Her work has appeared on several platforms including Forbes, The Associated Press, The Wall Street Journal, MSNBC, Fast Company and Entrepreneur. Fascinated by the burgeoning blockchain space, she loves to contribute to educational communication about the potential of this new technology for revolution, and the incentivization of fair, inclusive, and environmentally conscious business practices.
  • LinkedInhttps://www.linkedin.com/in/jessicazartler/

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ Opinion ▲ 10 ▲ Blockchain Will Transform Retail Lending

Blockchain Will Transform Retail Lending

By: Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.
John McLeod, Founder, JEA Associates Ltd.

One of the great surprises of the Blockchain revolution is that banks continue to occupy a near monopolistic position within financial services, despite their obvious and much-publicized inadequacies. In the UK alone, five high street banks account for 80 percent of SME businesses, and control over 80 percent of domestic bank accounts. Even with the advances made with the digitalization across communications, media and computing industries, their hold remains as tight as ever.

Traditionally this stranglehold has been attributed to high barriers-to-entry, not least regulation and capital ratios for potential lenders. However, in an era where anyone with a car can become a taxi driver and anyone with a spare room can become a guest house, it’s realistic for people with spare cash to become a lender. Since the Renaissance, banking has been carried out on an institution-to-consumer basis or an institution-to-institution basis. Legal and accounting frameworks governing banks have, by and large, remained the same for half a millennia. In fairness, there have been some useful inventions pushing the financial agenda forward – such as online banking, ATMs and credit/debit cards – however, the benefactors of these financial systems reside overwhelmingly in the developed world. With over two billion unbanked in the world, the need for a more equitable and inclusive approach has never been greater.

The use of blockchain technology, particularly smart contracts, has the potential to disrupt the entire retail banking sector, creating a decentralized peer-to-peer network that enables people to borrow and lend in a more streamlined manner. Programmatically settling pre-agreed terms and conditions between two parties was not possible just a few years ago. This is still contingent on account holders willing to take on the same risks as banks, evaluate an creditworthiness, pre-arrange written contracts with customized terms and conditions, and at what rate. When these parameters are met then money can be automatically paid, without the need for a human intermediary. This is the basis of smart contracts.

The benefits of blockchain for retail lending encouraged greater competition. Financial monopolies are finally challenged by virtual currencies, and billions of people in developing markets can have access to loans that were previously too expensive or inaccessible.

The current centralized financial industry has enormous disparities in global lending interest rates. Today, the inflation-adjusted interest rate in different countries varies based on available liquidity. In high liquidity markets such as Europe, interest rates are between 0.5 to 5 percent. In lower liquidity markets such as Russia, they are at 12 to 15 percent, 12 percent in India, and as high as 32 percent in Brazil. These dramatic differences demonstrate a clear inequality. Interest rates for microloans in developing countries are between 30 to 40 percent on average, making borrowing impractical. Interest rates for decentralized lending on the blockchain is a streamlined solution to this disparity. Consumers from developing countries can have access to the same lending services as people from highly liquid markets.

These benefits go beyond just fairness and inclusivity. Blockchain radically improves on the problems associated with legacy systems, transaction latency and transparency. It still takes three working days to approve loans, or transfer money between cross-border accounts. In blockchain this transaction is carried out in minutes, using just an internet connected smartphone.

For the first time in history blockchain service providers (BSP) have the potential to create a fairer and more inclusive lending environment. Dated infrastructures, fragmented governance and economic borders are often cited as why financial lending fails on a global scale. A recent report by McKinsey cited that Blockchain technology and inclusion in the digital economy could boost GDP of all emerging economies by six percent. That translates to $3.7 trillion by 2025. The role of retail banks, in both developed and developing markets, in promoting sustainable and fair services has been questioned. Accessibility, fair terms, and transparency have denied large chunks of the world’s population to banking services that developed countries have enjoyed for decades. Smart contract technology provides the solution to disrupting this elitist source of finance. The potential gains and benefits to global economics and society are on the horizon. The question remains: Will people take advantage of it?

More Articles

Check out other articles:

▲ The Next Evolution in Crypto Trading

▲ Paving the Way for Crypto Financial Instruments

▲ Crypto Trading for Everyone

About the Authors

Gabriel Dusil, co-Founder & General Manager, Adel

John McLeod, Public Relations, Adel

  • John has spent nearly a decade working for a number of leading public relations firms in London, focusing primarily on PR management in the financial services sector. John’s expertise includes blockchain technology and the evolution of cryptocurrencies in financial services. That’s why he recently founded his own consulting firm, JEA Associates Ltd., which is specifically positioned to communicate the value proposition of this burgeoning technology. John has spent the past year successfully executing campaigns for a digital currency consultancy, decentralized financial solutions, and online payments platforms.
  • LinkedInhttps://uk.linkedin.com/in/john-mcleod-a323799

More Opinions

Check out more Adel opinions via these links:

▲ 1 ▲ The Right Path to Funding Decentralized Organizations

▲ 2 ▲ The Next Evolution in Funding Innovation

▲ 3 ▲ A Philosophy for Blockchain Integrity

▲ 4 ▲ A Collaborative Blockchain Incubator

▲ 5 ▲ Blockchain Diversity & Passion

▲ 6 ▲ Blockchain Startup Expertise

▲ 7 ▲ Blockchain Portfolio Diversification

▲ 8 ▲ Blockchain Incubation to Employment

▲ 9 ▲ From Blockchain Innovation to Execution

▲ 10 ▲ Blockchain Will Transform Retail Lending

▲ 11 ▲ The Next Evolution in Crypto Trading

▲ 12 ▲ Crypto Trading for Everyone

▲ 13 ▲ Architecting Crypto Financial Instruments

▲ 14 ▲ Crypto, For the People, By the People

Adel ▲ White Paper ▲ 9 ▲ Managing the Ecosystem

▲ Management Series

By:   Gabriel Dusil, Co-founder & Board Member, Adel
By:   Michal Vavrek, Founder & Board Member, Adel

Abstract

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

Proposals

Project proposals are created and prepared by either the Adel R&D team or submissions from community members, known as Innovators. These will mostly concentrate on blockchain projects that favor global reach and potential. When the proposal originates from the R&D team, the recipients of the rewards will always involve the entire community. Submissions will need to follow the following business planning guidelines to ensure an efficient and streamlined review of the idea:

  • Executive Summary ▲ Presentation that summarizes the project for the Project Review Committee (e.g. PowerPoint, Prezi, or other canvas).
  • Invention Overview ▲ Product, solution, or service.
  • Marketing Strategy ▲ Strategic, tactical and operational goals, market landscape overview, competitive analysis, and unique selling proposition (USP).
  • Sales Strategy ▲ Strategic, tactical and operational goals, monetization possibilities, channels to market, regional focus, and vertical or horizontal market focus.
  • Capital Costs ▲ Research and development, production, and launch costs for the first three years of operation.
  • Operational Costs ▲ Staffing, expertise, operations and management, and a draft organization chart.

In order to stimulate new proposals, the Project Review Committee will manage an idea incubator where all members of the community can enhance their business plans. The R&D team will also be a source of ideas as a service to the community.

If a project idea comes from an individual member of the community, and if the inventor would like their idea to be public, then the project will be treated as if it had been submitted by the Adel R&D team (Figure 1). However, if they wish to maintain ownership of their idea, then it will become an Innovator Project. All the documentation stated above is still required for Innovator Project submissions. Once a project is successful and reaches its targets, or if the project is sold, then the distribution of funds will be divided among shareholders according to the proportion of their Adelshare (ADS) purchases. These rewards may be distributed back to stakeholders in ADL.


Figure 1: Idea Submission to Project Launch

The Project Review Committee will monitor a project’s progress and success metrics. This will include the management of individual project managers who will report to the committee on a weekly or bi-weekly basis. The Project Review Committee reports to the Adel Board on project progress, and community participation will occur on a monthly or bi-monthly basis. The community will see a summary of these activities in the Project Module.

Ethical, moral, and legal standards will be monitored throughout the operation of projects. Violation of the Adel Code of Conduct will be addressed by a committee consisting of staff, Board members and legal experts. If a project is ongoing and successful, then rewards are distributed to holders of Adelshare (ADS) in a particular project.

Approvals

Final approval for every project is based on a community voting result. Members decide if the project will be funded from community funds or passed on to individual funding and become a Group Project. The Board serves as a curator of the community in order to remove unacceptable activities due to legal concerns, impracticality, or if the project violates Adel’s philosophy.

Part of the approval process is the Project Review Committee’s review of all relevant documentation necessary for approval. Cost analysis will be reviewed to determine whether there are sufficient funds necessary for the initial project’s capital, as well as ongoing costs for the first three years of operation. Business plans that are voted on and approved by the community will include acceptance of the business plan, including all costs involved. Funds released for each project will be approved by the Adel Board.

  • Human Resources ▲ With regards to the appointments of responsibility, the security of community funds prevails. Therefore, the members of each project will be identified according to Adel’s Anti-Money Laundering (AML) procedures.
  • Mentoring ▲ Mentoring for each project and its management will be provided by the Board and the project management team in order to maximize the return on capital utilized.
  • Participation ▲ Members will participate in the entire Idea to Project Supply Chain. They can present ideas, help improve on the market viability of the idea, help create the business plan, and solicit their expertise in the employment of a project.
  • Motivation ▲ Motivation for members of the project team will be in the form of rewards and salaries. Some members will also be stakeholders in the project, so this is added motivation to ensure their contribution is successful in the form of project rewards paid to the member in Adelphoi (ADL).
  • Employment ▲ The project team will be selected from knowledgeable experts within the community who have demonstrated expertise in the project’s respective area(s). If expertise cannot be sourced within the community, then the role will be filled by an external candidate.
  • Project Management ▲ Management of the overall project portfolio will be monitored by a Project Manager who will report to the Project Review Committee.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Michal Vavrek

Michal is an entrepreneur with international experience specializing in global business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business and worked in various capacities in New York, Zurich and Prague. Michal is an active cryptocurrency entrepreneur with an extensive background in Forex algorithmic trading strategies and is always seeking new opportunities that maximize blockchain technologies.

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

More White Papers

Check out more Adel white papers via these links :

▲ 1 ▲ Building a Decentralized Ecosystem

▲ 2 ▲ An Incubator for Blockchain Technology

▲ 3 ▲ Responsibilities in a Crypto-economy

▲ 4 ▲ Creating Value with Cryptocurrency

▲ 5 ▲ Differentiation In the FinTech Revolution

▲ 6 ▲ Maintaining Integrity

▲ 7 ▲ Inspiring Innovation

▲ 8 ▲ Protecting the Community

▲ 9 ▲ Managing the Ecosystem

▲ 10 ▲ Designing a Blockchain Incubator

▲ 11 ▲ Foundations of a Community Accelerator

Adel ▲ White Paper ▲ 8 ▲ Protecting the Community

▲ Management Series

By:   Travin Keith, Marketing and Blockchain Advisor, Adel
Gabriel Dusil, Co-founder & Board Member, Adel

Abstract

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

Risks

This section will go over some of the risks that Adel faces from a community perspective and how it plans to face them.

  • Collusion ▲ While it is impossible to fully remove the chance of unethical collusion, Adel has taken measures to mitigate this risk. For example, any suspected collusion or other nefarious behavior will result in the community member being blacklisted. Stakeholders that collude to damage Adel in any way only serve to damage themselves as they also have a vested interest in the community’s success. The paradox is this: in order to have a significant impact on the community voting system, this individual would require a sizable amount of Adelphoi to influence the voting outcome, thus increasing their exposure and risk.
  • Fraud ▲ A certain level of trust is necessary within the community in order to approve, launch, and operate projects. This is especially true since every action is not on the blockchain itself. As stated under Fiduciary Integrity in the next section, steps will be taken with project leaders and staff to ensure that all projects are carried out efficiently, legally, and profitably. However, the risk of members behaving fraudulently still exists. For this reason, Community Code arbitration will be established with the board’s assistance.
  • Manipulation ▲ Voting fraud and manipulation will be eliminated by only revealing voting results after the voting window has closed. In addition, only stakeholders with a minimum amount of Adelphoi will be invited to the community to become community members. Furthermore, community members will vote based on the proportional weight of Adelphoi they hold. This will prevent fraudsters from creating multiple accounts in order to sway the community vote.
  • Abuse ▲ Moderators will maintain order to prevent spammers from taking over a discussion for specific projects or in the Adel community’s general discussion area. These moderators will be selected in terms of their incentive to keep their respective forum discussions free from spammers, as well as their ability to do so. If an abuse of power has been demonstrated by the moderator, then the issue will be reviewed in order to determine an appropriate course of action. Community members may be blacklisted if forum rules are not met or moderator warnings are not obeyed.
  • Confirmation Bias ▲ A confirmation bias is where people remember something in a way that confirms their own pre-existing belief. However, that belief may still be wrong. This can become an issue throughout the various decision processes in Adel where a community argument ensues because of a past decision or event. To avoid this issue, there will be a log of important events in the ecosystem, as well as a logged chat room. Furthermore, all voting decisions will be logged on the blockchain.
  • Money Laundering ▲ This refers to income with no regulation to maximize profits for as little cash outflow as possible. Money is accumulated through illegal means and flows into socio-economically productive industries. Adel’s philosophy is to follow regulatory compliance around Anti-Money Laundering (AML), and to ensure that community participants adhere to these procedures. It is of the utmost importance that the team, the community, and the Adel brand are protected.
  • Terrorism Financing ▲ Adel’s compliance to AML will mitigate risk to Counter-Terrorism Financing (CTF) by requiring all members of the community to be identified through AML guidelines. The exchange of financial information under CTF rules ensures the protection of the Adel ecosystem and assists law enforcement in their fight against terrorism.

Security

In this section, we will outline procedures created by Adel to mitigate harm to the integrity of its ecosystem, to Adel as a brand, and to the infrastructure created, all in order to realize Adel’s project goals.

  • Code of Conduct ▲ The Project Review Committee will ensure that projects comply with Adel’s Code of Conduct, which includes its ethical and integrity framework, together with the Adel Board. In addition, the distribution of salaries or capital gains cannot be fully automated and will require manual actions. Where people are involved, some trust will always be necessary. Trust is inherent in the operational oversight of each project. A level of trust is established with project leaders, experts, and operational staff, in order to successfully deliver on the project’s goals. Community members will not be anonymous in an effort to mitigate risk. They will be required to reveal their identity when they enter the Adel community.
  • Leadership ▲ The board will adhere to the Code of Conduct at all times. Any breach of the code will be dealt with a review procedure conducted by an impartial team. The results of the procedure will determine the proper course of action. All reviews will be handled on a case-by-case basis while taking into consideration previous decisions made. In more serious cases, the board can decide to suspend or remove a member. All board members and staff are required to sign and adhere to the Code of Conduct.
  • Technology ▲ The blockchain used by the Adel ecosystem will initially be the Nxt platform, and will move to Ardor once it is deemed suitable. Because of this, the security of projects and the ecosystem itself will be dependent on the security of Nxt. To ensure platform resilience and integrity, Adel will maintain a strong relationship with Jelurida, the Nxt and Ardor core development team, as well as the community itself. In cases where Adel can be of assistance to the platform, Adel will contribute resources to protect the integrity of the platform.
  • Community ▲ Adel will establish an open and productive communication channel with the community. Integrity will be established through a Community Code that will be agreed upon by each member as soon as they join the community. Abuse, negligence, or any unethical behavior will be investigated and may result in the community member being blacklisted from the forums, voting, or project participation.
  • Fiduciary ▲ While Adel is working to eliminate the need for trusted third-party authorities, there are some cases where trust is necessary – especially with actions external to the blockchain. For example, the approval of projects will be initially submitted to a Project Review Committee. This will include members that have expert oversight in venture capital investments, as well as legal, operational, and technical expertise.
  • Know Your Customer, KYC ▲ Project managers, the board, and staff members will demonstrate due diligence to the best of their abilities to ensure projects comply with legal and regulatory requirements. If further legal advice is required, the community will be solicited for their expertise and will have their credentials assessed. If none are available, then assistance outside of the community will be sought and brought in. Projects that do not satisfy legal and regulatory requirements will either be rejected or modified during the assessment process.

Protection

Integrity is one of Adel’s most important values. At Adel, we are dedicated to delivering a secure and trustworthy platform for community members so they can safely participate in the ecosystem. It is important that the actions we take as leaders of the community deliver on that goal. Adel’s staff will contribute their time and expertise to continually manage and improve the ecosystem. We are committed to helping our community succeed by operating legally and ethically in accordance to any applicable laws and regulations. Adel believes that in adhering to these principles we not only protect the Adel brand, community and its members, but also serve to protect the integrity of “blockchain as a brand”, as well as innovative projects that will be introduced to society and leverage this new technology.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Supported projects are developed, discussed and decided by community members.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Travin Keith

Travin is a seasoned marketer who specializes in web and international marketing. He has worked with over a hundred businesses around the world spanning a wide range of industries. Since 2013, Travin has been involved with cryptocurrencies as a trader, investor, marketer, and community member. He joined the Nxt Foundation as a board member in 2016, serving as its Marketing Director and a Blockchain Consultant, as well as the representative to Hyperledger, a Linux Foundation Project.

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

More White Papers

Check out more Adel white papers via these links :

▲ 1 ▲ Building a Decentralized Ecosystem

▲ 2 ▲ An Incubator for Blockchain Technology

▲ 3 ▲ Responsibilities in a Crypto-economy

▲ 4 ▲ Creating Value with Cryptocurrency

▲ 5 ▲ Differentiation In the FinTech Revolution

▲ 6 ▲ Maintaining Integrity

▲ 7 ▲ Inspiring Innovation

▲ 8 ▲ Protecting the Community

▲ 9 ▲ Managing the Ecosystem

▲ 10 ▲ Designing a Blockchain Incubator

▲ 11 ▲ Foundations of a Community Accelerator

Adel ▲ White Paper ▲ 7 ▲ Inspiring Innovation

▲ Management Series

By:  Jan Lamser, Co-founder & Board Member, Adel
Gabriel Dusil, Co-founder & Board Member, Adel

Challenges in Contemporary Economics

In most of the developed world, people enjoy improved health, relatively stable economics, unrestricted access to information, and a dynamic increase in personal freedom. However, as the force of globalization has increased over the past decades, we have paradoxically created a gap between individuals and communities, as well as between personal and social identities.

This is particularly the case where money is an underlying driver or motivational factor. The control of monetary policy and national budgeting, as well as project-specific investment allocation and respective yields, are confined to licensed experts who are largely regulated and centralized. These professionals are attuned to the prevailing globalization paradigm. Some of these authorities, by attempting to portray stability and growth, generate gigantic budget deficits which have the paradoxical effect of creating market volatility and instability in the longer term. By trying to mask the issues, they ignore real economic problems and create new instability. The Greek public debt resolution[i] and Jean-Claude Juncker’s (European Commission President) plans of exorbitant public spending[ii] are just two examples. The regulatory framework for banking, investments, and the economy as a whole is nominally aiming at maintaining stability. However, such protection can be seen as little more than a precursor to control, exclusion, and the formation of a technocracy[iii]. As a result, financial resources are deployed through the complex hierarchical structures of stock exchanges, banks, and fund management. This system is caught in a prevailing technocratic paradigm with very little opportunity for individuals to influence out-of-the-box thinking and FinTech proposals. As a result of this rigid structure, many entrepreneurial initiatives have limited access to institutionalized investment funding. Spontaneity and creativity is impeded by a heavily formalized process, established by sizeable institutions that have evolved over the last couple of centuries. Because of this, innovation is impeded as entrepreneurs are required to follow an arduous, compliance-based paradigm.

There is currently a lack of flexible investment options that allow a new project to pool enough resources to gain critical financial support and, at the same time, establish constructive influence and involvement over how they are deployed. A good idea, or successful project outside the mainstream, may not be able to access the funding opportunities that a more traditional, less disruptive project will have access to. Furthermore, projects that threaten monopolies in established markets run the risk of being trampled by large companies with seemingly endless legal resources or lobbying influences. This has resulted in many innovative or disruptive ideas being disqualified from investment consideration. The oil industry’s efforts to stifle electric car innovation throughout the second half of the twentieth century is just one example[iv]. Another is the systematic destruction of urban rail systems in the US at the beginning of the 20th century. As a consequence, the ability to borrow or invest is compromised or restricted for some projects. The adage “Neither a borrower nor a lender be”[v] rings true in regards to this particular form of exclusion. The choice, therefore, is not between the innovator or investor, but between risk management policies and/or political affiliations.

There are a number of attempts to circumvent these obstacles, such as crowdfunding websites like kickstarter.com which launched in 2009, as well as P2P lending schemes[vi]. Nevertheless, systems that can pool resources to finance viable, innovative projects on a larger scale and redeploy these resources gradually have not been created thus far.

Opportunities for a Distributed Ledger

A distributed public ledger using blockchain technology in combination with cryptocurrency fills an opportunity gap in today’s investment environment. Adel provides such a platform and is underpinned by a community-based scheme that combines elements of:

  • Venture Capital
  • Collective Intelligence
  • Participatory Economy
  • Co-working Entrepreneurship
  • Code of Ethics and Integrity
  • Cryptocurrency Technology

Adel will be built on the Nxt platform and will move to Ardor when suitable. This provides a robust infrastructure for this ecosystem. Adel allows stakeholders to pool financial resources using cryptocurrency. This eliminates traditional intermediaries and focuses momentum on projects decided by the community. At the same time, this model allows a majority consensus to co-exist with projects supported by only a minority of the community. With the decision power in the hands of the community, activities and decisions related to business, both analytical and operating, are controlled within the ecosystem. However, external professionals and associations outside of the ecosystem will be solicited to improve performance where necessary.

Distinctive Features of Project Funding

Adel provides a dynamic platform of entrepreneurship, freedom, management, communication and technology. The team has experience and expertise across multiple areas of business, as well as backgrounds and successful track records in various industries. As a community-based ecosystem, Adel will create an open architecture for joint entrepreneurship and challenge contemporary business principles. The unique structure of Adel is as follows:

  • Open Economic Interactions ▲ This allows certain roles that have been standard in classic investment vehicles to be eliminated (i.e. fund managers, brokers and auditors). Thanks to the distributed ledger system, many of these roles are no longer necessary as many administrative tasks can be automated through the use of the secure Nxt blockchain system. Administration overhead is thus decreased, leading to a much higher degree of agility and versatility. There is individual and community supervision on resource deployment, while maintaining a high standard of compliance and fiduciary accountability. Individual expertise and responsibility is also solicited for specific contributions without agency intervention.
  • Scrutinizing Outdated Assessment Processes[vii] By facilitating collective deliberations, Adel has the agility to filter social biases, political ideologies, and traditional economic beliefs. These are deeply ingrained preconceptions that could negatively influence the viability of new ideas. In some cases, they severely undercut innovation and the resources available to support them. Resource pooling with Adel is designed to be free of such indoctrinated ideologies. Adel institutionalizes the evaluation and relevance of ideas based on a pool of engaged individuals and their perspectives. This collective accountability allows for the funding of initiatives that may be legitimately rejected by a majority, but agreed upon by a select minority who may choose to maintain a vested interest in the project.
  • Cryptocurrency Roots ▲ Rooted in the distributed ledger, as well as blockchain and cryptocurrency communities, Adel does not derive its value from fiat currencies. While not rejecting the concept of fiat value, Adel´s approach is more nuanced and versatile. Adel allows for a larger set of funding possibilities for a given project proposal, including large or smaller group contributions[viii]. Adel opens up opportunities for new ideas and projects and potentially enhances their chances of success through intense interaction and community wisdom, all while securing communal or sub-communal resources and support.
  • Collective Intelligence ▲ The formula that Adel subscribes to is People, Process, and Technology. This contrasts with prevailing beliefs that technology alone leads to success. It is human nature to be suspicious of individual motivations and personal agendas, but project resources require human engagement, both in selling the business case and in the launch and operational functions of the project. At Adel, the experience and involvement of individuals is subject to communal approval and will be monitored by the Project Review Committee.
  • Expert Knowledge ▲ Cognitive science has shown that combined schemes which engage both experts and collective groups are the most effective. This has proven to be superior to alternatives that give full authority to an expert or leader or the community alone[ix]. Adel combines effective managers, individual experts, and a participative community. In an entrepreneurial context, this provides a balance of analytics, integrity and prudence, all of which contribute to the success of the ecosystem.
  • International Community ▲ Adel is a global platform that aggregates disparate parties interested in joint innovation. Participation is set by the Code of Conduct which is entirely non-discriminatory. Its main purpose is to ensure legal and regulatory compliance. This not only protects the Adel brand, but the integrity of the blockchain initiative and its reputation as well.

While Adel is driven by a team with European roots, its ambition is global. Project participation may involve contributing as an analyst, technology expert, fiduciary enforcer, manager, developer, or back-office participant, to name but a few. This community model enables participation from individuals who have local cultural experience and/or industry expertise. Adel enables innovation through resource placement in all phases of project development, encouraging experts, project leaders and controllers to both invest and participate in the community in a role that advances the development of a particular project.

Built for Innovation

Adel is inspired by the social structures that have evolved from a distributed public ledger and related blockchain applications. This community is relatively independent of collective governmental bodies by design. If certain jurisdictions become involved, the community can call on parties with appropriate skills and expertise to act on its behalf when there are none in the community who are capable or willing. Adel will have a constantly open dialog with the community while relying on its wisdom and expertise.

Adel represents a number of unique funding features. While associated with cryptocurrency, venture capital, startup incubation, and a cooperative platform, Adel is, above all, a technology-driven means for experts to collaborate. There are support systems in place to assist with successful project execution while acting as a distributed ecosystem in terms of process, procedure and power.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained, and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Projects are chosen by the community and successful ventures are either re-invested in for further growth or issued as rewards to Adel’s stakeholders.

About the Authors

Jan Lamser, Co-founder

Jan served for twenty years as a Senior Executive Officer and Board Member at Československá obchodní banka, a.s. (part of the KBC Group), the #1 commercial banking institution in the Czech Republic. He is one of the best business strategists in the region with a reputation for visionary talent and abilities. Jan is a FinTech entrepreneur and leading spokesperson for blockchain innovation in Central and Eastern Europe. He is also an associate of the Czech FinTech Association (CEFTAS), Deputy Chairman of the Institute of Computer Science, and has authored several articles on distributed open ledger technologies.

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Resources

[i] “Explaining Greece’s Debt Crisis”, 16th June, 2016, http://www.nytimes.com/interactive/2016/business/international/greece-debt-crisis-euro.html?_r=0

[ii] “Germany plans €10bn extra public spending”, By Stefan Wagstyl, 6th November, 2014, http://www.ft.com/cms/s/0/a973366a-65dd-11e4-898f-00144feabdc0.html#axzz4JHxgV7MT

[iii] The self-referencing nature and overwhelming power of technology – oriented rationality as predicted in mid-20th century by Horkheimer, Adorno, Heidegger and others – is about to come true in contemporary global finance.

[iv] “Who Killed the Electric Car?”, Wikipedia, https://en.wikipedia.org/wiki/Who_Killed_the_Electric_Car%3F

[v] Act I, Scene III of William Shakespeare’s play, “Hamlet”.

[vi] “30 Peer-to-Peer Lending Experts Reveal Their Top 3 Investing Tips”, by Warren Lee, http://thelendingmag.com/peer-to-peer-lending/

[vii] Paraphrasing Adorno´s key book on contemporary rationality, Adel promotes “negative economic dialectics”. This means that Adel stands against ideologies embedded in contemporary economic global frameworks.

[viii] As opposed to mainstream economic frameworks dwelling on the ideology of economic equilibrium, Adel is inspired by Schumpetrian thinking which underscores the creative power of free innovation. Destructive and outdated business concerns portraying instability as a natural state of the economy are avoided.

[ix] http://www.nasa.gov/centers/goddard/about/organizations/OCKO/casestudies/#.V8CH0Zh97uo

https://en.wikipedia.org/wiki/History_of_banking

https://en.wikipedia.org/wiki/General_Motors_streetcar_conspiracy

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

More White Papers

Check out more Adel white papers via these links :

▲ 1 ▲ Building a Decentralized Ecosystem

▲ 2 ▲ An Incubator for Blockchain Technology

▲ 3 ▲ Responsibilities in a Crypto-economy

▲ 4 ▲ Creating Value with Cryptocurrency

▲ 5 ▲ Differentiation In the FinTech Revolution

▲ 6 ▲ Maintaining Integrity

▲ 7 ▲ Inspiring Innovation

▲ 8 ▲ Protecting the Community

▲ 9 ▲ Managing the Ecosystem

▲ 10 ▲ Designing a Blockchain Incubator

▲ 11 ▲ Foundations of a Community Accelerator