Adel ▲ Opinion ▲ 15 ▲ The Crypto Uprising

By:  Gabriel Dusil, co-Founder & General Manager, Adel Ecosystem Ltd.

Crypto.Intro

The blockchain is the underlying technology behind all cryptocurrency. In its simplest form, it is a marketplace for digital payments and asset exchange. Rather than a central authority, a database of transactions is managed by a Peer-to-Peer (P2P) network. The importance of cryptocurrency blockchains is its ability to maintain trust at a programmable level. By solving highly complex math problems this marketplace maintains its security and trust.

The Internet created the eMarketplace
Crypto defines the cMarketplace (aka. crypto Marketplace).

Cryptocurrency has become an Over the Top (OTT) version of money, similar to OTT services for video in the entertainment industry, and the how peer to peer (P2P) networking disrupted telecommunications a decade earlier. Over the Top services disrupt incumbent infrastructures, bypassing them completely and offering an alternative competitive service. From a crypto point of view, the plan was to bypass the monopolies that control fiat money[i] – represented by governments or central banks. In a free society, cryptocurrency allows society to decide the fate of its home-grown currency.

Crypto.Apps

Crypto is not only about virtual currencies. It is an ideology that opens opportunities that streamlines and evolves legacy supply chains. The demand for fast, transparent, international transactions and business services on the blockchain is increasing not only horizontally, but vertically, as the industries set for disruption.

One potential use of blockchain is in smart assets. This is where internet-connected assets can be registered on a globally decentralized blockchain. On this basis, blockchain joins the Internet of Things (IoT) evolution, Benefits span the manufacturing, transactions, and movement of goods to any corner of the globe.

In the meantime, FinTech is considered the low-hanging-fruit for blockchain services. Businesses are exploring blockchain to settle payments and manage contracts – quickly and affordable. Successful implementations are expected to disrupt financial service monopolies as they streamline legacy supply chains.

The global benefits of blockchain are similar to how the internet revolution transformed society. With blockchain adoption, information is open and shared across companies, countries, and continents. Business, social and humanitarian possibilities are endless if blockchain applications successfully adopt best practices in privacy, security, and data management.

Crypto.Opportunity

The possibilities unfolding in the blockchain space are nothing short of revolutionary. The largest redistribution of wealth in human history is happening now, completely dictated by a free market society. The blockchain is the underlying catalyst for this evolution. People in remote locations of the world, who previously didn’t have banking services, can now use cryptocurrency as a means to transact. Remittance is significantly cheaper, needing just a smartphone to transfer funds abroad. In this sense, blockchain has the potential to remove economic, political, and social borders for information sharing and expand to humanitarian initiatives.
The blockchain is the underlying catalyst the largest redistribution of wealth in human history.

New applications will enable transparency, fairness, equality and a truly democratic spirit. For example, another application of blockchain is called “Smart Contracts”, allowing businesses to automate agreements between two parties, removing social, economic and personal biases. Smart Contracts will not only function as an unbiased point of social consciousness but also profit from it.

Projects that will succeed are those which showcase blockchain’s unique features such as immutability, decentralized redundancy, programmable trust, open data, and programmatic security. However, one of the biggest challenges in blockchain is that many developers only have “crypto visibility”. Many cryptocurrency communities lack experience in real-world businesses or managing large companies. To legitimize blockchain-tech, the crypto community must collaborate with real-world, brick-and-mortar expertise.

Crypto.Adoption

A common mistake of new entrepreneurs is to utilize a new technology without notable gains in features or functionality. It’s not enough to wrap an old app into a new coat. Many projects today capitalize on the blockchain buzz in hopes of attracting rich cyber millionaires. They have little to offer in terms of improved features and benefits. Apps that use blockchain for no other reason, other than the name recognition, will fail. The projects that will succeed are those which showcase blockchain’s unique features such as immutability, decentralized redundancy, programmable trust, open source, and programmatic security.

The volatility of cryptocurrency attracts new players with its high risk-to-reward ratio. This hype brings attention, investment, and volatility to the blockchain. Thus the cycle repeats through a roller coaster of profit and loss. When viewed from the standpoint of Roger’s Technology Adoption Curve, blockchain is currently in the Early Adopter stage. Likely this will continue into the next decade. This is supported by Gartner’s Hype Cycle ‘18[ii], which anticipates blockchain to mature in the next five to ten years.

Crypto Adoption Curve
Crypto Adoption Curve

Mentions of “cryptocurrency” and “blockchain” in mainstream media root into the general consciousness. Imagine trying to explain the Arpanet in the 80’s, before the Internet became an integral part of their daily life. With each surge in bitcoin value, new spectators take notice, establishing crypto as a household term. As more big players like Apple, Google and Amazon come on board, the average consumer will help to catapult blockchain into the stratosphere. The future may be closer than we realize, with evolving requests such as:

  • Consumer: “Can I buy your product with Bitcoin?”
  • Corporate: “Can I pay your invoice with Ethereum?”
  • Government: “Can I pay my annual tax return with cryptocurrency?”

Alternatively, blockchain may not become a household name. For example, modern society enjoys access to electricity, gas, and water but have no idea that SCADA is used to operate those services. TCP/IP is well known amongst tech circles, but many don’t know that it is the underlying protocol used to surf the Internet. The blockchain is more analogous to TCP/IP than the “Internet”, in this sense. Blockchain may take on an underlying infrastructure role, but the mainstream may have no idea it’s there, “as long as it works!”

Crypto.Potential

In crypto, there is long-term confidence. The market is certainly volatile and is not for the faint of heart, but the potential for cryptocurrencies is bright. This can be argued from several observations:

  • Bitcoin continues to receive an influx of investment from mainstream users. With every spike in value, a new round of actors enters its market hysteria. There will continue to be spikes and corrections correlating with the adoption and the evolution of the technology, but as time goes on, the price bounces will become more stable as the technology and market mature.
  • Tens of thousands proof of concepts around the world is a testament to blockchain’s potential success. Practically every vertical market is investigating the use of blockchain in their environment. Even if a fraction of them survive, it will further propel crypto into the mainstream.
  • Facebook, Apple, Amazon, Netflix, Google (aka. FAANG[iii], on Wall Street) continue to investigate the use of cryptocurrencies in their services. Once big players are on board, there will be a cascading effect of secondary and tertiary players following their lead.

Crypto Dependencies
Crypto Dependencies

In addition, there are three main factors mainly driving bitcoin and blockchain to the mainstream:

  • The user experience and user interface (i.e. UI/UX) for applications need to improve in order to attract brick and mortar companies. Many blockchain projects are focused on offering a more robust experience for their users.
  • Adoption is necessary to legitimize crypto into and connect cMarketplaces with mainstream eMarketplaces. As new users are enticed by Bitcoin’s hype, they also get “hooked” into the trading game. Once you’re in, you’re. Traders learn to adjust, to fluctuating market conditions, even if the market drops, they typically don’t abandon their investment – they look at the next opportunity.
  • Stability is necessary to legitimize bitcoin. This has yet to play-out in crypto. But volatility attracts new players who have a high risk-to-reward ratio.

Crypto hype brings attention.
Attention brings awareness.
Awareness brings Investment

Blockchain will propagate due to its ability to flatten the world’s flow of information and data sharing capabilities. Applications that showcase such abilities will shine.

About the Author

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.

References

[i] https://en.wikipedia.org/wiki/Fiat_money

[ii] https://www.gartner.com/smarterwithgartner/5-trends-emerge-in-gartner-hype-cycle-for-emerging-technologies-2018/

[iii] Kenneth G. Winans, “Facebook, Apple, Amazon, Netflix, Google Are Too Hot. These Other Tech Names Look Better” (Forbes, November 16, 2017, https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/kennethwinans/2017/11/16/facebook-apple-amazon-netflix-google-are-too-hot-these-other-tech-names-look-better/&refURL=https://www.google.at/&referrer=https://www.google.at/)

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

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 ▲ 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 ▲ Opinion ▲ 4 ▲ A Collaborative Blockchain Incubator

▲ Incubator Series

By:  Gabriel Dusil, Co-founder & Board Member, Adel
Jessica Allen, Blockchain Enthusiast & Social Media Expert

A Collaborative Blockchain Incubator

Most blockchain initiatives had a singular goal: to introduce a new blockchain platform (Ethereum, July 2015; Lisk, May 2016; Waves, January 2017). More recently, projects began to appear to focus on launching a more fintech-focused service linking blockchain to gold such as Digix Global[1], or Ether ETF, the first ever Ethereum-related Exchange Traded Product (ETP) in the United States[2].

With so much innovation in blockchain, is there a market to consolidate ideas into a single platform?

  • What about an ecosystem that encourages diversity across many industries with a vision of collaborative success?
  • Similar to the crowdfunding success of Kickstarter, a startup incubator that will legalize projects and help them be successful.
  • A single platform that unifies people from various industries, disciplines and regional backgrounds to accelerate idea development and implement real-world projects.
  • A community that enables innovation and equity ownership in projects.

The incubator model[3] has proven itself effective because people bootstrap ideas into viable projects without requiring exorbitant amounts of seed capital. Combining startup incubation with collaborative workspaces[4] is a rapidly growing phenomenon. These environments provide local space for startups to form and allow users to share resources and expertise to cross-pollinate ideas. They leverage business services like human resources and effectively manage funds.

Economies of Scale Through Collaboration

These new approaches to startup incubation demonstrate the need for efficiency, cost savings, and community in order to give ideas momentum. Efficiency is created by using investment funding in an ecosystem where multiple industries work together. Sometimes the best ideas come from disparate disciplines joining together to create something new which could not have been realized in isolation. The relationship between medicine and engineering has proven this synergy for several decades[1].


Figure #1: Adel Community Modules

Merging real-world incubator initiatives with virtual collaborative workspaces is the vision of Adel Ecosystem Ltd. Adel’s global incubator will include six online modules (Figure #1) with the intention of fostering collaboration.

  • A collaboration module will be a discussion forum to fuel ideas, as well as develop business plans for ideas that the community supports.
  • A voting module will enable a democratic vote by members.
  • A project module will show a bi-weekly status of project operations and success metrics.
  • A market module will be used to sell products and services from those projects, as well as post job vacancies in the various projects. Addition modules will be introduced, including one for currency trading.
  • Wrapping up the modules are the account and trading modules which show the status of the member’s wallet and allow them to send and receive coins with other members of the community.

Adel co-founder, Gabriel Dusil, is up for the complex challenges ahead, commenting, “Our decentralized and virtual incubator has its challenges, but we will manage that. As leaders and curators, it will be our responsibility to make sure that efficiency is maintained and momentum is sustained. When we see that there is a constructive effort to move ideas forward then we have the responsibility to make sure that process continues to flow. That is one of our main responsibilities as curators of the community”.

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/.

Jessica Allen

Jessica is a blockchain enthusiast and social media community expert with over 25 years of technology and 15 years of digital marketing experience.  As a mother of two, Jess is passionate about blockchain’s potential to innovate industries, unite communities and create a sustainable global economy.  She brings the ability to create conversations with anyone, at any level, about blockchain use cases and potential.  Jess is active on social media @TheJessAllen and volunteers her time with the Isha Foundation to help share the benefits of yoga and meditation as fundamental tools for human transformation.

References

[1] https://www.asme.org/engineering-topics/articles/bioengineering/top-5-medical-technology-innovations and http://medicalfuturist.com/top-10-medical-technologies-of-2016/

[1] https://www.dgx.io

[2] http://www.zerohedge.com/news/2017-04-26/ethereum-surges-all-time-high-sec-considers-ether-based-etf

[3] https://www.inc.com/john-rampton/top-10-hot-incubators-to-join-in-silicon-valley.html and https://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y-combinator-tops-with-7-billion-in-value/#6b70519d51f3

[4] https://hbr.org/2011/11/inventing-the-collaborative-workspace

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 ▲ 9 ▲ From Blockchain Innovation to Execution

▲ Incubator Series

By:  Gabriel Dusil, Co-founder & Board Member, Adel
Jessica Allen, Blockchain Enthusiast & Social Media Expert

From Blockchain Innovation to Ownership

Blockchain is arguably the most transformative technology since the invention of the Internet. Initially, the cryptocurrency use case with Bitcoin was fuelled by talented developers who were passionate about its stateless ideology. In the Blockchain Adoption Curve (Figure #1), these innovators represented talented technical minds who believed that blockchain could revolutionize the financial world with Bitcoin as its first use case. Although it took some time to gain momentum, this application established confidence that a currency born from code could be viable, powerful and profitable. It took several years for a new group of early adopters to realize its potential beyond a monetary system.Figure #1: Blockchain Adoption Curve

Since the introduction of Satoshi Nakamoto’s white paper in 2008, several other blockchain platforms attempted to establish themselves. However, some of these shut down due to devastating hacking attacks such as the one on the DAO[1], scams such as Coin.mx[2], or due to legal reasons[3]. Meanwhile, governments continue to play catch-up by implementing new regulations to address the growing popularity of cryptocurrencies, and mitigating the security risks of anonymity.

By 2013, a wider audience from many industries began to take notice. These new supporters began to investigate how blockchain could improve society, science, medicine, government and many others.

Despite all this attention, a powerful blockchain startup incubator had yet to be established to help drive innovation in this industry. Even with over 10,000 projects on GitHub[4], blockchain innovation needed a structured environment – not for development, but for all other aspects of launching a successful business.

A Brand that Fuels Innovation

Adel launched in December 2016 to offer such a platform; a home where innovators, investors, and experts can actively participate in a community environment to build viable blockchain solutions. Adel recognized that to build such an ecosystem, necessary legal steps had to be taken to secure their platform. This includes launching a Know Your Customer (KYC), Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) compliant ICO which began on May 1st, 2017 and continues until May 31st. Their crowdfunding initiative is to sell their Adelphoi (ADL) coin as a cryptocurrency to transact within an exclusive community of like-minded participants.

Some may argue their vision is in opposition to blockchain liberalists who value anonymity, complete freedom, and a stateless society. But Adel believes that a platform that follows regulatory compliance is necessary to legitimize blockchain and move this technology into the mainstream. Adel is poised to create a powerful blockchain ecosystem by establishing six main pillars:

  • A Philosophy for Blockchain Integrity ▲ This is a commitment to their community to uphold the ethical, moral and legal requirements of every member and project in the ecosystem.
  • A Collaborative Blockchain Incubator ▲ Their intention is to serve as the curators of the community. Their goal is to maximize participation and capitalize on the expertise of its members, while providing the freedom and liquidity to exit at any time.
  • Blockchain Diversity and Passion ▲ This ensures that the democratic voting process and project approvals have the depth and range of cultural, political, regional, and economic perspectives.
  • Blockchain Startup Expertise ▲ This is essential to creating business plans that turn ideas into projects and projects into sustainable and successful businesses.
  • Blockchain Portfolio Diversification ▲ The intention is to build a diverse portfolio that spans a variety of industries, creating investments sustained in a strong risk management strategy. Projects that cross several vertical markets ensure stability and sustainability.
  • Blockchain Incubation to Employment ▲ This is Adel’s unsung asset to their powerful ecosystem. Members play an active role in developing projects until they are executed. A member’s role can continue as an expert advisor or employee within the project management team and by demonstrating skills that the project requires.

Adel co-founder and General Manager, Gabriel Dusil, stated, “No technology since the Internet has garnered so much attention. Blockchain is viewed with high potential in helping society to streamline processes; but it’s not a silver bullet, and some proof of concepts will not survive. The proof of concepts that emerge will change computing forever. We want Adel to be a central resource to accelerate ideas to projects. We want to be the leading global brand for blockchain incubation.”

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/.

Jessica Allen

Jessica is a blockchain enthusiast and social media community expert with over 25 years of technology and 15 years of digital marketing experience.  As a mother of two, Jess is passionate about blockchain’s potential to innovate industries, unite communities and create a sustainable global economy.  She brings the ability to create conversations with anyone, at any level, about blockchain use cases and potential.  Jess is active on social media @TheJessAllen and volunteers her time with the Isha Foundation to help share the benefits of yoga and meditation as fundamental tools for human transformation.

References

[1] http://www.coindesk.com/understanding-dao-hack-journalists/

[2] https://bitconnect.co/bitcoin-news/404/coin-mx-bitcoin-exchange-fraud-mastermind-pleads-guilty-faces-lengthy-prison-sentence

[3] https://bravenewcoin.com/news/36-bitcoin-exchanges-that-are-no-longer-with-us/

[4] https://news.bitcoin.com/bitcoin-projects-github-surpass-10000/

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