Bancor initial coin offering raises over $200 million in three hours to become the largest crowdfunded project ever

Bancor initial coin offering raises over $200 million in three hours to become the largest crowdfunded project ever

DOMINIC POWELL / Friday, June 16, 2017

A demo of the Bancor protocol. Source: Bancor.network

A new blockchain startup built on the Ethereum platform has become one of the highest funded crowdfunding projects ever, raising approximately $US153 million ($201 million) through an initial coin offering (ICO) in just three hours earlier this week.

The startup is called Bancor, and it offers a platform aimed at making it easier for other startups and users to launch, manage, and trade their own forms of blockchain currency, known as “tokens”. These tokens are managed through the Ethereum network’s “smart contracts”, which enable self-executing contracts enforced and recorded on the blockchain.

Combining these two features, the Bancor protocol offers “smart tokens”, which enable “any party to instantly purchase or liquidate the smart token in exchange for any of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes”.

The ICO was intended to run for an hour, reports Coindesk, with a funding target of 250,000 ether (the main currency of the Ethereum blockchain), or around $US95 million. Due to alleged difficulties with the network, including supposed delayed transactions, the campaign was extended an additional two hours, resulting in a total of 396,720 ether or approximately $US153 million being raised.

Over 10,000 investors got on board with the ICO, with Coindesk reporting the largest single purchase was $US27 million, equalling 6.9 million BNT, the token used by the Bancor protocol to fuel its new platform.

This was enough to shoot Bancor into the number one spot of highest funded crowdfunds, and continues the recent initial coin offering craze, with blockchain startup Brave raising $US35 million in 30 seconds via a recent ICO.

However, due to the transitory value of cryptocurrencies such as Ethereum, the true amount raised by these startups is ever-changing. With the value of ether increasing over 2800% this year alone, a $US153 million raise could be $50 million more, or less, in a matter of days.

The Ethereum protocol is proving to be a popular platform for successful crowdfunds, with seven of the top 10 crowdfunding projects having been based on the platform, including the crowdfund for the platform itself.

Blockchain-Based Smart Contracts Approved

Greenfire supports blockchain business and technology. It is a belief held by Greenfire that business is growing into a blockchain technology based accountability system that will provide the move into a more sound money system.

Aaryn Prettyman

 

Maybe you’ve heard the term “blockchain” but aren’t quite sure what it is. You’d be in good company. However you may want to start learning, as it just may be a technology platform that changes the ARM industry someday.

In super-simple terms, blockchain is a decentralized way of keeping track of what is “true” (i.e. who owns what, who has signed what, who has paid what, etc.). This decentralized mechanism is called a “distributed ledger” – imagine a town checkbook, but instead of living in city hall, everyone in the town has a copy of it. Each time an entry is made it must be validated by everyone with a copy, and then everyone’s copy is updated. Each update is a new “block” in the “chain,” and each block needs all the other blocks to form the whole picture. The result is said to be a highly secure, transparent, interdependent chain. 

Today, most information is tracked in major centralized databases owned by one company (or government) or another. As we know, these databases are often vulnerable to hackers, they are not at all transparent, and they can be difficult to get corrected when they are wrong. This has created a lack of trust in our systems, and makes it frustrating to do business.

Blockchain was first used to manage bitcoin, the new kind of electronic currency that pretty much operates on the fringe. But many are now experimenting with a wide range of other, more mainstream uses. One example is that the State of Arizona has just passed a bill giving legal status to smart contracts and blockchain based signatures. Here’s what the bill says,

"A signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature.

A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record.

Smart contracts may exist in commerce. A contract relating to a transaction may not be denied legal effect, validity or enforceability solely because that contract contains a smart contract term.

For the purposes of this section:

  1. “Blockchain technology” means distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth.
  2. “Smart contract” means an event-driven program, with state, that runs on a distributed, decentralized, shared and replicated ledger and that can take custody over and instruct transfer of assets on that ledger."

insideARM Perspective

The debt collection community – including creditors, collection agencies and consumers – could benefit greatly from innovation that provides transparency and trust. Unfortunately there are many hurdles, including regulatory limitations and perceived risk by financial institutions. Blockchain may or may not prove to be the solution, but many industries and organizations – including major banks — are in active exploration of how it might be used in their domain. In my opinion, the conditions and requirements of the debt collection ecosystem make it a perfect candidate for this type of innovation.

The iA Institute (parent of insideARM) is devoting considerable effort to the concept of innovation for the industry. In conjunction with the Consumer Relations Consortium, this week we are kicking off the first meeting of our Innovation Council – a thought leadership group of creditor, agency, and service provider executives who will gather to contemplate the future of debt collection technology.

Source: Blockchain-Based Smart Contracts Approved

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The Ultimate Disruption in the Financial System – Blockchain Technology

The Ultimate Disruption in the Financial System – Blockchain Technology

Extracted from BBVA Research on Digital Banking.

What is Blockchain?

Blockchain is a peer-to-peer public ledger maintained by a distributed network of computers that requires no central authority or third party intermediaries. It consists of three key components: a transaction, a transaction record and a system that verifies and stores the transaction. The blocks are generated through open-source software and record the information about when and in what sequence the transaction took place.

This “block” chronologically stores information of all the transactions that have taken place in the chain, thus the name blockchain. In other words, blockchain is a database of immutable time-stamped information of every transaction that is replicated on servers across the globe. This technology is the foundation of bitcoin, a crypto currency.

In traditional transactions such as money transfers or foreign currency, there is usually an intermediary or a centralized entity that records the transmission of money or currency that exist apart from it. In blockchain, the token or digital coin itself is what has value, which is determined by the market. This is what makes the system a truly decentralized exchange. When people buy or sell cryptocurrency, a secret key or token is broadcast to the system. “Miners” use nodes, computers or devices linked to a network, to identify and validate the transaction using copies of all or some information of the blockchain.

Before the transaction is accepted by the network, miners have to show “proof of work” using a cryptographic hash function –a special algorithm- that aims to provide high levels of protection. Miners receive some form of compensation for their computing power contribution, avoiding the need to have a centralized system.

New protocols such as Ripple rely on a consensus process that does not need miners nor proof of work and can agree on the changes to the blockchain within seconds.

In any case, the blockchain offers an inherent level of trust for the user, eliminating the need for the middleman and mitigating the risk of human error. In this public ledger, the data is protected against tampering and revision, and individuals cannot replace parts of the blockchain as the cost of doing so is significant – hypothetically one would need to control more than half of the “nodes” to surreptitiously alter the block chain.

The Disruption

While cryptocurrency itself has received a lot of criticism, the blockchain technology is thought to offer great potential, attracting the attention of governments, businesses and venture capital at a rapid pace. Some ideas developed in recent years include a pay-as-you-go system that allows users to stream live video; a structure that allows sharing space-program information; or ways to record business information such as audits. In most cases, these options are thought to offer greater security, speed and reliability at a fraction of the cost of more traditional infrastructures.

Other ideas include the possibility to create digital identities that could substitute dozens of usernames and passwords while offering greater security features; and “smart contracts” with self-executing properties that would make the contract “unbreakable”.

In the financial industry, institutions are slow to recognize the potential of blockchain technology; however, dozens of large banks have now invested significant amounts of money in this technology.

The attention is likely the result of how disruptive this technology is to the financial sector, particularly if it allows massive simplification of banking processes and significantly reduces costs.

The first levels of disruption seem more likely in payment processing where traditional transactions such as money transfers, credit and debit card payments, remittances, foreign currency and online payments, require an intermediary such as a clearing house or a financial institution.

In these cases the transaction would occur directly between the buyer and the seller without any intermediary and the validation of the transaction would happen in a decentralized way or “distributed ledger”. This would result in significant infrastructure savings for banks by allowing them to bypass payment networks that are oftentimes slow, cumbersome, and expensive.

However, the biggest potential impact of a public ledger may extend beyond the payment system. Given that the majority of financial assets such as bonds, equities, derivatives and loans are already electronic it may be possible that someday the entire system is replaced by a decentralized structure.

In fact, the latest innovations are using tokens to store and trade assets like shares, bonds, cars, houses and commodities. These so-called “colored coins” attach additional information on the asset, generating “smart property” or the ability to record and transact these assets using “smart contracts”, which are enforced by complex algorithms, through distributed platforms without a centralized register, thereby increasing efficiency.

In this environment, the current system where financial institutions record individuals’ accounts in a centralized fashion and the banks’ reserves are stored by the central bank (i.e. Federal Reserve) would be replaced by the “Internet of money” or the “Internet of finance” – a fully decentralized financial system.

As other industries that have been transformed by new technologies and digitization, blockchain technology could reshape the financial industry well beyond the payments system.

United States Congress Supports Resolution Promoting Blockchain

 Author Jacob Timp

The United States House of Representatives has passed a nonbinding resolution calling for an adoption of “a national policy for technology to promote consumers' access to financial tools and online commerce to promote economic growth and consumer empowerment.”

Why The Accelerated Interest?

We have seen relatively little developments in the space of federal regulation on the Blockchain technology and digital currencies. A non-profit called Coin Center reached out to United States representatives communicating their concerns on the developing bill. The letters on issue are available on their website.

In July, the declaration was introduced which calls the United State government to develop an updated domestic policy related to technology, specifically referencing cryptocurrencies and Blockchain technology. The bill was introduced by United States Congressman Adam Kinzinger of Illinois and is sponsored by Congressman Tony Cardenas of California.

Following statements from supporters, the resolution passed by a verbal vote earlier this week. The resolution is non-binding, which may be considered a half-measure, is a rather significant leap forward from Congress for the discussion on Blockchain and cryptocurrencies.

The opening remarks on the bill stated:

“The House of Representatives that the United States should adopt a national policy for technology to promote consumers’ access to financial tools and online commerce to promote economic growth and consumer empowerment.”

The resolution occurred months after the United States House Committee on Energy and Commerce debated the technology. Notes from supporters on the floor demonstrated a very real interest in the issue among the House members.

Congressman Michael Burgess of Texas, stated at the hearing:

"There’s no doubt that Blockchain innovations are on the cutting edge today."

What’s Next?

We will see what the next step is for congress and whether or not they will pursue a more substantial bill development for digital currencies and the Blockchain technology. The next session will meet after November's United States elections.

The non-leaning characteristics of the current resolution suggests that a new and updated bill may be released by Congress in the time following.

Mike Prettyman,
Chief Information Officer at Green Fire Engineered Reclamation
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The future of money where is cryptocurrency heading?

The future of money is cryptocurrency.

We finally reach really incredible stage in the digital universe for ten or fifteen years we were awaiting the arrival of a truly cohesive electronic money and crypto currency the modern-day blockchain based bitcoins star concept has finally broken through.

We are starting a cryptofunding campaign to fund the Green Fire Project. There are seven currencies listed in the sidebar that being used for this purpose.  I will present each one individually. Each video has instructions about where to get your wallet and how to set it up.

Introductions to the different cryptocurrency exchanges for exchanging and purchasing the currency will be detailed and linked.

The donation pages will be announced in the next few days.

This video will explain.

 

 

What is a Cryptocurrency’s intrinsic value?

Does Cryptocurrency have an intrinsic value?There has been one big issue with these new cryptocurrencies since their beginning and subsequent expanding distribution. How are they valued? Do they hold any intrinsic value whatsoever?

Of course that is not the only issue surrounding them but it is certainly one of the biggest questions asked and also one of the most important ones to reach an understanding about especially if you are thinking about buying into these types of currencies. 

A cryptocurrency only has value in its exchange – it has no inherent value – this is precisely the same as with a ‘conventional’ currency. A dollar is only actually worth what someone is willing to give you in exchange for that dollar.

If everyone were to stop accepting the dollar it would become worthless instantly. This is precisely how the financial market works, if globally the dollar becomes viewed as a bad investment it will ultimately collapse.

Cryptocurrency, just like the dollar, is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable. Bitcoin for example, releases more of its cryptocurrency each year but the exact amount decreases proportionally year after year. The Federal Reserve, however, issues dollars in a reactionary fashion whenever it so chooses. Therefore, the more businesses and people that accept a form of a cryptocurrency – the more stable it will become.

In conclusion you could say that this questions has two answers. One view is that because cryptocurrencies in general are not tied to any physical commodity or other institution giving it a value it can not have any intrinsic value. At the same time the opposite can be argued that actually because it is not tied to any person, organization, country or regulation that can control it, it therefore has an intrinsic value in its ability to avoid being controlled.

I have included a youtube 5 minutes long video “The real value of bitcoin and cryptocurrency technology – The Blockchain explained“ that will explain bitcoin and cryptocurrency in five minutes. In 5 minute this video will demonstrate how blockchain technology will drastically change our lives.