Quite a handful of events has happened this week and it is well worth paying attention to the details. We will highlight the several news items that caught out our attention this week. As is our wont, we only draw your attention to the worthy news coverage. So, if you are just arriving to your crypto readings, there is no need for concern. We advise you to relax and keep on reading to see what happened this past week.
The SoftBank Conundrum
The cryptoworld has known its ups and downs. Many a good investor has thought to themselves that there would be nothing better, perhaps, than getting right into the crypto craze and monetizing on it. However, if SoftBank’s recent experience with that world is any indication, we cannot really be all that sure.
The bank has been vehemently denying to have any ties whatsoever with the Bitcoin (BTC) mining mastodon Bitmain. The news that SoftBank may be in bed with the company were confirmed by various mainstream media sources and they were picked up by lower-key media outlets.
According to earlier reports, Bitmain has managed a decent Initial Public Offering (IPO), which brought in enough starter’s funds to bring it all the way up to $15 billion in total valuation. That’s quite the sum. But that was not a single affair either. Tencent and SoftBank have been reportedly involved with the deal.
Now, in the case of Tencent, it’s not all that surprising. The gigantic company has been buying anything in the world. From gaming studios, to mobile apps, to its own railways, other tech companies and even electronic sports.
So, what would stop it from getting a taste of the crypto craze? The original story broke earlier in August, when a Chinese media outlet, cited by Cointelegraph, argued that SoftBank and Tencent had both bought a stake into the company.
When the story broke out, there were no announcements from either of the companies, unlike SoftBank’s present denial of having had any involvement with Bitmain. To dismiss QQ’s findings though would have been premature as it had turned out by following how Western media has been following the events.
All major outlets have been quite quick to pick the news and report on them promptly. Hence SoftBank’s need to issue an official response and dissipate any doubts about the nature of its involvement in the deal.
IBM Pushes Ahead with Licenses
Meanwhile, tech giant IBM has decided to obtain a blockchain patent that will allow it to facilitate the transfers of data. The patent has been lodged with the U.S. Patent and Trademarks Office.
With the new patent, the company will be able to identify specific types of transactions in the blockchain ecosystem, which will facilitate the overall operations of the company when it comes to blockchain.
The point? IBM is trying to build the tools that regulators would need to follow the exchanges of data on the blockchain and make sure that the wriggle room for foul place is dramatically limited. With this in mind, IBM is forging ahead towards introducing a number of beneficial practices. Obtaining a patent and focusing on further development will allow the company to invest more copiously in the segment it has chosen.
How is this going to be helpful?
- The system will help maintain anti money-laundering (AML) mechanisms in place and help track them down across the blockchain
- The system will also help KYC or Know Your Customer practices keep their end of the bargain
Blockchain to Revolutionize the Banking Space
Banking is among the first industries to be affecting by efficient blockchain systems. The deployment of such solutions will help regulators and the banking institutions as such. Blockchain will facilitate much of the checks that are now the preserve of humans.
But furthermore – it will slash costs for the banks and more importantly, customers. It’s quite neat to enjoy such benefits as a customer.
On the regulator climate, if blockchain can be audited by the proper authorities, which IBM is now hoping to introduce as a solution, this will lead to a significant spike in the trust for the crypto world.
However, there is one small wrinkle that needs clarification.
The majority of people do make a difference between blockchain and cryptocurrencies, though, with the former always being associated with something that has helped business progress.
Are Cryptocurrencies the Real Evil?
Cryptocurrencies have been said to facilitate the ills. Many crypto chunks, including Bitcoins and Monero have been cited as the facilitators of many an illegal trades. And it has been proven that Bitcoin indeed helps human traffickers and drug dealers to hide their money easily.
Meanwhile, there have been quite a few genuine projects that have managed to reign in the leak to illegal activities insofar as cryptocurrencies are concerned. In fact, there are gambling websites and projects, such as Unikrn, that focus on legalizing blockchain & crypto gambling and making sure that the industry meets the pre-determined criteria.
How likely is this to happen is anyone’s guess, naturally. Presently, Unikrn is caught in a legal battle with Martin Hastings, who is one of the investors of the company.
Mr. Hastings has been arguing that when Unikrn launched their IPO back in 2017, they offered a private pre-sale, which constituted an investment, and that’s plainly against the regulations which the U.S. Securities and Exchange Commission (SEC).
The Future of Blockchain
Blockchain will have a brilliant future. The fact that SoftBank are investing in such solutions, even if the whole thing is hush-hush, is a clear indication that the whole world is preparing to embrace the blockchain solutions.
IBM’s commitment to developing a reliable groundwork is an indicator that the future promises to be a bit safer on the watch of companies such as IBM that are taking the pains to ensure that the absolute minimum is met in order to control such operations accurately.
The segment will need future oversight, but as long as the overall expansion of the industry is considerate, nothing is impossible.