Review of recent blockchain applications

Toyota joins R3 alliance to use blockchain technology to track auto parts

Toyota Motor Corp.’s Toyota Financial Services unit plans to start testing a blockchain distributed ledger this year while studying both financial and non-financial applications of the technology.

Chris Ballinger, CFO and head of strategic innovation at Toyota Financial Services, said the company's financial division sees potential for blockchain technology in systems other than settling transactions, particularly the ledger that underpins the bitcoin digital currency.

Bollinger said that online distributed ledgers make it easier for participants to track the ownership of an asset, so the technology could be used to track the movement of auto parts across countries and regions. At some point in the future, blockchain could play a role in connecting vehicles to drivers' personal devices and to sensors in cities and road infrastructure.

Bollinger said a more accurate, real-time record of the thousands of parts that go into an average car could make Toyota more efficient. Such monitoring could also help during supply chain disruptions.

IBM blockchain identity authentication experiment declared successful and will be put into use soon

Recently, IBM and French bank Crédit Mutuel Arkéa completed a proof of concept for a blockchain project that aims to create an identity authentication system based on blockchain technology.

The project’s proof-of-concept phase used Hyperledger’s blockchain framework to guide clients in providing proof of identity to third parties, such as local public authorities or retailers. According to IBM, the success of the proof-of-concept also shows that blockchain technology can be used in non-financial sectors.

"2014-2016 Global Bitcoin Development Report" released

On July 8, one day before the Bitcoin halving, at the Beijing Wuzhou Crowne Plaza Hotel, the Internet Finance Laboratory of Tsinghua University's PBC School of Finance, Sina Technology and the Blockchain Research Center of Bitcoin trading platform Huobi jointly produced the "201-016 Global Bitcoin Development Report", which elaborated on the birth of Bitcoin, industry layout, financing situation and transaction data analysis.

Huobi Blockchain Research Center. This is a blockchain research project under Huobi.com, China's largest digital currency trading platform. It is composed of domestic blockchain basic R&D personnel and financial experts. Since 2014, it has conducted long-term and in-depth research on the underlying technology and applications of blockchain.

Ant Financial: Blockchain technology will be launched soon, first applied to Alipay

On the afternoon of July 9, at the first Global XIN Charity Conference held in Hangzhou, Ant Financial stated at the "Internet Charity" sub-forum that blockchain technology will soon be launched and will first be applied to Alipay's charity donation platform.

Due to the advantages of blockchain technology, it is believed to help solve the transparency and trust issues of public welfare in Chinese society as a whole. Ant Financial said that the blockchain technology to be launched will be used on the Alipay Charity Donation Platform, with the aim of recording the life cycle of each payment on the blockchain.

Swiss Vontobel Bank issues Bitcoin tracking certificate to trade Bitcoin indirectly

Swiss global bank and financial institution Vontobel has launched a new product that allows its users to trade Bitcoin indirectly. This product is a financial instrument similar to a shared certificate pegged to the value of Bitcoin. Ordinary investors can use this certificate on the stock market.

The certificate, which is linked to Bitcoin, will be issued on July 15. The first batch of certificates issued by Vontobel Bank will be approved for trading on the Swiss Exchange and will be valid for two years. Secondary market investors can also use this certificate for trading.

These certificates, also known as tracker certificates, are equivalent to the value of the underlying asset, namely the value of Bitcoin. When the price of Bitcoin fluctuates, the value of these certificates will also fluctuate with the Bitcoin trading market. In this way, investors will be able to tap into the benefits of Bitcoin trading and profit from the volatility of this digital currency through traditional stock market channels.

There are no clear regulations for bitcoin trading, and Vontobel's bitcoin tracking certificates are one of the few ways bitcoin can be traded in traditional markets. Although the actual value of the certificates is equivalent to bitcoin, it may be different in the secondary market.

Whether such certificates will be successful is another matter, as it will be much easier and faster to trade Bitcoin directly through a cryptocurrency exchange than to trade such Bitcoin tracking certificates. It is worth noting that anyone can trade Bitcoin with other digital currencies or fiat currencies simply by signing up with a Bitcoin exchange after completing simple AML (anti-money laundering regulations) and KYC (know your customer) requirements. But in order to be able to trade these tracking certificates, traders may have to complete additional formalities.

Canadian bank successfully completed the world's first cross-border payment in 20 seconds

One of Canada’s largest banks has completed the world’s first real-time cross-border payment, the Bank of Canada has announced.

ATB Financial announced on Thursday (July 14) that it had successfully sent $1,000 Canadian dollars to Germany via blockchain technology powered by the SAP HANA cloud platform. The report said the payment was supported by SAP Payment Engine and blockchain fintech company Ripple.

IBM uses blockchain technology to help companies monitor supply chains

IBM announced Thursday the launch of a platform for corporate users to test "blockchain" record-keeping technology in their supply chains. The technology hopes to expand the use of blockchain technology, which has become the underlying technology of Bitcoin and is used by banks and exchanges to track financial transactions, beyond the financial services industry. While companies such as Nasdaq, Depository Trust & Clearing, JPMorgan Chase and Bank of America are experimenting with blockchain technology, only a few companies, including Toyota, are using it to monitor their supply chains.

IBM's new service allows supply chain clients to build and test blockchains using the company's LinuxOne system version in a secure cloud. The service is aimed at companies that want to track high-value goods through complex supply chains. IBM's initial customers include Everledger, which helps companies trace the origin of diamonds so that buyers can identify which diamonds come from areas where forced labor is prevalent or where proceeds from previous sales have supported violence.

Everledger is developing a system to record the entire journey of diamonds from mines to jewelry stores, and has been using various blockchain tools, including Bitcoin's general ledger. Everledger CEO Leanne Kemp said Everledger is testing IBM's technology and is expected to launch it globally by the end of this year.

EU plans to create database of Bitcoin user identities and wallet addresses

According to foreign media reports, the European Commission recently proposed to create a virtual currency transaction user database, which will include the real identities of these users and all associated electronic wallet addresses. It is reported that this is the first proposal put forward by the EU since the Paris terrorist attack "Anti-Money Laundering Directive (AMLD)" action plan in November last year. It was formally proposed in February this year and approved at the beginning of this month.

In addition, in order to crack down on digital currency money laundering crimes, EU officials also plan to create a database containing the real identities and digital wallet addresses of users of Bitcoin and other virtual currencies.

FIUs will be responsible for creating and managing the database, while users will be able to register themselves.

PwC successfully completed blockchain PoC, using multi-chain platform to create blockchain real-time audit process

PricewaterhouseCoopers (PwC) has released details of its new blockchain proof-of-concept (PoC), which it says has successfully created a real-time audit process for policy making in the wholesale insurance market.

“Insurers can browse policies on the blockchain and provide quotes to support the risks of a particular policy, and agents can choose to accept or reject those quotes. This communication and negotiation between all parties happens on the blockchain. When a policy is fully supported, a formal insurance contract is created and shared on the blockchain.”

PwC said the test provided insight into how blockchain applications could help reduce physical documentation, simplify regulatory reporting structures and create an essentially real-time audit trail.

Get rid of ads with Bitcoin! This browser received $4.5 million in funding

Brave, an ad-blocking browser that lets users use bitcoin micropayments in exchange for an ad-free experience, has raised $4.5 million in funding.

Brave’s innovation lies in a business model that allows users to protect their identities while giving media companies a way to generate revenue.

“Right now, you have these two extremes. The annoying ads and subscription model, and the annoying ad blocking model,” Morehead said. “Brave is kind of in the middle between the crazy ad system and the ad blocking model.”

ASX completes first distributed ledger settlement system prototype

The Australian Securities Exchange (ASX) announced today that it has completed the first version of an alternative distributed ledger settlement system.

A presentation released by the ASX revealed the solution the exchange had developed in partnership with New York-based Digital Asset Holdings (DAH), a blockchain startup led by former JPMorgan Chase executive Blythe Masters that has raised $60 million in Series A funding, with more than $17 million coming from the ASX.

ASX said that replacing the existing settlement system involves communication with Australian regulators and relevant stakeholders. ASX is now considering how to replace its existing settlement system CHESS, and blockchain technology is seen as a possible path for radical innovation.

Japanese banking group BTMU and Hitachi to develop blockchain check processing system

Bank of Tokyo-Mitsubishi UFJ (BTMU) and Hitachi are collaborating on a blockchain-based check payment processing and verification system.

The system is mainly aimed at local businesses and banks, and its application may not be limited to check payments.

Blockchain technology can provide a fast and low-cost payment processing and transaction method. Traditional handwritten checks take two to three days to clear. This new blockchain-based system can process payments in real time and reduce the risk of fraud.

Blockchain music management platform Revelator receives $2.5 million in Series A funding

Revelator, a cloud-based provider of sales and marketing information for independent music businesses, has raised $2.5 million in a recent Series A round led by Exigent Capital, with participation from Digital Currency Group and Israeli early-stage fund Reinvent.

Revelator promises to efficiently track music ownership and distribute royalties to its copyright holders. The company has issued copyright registrations as digital assets, verified by multi-signatures and enforcing multi-party terms and governing rules.

Blockchain will drive Wanxiang’s 200 billion yuan smart city plan

Wanxiang may also incorporate blockchain technology into its main product lines. For example, Wanxiang is looking to use blockchain to help confirm and enforce the ownership of electric vehicles to cut the cost of electric vehicles.

“We want to use blockchain to manage the Internet of Things and use it to help devices interact with each other. Smart appliances can be managed using blockchain,” Xiao Feng told attendees.

Xiao Feng said using blockchain to track batteries is strategically important. Wanxiang aims to loan batteries to car buyers while retaining ownership of the equipment, thereby reducing the upfront cost of purchase.

In this case, he said, Wanxiang will register the battery IDs on the blockchain and use the blockchain system to monitor their use.

BNP Paribas to launch blockchain crowdfunding platform for issuing mini-bonds

On September 19, BNP Paribas announced that it has reached a cooperation with renewable energy crowdfunding providers Lendosphere, Enerfip and Lumo to try to issue mini bonds for private companies through distributed ledger technology.