<p>Due to bitcoin publicity, blockchain has recently drawn more attention. These technologies are new, but their potential is also beginning to be considered in projects that go beyond digital currencies. The World Bank Group has already started to study the impact of blockchain technology on development by launching a blockchain laboratory and exploring projects that will help achieve good governance and positive social outcomes in developing countries, including pilot projects in Southeast Asia.</p><p>Blockchain can have interesting effects on trade. For ethical or quality reasons, consumers are increasingly concerned about the source of their products (whether it is food, clothing, or other necessary items). Ideally, blockchain can provide proof of product integrity in a complex supply chain. SMEs or small producers can use these pieces of evidence to find buyers or obtain market value for their products.</p><h3 id="key-statistics-for-blockchain">Key Statistics for Blockchain</h3><blockquote>According to reports, by 2022, global spending on blockchain solutions will reach $ 11.7 billion.</blockquote><blockquote>The global blockchain technology market will be worth $ 20 billion by 2024.</blockquote><blockquote>The number of blockchain funds registered in the second half of 2021 was over 70 million.</blockquote><blockquote>Blockchain can reduce 30% of banking infrastructure costs.</blockquote><blockquote>Financial companies can save up to $ 12 billion a year by investing in blockchain technologies.</blockquote><blockquote>The amount spent on integrating the blockchain into health care will increase to $ 5.61 billion by2025.</blockquote><p>The ability of the blockchain to provide "automatic contracts" (automatically start buying when all conditions are met) is also considered beneficial to these small business owners because it will eliminate the risk of non-payment and reduce the legal and procedural costs of completing the contract.</p><p>According to the World Economic Forum, blockchain can eliminate trade barriers, bringing more than $1 trillion in new trade in the next ten years. Let's take a look at some applications of blockchain in international trade.</p><h3 id="paperless-trade">Paperless Trade</h3><p>Blockchain with smart contracts can control all border transaction processes. With the help of the National Single Windows-enabled blockchain technology, participants will be able to complete custom processes efficiently and safely.</p><p>This will also enrich data related to trade. But there are also challenges like government versus government operability. The blockchain community is actively working to solve this problem and must establish a regulatory framework to support seamless global trade.</p><h3 id="insurance">Insurance</h3><p>By using smart contracts, insurance policies can automatically improve claims management and international insurance contracts. Many exploratory projects are undergoing the same evaluation, especially in maritime insurance.</p><p>Blockchain can reduce the time and cost of supporting trade-based third-party insurance. This type of trade accounts for 80% of total global trade, making the proposal highly profitable.</p><h3 id="supply-chain">Supply Chain</h3><p>Blockchain can improve the clarity of the supply chain to provide powerful tracking functions. It gives a new way to track a product's journey and helps combat fraud. Many organizations are already developing blockchain applications to help track product sources, prove authenticity, quality,etc. Just as Volkswagen is piloting supply chain solutions on the blockchain to help purchase battery lead, Starbucks uses blockchain to track coffee beans' journey from farm to cup. It is estimated that this year's global expenditure on blockchain technology will reach nearly 2.9 billion US dollars, but global adoption seems to be far away. Gartner predicts that by 2023, 90% of blockchain-based supply chain plans will suffer from a problem called "blockchain fatigue". The reason is that there are no use cases for large-scale applications of blockchain, and it also faces many challenges:</p><p><strong>Interoperability</strong>: At the technical and linguistic level, it isn't easy to streamline which information is transmitted across countries through which data elements.</p><p><strong>Data privacy</strong>: The blockchain principle and the right to be forgotten principle (implemented in the EU) are essentially incompatible, which in itself is a legal challenge.</p><p>Many companies are struggling to overcome the challenges of blockchain implementation. One of them is legal codification, which makes all laws easily read and interpreted by machines. The other is the global identification number of all companies, making trading operations easier. For example, Lipscomb University's School of Pharmacy and Health Sciences is working on blockchain applications in the supply chain of medical devices because countries such as North America and the European Union have primarily coordinated the requirements for these devices.</p><h3 id="end-note">End Note</h3><p>Technologies like blockchain can only fully benefit when all aspects of international trade finance, customs logistics, language, etc., are digitized. Blockchain is still in its nascent stages. On the premise of compliance with the law, it will mature after time, acceptance, experimentation and innovation.</p><p>For those new to this technology, the blockchain is a decentralized and distributed transaction record, and each transaction is stored in an unalterable way. The blockchain is based on a distributed control mechanism of a peer-to-peer network. Economists refer to the blockchain as a "trust machine" because identity verification is achieved through cryptography and mathematical consensus.</p>

Baba Nadeem

Premium reporting on technology, startups, VC funding, and software from Techfastly tagged with Business. Read about trends and strategies for Business.

Business

Is Blockchain Capable of Revolutionizing Trade

<p>The whole point of using a blockchain is to allow people ? especially people who do not trust each other ? to share crucial data in a safe and secure way. The blockchain uses complex statistics and new software rules for storing data, and it is difficult for an attacker to manipulate. However, the security of even a well-designed blockchain system can fail when luxury statistics and software rules interact with humans, and people are skilled cheaters, and in the real world, things can become totally messy.</p><p>Blockchain is often referred to as a secure way to store information, but how secure is it?</p><p>Although nothing is 100% secure, the blockchain is designed to remain consistent, flawless, and democratic.</p><p>With the popularity of its applications, blockchain security has become increasingly important - not just for cryptocurrency investors.</p><h2 id="blockchain-security-basics">Blockchain Security Basics</h2><h3 id="blockchain-is-not-immune-to-hacking">Blockchain is not Immune to Hacking</h3><p>The blockchain is not immune to hackers' attacks, but decentralized provides a better blockchain defence line. To change the chain, hackers or criminals need to control more than half of the computers in the same distributed ledger (this is unlikely, but it is possible).</p><p>The largest and most popular blockchain networks, such as Bitcoin and Ethereum, are public, and anyone with a computer and internet connection can participate. Having more people in a blockchain network tends to improve security rather than create a security problem. Many participating nodes mean that most people look at each other's work and identify bad actors.</p><h3 id="the-role-of-miners-in-blockchain-security">The Role of Miners in Blockchain Security</h3><p>As Bitcoin and other forms of cryptocurrency become more and more popular, the mining process is also becoming more and more popular. For speculators, cryptocurrency mines are a way to accept cryptocurrency or tokens. With cryptocurrency itself, mining contributes to blockchain security because it is a way to ensure the integrity of the blockchain is fundamental to their currencies.</p><p>Miners verify transactions to ensure valid and compliant blockchain code. Popular cryptocurrencies such as Bitcoin and Litecoin submit Proof of work (POW) algorithmic evidence supporting or prohibiting each transaction and receiving payment in coins.</p><h2 id="how-blockchain-security-prevents-double-spending">How Blockchain Security Prevents Double Spending</h2><p>In payments and shipments, the blockchain can be used to prevent "double use" attacks. This attack is a major cryptocurrency issue. In a double-spending attack, users will use their cryptocurrency more than once. This is a non-financial problem. If you spend $ 5 on a sandwich, you will no longer have $ 5 to spend. But with crypto, there is a risk that users will use crypto several times before the network is detected.</p><p>Blockchain helps prevent this. In a given cryptocurrency blockchain, the entire network needs to agree on the sequence of transactions, verify the latest transactions, and publicly publish it.</p><p>Bitcoin is the first type of crypto to solve the problem of double-spending. It is an example of how blockchain can help protect the financial integrity of all records. If someone wants to spend the same bitcoin in two places by sending the same bitcoin directly to two recipients at the same time, then two transactions will first go into an unconfirmed trading pool.</p><p>The first transaction to be verified will be added to the coin blockchain as the next data block in its transaction history. The second transaction - connected to a block that has been added to the series - will not be chained, and transactions will fail.</p><h2 id="blockchain-security-risks">Blockchain Security Risks</h2><p>However, even if the blockchain environment itself provides security, coupled with a global network of nodes and miners continuously ensuring and protecting blockchain integrity, there are still risks.</p><h3 id="1-no-human-safeguards">1. No Human Safeguards</h3><p>One risk is also a perceived advantage: blockchain creates a seamless way of making a transaction. No manual intervention is required to send or receive funding, which removes some of the most humane safeguards that have emerged over time. While these technologies help to ensure the ownership of the goods or the integrity of the information involved, they do not know the sender and receiver at all. There is a place where the Central Clearing House can exercise important insights.</p><h3 id="2-costs">2. Costs</h3><p>Some critics point out that the cost of maintaining a network that makes blockchain work is high. The process of mining these coins is as important in their credibility and viability as operating currencies, and they use a lot of energy. According to Morgan Stanley, the total power consumption of the Bitcoin network equates to the electricity needs of 2 million American homes.</p><h2 id="how-to-choose-a-secure-blockchain-network">How to Choose a Secure Blockchain Network</h2><p>Users can take certain steps to ensure that the cryptocurrency exchanges of their choice are secure. Here is a checklist that you can use when you choose to swap:</p><p>? Does the market hire auditors to detect system errors?</p><p>? Are the goods of the exchange store in "cold storage" (somewhere without an internet connection - think of a paper wallet with a secret key)</p><p>? Do they offer security options such as suspicious activity alerts? Two-factor authentication? The transaction of multiple signatures?</p><h2 id="best-practices-for-blockchain-security-examples">Best Practices for Blockchain + Security Examples</h2><p>Given the fact that blockchain security issues exist, it is best for individuals and businesses to establish their own blockchain security infrastructure from the inside to protect their blockchain operations.</p><p>This is to understand the cyber threats listed above related to blockchain technology and how to control these threats. Adherence to the best cybersecurity practices is very helpful in protecting our data stored on the blockchain network.</p><p>To do this, please consider the following steps to improve your blockchain security:</p><p>? Use a VPN to encrypt your online activity and avoid router attacks.</p><p>? Do not share your key with anyone to avoid being robbed.</p><p>? Do not leave your devices unattended to prevent malicious characters from accessing them.</p><p>? Learn how to detect criminal attempts to steal sensitive information by recognizing suspicious or unfounded news.</p><p>? Do not modify data in the blockchain to avoid revoking your user rights.</p><p>? It also gives you peace of mind with these examples of how organizations and companies are using blockchain technology to protect your data.</p><h2 id="final-thoughts">Final Thoughts</h2><p>In the blockchain, security is an advantage and a concern. Cryptocurrency transactions ? including paying with crypto, investing in crypto, and crypto lending ? are unknown and partly protected by how blockchain technology is developed. But like many other technologies, it is not entirely immune to tampering.</p>

Premium reporting on technology, startups, VC funding, and software from Techfastly tagged with blockchain. Read about trends and strategies for blockchain.

Blockchain

Is Blockchain Completely Secure?

<p>Although you would have heard of Bitcoin, you may not realize that this could be an alternative payment method that can benefit your business. Setting up bitcoin as an accepted payment method for your business would take up a very short start time, which involves a simple setup process. You don?t need a merchant account or any special equipment. All you need is a Bitcoin wallet that can be used on your hard drive, mobile device, or cloud.</p><p>After extensive research, I realized that Bitcoin can bring many benefits to my business. As a digital marketing strategist, I work with various industries and see Bitcoin applications in the companies I work for. In the digital marketing campaign I created, I saw that these companies can develop their own benefits while using them as a means of payment. Although this may not apply to your specific company, I have seen many benefits that have a positive impact on various businesses:</p><h3 id="fraud-prevention">Fraud Prevention</h3><p>Since sales involve a lot of financial and personal data, it is very important to prevent fraud. After all, any fraudulent activity can be costly and even damage the company?s reputation. There is also the risk of refusal to pay against fraud transactions.</p><p>Since Bitcoin payments are non-refundable and safer than any regular payment, merchants do not have to bear fraudulent reimbursement fees and can assure customers that the transaction process is safe. In addition, Bitcoin uses very complex encryption methods, which makes it difficult to manipulate digital currency transactions. </p><h3 id="fee-control">Fee Control</h3><p>Payment fees may be beyond your scope until you feel that you cannot accept certain types of payment methods. However, I found that Bitcoin allows you to choose certain currencies-again, there is no currency that accepts Bitcoin. I have seen it improve its goals by reducing the transaction costs paid by customers.</p><p>In addition, the ability to use Bitcoin for other products and services means that I do not have to use my credit card in this transaction, which further reduces the fees I have to pay at the other end of the process. You don?t have to have a bank account to use it, but you can save digital currency online. When most companies accept cash as a payment method, there is no real need for cash transactions.</p><h3 id="international-expansion">International Expansion</h3><p>When I work with companies around the world, it makes sense to add another payment system that can provide international payments faster. Although not all countries recognize or approve the use of Bitcoin, there are many. Benefits do not include additional payments, there is no limit to the amount you can submit, and ordinary people cannot withhold payments. Instead, I get paid immediately, usually the next day.</p><h3 id="no-pci-compliance">No PCI Compliance</h3><p>With a credit card, you should check comprehensive security and comply with strict standards. Although with Bitcoin, I would need to protect my digital credit and payment applications. There is no fees associated with processing sensitive information such as credit card numbers. Current compliance with PCI is to accept debit cards and credit card; debit cards that do not have the current Bitcoin capacity, at least for now.</p><h3 id="additional-customers">Additional Customers</h3><p>Many customers may not have a credit or debit card and may be looking for alternatives to paying for goods and services. By providing this additional payment method, I see that more and more new customers are attracted by the ability to use your services. Recognized as an early adopter of this digital payment method, it has attracted many customers. Moreover, when users search for places where<br>Bitcoin is used, they will be happy to find that you accept this payment method.</p><h3 id="media-coverage-and-brand-awareness">Media Coverage and Brand Awareness</h3><p>Due to the limited company accounts receivable, I found that more media came into contact with me because I adopted another digital payment method and recommended it to my customers in the digital environment. This helped me gain more information, increase product awareness, and put myself at the forefront of cryptocurrency thinking.</p><p>Since you have tried to notify people before, it is better for someone to come to you instead of going out to the new stores. Free advertising is an effective strategy.</p><h3 id="drawbacks">Drawbacks</h3><p>As with any currency, there are disadvantages to using Bitcoin. It has not been widely accepted by retailers; digital wallets containing Bitcoin may be lost and do not provide consumer protection; Bitcoin ratings are constantly changing without confirmation of the rating.</p><p>However, as the Bitcoin and cryptocurrency industries continue to develop, I believe that more companies will start to see the benefits of using it, and there will be more reasons to add it to your payment method is a good idea.</p>

How Accepting Bitcoin Can Help Your Business Increase Profit

<p>According to a recent report by the Organization for Economic Cooperation and Development and the European Union Intellectual Property Office, imports of counterfeit goods reached $ 509 billion in 2016, accounting for about 3.3 percent of total global purchases that year. To combat the wave of counterfeit goods that threaten their products, companies are turning to blockchain technology to make supply chains more transparent.</p><p>Blockchain is a widely distributed, decentralized technology that is controlled by smart contracts and governed by contractual agreements. The ledger automatically records everything that is done, and every old record is immutable. Depending on how the ledger is used, it can be classified as needing permission, public, or fit for purpose.</p><p>In a product supply chain, a blockchain ledger can manage tasks ranging from automatic contract compliance between companies through smart contracts to tracking product travel from production to distribution. The ledger removes the ambiguity of the supply chain and creates transparency so that companies and customers get the quality they pay for.</p><h3 id="blockchain-value-in-existing-supply-chains">Blockchain Value in Existing Supply Chains</h3><p>The value of using a blockchain to create modern supply chains is beyond theory. Major brands have begun working with technology companies and other stakeholders in response to the growing demand for product protection. For example, LVMH (Louis Vuitton SE), working closely with Microsoft and ConsenSys, created Aura Ledger to provide authentic evidence of luxury goods and to track their availability from raw materials to marketable consumer goods.</p><p>Throughout the retail sector, companies such as eBay are now offering product certification as a value-added service. Currently, the company guarantees bags only due to growing customer concerns about their authenticity. However, eBay plans to extend the certification to other luxury goods that may be counterfeit.</p><p>In agriculture, the blockchain-based Grain Discovery streamlines transactions between farmers and consumers, making it easier for them to form new relationships. In the pharmaceutical industry, distributors have built a MediLedger consortium to trace the origins of drugs and curb the illicit drug<br>the market of more than $ 75 billion a year.</p><p>In almost every industry, suppliers and distributors are turning to blockchain technology to reduce the risk of fraud. A location-based, unmodified track record of each product can help verify authenticity ? or lack thereof.</p><h3 id="blockchain-as-a-force-to-fight-fraud">Blockchain as a Force to Fight Fraud</h3><p>Companies involved in fraudulent versions of their products have options to fix this problem. When used together, the following steps can help reduce risk and promote confidence in companies and consumers:</p><h3 id="1-build-a-secure-supply-chain-network">1. Build a secure supply chain network</h3><p>In order for the blockchain to successfully transform the company?s supply chain, every business organization in the chain must agree to participate. This makes building a network of trusted partners a very important step in protecting your product.</p><p>In view of the increase in counterfeit purchases, many companies with strong brands are looking to partner with suppliers to avoid fraud. The momentum of such efforts is heightened when all stakeholders in the supply chain recognize the importance and sign up to participate fully in these efforts.</p><h3 id="2-choose-the-tags-that-best-suits-your-brand-and-product">2. Choose the tags that best suits your brand and product</h3><p>Only with the right tagging technology can you track the progress of each product. With a variety of IoT devices, tags can detect diversions, liquid leaks, vibrations, package openness, tilt, high power, and more.</p><h3 id="3-encourage-customers-to-participate-in-the-solution">3. Encourage customers to participate in the solution</h3><p>When customers clearly and directly benefit from the company?s use of a blockchain-enabled supply chain, it becomes easier to find more partners to join the consortium. However, brands cannot expect all end users to log in automatically.</p><h3 id="4-unlock-iot-ai-and-machine-learning-to-fight-fraud">4. Unlock IoT, AI and machine learning to fight fraud</h3><p>Protection against counterfeiting and fraud is not always a viable option. With blockchain, companies can unlock IoT capabilities, artificial intelligence and machine learning to actively prevent fraudulent transactions.</p><h2 id="can-blockchain-eliminate-all-fraud">Can Blockchain Eliminate all Fraud?</h2><p>No, blockchain does not eliminate all forms of fraud. Even with blockchain, crimes can still occur. However, these crimes are largely due to attempts to put services at the top of the blockchain, not the core technologies. While blockchain networks are built on the concept of decentralized controls, infrastructure may leave doors vulnerable to interruptions that allow unauthorized access and tampering. This is why it is so important for businesses to use a blockchain designed for the right business and infrastructure as well as the right services.</p>

Fighting Fraud in Supply Chain using Blockchain

<p>Non-Fungible Tokens (NFTs) is a concept that was not known until recently and is now widely used. Consumer spending on digital assets has increased from $1 billion in 2020 to nearly $41 billion at the end of 2021, according to blockchain chainalysis experts. NFTs have transformed art, music, and sports and offer creators the option to monetize their digital artwork.</p><p>Last year, the NFT marketplace saw eye-popping levels of sales. For example, South Carolina-based digital photography collage by designer Mike Winkelmann was sold for $69.3 million, making it one of the largest NFT auctions.</p><h2 id="what-is-nft">What is NFT?</h2><p>NFTs are digital assets that represent real-world objects such as art, music, game content, and videos. They're frequently bought and sold with cryptocurrencies and encrypted with the same basic software as other cryptocurrencies.</p><p>Despite the fact that NFTs have been around since 2014, they are gaining appeal as a popular way to trade digital art pieces recently. Since November 2017, $174 million has been spent on NFTs.</p><h2 id="how-are-nfts-different-from-cryptocurrencies"><strong>How Are NFTs Different From Cryptocurrencies?</strong></h2><p>NFT stands for non-fungible token. It is typically built using the same type of programs as cryptocurrencies, such as Bitcoin or Ethereum, but the similarities end there.</p><p>Cryptocurrencies and physical money are "fungible," meaning they can be traded or exchanged. They're also the same value - one dollar is always the same as another; one bitcoin is always equal to another bitcoin. Crypto's fungibility makes it a reliable way to conduct blockchain transactions.</p><p>NFTs are different. Each one contains a digital signature, making it hard to convert or compare NFTs. For example, an NBA Top Shot clip is not suitable for every day because they are all NFTs. (For that matter, one NBA Top Shot clip doesn't even fit into another NBA Top Shot clip.)</p><h2 id="do-crypto-prices-affect-nfts"><strong>Do Crypto Prices Affect NFTs?</strong></h2><p>The value of NFTs depends on a variety of factors - their scarcity, the demand for artwork or even artists, and the price of the underlying cryptocurrency spent. Many online marketplaces for selling NFTs are powered by blockchain. Currently, the Ethereum blockchain provides the most popular power. So, if you're looking to sell or purchase NFTs on one of the most popular exchanges, you probably need ether, Ethereum's native cryptocurrency, to do the job.</p><p>But the good news is that despite the volatility of cryptocurrencies, not all NFTs are tracking their underlying crypto movements. For example, despite the ongoing correction in the crypto market, the NFT OpenSea market area has seen $2.3 billion in volume so far in January, the fastest monthly volume on record.</p><p>Discussing the recent cryptocurrency sell-off with Yahoo! Mason Nystrom, a senior analyst at financial analysis firm Messari, described this anomaly. Nystrom said that despite the volatility in the crypto market, the NFT environment might make them independent of the crypto market.</p><p>"NFTs are an extensive category that can include music, art, collectables, game assets, dream games, financial assets, etc. He added, "going forward; we are likely to see a major fragmentation in the crypto market, where one asset (like NFT technology) may work well across the crypto market performing poorly and vice versa."</p><p>A study published on ScienceDirect, "Do cryptocurrencies drive the pricing of non-fungible tokens?" suggests a downward spiral between cryptocurrencies and NFTs. The study used data from two major cryptocurrency markets, Bitcoin and Ethereum, with original data from coinmarkcc.com and NFT data from secondary markets: Decentraland LAND tokens, CryptoPunk game character images and Axie Infinity, and individual commercial data from Nonfungible.com</p><p>The data indicate that when it comes to cryptocurrency market volatility, the knock-on effect on the NFT market is weaker, suggesting that NFTs and cryptocurrency markets are different from each other and don't really affect each other in any meaningful way.</p>

Premium reporting on technology, startups, VC funding, and software from Techfastly tagged with cryptocurrency. Read more on cryptocurrency.

Cryptocurrency

Do Crypto Prices Affect NFTs?

Web3, which has invested heavily in cryptocurrencies and other blockchain technology, has sent executives to the White House and Capitol Hill to promote Web3 as a solution to Silicon Valley consolidation and to propose rules for the expanding virtual world, according to the business.

Write for us

Subscribe to Magazine