May 3 roundup
ICO funding was low in April: a 44% decline compared to March, though still raking in a total of $543 million
- the decline is likely because of regulatory uncertainty
- Ethereum is hovering in a gray zone
- old securities laws/rules cannot be so seamlessly applied: are we witnessing the birth of a new asset class?
Exchanges and ICOs are targeted for regulation
Exchanges in particular seem to be the weak link (coming soon: volume moving to decentralized exchanges?) as they are currently the fiat entry and exit points, though governments admit little can be done to control the flow of money within cryptocurrency transactions.
- Decentralized exchanges are gaining momentum in China where state control and surveillance reign supreme. This is a sign of things to come.
- Notice how criminals and the porn industry are at the forefront of innovation and technology use cases? VHS, internet, payment systems, and now cryptocurrencies (though two different investigative reports from Quebec and Hong Kong find little criminal activity related to cryptocurrencies)… The point is: Watch the space that censored people flood into…
Use cases in the news
Venezuela offers India a possible 30% discount on crude if purchase is made in the Petro, Venezuela’s state-backed cryptocurrency tied to the country’s oil reserves (largest in the world of 300 billion barrels)
- Transactions can be done in the currency you choose, and you can choose to accept or not accept this method of transaction. Choice has been given back to the transactors (whether between Joe and Bob, or whole nation states). Transactors cannot be coerced into transacting in a currency they do not want to accept. By choosing another medium of value exchange, the transactors’ transaction can never be censored.
April 27, a South Korean developer entered the Korean Peace Treaty in English and Korean into the Ethereum blockchain, where it will be accessible to anyone at any time
- Immutable, public recordkeeping is here — one of the simplest ways to use blockchain. See also way back in 2015 when Honduras began development of their land title registry on the blockchain (with Factom).
Ernst & Young admit blockchain can potentially upend accounting and auditing
- Currently transactions, the accounting, and the auditing are layered as separate instances on a timeline, done by separate people. That is, first the transaction happens, then the accounting and recording of that transaction is done, and finally the auditing is its own process. Blockchain fuses the transaction, the accounting, and the auditing back together as one single instance and entry in, essentially, time and space.