80% of central banks are considering issuing digital currencies.
More than 80 percent of global central banks are now considering the possibility of issuing digital currencies, according to a report by Dr. Garrik Heilmann and Michel Roche of the University of Cambridge Business Scholl.
The global blockchain benchmarking study covers more than 200 organizations in 49 countries around the world, including startups involved in DLT (Distributed Ledger Technology) projects, established companies, central banks and other institutions and provides an overview of the current state of use of DLT and BLOCKCHAIN in the public and private sectors.
Blockchain is a kind of decentralized data repository, commonly called distributed Ledger, which is found on a large number of computers synchronized with each other.
Blockchain is a type of distributed data repository, commonly called distributed Ledger, which is placed on multiple computers and synchronized with each other. The block string consists of a series of blocks of encrypted information linked to each other, each containing a set of transactions.
The first and most popular application of Blockchain is the digital currency Bitcoin, which was exposed to the world in 2008 by Satoshi Nakamoto – probably a pseudonym and whose identity remains a mystery. Distributed Ledger Technology (DLT) technology, including blockchain, which enables the development of digital currencies and many applications, is the technology of distributed computers.
Heilmann and Roche’s research presents the evolution of the DLT ecosystem, exposes actors and business models, and examines the current state of the DLT industry in terms of software applications and network deployments, as well as main challenges for expanding the adoption of this technology. The study also explains the idea of DLT and Blockchain, clarifies the conditions associated with them, distinguishes the different architectures of the DLT and explores aspects of technology related to government.
The report details the main results of the study:
The DLT ecosystem has experienced significant global growth. At least 115 start-ups, employing more than 2,000 employees, are active in this field, in addition to the large companies that have established business units and research and development laboratories dedicated to DLT.
The layers of the DLT protocol are in full maturation. Dozens of start-ups and established companies develop and improve basic infrastructure, but one of the main challenges for expanding the adoption of these technologies is the concept of “immature technology”.
Network deployment processes and the DLT chain are limited in scope. Most users know individual and small networks; Active applications are primarily designed as “permitted layers” in public blockchains.
Most usage scenarios (a continuity of events describing how the system communicates with users) in the DLT field focuses on financial services. Most of the companies involved in the field deal with financial and insurance activities and actors, but more and more attention is being paid to non-financial applications such as identity, supply chains and intellectual property .
The trend of opening of basic infrastructure platforms DLT. An increasing number of companies developing free code keys, to generate revenues from core platforms to higher levels, such as consulting, software development and support.
There are still major challenges in extending the adoption of DLT. Lack of clarity in the regulatory environment and legal risks are often cited as major challenges; Research participants see confidentiality as a more important challenge than concerns about growth and the ability to apply technology.
Interoperability – that is, the ability of some DLT systems to exchange information between themselves and to use the information that has been exchanged – is still in its infancy. The current landscape of DLT platforms is fragmented and has faulty protocols but the focus is on developing common standards that have been established in DLT frameworks by groups of organizations.
The activity in this sector is registered in the public sector. Local, regional, national and multinational institutions participate in commercial activities; In 77% of the countries studied, many institutions were interested in this field.
Public sector institutions conduct experiments on various DLT protocols. According to the study, 63% of central banks and 69% of other public institutions are already involved in feasibility or process testing steps; In general, it has been found that non-bank public institutions are involved in more advanced stages than banks.
Ethereum is currently being reviewed by central banks. The Ethereum is a platform based on Blockchain, which allows the creation and use of intelligent contracts. (This platform emits Ethers, which is now the second most widely used currency in the world after Bitcoin).
Existing DLT deployment programs. Among non-bank public institutions, 15% plan to deploy DLT applications already in 2017 and 23% plan to do so within two years; Among the central banks, the timing is more conservative.
The Bitcoin expects another split
Bitcoin’s trade continues to follow a negative trend with sharp fluctuations in the past few weeks. Yesterday morning, the currency was traded at a value of about $ 3663 – a decrease of about 18% from its value at the beginning of September, where it had reached a record value of $ 4,900 USD. The decline is due in part to a decision by the Chinese government to ban digital currency issues (ICO), which led to the closure of the largest stock exchange in China for the bitcoin.
As a reminder, last month, the Bitcoin registered a jump of more than 80%, after the mining community announced on August 1 that the currency would be divided (fork in English), and in its follow-up, next to Bitcoin a was created the Bitcoin Cash, named BCH (Unlike the BTC Bitcoin). At the beginning of 2017, the Bitcoin was trading at around $ 1,000, so that since the beginning of the year it has increased by 249%. The Bitcoin Cash traded at $ 420 yesterday, up 5% since early August.
Bloomberg reports that, due to disagreements between the mining community and the Bitcoin developer community, the world’s most popular digital currency is likely to split in November – and the division will create a third version of Bitcoin. The main players in the decentralized currency industry argue that splitting is inevitable. “Probably there will still be a division of the original version of Bitcoin with a SegWit2X version of Bitcoin, but it just gives me more currencies than I can sell in the Bitcoin Cash version,” said one of the first investors of Bitcoin, known as “Jesus of the Bitcoin”, to Roger Bloomberg.
SegWit2X is the second phase of the SegWit compromise that was introduced in early August in the Bitcoin developer community. As part of the compromise, it was agreed to divide the information from each transaction into Bitcoin, in order to be able to enter the Blockchain block more efficiently, making the transaction verification mechanism more efficient. In the second phase, to be held in November, the size of each block should be multiplied from 1 MB to 2 MB, and in 2018 the size will be doubled to 4 MB. The miners of Bitcoin, who opposed the compromise, demanded an immediate increase of each block to 8 MB.
Along with the decline in the price of Bitcoin, was recorded a 28% decrease in Ether since early September, and it was sold yesterday at a price of $ 281. Since the beginning of the year 2017, when the Ether was trading around $ 10, its price jumped more than 2,700%.