You are watching ColdFusion TV.
Hi. Welcome to another ColdFusion video.
This is the third video about blockchain on this channel
and will most likely be the final one in the series.
So again, this video is a collaboration between the Dubai World Trade Centre
for their Future Blockchain Summit.
So to recap, in the first video around six months ago,
we looked at blockchain origins
and how it had a wider impact than just bitcoin.
And in the video last week,
we saw how it’s already starting to take hold
in many corners of business and commerce.
我认为 至少看完前一视频 会对跟上进度 有很大帮助
I think it will be beneficial to at least watch the last video to get up to speed.
Today, we’ll be taking a look at the biggest losers from the blockchain revolution.
Number one, middle men.
When a technology like blockchain or something similar is mature,
basically anyone who profits from the current clearing and settlement mechanisms
like those who process paperwork and transfer ownership
may become a big loser.
Beyond this, well designed smart contracts
may cause risk to intermediary organizations
who provide clearing settlement and ownership services for profit.
Supply chain managers may become a loser when it comes to blockchain.
Tracking physical assets through changes and ownership and handling
can be recorded and communicated through data stored in the blockchain.
This provides improved logistics feasibility.
Important events within the supply chain
could be linked to automatic payments through the user smart contracts.
Blockchain also allows for transactions to be timestamped and finalized
with a mathematically proven method for confirming any transaction as valid.
According to the CSIRO of Australia,
companies who oversee such processes are at risk.
David Yermack, Professor of Finance and Business Transformation
at NYU School of Business sums up his views on blockchain.
“When you think of anyone who is keeping track of assets,
我得说 因为这项技术的出现 他们会面临失业的风险
I’d say their job is very much at risk because of this technology.”
He goes on to say
that the jobs at risk include those involving tasks
such as processing transactions and verifying documentation.
Leda Glyptis, a director at Sapient Global Markets,
a capital and commodities market technology consultancy, has a similar view.
“The first area that would be hit
would be any reconciliation or post-reconciliation activities —
you just wouldn’t need it.”
In an interview with the Financial Times,
she does give a ray of hope.
“I can see a whole class of professions around encryption and identity protection.
Even though some jobs will disappear,
we’re acquiring needs we’ve never had before
around things more valuable than they’ve ever been before.”
Number two, banks, sort of.
Earlier on in the proliferation of blockchain,
it was thought that banks were going to be major losers,
but now, it seems that they’re taking blockchain in their stride.
They’re trying to become the disruptor, not to get disrupted.
This is being done through the creation of private blockchains,
which I admit, I’m not particularly thrilled about.
In September of 2016,
Barclays carried out the world’s first trade transaction using blockchain.
They cut a process that normally takes seven to ten days down to less than four hours.
Since then, plenty of blockchain banking projects have come up.
This includes IBM’s Hyperledger Fabric,
the Utility Settlement Coin,
and R3 to name a few.
In fact, today, around 80% of banks are developing their own blockchain technology.
In this environment of using blockchain to facilitate transactions,
individuals working in clearing houses,
as well as stock brokers may be under threat if this trend continues.
In the larger picture,
banks will lose some business
from those who want to send money directly to each other
outside the traditional banking system using cryptocurrencies.
So, I think it’s a balance.
It seems like some people in the financial sector will be losers,
but they’ll be overall gains within the sector.
Number three, the negligent everyday investor.
If you’re out to make a quick buck in blockchain technology,
but you haven’t done your research,
you might be in for a nasty surprise.
Initial Coin Offering or ICO’s are a new form of crowd funding,
sort of like a large scale Kickstarter or Indiegogo campaign,
but for blockchain and cryptocurrency applications.
Due to the lack of regulation,
ICO scams and deceit are common place.
The last major scam occurred in Vietnam
where an ICO claimed that
participants could get a guaranteed 40% return on their money monthly.
Sound too good to be true?
Well, it was.
Eventually, the company decided to run off with 660 million dollars.
Another case was the famous BitConnect scam.
Hey, hey, hey.
What’s what’s what’s…what’s up?
I’m saying to so many people
who said that this was going to be a con artist game,
that this was gonna be a scam again.
“Hey, you’re gonna lose all your money.”
“My wife still doesn’t believe in me.”
Like the Vietnamese ICO,
BitConnect guaranteed safe returns on the investment.
But this time, from a mysterious AI that traded the bitcoin market,
when the scam was revealed,
hundreds of thousands of people lost a whole bunch of money
and some lost everything.
Companies like this give a really bad name to the blockchain investment space.
So does this mean all ICOs are bad?
No, of course not.
There are some great projects out there,
but you just have to be discerning.
You can think of it like the IPOs during the dot com era.
There are a whole bunch of companies that are raising a lot of money,
that didn’t really do all that much.
But the good ones, like Google and Amazon
weather the storm and actually became massively profitable companies.
Here are some tips to stay safe,
courtesy of Medium.
One: Read the ICO white paper thoroughly.
Does the concept make sense to you?
Number two: What problem is the product solving?
Does it make business sense?
Number Three: Study the team and their experience.
Dig into their history,
check out LinkedIn profiles and previous jobs.
Number four: Check forums to gain insight
into what the cryptocurrency community is saying about the project.
Number five: Take a look at what rating companies are saying about the ICO.
If a new project isn’t rated,
there’s a high chance that it’s a scam.
So, almost at the end of the video,
but I just wanted to touch on something.
In the last video, there was a lot of people talking about
the environmental effects of the blockchain
mainly because of the excessive amount of energy used.
So this is true in some cases,
but only for certain types of blockchain
like the one that bitcoin uses.
Other newer blockchain use something called a Proof of Stake method
whereas bitcoin uses a Proof of Work method.
A Proof of Stake method allows for far less energy consumption
and there’s no monetary incentive for mining.
因此 这就意味着由价格驱使的显卡持有 是不存在的
So, this means that there’s no holding of graphic cards driving at the price.
That’s just a little note that I wanted to mention.
Thanks for watching.
That’s the end of this video.
I hope to be doing some Live Streaming on this channel
at the Future Blockchain Summit in Dubai.
This has been Dagogo. You’ve been watching ColdFusion
and I’ll see you again soon for the next video.
Have a good one.
ColdFusion, it’s new thinking.