End of the year 2019 and 2020 perspective
Zero Knowledge proofs, supply chain, digital securities, social networks, NBA, gaming, DeFi, CBDC, regulations
This is Jita quarterly newsletter (Q4 2019).
Giving you a summary of the main trends of this quarter, and sharing our perspective.
2019 was a transformational year for the industry, focused on infrastructure development and consolidation.
2020 will be a year of growth and we will start to see the results of 2019’s developments.
This time we discuss Zero Knowledge technology, supply chain, digital securities, NBA, social networking, gaming, DeFi, CBDC and regulations.
Any other topic you would like us to cover? Any feedback? Please let us know.
We hope you like it!
Jerome
Overview
ZKProofs - will all blockchain transactions become confidential?
Supply chain - will all tradeable goods become traceable?
Ethereum - what is happening exactly?
Digital securities - existing and new securities are becoming tokenized - the big opportunity?
NBA Star Spencer Dinwiddie - should we mix loyalty, entertainment and securities?
Social networks - can journalism be saved, privacy reclaimed and twitter rage dealt with?
Beyond cryptokitties - is free crypto the way forward for gaming?
DeFi - is non custodial collaterized lending the killer app of smart contracts?
CBDC - are central bankers the next disrupters?
Regulators - everybody’s favorite topic
A message to our customers
We want to thank and congratulate our partners and customers who trusted us. Some of them already completed their fundraising and are at the next stage of growth. A few others are finishing the fundraising and others are still in stealth mode. It was a pleasure to meet and learn from all of you!
ZKProofs - will all blockchain transactions become confidential?
From a tech point of view 2020 was for us marked by ZKSnark and ZKStark gaining traction. Blockchain creates an immutable and unique source of trust, while reducing confidentiality. Zero Knowledge Proofs can be used on blockchain to keep its benefits while also increasing confidentiality. ZKSnark was already used in JPMorgan’s blockchain Qorum. ZKStark is a significant security improvement which removes the need of a trusted setup, while increasing transaction size. More info on ZK Snark here.
Supply chain - will all traded goods become traceable?
Tradewind Markets launched the first gold supply chain blockchain deployed with the Royal Mint of Canada. A very interesting application which could be replicated elsewhere. This is great timing as investors are giving higher priority to ESG factors. Could regulators one day make blockchain tracking mandatory?
Come hear us discuss blockchain in the fashion supply chain at the panel moderated by A Transparent Company at Future Fabric Expo January 29 2020.
Ethereum - what is happening exactly?
Ethereum is in a phase of evolution and transformation, merging patches and de-merging them and rolling out security fixes. The main features are meant to improve network traffic scalability (sharding) and transaction processing scalability (proof of stake). There have also been changes to the network difficulty algorithm and block reward issuance, which impacts network economics and security. Big changes do not come easy and overall we see this as a good sign.
Digital securities - existing and new securities are becoming tokenized - the big opportunity?
From security tokens to digital securities. BTG Pactual, Franklin Templeton, Banco Santander, Societe Generale, MUFG, have been working on or issuing digital securities in 2019. Most cases involved Ethereum and Tezos, and sometimes Corda. More info on this topic at https://www.slideshare.net/freemarkit/wave-financial-tq-tezos-state-of-digital-securities-214435918 and https://www.greenwich.com/steampunk-settlement-report-download or contact us.
NBA Star Spencer Dinwiddie - should we mix loyalty, entertainment and securities?
More on securities: NBA star Spencer Dinwiddie tokenized his own three year contract with the Brooklyn Nets. This enables the star to cash in immediately while guaranteeing returns for three years to the token owners, with additional variable income linked to his playing performance. This was done on the dreamfanshares.com platform offering so-called PAInTS (Professional Athletes Investment Tokens) and Ethereum technology.
Social networks - can journalism be saved, privacy reclaimed and twitter rage dealt with?
EOS / Block.one is preparing to launch their Web 3.0 enabled voice.com social network. It aims to improve creator rewards mechanisms, incentivize community moderation and let users own their own data. Will this be more like Google+ or rather Instagram? Interesting launch at a time when Jack Dorsey CEO of Twitter is asking help from Elon Musk on how to fix Twitter.
Beyond cryptokitties - is free crypto the way forward for gaming?
Blockchain gaming is gaining traction on multiple platforms, from EOS to Steemit to Ethereum and Lightning. Besides online betting, app stores seem OK with games rewarding players with crypto assets that are tradeable on exchanges. Could kids in Africa pay their phone air time by playing Pokemon Go be the next blockchain killer app?
DeFi - is non custodial collateralized lending the killer app of smart contracts?
Last but not least, DeFi was the biggest news of 2019 with lending and borrowing as its emerging killer app. The composition of decentralized finance primitives creates a very strong network effect. Argent wallet made DeFi accessible to a wider audience with security and UX innovations. We will be watching how syntethix.io evolves in 2020, developing decentralized digital assets pegged to the values of some securities.
CBDC - are central bankers the next disrupters?
CBDC were also a hot topic in 2019, with China leading the pack. Not to be confused with CBD, CBDC are a payment rail disintermediating banks, seen as a new form of base money by the central banks. Will any CBDC become reality with a pilot launch somewhere? What impact could this have on merchant payment systems, banks, accounting systems and governments? More on CBDC in the IMF paper and EU Crypto newsletter.
Regulators - everybody’s favorite topic
From Germany to Singapore, Switzerland, France and UK, more and more national regulators have launched new digital assets specific frameworks. 2020 will show which ones are most successful to attract growing businesses. Some exchanges recently relocated outside the EU to reduce their compliance burden.
Meet us
as always, we will be attending a number of events over the next few months:
January 29, London, Future Fabrics Expo - panel on Proof of Trust in Fashion
March 3-5, Paris, EthCC
March 6-11, London, Blockchain Week
We are already looking forward to catching up with you!