Blockchain Could Track the Globe’s Gold Bullion by 2019

The London Bullion Market Association (LBMA) is to create a set of standards for blockchain-based gold tracking, as well as an oversight committee to approve and monitor technology providers.


Ethical sourcing is becoming critical in such a high-value sector as precious metals. It will become even more important as reserves of metals such as gold diminish and scarcity develops.

Proving the origins of gold could prevent smuggling from developing countries where mining practices can threaten lives and damage the environment. It ensures that everyone involved in the supply chain, including miners, are rewarded and reassures gold buyers and consumers that both people and the environment are being protected.

The tracking of gold bullion from its origin through its ownership and use cycle could prevent theft. It could also prevent illegal sales, smuggling, and use funding conflict and terrorism. Blockchain technology presents a way to remove illegal or unethical gold from the markets.

Achieving a Credible Blockchain Solution

The LBMA is a global authority on gold and the international trade association for the over-the-counter (OTC) gold bullion market. Its members include the largest gold miners, refiners and traders of gold.

The LBMA asked its members for proposals in March 2018 regarding how to track gold and prevent forgery. According to Reuters reporting, the LBMA received 26 proposals, including pitches from technology startups, and also from IBM. Out of the 26 proposals, 20 incorporated blockchain technology.

The authority will now create a set of standards for services, whilst understanding what a “credible blockchain solution” is, said LBMA’s executive board director Sakhila Mirza who added:

Once those have been appropriately established, the result would be a selection of service providers that meet the minimum standards.

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Tracking a Trillion Dollar Industry

Selecting service providers is likely to occur in 2019. The successful blockchain developer would be responsible for a system that provides tracking and transparency to a trillion dollar industry.  

London is the largest hub in the world for OTC gold trades and clearing. Wholesale gold trades across London’s five precious metal clearing banks, overseen by the LBMA, reached a value of $6.7 trillion in 2017.

The estimated implied market capitalization for gold is over $7 trillion. It is an implied capitalization as it includes gold already mined, in circulation, and potentially still in the ground. London’s gold vaults contain around 8,000 tonnes of gold bullion, second only to the gold held by the U.S government.

What are your thoughts om blockchain-based gold tracking? Let us know in the comments below!


Cryptocurrency Scam: DJ Khaled and Floyd Mayweather Sued for Promoting Fraudulent ICO

DJ Khaled and Floyd Mayweather are facing legal troubles from victims of a cryptocurrency scam. The affected investors say the pair contributed to the Centra Tech ICO scam. 


Famous Boxer and Celebrity Music Producer in Hot Soup 

According to TMZ, the two celebrities are being sued for endorsing the Centra Tech cryptocurrency ICO. Back in September 2017, both the boxer and the music producer published tweets endorsing the Centra Tech project. 

DJ Khaled, in particular, called the project “the ultimate winner” and “a game changer.” On the back of these glowing recommendations from personalities as well-known as the pair, the Centra Tech ICO raked in more than $32 million during the crowdsale.

 

The plaintiffs in the class action suit say the endorsements by the two celebrities provided legitimacy for the Centra Tech scam. Inside sources say TMZ obtained court documents showing the pair as co-defendants in the case. 

DJ Khaled

The Centra Tech Cryptocurrency ICO Scam 

Earlier in the year, the United States Securities and Exchange Commission (SEC) charged the Centra Tech founders with wire fraud and securities fraud. According to the indictment, the founders of the project falsely claimed to have partnerships with Visa and MasterCard. 

Based on these fake claims, they sold a debit card that was purportedly capable of allowing users to convert Centra tokens (CTR) in fiat or spend the CTR tokens. According to the SEC, such a partnership did not exist. The three founders – Robert Farkas, Raymond Trapani, and Sohrab Sharma – face up to five years in prison. 

The indictment was a part of a sweeping clampdown against ICO fraud by the Commission beginning in late 2017. At the time, the SEC was worried that unscrupulous elements were using the mania around cryptocurrencies to defraud unsuspecting victims in numerous “pump and dump schemes.” 

ICO scam

Celebrity Endorsement and Fake Cryptocurrency Businesses 

DJ Khaled and Floyd Mayweather aren’t the only celebrities to be caught up in shady cryptocurrency businesses. Others like rapper The Game and Paris Hilton have also touted ICO projects that turned out to be nothing more than a website, and no actual product. 

The SEC issued warnings to celebrities telling them that such endorsements could violate U.S. securities law. According to the Commission, business promotional activities without any an accompanying disclosure of compensation for such endorsements could land celebrities in hot water. There have also been instances when ICOs published fake endorsements luring people to invest in the project.  

Do you think celebrities should stay away from endorsing cryptocurrency businesses? Please share your thoughts with us in the comment section below. 


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Deloitte Is Creating Blockchain Trust Layers Within Commerce

Deloitte is working to create a deployment of blockchain technology for its global clients. The company’s first blockchain lab in Ireland is now over two years old.


The billion-dollar professional services company was quick to step into blockchain development services for its enterprise client base.

Many ICOs and blockchain innovators are creating ambitious projects which could take time to develop into real-world applications. Then, they will be faced with engaging consumers and businesses to adopt or utilize these new platforms. And that’s if they have the funding.

As a multi-national company with an extensive client base and now with its own teams of blockchain developers, Deloitte, like IBM and others could have a march on being able to bring blockchain into the real world, faster. These industry giants will still face issues.

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The Deloitte EMEA Blockchain Lab in Ireland opened in 2016, it now has two more, one in Hong Kong, and one in New York. The Irish lab includes technologists who focus on design and development and also strategists who work with clients on their blockchain adoption and implementation.

The lab is an EMEA center of excellence for Deloitte, which works right from the idea stage, through to testing and creating technical architecture, design, development, and then to deployment.

David Dalton, consulting partner and financial services lead at Deloitte, told Silicon Republic:

We have all of the support you would expect in a lab. We have the R&D, we have the thought leadership, we also speak a lot and build awareness around it. But the core of what we do is work with building clients’ real-world solutions on blockchain technology.

Blockchain — Creating Trust

Antonio Senatore, chief technology officer, explained that organizations are looking to use blockchain to add an extra layer to transactional infrastructures in order to provide trust. This is something developers have been trying to achieve for years, finally finding refuge in blockchain:

You can see blockchain almost as an indexing layer, a trust layer on top of a data exchange facility, and that’s what we’ve been seeing so far.

This notion fits with real-world applications of blockchain outside of Deloitte. In payments and remittances, as well as supply chains, blockchain is first being widely tested for adding a secure way to confirm and share information pertaining to transactions and trades. 

Technology is Not the Only Problem

The challenge with this type of network technology, Deloitte finds, is getting industry stakeholders to work together — to decide governance and to turn ideas into reality. Anthony Day, CEO says:

The technology is really only 20 percent of the problem; the other 80 percent is getting a multidisciplinary group together.

Day says it’s about pioneering the future:

Taking blockchain live is more than just the technology. You are actually creating real transformation; you are creating entirely new ecosystems or processes that didn’t exist before.

These new processes need buy-in along the whole value chain. A challenge that blockchain will face in both consumer and commercial application across all industries if it will become a truly foundational technology.

What challenges do you think blockchain will face before mainstream adoption can be achieved?


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