Notes from New York Blockchain Week

Courtesy of Techemy and Brave New Coin, I was fortunate to attend this month’s New York Blockchain Week. Here are some high-level observations from my personal notes (all views are my own):

First, depending on who you asked, attendance numbers for the headline event, Consensus (organised by Coindesk), were well down on last year. Certainly, compared to last year’s human zoo (based on feedback from people who were there), there was more breathing room in the conference venue, and less frantic activity in the crush to get to and from plenary sessions.

Second, the last time I attended a Consensus event, Consensus Invest in December 2017, Bitcoin hit a then record peak of US$10,000. And while we did not see new all-time highs this month, Bitcoin again obliged with a substantial rally – such that many delegates felt that the crypto winter had thawed. Certainly, it helped to buoy the mood of the whole week, and the organisers of the Magical Crypto Conference were confident enough to bring a live bull to their event. (And where my colleague, Josh Olszewicz moderated an excellent panel on Exchanges.)

Third, there were more corporate exhibitors at Consensus – a sign that the Blockchain and Digital Asset sector continues to mature. Some of the enterprise solutions on offer are still early stage (for example, one institutional custody provider I spoke to are only servicing their clients’ Bitcoin holdings), and we are yet to see some high-profile projects get beyond proof of concept stage. Meanwhile an important component in Smart Contract management, ChainLink, is about to launch on their main net, and there was a lot of discussion around scaling (such as the Lightning Network) and interoperability (such as Submarine Swaps).

Fourth, another recurring theme was Custody solutions. Pension funds and other institutional asset managers are demanding robust, industrial strength infrastructure before they will allocate any of their funds under management to the new crypto asset class, as they will not entrust assets to be stored on exchanges or in vulnerable wallets. Moreover, institutional players require segregated client accounts, full transaction records and holding reports, independent and fair-value pricing data for NAV calculations, in addition to clearing, settlement and custody services.

Fifth, and linked to the above, there were a number of projects talking about dark liquidity pools. Not for any nefarious reasons (and not to be confused with the dark net), but to replicate what happens in other asset classes. Parties may wish to trade with trusted counterparts, but they don’t necessarily want to know each other’s specific identity. When it comes to placing a particular buy or sell order they might not want to reveal a position.

Finally, while there were some frivolous and lunatic fringe elements to the week, in general it felt more “grown up”. There were fewer ICO’s being shilled, and a number of projects that I spoke to (exchanges, protocols, tokens) are going through a period of transition and restructure – across their management, organisation, finances, legal entity or business model. Another sign of growing up in public.

Next week: Postscript on the Federal Election

 

 

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