Digital currencies are the new portals

Once described as “The Internet of Money”, Bitcoin is much, much more: it’s software, it’s a store of value, and increasingly it’s being recognised as a legal form of payment. In its wake have come a multitude of other crypto-currencies, alt. coins, digital tokens and programmable assets. Each of them built on one or other blockchain protocol or using distributed ledger technology (DLT), and each of them seeking to serve a specific use case or to drive disruption in traditional markets and business models.

Based on my work with Brave New Coin (a market data vendor for these new asset classes)*, I was recently asked my opinion on all these “Initial Coin Offerings” (ICOs – although I prefer to call them Token Issuance Programs). My response was that digital currencies are becoming the new portals.

How?

First, they are building dedicated communities of interest. Many of them are designed for a specific audience or for a particular purpose. They are leveraging network effects to drive engagement and participation, such as MobileGo, for the online games community.

Second, they are becoming “destinations” in their own right, such as Steem for publishing, or CalcFlow, a market place for mathematical models. They are acting as repositories and resources for specialist content. They are also curating this content, and enabling users to contribute to the community, and get rewarded for doing so.

Third, they are building platforms that support e-commerce and other online transactions, such as SPHRE’s Air solution, and its XID token. In Air’s case, they are creating a paradigm shift in digital ID management: in contrast to most social media and old-school portals that monetize our personal data, our content and our search behaviour through the sale of advertising, Air is giving individuals more power over the use of their own data.

Finally, token issuance programs are creating new registries and alternative distribution networks for a range of tangible and intangible assets, such as MyBit for energy, and bitNatura, for natural capital.

So, as well as supporting P2P payments, facilitating cross-border remittances and enabling the purchase of electrical goods in Japan, Bitcoin and the like are becoming key tools in the new digital economy, just as AOL, CompuServe, Lycos, Yahoo!, Google and MSN were once the main public gateways to the internet.

*Note: the opinions expressed here are my own, and do not represent the views of Brave New Coin or their clients.

Next week: #Blockchain heralds a new railway age?

More on #FinTech, #Bitcoin and #Blockchain in Melbourne

The Melbourne FinTech community brought together a bunch of interested parties recently to find out what’s happening locally in Bitcoin and Blockchain. Organised by the Melbourne Bitcoin, FinTech and Silicon Beach Meetups, and hosted by the Melbourne Bitcoin Technology Centre (MBTC), the evening was part open house, part info sharing, and part pitch night.

BitcoinThe MBTC is now a recognised hub for Bitcoin and Blockchain activities, and currently hosts around a dozen startups within its co-working space. Offering a “full service” facility (it even has a Bitcoin miner on site), complete with staffed reception, meeting rooms, event space, a pod cast studio and an outdoor barbecue area, it’s something of a hidden gem in Melbourne’s Southbank. Regulars also get to attend Bitcoin “swap meets”…..

Last week’s event also featured a number of micro-pitches from Bitcoin and Blockchain startups, a few of the MBTC staff and tenants, and a couple of student projects from RMIT.

Given this was almost “speed pitching“, it’s probably not appropriate to go into too much detail:

  • Toodles – a dating app on a decentralized network, using a Blockchain solution for additional security and privacy
  • Blockfreight – the Blockchain for global freight, enabling cargo containers to be shipped around the world with minimal legacy documentation, based on smart contracts, RFID and Blockfreight tokens
  • blockTRAIN – a training provider and consultancy on Blockchain, smart contracts and digital currencies
  • Bitcoin Buskers v2 – sort of MySpace/Bandcamp/SoundCloud for Buskers, to promote their merchandise and to secure international festival bookings, all powered by Bitcoin
  • ACX – Australian Crypto Exchange, offering the largest single Bitcoin order book in Australia
  • Bitcoin Group – explaining that most Bitcoin mining is currently done in China due to cheaper electricity
  • Antstand – portable laptop stand (which you can buy with Bitcoin!)
  • Think Bitcoin – providing consulting and education services, particularly in schools
  • Lyra – an app to track and reduce your personal environmental impact, sort of Fitbit and Smart Meter combined
  • ImagineNation – innovation consultancy, backed by training and coaching, and featuring a 2-day startup game to help organisations transform cultural mindsets around agile, lean, design thinking, UX and incubator/accelerator concepts
  • Brave New Coin – the “Bloomberg for Bitcoin”, providing market data (prices, rates, indices, news) for Bitcoin and other digital currencies*

With the next Bitcoin halving due soon, and a significant uptick in FinTech, Blockchain and Digital Asset investments announced during Q2, this sector is going to look very interesting for some time to come, and it’s good to know that Melbourne, whose fortunes were founded on gold, is staking a claim in these new asset classes.

* Declaration of Interest: I have recently joined the team at Brave New Coin as Head of Business Development – more news to follow….

Next week: University Challenge – Startup Victoria’s Student Pitch Night