All you need know about BLOCKCHAIN

I am sure you might have heard of blockchain in Tv news, Newspaper or on the Internet. What interest me to write about it? I admit that it does not directly linked to the topics I like to write. However the impact of blockchain seems very vast and the attention paid to this technology by world's pioneer bankers, convince me to write about it. In France, BNP Paribas, Societe General, and other bankers and Govt. body are working together to make accessible and convenient for PMEs (SMEs). Not only that three different start-ups also launched in Franch around this technology, namely stratuman, Keeex, and Belem and supported by bankers to test this technology.

Here we are going to see:

1. What is block chain and how does it work
2. Video Explanation
3. Impact of Blockchain
4. French Govt regulation on Blockchain

“Bitcoin the currency, I think, is going to go nowhere … the blockchain is a technology which we’ve been studying and yes it’s real.” —Jamie Dimon on CNBC

As per Wikipedia definition " The blockchain is the main technology innovation of bitcoin, where it serves as the public ledger for bitcoin transactions. Every user is allowed to connect to the network, send new transactions to it, verify transactions and create new blocks, making it permissionless". In other word this coding breakthrough-- which consists of concatenated blocks of transactions--allows competitors to share a digital ledger across a network of computers without need for a central authority. No single party has the power to tamper with the records: the math keeps everyone honest. Forty of the world's top financial firms are experimenting with this technology.










Videos explanation from World Economic forum

Role and Impact of Blockchain

Solving the problem of IP in a digital age.
Blockchain technology provides a new platform for creators of intellectual property to get the value they create. Consider the digital registry of artwork, including the certificates of authenticity, condition, and ownership.

Creating a better sharing economy.
Sharing economy companies are really service aggregators. They aggregate the willingness of suppliers to sell their excess capacity (cars, equipment, vacant rooms, handyman skills) through a centralized platform and then resell them to users, all while collecting a cut off the top and valuable data for further commercial exploitation.

Opening up manufacturing.
New markets could enable buyers and sellers to contract more easily in an open market.The so-called Internet of Things will need blockchains to manage ultimately trillions of daily transactions.

Changing enterprise collaboration.
For example, if every employee had their own elaborate profile, which they owned and controlled, employees and companies would be able to keep their data, rather than give it to large social network companies

Cost-Cutting




Why world's bankers are keen for this technology?




French Regulation and Blockchain Enviroment

The French government has passed a new ruling authorizing the use of distributed ledger technology for the issuance of mini-bonds and recording of trades. The new statute not only gives a clear definition of blockchain technology in French law, it also recognizes the technology as a recording tool that can be used for the transfer and authentication of ownership titles while providing legal validity to mini-bonds issued and traded via a blockchain infrastructure.

The statute (no 2016-520, April 28, 2016) defines blockchain technology as a "shared electronic recording system allowing for authentication. The statute also mentions the requirement for a working group that would "determine the conditions for the realization of such project." The working group would also be responsible for "insuring that the [proposed infrastructure] is secure and mature enough to handle a digital distributed ledger that is reliable, secure and auditable."

BNP Paribas Securities Services, Caisse des Dépôts, Euroclear, Euronext, S2iEM, Société Générale and Paris EUROPLACE revealed that they have signed a memorandum of understanding to create the initiative. By combining their money and expertise, the group hope that they can harness the blockchain technology reducing financial costs and improving SME’s access to capital markets.

They believe that blockchain technology has the potential to significantly enhance and streamline post-trade operations by facilitating securities registration for the European market and allowing fast execution of trades with clearing and settlement in real time at T+0.

"By pooling our strengths in this ground-breaking area, we are focusing on new solutions that will give small and mid-sized companies - key actors for growth in Europe - easier access to the financing they need. With this project, we are securing the means to seize opportunities that blockchain distribution can offer: speed of execution, low cost and security," says a statement.

Some keywords to understand Blockchain

Ref : Btcmanager, Business insider, Google, WEF