Daily Bit: August 1, 2018

Tweet Of The Day
If someone mentions IoT, Big Data, Machine Learning and Blockchain in a single conversation, run as far as you can and never look back.

– @umarsaif

BITCOIN (BTC)  |  -2.43%  |  $7,614.67


ETHEREUM (ETH)  |  -2.10%  |  $424.57


RIPPLE (XRP)  |  4.03%  |  $0.448703


BITCOIN CASH (BCH)  |  -1.75%  |  $764.58


EOS (EOS)  |  0.99%  |  $7.33


STELLAR (XLM)  |  3.46%  |  $0.280864

*As of 10:00am

Markets kept falling, losing another ~$5B in market cap from yesterday. However, bitcoin dominance fell slightly, with several alts rising as they gained market share.

And we made a quick change to the background color, it’s the same as yesterday’s but a little bit different.


WORD ON THE STREET
Same, But Different:
Bloomberg referenced a Forrester research report that discussed a slow down in enterprise blockchain solutions, and now we can’t stop scratching our heads.

You know what they say: you are what you eat. So after learning that Forrester expects 90% of all blockchain experiments to never become operational, our minds immediately jumped to past articles that mentioned a similar 90% failure rate for startups.

Sure, the numbers could be a coincidence, but a light bulb went off nonetheless. How are startups and enterprises related, and in what ways are they different?

We boiled it down to nine syllables:

  • (+) Both involve ideas
  • (-) Different structures

Next, picture a filter
The metaphor is simple. Ideas enter through the top of the filter and are either converted into final products or caught within. However, given that startups are typically flexible where enterprises are rigid, each has different parameters for moving ideas through the system.

Looping back to Forrester’s report, let’s pour 100 enterprise blockchain proposals into this proverbial funnel. There are a number of ways that ideas can hit dead ends:

  • Half-baked proposals flop
  • Minimal executive interest/education
  • Pushback from existing infrastructure
  • Agreement on what blockchain to use
  • Shortage of developers/engineers
  • Fear of failure

Most importantly, this stuff takes time. Too many companies were attracted to the blockchain hype cycle with the classical expectation that the technology would revolutionize their business overnight. Firms are discovering that the shoes they’re using for the Blockchain 5K are encased in cement and the race is actually 25 kilometers.

The bottom line: Expect less – for now. Companies such as IBM, Microsoft, and Accenture are still pushing ahead with blockchain spending, though their R&D will likely remain under wraps for several more years. After all – most growth reports plug 2023 as the year that industry activity will liven up.


OTHER NEWS
General

  • A study from CreditCoin suggests that millennials struggle with digital asset purchases. Relatedly, an estimated 75% of respondents were more likely to date someone knowledgeable on the market… but what about their personality?
  • Ripple announced that former U.S. President Bill Clinton will be the keynote speaker at Swell 2018 this October, leading to a wave of memes across Crypto Twitter.

Markets

  • Global asset management firm Northern Trusts, which houses nearly $1 trillion in total assets, plans on building a custodial solution for digital assets. The firm is pitching lower fees than current players, but don’t expect a product for at least 12 months.
  • Online banking platform Swissquote’s crypto trading services hauled in serious dough in the first half of 2018, a 44% increase in profits from last year’s standing at the fiscal halfway house.

Reads

  • Why tokenization is still a chimera (Andrea Bianconi)
  • Blockchain, Cryptocurrency and Gaming: A Collision Course (Lee Cocking)
  • Crypto Has an Uncertain Future, and I’m All-In (Dan Zuller)
  • Hodl My Lambo: A Beginner’s Guide to Crypto Lingo (AXEL)
  • Why 3rd Generation Cryptocurrencies Are Game Changers for Venezuela (Amir Hagafny)

Problematic

  • Prominent crypto professionals are falling victim to “SIM Jacking” heists whereby hackers trick mobile providers into transferring phone numbers to a new SIM card, allowing hackers to liquidate accessible crypto holdings.
  • Steam pulled Abstracticism and the project’s developer from their gaming marketplace after concrete evidence revealed that the game was attempting to scam users and mine coins with their devices.
  • Scams that don’t age well: Shinil Group’s ICO. South Korean authorities are investigating the project, which claimed to have found billions worth of gold in a Russian shipwreck.


THAT’S ALL FOR TODAY!

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