From yesterday’s Irish Times – a decade on in the recession – however, I was much more upbeat about my future. I have turned the corner, I am proud of my achievements, and the future is looking very rosy!

Irish Times

Jillian Godsil lost her home in the recession and was one of the the first women to go bankrupt under Ireland’s new bankruptcy regulations.

“Until 2008, life was very good. I was happily married, or so I thought, running my own PR and marketing company, living in a big house we’d bought in 1996.

“Then two things went wrong. I discovered to my horror that I wasn’t happily married, and we started separation proceedings. The second thing was that my ex had got into property. The house had been worth €1.6 million at one stage, and it seemed to make sense to release some equity. So we had huge debts that we couldn’t pay.

“It happened so quickly. My husband went back to the UK and declared bankruptcy. I made a video to try to sell the house on YouTube. The video was quirky and it went viral. I got a cash offer of €500,00 in 2011, and I put that to the bank, but they refused to sell and went on to repossess the house. It sold for €165,000 in 2013. I kept telling my story and I became the poster girl for austerity. But I suppose I took my eye off the ball a bit workwise. I eventually had to close the business and go on the dole.

“I kept thinking I would turn the corner, but it was the longest corner ever. I went bankrupt in Ireland, and when I discovered that meant I could never run for public office, I decided to take a case against the State, which led to a change in the law. I went back to college and did a master’s, but still couldn’t find work.

“By early 2014, I was like a zombie. I was suffering from depression. I didn’t want to commit suicide, but I came very close to it. I felt empty. All roads seemed blocked to me. The lowest point, though, came when I exited bankruptcy last year, in the summer of 2017. I was one of 800 people discharged that day. But we had to move out of our rented cottage, and I wasn’t able to find alternative accommodation. I was couch surfing; it was middle-class homelessness. I wrote about it in The Irish Times, and a friend read the piece, and offered me a cottage he owned to rent.

“I changed the law, I did my master’s, but I feel like the universe turned on its axis that day, and since then, things have got better. Now I have a new career working in marketing for the blockchain industry. I had 10 years where I felt, ‘why can’t I get out of the mud? I have worked everywhere, I have a great network of contacts, and I couldn’t get off my knees’. Finally, things are looking up.”

CharityStars, Aiming For The Stars

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‘We are all in the gutter but some of us are looking at the stars.’ Oscar Wilde

Four years ago Francesco Nazari Fusetti set up CharityStars, a fund raising platform for charities. It linked celebrities with charitable causes, delivering funds to charities in a transparent, online manner.

Initially Fusetti approached celebrities, looking to get them to donate their time, possessions or support for charity. Over time, this has changed and charities began instead to approach the CharityStars platform to post their projects with their own celebrity ambassadors; CharityStars having proven an ability to deliver – matching causes, celebrities and donors – the latter now numbering 40,000 active people.

Fusetti is very proud of his organisation pointing to the $10 million raised since the formation of the company with mainstream charities benefitting such as WWF, UNICEF and Save the Children.

With the original office located in his native Italy and still accounting for more than 30% of all income generated, new offices have been opened in the UK and US. This is important as while the donors and bidders are worldwide, many of the celebrity experiences on offer are geographically based – such as lunch with a star or a poker game with an entrepreneur.

Monies are raised in three ways; the main income is by auctioning off a celebrity experience or luxury product, secondly income is derived from direct bids on products and finally people can enter a sweepstake for $5 which enters them for a random draw for a special prize.

CharityStars takes 15% commission on the net monies raised; sometimes there are third party costs but these fees are capped so that the minimum sum delivered to the charity is 72% of the total.

‘Porting our platform onto the blockchain was a natural move for us,’ explains Fusetti. ‘Our core business has been about transparency in the charity sector.  There is an inherent distrust on how charities are managed – in direct opposition to people’s inherent desire to support their cause. We were able to bridge that gap initially through a transparent online platform – moving onto the blockchain when it became available was the obvious next step.’

This year, CharityStars created and backed AidCoin, an ERC20 utility token that allows people to donate to charities while easily tracking their donations on a public ledger.

By using blockchain technology to track transactions, cryptocurrencies to transfer funds and smart contracts to ensure donations are spent correctly, CharityStars aims to introduce a new layer of transparency, traceability, enabling a better connection and increased trust between donor and recipient, and in turn helping charities to raise more money.

‘The beauty of the blockchain is that we can show total transparently how money is donated and spent. There are no hidden fees,’ says Fusetti. ‘Every donor can see their donation.’

CharityStars recently ran a number auctions to have lunch and even play poker with some of the industry’s most prominent leaders, such as Ryan Taylor, CEO of Dash, Brock Pierce, Chairman of the Bitcoin Foundation, serial entrepreneur Jeremy Gardner, Erik Voorhees, CEO of ShapeShift and Galia Benartzi, Co-founder of Bancor.

‘This raised $60,000 for the associated charities,’ says Fusetti.

Asked about his wish list celebrity experience Fusetti was firm in his answer: ‘I would love to meet Vitalik Buterin – he has changed the world, although I am not sure if I could bid enough to win that experience,’ he says. ‘But I would also have enjoyed meeting our top tier blockchain industry leaders. I am very engaged by this space.’

AidCoin also allows charities to integrate a donation button, called AIDPay, on their website that enables the acceptance of cryptocurrencies for their fundraising campaigns. Donors can donate in any cryptocurrency or altcoin that will then be converted into AidCoin at the current exchange rate. CharityStars will be the first platform to utilize the token internally among its community of 40,000 bidders.

“With the rapid adoption of cryptocurrencies holding the potential to impact the way in which we donate, I am certain that AidCoin is set to play a leading role in this new era of fundraising,” concluded Fusetti.

In its November pre-Sale, more than $4million was raised and now the company is looking at its full ICO in January 16, looking to raise 30,000 Ether or whatever that will equate to in dollars.

Why Hashgraph Could Replace The Blockchain – Dublin Meetup Sparks Interest

The first meetup for hashgraph enthusiasts in Dublin happened last night in the Bank of Ireland Workbench in Montrose. Ably fortified by pizza and coffee, approximately 20 people showed up to listen to Conor O’Higgins, content manager in Ireland for hashgraph.

A show of hands at the start showed the audience was already aware of the technology with over half hailing from an engineering background. There were some cryptocurrency traders attending as well.

Conor stepped through the interesting aspects of the technology, talking though the consensus algorithms, Byzantine Emperors and the gossip about gossip protocols. For more information on the technology visit this article. (November 29).

Questions from the meetup concentrated on how hashgraph charged per transactions – looking at the mining approach from Blockchain. O’Higgins pointed out that currently, hashgraph is only deployed in private, permissioned-based networks.

‘Real use examples included CULedger,’ he explained, ‘which is a credit union consortium supported by the efforts of the Credit Union National Association (CUNA) and the Mountain West Credit Union Association (MWCUA).’

Other engineers present were familiar with the Credit Unions example. ‘It’s a situation where individual Credit Unions don’t know or trust each other but they need to transact,’ said one engineer. ‘Hashgraph offers the speed and the security to a largely untrustful community.’

Speed was also a factor for the audience. Another participant, working the FinTech area, said he despaired of blockchain as it was just too slow. He wanted to know if hashgraph could offer an alternative. O’Higgins replied that was one of the key points of the new technology.

Other concerns raised about the current blockchain mining approach, and the concentration of powerful mining corporations in China, were discussed. Would this lead to a semi centralised centre of control or a silo of data just like traditional databases?

It was agreed that hashgraph has the potential to work outside these limiting parameters. ‘The energy costs are minimal based on the tiny size of data exchanged and the graph replacing an ever longer blockchain,’ said O’Higgins. ‘And voting only needs to be a question of polling who knows what and when – again speeding up the process.’

Questions continued until the closure of the meeting promptly at 8pm with the participants keen to come together again.

 

The Difference Between A TGE And An ICO, Gabriele Giancola Explains More

CCN

We find out more about loyalty programs on the Blockchain delivered by qiibee, a decentralized, Ethereum blockchain-based loyalty ecosystem.

Its name, which is derived from qii for energy and bee for the one of the world’s most important insects, is not the only different thing about this company. It is also looking at a Token Generation Event (TGE) next year.

A TGE is different from an ICO in legal terms according to co-founder and CEO Gabriele Giancola. Incorporated in Zug, the heart of the Crypto Valley outside Zurich, Giancola says that the Swiss like to keep things above board and that hosting a TGE is easier to run than an ICO and certainly it makes issues like regulation much more straightforward. Currently there is a hardcap of 70,000 ETH to be raised in Q2 of next year. The token is a qiibeePoint or QBX.

qiibee is a classic example of a traditional technology solution pivoting onto the blockchain for two main reasons: scalable data capture and security. qiibee began life trying to solve the loyalty program platform. Giancola and his brother, both co founders, looked at the loyalty program space and saw a lot of problems.

Loyalty Programs are big business. The market is estimated to be worth $300billion and research points to 80% of all adults in the Western World belonging to one or more loyalty schemes. However, membership of multiple loyalty programs can have limited value as many accounts are inactive.

Loyalty programs are often fragmented meaning each program operates different terms and conditions. So while the average American may have joined up to 29 programs they will only use less than half of those. Given the large marketing budgets spent to acquire new customers, brands are missing out on a big chance to radically impact on their customer base.

In 2015 qiibee developed a proof of concept pilot with limited numbers: some 20 local brands and 800 customers. As Giancola says: ‘We wanted to see if we could create a unique eco system, a single platform for multiple brands to operate. Back in 2015, it was about homogenisation of the platform and so we scaled it up in 2016.’

2016 saw a huge leap in numbers and brands. With more than 100,000 customers and 900 brands the brothers began to acquire serious feedback. Brands such as Subway and Eat.ch joined the program.

The user base was 45% male, 55% female with a mean age of 25 years. Typically they were on the platform five times a week, averaging 27 minutes per session. The feedback was vital according to Giancola.

‘During the scaled up project we created a lot of data, sensitive data,’ he says. ‘’ That meant we felt the platform was exposed and open to potential hackers. We knew we had a solution to a problem but we needed to find a technology to support it.’

Enter the blockchain. Reduction of risk and cost were both key elements offered by the blockchain.

‘We also discovered that we were not able to provide a loyalty solution that suited every brand,’ says Giancola.  ‘At this point we realised that qiibee was valuable as an independent loyalty platform – that we could bring the benefits of blockchain to brands.’

This ‘aha’ moment tallied with their research. ‘Brands are sometimes too focused on their loyalty program to realise that the customers were feeling pain. This is where we could add value.’

Building an infrastructure upon which brands can add their own applications was a direct extension of their thinking. ‘We wanted to take the headache away from Brands and build in better value to their – combined – loyalty programs,’ he says.

Creating an eco system for loyalty programs also has a very real benefit of eliminating complex and costly liabilities of un-redeemed / outstanding rewards. ‘We discovered that in a real world use case, Mariott International (the hotel chain) had to account for liabilities generated from their loyalty program in the order of $2.6bn or 25% of their total liabilities. This is ungoverned spending. We knew we had a solution.’

The qiibee plan is to build a distributed blockchain application and present SDK (software developer kits) to brands wishing to take part. Core to the qiibee platform is the qiibee token and wallet. Interested brands purchase qiibee tokens and set an internal exchange rate on their rewards.

A customer earns rewards from brands which they can value as qiibee tokens. They can then subscribe to other loyalty programs on the qiibee eco system and spend qiibee tokens across multiple products. They can use the qiibee wallet to exchange out into fiat or other cryptocurrency coins.

The concept is very simple. It is also very attractive to customers who weary of trying to keep track of their different rewards across different companies or platforms. Consolidation of rewards to buy other products is also very appealing to customers.

There are also two other interesting aspects to qiibee.  The first is that brands like what Giancola and his team have done. They respect the background in loyalty research and pilots undertaken. They like the idea of not having to invest in their own blockchain and to piggy back on qiibee. Giancola also reckons the other possible competitors in the industry will probably join up as co-operators.

‘Typically we come up against consultants in this area or software developers looking to create a kick-ass loyalty program for different brands. In either case, we say join us. Join our eco system. It works for us.’

In a second but complementary development the qiibee eco system, with multiple loyalty programs cooperating, can address the secondary issue of changing or rewarding customer behaviours outside of simple spending.

‘We’ve been approached by insurance companies that would like to reward customers for good driving by reducing premiums. Or other brands that want to incentivise customers to do their marketing for them – by sharing content on social media for example,’ says Giancola.

‘When there is an integrated loyalty program that is valuable and switchable between brands, then we will see value added to the system.’

We look forward to their TGE next year and to see if the cryptocurrency investor community reacts any differently to TGEs as opposed to ICOs. With the current SEC action against ICO Munchee, TGEs may be the way to go.

The Crypto Valley Of Zug, Why Switzerland Is The Place To Be For Bitcoin, Ethereum And Blockchain Initiatives

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Coming to a city near you…

At first glance it might seem an unusual choice for the hottest tech location in Europe, if not EMEA, but Zug, named for its fishing rights is both a town and canton in Switzerland and home to a little under 30,000 residents. It is an affluent area, a low tax region and a base for several multinational companies. In 2001, it first sparked to international recognition when a disgruntled gunman shot 15 people, including himself, in the Zug Cantonal Parliament in what became known as the Zug Massacre.

This year, Zug was very much back in the news for quite different reasons. In January 2017 a not for profit organisation was formed: the Crypto Valley Association (CVA) headquartered in Zug and formed for the express purpose of attracting and supporting blockchain companies and organisations to Switzerland. Prior to the formal establishment of CVA, the Crypto Valley in Zug had been the brain child of Johann Grevers who based his cryptofinance startup Monetas in Zug in 2013. He outlined all sorts of positive reasons why Switzerland was attractive for blockchain companies and soon attracted broad support from numerous individuals, startups, corporates, service providers, industry associations, educational institutions, governments and regulators.

Grever’s own particular career has been recently mired by his own success. Tezos, which aimed to build a new digital commonwealth, used Grever’s ICO foundation company through which to raise money. They were successful, very successful with $232 million raised (and now worth twice that with inflation), but Grevers and the founders of Tezos are locked in a bitter infight. Sometimes the price of success is too high.

Zug itself carried on as a leading light for crypto companies. Ethereum incorporated in Zug in 2014 and the first bitcoin ATMs were installed. In 2015, Shapeshift located in Zug and in the same year the Swiss Federal council issued a report that bitcoins were regarded as a virtual currency and no further regulations were required.

The following year the Zug tax authority issued guidelines for the accounting and tax treatment of bitcoin and the city of Zug became the first government in the world to officially accept bitcoin payments.

Oliver Bussman, as President of the CVA, is overseeing a membership which is growing at an exponential rate. Since its foundation in January membership has grown to in excess of 500 members and that figure is growing at 30 new members per month. Membership fees are denominated in Swiss Francs (CHF) costing 100 CHF for an individual member and CHF 300 for a corporate.

In an interview with Bitcoin Magazine, Bussmann explained that unlike other ecosystems, such as Silicon Valley, entrepreneurs can expect to find every possible resource necessary for a successful token launch within a 30-mile radius of Crypto Valley.

“We have advisors helping with value proposition and token economy, seasoned legal experts, tax experts, accounting experts, people specialized in global marketing and global communications PR, secure ICO launch platforms, independent audit firms, smart contract audits, KYC, AML utilities and a community of investors looking to support the product.”

Switzerland has a lot of historic features which lends itself to the decentralised view of the world. Its own political system is based on a citizen-controlled ethos and boasts century’s old culture of individual rights. Coupled with Swiss neutrality, business-friendly environment and privacy-friendly financial and legal infrastructures, it is very successfully marketing itself as a hub for crypto friendly companies.

Last month, the CVA announced its first strategic partner in KPMG Switzerland. KPMG will be an active member and chair two working groups; one on Tax, Accounting and Structuring and the other on Cyber Security. But it is not just corporations that want in; a local hotel and restaurant, the Swiss Chalet Merlischachen, is now accepting bitcoin and ethereum as payment for its food and hospitality. It claims to be the first hospitality company in Zug to accept alt currency.

Zug and the Crypto Valley would seem a powerful advocate for all things blockchain. Their example is catching. Just a week ago, Ireland stepped up to the plate and announced its own crypto centre. Called Crypto Coast and headed up by blockchain veteran Reuben Godfrey, the Irish hub is seeking to do the same as Crypto Valley. However, where Switzerland and Zug may offer traditional financial expertise, Ireland’s Crypto Coast has based its foundation on a wealth of blockchain professionals and positive government support.

In conclusion, it’s not really a question of the Crypto Valley being in competition with the Crypto Coast and more a question of how soon the rest of the world will follow suit

Indorse – Spelling The End Of The Dishonest CV…

Just how do you know if what people claim in their CV is true? For a time, google seemed to deliver an endless source of data on other people. You could search for people online and see where they had worked. Then social media made it even easier to track people – or so it seemed.

In the last few years prospective employees have been warned that when they attend interviews, the company looking to hire will include a trawl of their social media to see if what they say is true or to ascertain the calibre of the person.

Of course there have already been cases where legal claims have been made against individuals abusing social media, but even harmless activities may be seen as detrimental to prospective employment. Applying to a company where the CEO is teetotal? Then perhaps don’t post those post party pictures on FB. Looking to work in a company that works in pet supplies? Perhaps posting pictures of you supporting the local hunt might not be so clever. The list is endless.

However, while verifying your character online is one thing, verifying your career details is another. Most CVs have referees which a thorough employer will use, but what if the person has set out to deliberately inflate their CV. Is it possible to check that online?

The majority of employers would head over to Linkedin – and indeed most management on ICOs link directly to their Linkedin page. Linkedin in an established platform but there is a flaw. Only the individual can insert their CV details. No one else can comment on them. The nearest there exists for validation of the CV details is in the recommendation section – but these could be from friends or even fake accounts should a person wish to deceive.

So how can an employer quickly check out the veracity of a CV, or indeed how can a candidate stand out with their skill sets?

Indorse, a decentralised professional social media network, think they have the answer. And so do 1800 token account holders that helped raise $9 million over their ICO in September. This sum will keep them going for the next two years says co-founder David Moskowitz. ‘We learnt a lot from our ICO – basically to keep any future ones shorter and have more focus on the secondary market.’

His co-founder and CTO, Guarang Torvekar adds that they would have liked to have more celebrity endorsement. Ánd better known advisers.’

Which brings us to one of the principles of Indorse – peer to peer validation. Peer to peer validation on Indorse is random and anonymous.

‘There have been a few ICO scandals recently over CVs from the fraudulent state where advisers were not part of the team to the lesser crime of inflating their CVs quite dramatically. Even today what we read on Linkedin we tend to believe – despite the fact that it is published by the individual,’ says Mosowitz.

‘You cannot game the system on Indorse,’ adds Torvekar. ‘You can’t ask your spouse or colleague to endorse you. All the validation is random and is only allocated once a consensus is reached to the order of 70%.’

The individual adds their skill sets with attached proof. So, if someone claimed to have Java programing skills, they could attach their certification. Then anonymous, random peers can validate – or not – that section.

Timelines are important too according to Torvekar. ‘Someone working for 20 years should have a much greater wealth of experience than someone working for less than 5 years, and that is reflected too in how the Indorse CV is created.’

People deemed to have authentic and experienced CV will receive an Indorse Score. This is delivered in the form of a non-transferable, non-tradable token. This is to reflect their reputation. Other members of the Indorse community can earn tokens as rewards for participating on the site. These are tradable and transferable and mimic the popular Steemit model.  In time the co-founders hope the IND tokens will be used to purchase or sell additional services on the site.

The use of blockchain is core to the project according to Torvekar. He was instrumental in setting up the Singapore Ethereum meetup two years ago (where he met Moskowitz) which now regularly attracts a couple of hundred to each gathering. They launched Indorse at one such meetup.

‘Blockchain underpins our decentralised model in four ways,’ explains Torvekar. ‘’The first is the management of the data – there is no single point that is vulnerable. Secondly, Indorse is completely autonomous – no one is in control.

‘We use Byzantine Fault Tolerance to produce consensus and finally it is transparent – no more inflated at best or totally dishonest CVs on our platform.’

Already 1800 people have signed up for the beta MVP version and both co-founders hope to hit 3000 before the end of the year.

With two years’ worth of salaries in their pocket what next for the founders? ‘Company pages.’ says Moskowitz. ‘We want to extend the same transparency to corporates.’ Now, that will be interesting.

CNN

What have the pope, weapons of mass destruction and student protests have in common?

First published in CryptoCoin.News

 

 

 

 

 

Angel Versetti, CEO of Ambrosus featured, and helping to demonstrate what have the pope, weapons of mass destruction and student protests have in common?

Why is he in the news? CEO of newly formed Ambrosus, a blockchain ecosystem to assure quality of products, and having signed a partnership with INS Ecosystem

Most bizarre thing he has done? Lectured the Pope on blockchain in the Vatican

Most unusual job?  Versetti’s first job in the UN was at the Department of Weapons of Mass Destruction, where he used satellite imagery and intelligence to find out where Americans and Russians were hiding their nuclear warheads

Low tolerance of? Stupidity and Hypocrisy

Interview:

It’s not every day that a Russian-born, half Italian, Swiss resident quotes an Irish writer in interview.  Oscar Wilde to be exact and the quote is about common sense being remarkably uncommon.

Angel Versetti uses the quote as a throwaway line in relation to madness that surrounds ICOs. ‘The ICO industry is a bit of a circus,’ he says. ‘Blockchain is an amazing technology but the early emphasis on changing the world has been overtaken by money.’

It might seem ironic that an entrepreneur in the blockchain is talking down the craziness of ICOs but he has a point. Versetti does not suffer fools gladly. Deeply embedded in the traditional world with his background in the UN, he manages to straddle the new world of blockchain and has applied the distributed technologies to many of his projects. He admits that while technology can move fast, it is often politics and institutions that hold projects back.

Despite his youth (25), Versetti has already a colourful academic career which includes studying in Cambridge in the UK, being kicked out of the college through residency issues, getting a scholarship to re-enter and still not satisfying rules to be allowed to rejoin, even as a registered asylum seeker, before going on to organise student protests against UK government budget cuts. While the rules remained in force he caught the attention of SciencePo in France where he was offered a full scholarship. Ironically, his new alma mater went on to outperform Cambridge in world ranking in Politics and International Relations so he has no regrets there.

Working in the UN across a range of different organisations, Versetti has the global view of an international orphan. He has numerous accolades against his name, youngest published author in the UN, best actor at university and has extensive television experience.

He worked on different committees and organisations in the UN including the World Resources Forum where he investigated the factors affecting the distribution of resources and the challenges facing effective distribution. It was this area that he presented to the Vatican and the pope, with 48 other youth leaders from around the world, looking at the innovations possible to remedy resource inequality and inefficiency.

Founding Ambrosus this year seems a logical extension of his earlier work in the UN.

‘Í was fortunate to have some great experience in the UN,’ he explains. I took that early R&D, especially in food and sustainability, and launched Ambrosus on July 21. I was also fortunate to meet up with fellow stakeholder and co-founder Stefen Meyer. We had a lot in place even as we launched Ambrosus.’’

Ambrosus combines high-tech sensors, blockchain protocol and smart contracts to build Supply Chain 2.0: which it claims is the first publicly verifiable and community-driven system to assure the quality, safety and origins of food & medicine.

‘The sensor technology formed part of the R&D with different projects previously. ‘We were looking at converting sensors into oracles, allowing them to speak directly to the blockchain. Sensors inherently have limited memory and processing power and we needed them to be more intelligent.’

If Versetti is fascinated by blockchain, he is riveted by AI. ‘They will converge but my money is not for about a decade,’ he says. ‘Anyone claiming to have AI-powered blockchain (or vice versa) today is selling snake oil. Both technologies, despite all the big hype, have a long way to go.’ Mr Wilde would have been proud of his common sense.

Versetti is concentring on the life-essential products (food, chemicals and pharma) with Ambrosus. ‘This is where our intellectual capital lies. We have experience working with regulators in this area, using technology to provide true, accurate and fast provenance,’ he says. ‘Human audits are labour intensive and subject to error. Blockchain technology can radically change all that.

Ambrosus is a partner in the UN 10YFP Sustainable Food Systems, a programme on sustainable food production and consumption, where Versetti garnered much of his research. ‘Sometimes trade barriers are erected using fallacious points, such as quality over price. However, blockchain has the ability to not only safely record food safety and provenance; its immutable nature can be used as a point of proof. In the world of food production this is very important.’

Connecting with the INS Ecosystem, which seeks to decentralise grocery purchases by connecting food manufacturers directly with consumers, Ambrosus will provide the quality assurance part.

‘We are not retailers,’ says Versetti. ‘However, part of the INS philosophy is to allow consumers choose food that is good for them as well as good for the planet.  Our experience in food chain and quality assurance ideally positions us here. We will fulfil part of the loyalty programme between manufacturer and consumer.

‘We can monitor the carbon footprint of the food – how far it has travelled and by what method. We can monitor if the producer uses harmful pesticides and we can also address proof of process – where manufacturers offset production energy costs by using renewables. It’s one thing to throw up a windmill to tick boxes, it’s another to actual use it.’

Versetti’s work ties in very nicely with his worldview. ‘As a child growing up I questioned everything,’ he says. ‘Í still do. My smart friends suggest that I am something of a nihilist but in reality I see good in lots of philosophies, I’m just not ready to subscribe to only one of them.’

Perhaps that is the perfect worldview for someone providing quality assurance – all food is considered guilty until proven innocent on the blockchain.

 

Peter Fedchenkov, Disrupting The Global Grocery Marketplace, INS Ecosystem ICO Launches Dec 4th

First Published in CryptoCoin,News.com 

Despite a very handsome CV littered with impressive names including Harvard Business School, Goldman Sachs and Baring Vostock Capital Partners, Peter Fedchenkov, founder of the INS Ecosystem, insists he is a grocer at heart and that the grocery trade is in his genes.

His grandfather had a wholesale grocery business when, just after the collapse of the USSR in 1993, his retail distribution channels disappeared, As a result his grandfather was forced into selling groceries directly to consumers at small market stalls, Then he discovered the approach of placing ads in regional newspapers to sell goods directly to his customers; thereby creating an early mail-order grocery business where he no longer relied on the middle man.

Four years ago Fedchenkov put his education and genes into practice, and co-founded Instamart in Moscow – an upgraded internet of things approach to his grandfather’s business. Today Instamart is the largest online grocery delivery business in Russia, with 100,000 orders processed every day.

Instamart possesses no stock, warehouses or fleet but picks fresh produce to order from a number of key grocery outlets and ships it to the customer the same day. Compared to the UK where online food orders account for 5% of total food purchases, Russia consumers only order online 0.02 % of the total retail food market. It would appear there is room for growth.

Next up, Fedchenkov set his sights on global grocery dominance, this time co-founding the INS Ecosystem which bills itself as the first decentralised, global ecosystem directly connecting grocery manufacturers and consumers.

According to the website, the INS Ecosystem is a scalable, blockchain-based platform that enables consumers to buy groceries conveniently and directly from manufacturers at lower prices.

Its ICO begins on December 4th with the hard cap set at 60k Eth, which as Fedchekov acknowledges the rising market has changed the target from $18 million to $24 million in recent weeks.

The global grocery business is estimated to be worth $8.5 trillion. Retailers, on average mark-up manufactured goods by 50% and what is even more telling, the retail market is controlled by a very small number of corporations. In the UK alone 4 major multiples control more than 75% of the entire retail outlets.

‘’This market is ripe for decentralisation,’ says Fedchenkov. ‘Whenever I speak with a manufacturing company they are all keen to get to customers directly. There is a real appetite to cut out the middleman.’

Fedchenkov sees the demand for disintermediation for a number of reasons. ‘Manufacturers can see a drop in bricks and mortar traffic. Increasingly people are buying online and manufacturers want to take that away from middlemen retailers,’ he says.

‘Secondly there is question of consumer data. Currently retailers hold that information and use it for their own promotions or loyalty programmes. It is not fed back to the manufacturers and retailers can even use this data to replace branded goods with their own, reducing the manufacturers’ market share.

‘Finally, our research shows us that manufacturers spend a huge proportion of their budgets on advertising that never reaches the end consumer. In fact, statistics show they spend as much on trade marketing as it costs to produce the food in the first place. We want to help manufacturers reach their customers directly, reduce this wasted spend, and benefit directly from the consumer feedback.’

Blockchain technology is a crucial part of the INS Ecosystem model. On November 21, INS announced a partnership with Ambrosus, a blockchain-based ecosystem for the supplychain. Given that the INS Ecosystem is a platform and will not hold stock, it has to be able to provide transparency and provenance for the food supplied. Fedchenkov argues that the underpinning technology and assurance provided by Ambrosus will be much more rigorous than existing traditional audit trails.

‘The data captured by blockchain is immutable and transparent. It is perfect for recording high volume, low margin transactions. This is a good fit.’

FedchenKov also maintains that traditional supply chain validation can take days to confirm an audit trail, whereas data held on the blockchain can be validated within minutes. ‘Ít is safer all round,’ he says.

The INS Ecosystem will partner with third party fleet operations to fulfil distribution. Asked if it has the potential to replace multiples and then become a monster in its own right, Fedchenkov says it is not possible.

‘For example, each manufacturer will develop their own loyalty programme with their customers using smart contracts so that when customer behaviour reaches certain agreed targets or sets of actions, rewards are automatically released. They, the manufacturer, will know their own customer, not us.’

In terms of revenue, Fedchenkov will impose a straight levy of 1% based on volume for manufacturers and the same on third party fleet operators. He is sanguine about the use of the INS token as currency. ‘No, I expect people to buy their groceries in fiat currencies,’ he says. ‘However, rewards will be denominated in our token creating a value and liquidity as people use the token generated in the Ecosystem to buy more food or redeem rewards.’

So far, seven of the top 20 global FMCG manufacturers, including Reckitt Benckiser, Valio, FrieslandCampa, Capebe and Borjorni, have lent their names to the project and have expressed interest in joining the platform.  It would appear to be a win win for manufacturers as well as consumers – providing lower costs and greater choice.

Fedchenkov is feeling optimistic at this stage. A mixture of traditional marketing and blockchain marketing has produced results so far. A feature in the UK Telegraph brought in five new multinational manufactures. Now it’s just a question if the ICO traders are as excited as well.

 

Hashgraph – can it give Blockchain a run for its money?

Ken Anderson, admin of the official Hashgraph Telegram Dev Group as well as CTO for Irish ICO Mingo, believes that Hashgraph has the potential to either eliminate or upgrade the many issues facing the Blockchain.

‘It makes sense that the next step is not another public Blockchain, but a new distributed ledger technology,’ he says. ‘Development is all about improving technology, not getting a piggy back just for the sake of it.’

Maybe it is his background as an ex-Military Intelligence Specialist in the US Army that makes Anderson somewhat fearless when it comes to evaluating new technology. ‘I’m committed to vetting Hashgraph,’ he says.

Anderson and his developers in Mingo have been given permission to go inside the technology but it will be several months before he will commit to his final verdict on the new distributed ledger.

So what is Hashgraph and why might it have the potential to overthrow Blockchain?  Firstly, it should be noted that the Hashgraph platform, which is a distributed ledger developed by Swirlds, is currently a private ledger, does not have an ICO planned nor does it have a cryptocurrency.

It does however, take some pretty big swipes at the problematic issues facing Blockchain.

‘If you asked me to say why Hashgraph is looking so good, I’d have to say it is because it addresses issues such as speed, size and fairness before we even look at the core elements of Hashgraph which is also provable, Byzantine, ACID compliant, efficient, inexpensive, timestamped, DoS resistant, and optionally non-permissioned,’ says Anderson.

Hashgraph claims it is much faster than Bitcoin. Bitcoin can only handle 7 transactions per second compared with Visa which can handle 100,000 transactions. Theoretically Hashgraph can handle 250,000 in the same time and maybe more if the bandwidth is sufficiently wide. Bandwidth is the defining factor unlike Blockchain which needs to increase its size to increase transactions which only adds complexity.

Then there is the issue of Proof of Work (POW) in Blockchain. Originally conceived as a consensual and fair way of allocating rewards to miners there are difficulties.  In Bitcoin, miners can control the order of transactions – often on arbitrary terms. Given that Bitcoin can never 100% guarantee confirm a transaction, despite the more blocks moving towards consensus, this creates an inherent, albeit random, bias in the system. It also one of the main reasons mining is so expensive.

Hashgraph on the other hand operates a consensus time stamp approach which means no miner can sideline another and all blocks are accepted in the chain, purely on a timed basis.

In Hashgraph once an event happens everyone on the network knows this. In addition, since there is full disclosure on the network then old blocks can be consigned to history and discarded if wanted. This shrinks the amount of storage from Bitcoin’s current 60GB to a fraction of a single gigabyte. That would even fit on a typical smartphone.

Much of the problems in Blockchain development and future direction also lies in the difficulty by which consensus is achieved – it is not a given but only a growing probability which can lend itself to hard forks and slow reactions to changes.

Hashgraph on the other hand uses the Byzantine fault tolerant protocol. This means no one individual can stop a decision, nor can a decision be reversed by an individual. To maintain this progress Hashgraph also uses Gossip about Gossip protocol. This protocol is well known in the programming community where nodes exchange information to every other node randomly, no one is left hanging and every bit of information – or gossip – is shared on the chain.  Therefore how each node will vote is known in the chain as well as what each node knows and when it got that information is time stamped. If there is an affair in the village then everyone knows about it. This is one village not to plan adultery if you want to stay married.

Currently Hashgraph is a private distributed ledger so it will take people like Anderson to evaluate its claims. If they are right – and it is faster, safer, fairer, cheaper and better as claimed – then it looks likely Hashgraph will give Blockchain a run for its money.