Survey Respondents Are Split 50/50 Between Bitcoin & Big Banks

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The proportion of people who trust big banks has fallen drastically since 2017, while the support for Bitcoin has exploded — millennials lead the way.

The survey results are in — there is almost an equal split on the issue of trust: Bitcoin (BTC) or big banks. There has also been an incredible change in attitudes over the past three years on the issue.

Who trusts in Bitcoin?

The Tokenist surveyed 4,852 respondents in 17 countries about their attitudes towards Bitcoin. It also compared its findings with the responses from previous similar surveys. This allowed it to observe how these attitudes changed over time.

If you had to choose, which of the following is more trustworthy? Source: The Tokenist

The winds of change

Not only is there almost an equal split, but when it comes to the millennials, they also tend to put more trust into Bitcoin. What is even more interesting is how this has changed since 2017. Back then, only 18% picked Bitcoin versus 82%, who chose big banks. Even in the millennial group, the split was highly unfavorable — 27/73.

2017 Results Versus 2020 Results. Source: The Tokenist.

It should be noted that one would expect the respondents to The Tokenist survey to be skewed towards Bitcoin. However, the same was true for the baseline surveys.

It may be fair to speculate that this change in the zeitgeist will translate into growth within the crypto industry.

Chinese Bank Issues Commercial Paper Worth $16.9 Billion on Blockchain

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A Chinese commercial bank issued China’s first asset-backed commercial paper worth $16.93 billion on a blockchain.

China Zhe­shang Bank, a national commercial bank, used blockchain technology to issue an asset-backed commercial paper, or ABCP. It was issued as a part of the Na­tional As­so­ci­a­tion of Fi­nan­cial Mar­ket In­sti­tu­tional In­vestors’s (NAFMII) pilot project for ABCPs.

An asset-backed commercial paper is a short-term investment issued by financial institutions to help companies meet short-term goals.

Dubbed “Lianxin 2020 Lian­jie First Phase As­set-backed Com­mer­cial Pa­per,” the period of the Lianxin ABCP is six months and the span of the next issuance is yet to be specified.

An official of the NAFMII noted that the use of blockchain technology would provide enterprises a “direct channel to markets, help­ing to greatly in­crease the ac­ces­si­bil­ity of busi­ness fi­nanc­ing.”

Helping small and micro enterprises

Small, medium, and micro-enterprises usually face difficulties with bond issuance as they do not have any connection with open markets.

The launch of Lianxin ABCP will ensure that SMEs can seek easy financial support. The ABCP “increases the ac­ces­si­bil­ity of fi­nanc­ing for SMEs that have dif­fi­culty with fi­nanc­ing via di­rect debt is­suance,” an official stated.

It will also integrate supply chain finance with small, medium, and micro-enterprises to support them with their production.

China, banks, and blockchain

The central bank of China along with other major banks is spearheading blockchain innovation in traditional finance. On May 13, the People’s Bank of China’s deputy governor Fan Yifei urged that China needed to accelerate its blockchain adoption strategy. Only a day after that, Cointelegraph reported that the PBoC proposed a blockchain-based trade finance platform for the Guangdong-Hong Kong-Macao Greater Bay Area.

Earlier, in April, the Industrial and Commercial Bank of China released a white paper proposing the applications of blockchain technology in finance.

IBM Partners with Abu Dhabi National Oil Company for Blockchain Supply Chain System

The Abu Dhabi National Oil Company (ADNOC) has successfully collaborated with IBM to pilot a blockchain supply chain system, according to an ADNOC press release published on Dec. 9.

The release notes that ADNOC — a state-owned oil company in the United Arab Emirates (UAE) — is reportedly among the world’s leading energy and petrochemical groups, with a daily output of about 3 million barrels of oil and 10.5 cubic feet of natural gas.

The pilot project has “provided a single platform that tracks the quantities and financial values of each bilateral transaction” between the involved companies automating the accounting, the release reports.

The system had been announced by the ADNOC Digital Unit Manager, Abdul Nasser Al Mughairbi, at the recent World Energy Capital Assembly in London. During the summit, he noted that “this could be the first application of blockchain in oil and gas production.” Al Mughairbi then further illustrated his perception of the underlying technology:

“Blockchain is a game-changer. It will substantially reduce our operating costs by eliminating time-consuming and labor-intensive processes, strengthen the marketing and trading of our products, and create long-term sustainable value.”

Zahid Habib, an IBM representative, claimed that the system “enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer.” ArabianGazette also added that in the future, customers and investors will be given access to the data “providing seamless integration among stakeholders.”

The press release further noted what ADNOC hopes this system will bring to the company and its customers:

“[The system] will reduce the time it takes to execute transactions between [its] operating companies and significantly increase operational efficiencies across its full value chain. It will also improve the reliability of production data by enabling greater transparency in transactions.”

Cointelegraph reported earlier last week on the launch of a blockchain-based processing tool from post-trade management platform VAKT, designed for an initial group of crude oil industry clients including giants such as BP, Equinor, Shell, Gunvor and Mercuria.

The Abu Dhabi Global Market also completed a test of a blockchain-based system earlier this week. The international financial free zone in the capital of the United Arab Emirates (UAE) has reportedly successfully concluded a pilot for the Know Your Customer (KYC) project.

Amazon Presents Its Quasi-Blockchain Solution, Platform for Ethereum and Hyperledger Fabric

On Nov. 28, e-commerce giant Amazon announced two blockchain-related products: Amazon Quantum Ledger Database (QLDB) and Amazon Managed Blockchain. The company hence marked its further expansion into the field of blockchain technology, which started with blockchain-related patents and collaborations that Amazon has seemingly chose over working with cryptocurrencies, per se.

So what are those new projects and are they going to change the crypto industry?

QLDB: Cryptographic, but centralized database

As per Amazon’s website, QLDB is a ledger database designed to provide “transparent, immutable and cryptographically verifiable log of transactions,” which is overseen by “a central trusted authority.”

Thus, all changes are purportedly recorded on-chain, while the new product is also able to automatically scale to “execute 2–3X as many transactions than ledgers in common blockchain frameworks.” Indeed, Andy Jassy, the CEO of Amazon Web Services (AWS), reportedly stated that the QLDB “will be really scalable, you’ll have a much more flexible and robust set of APIs [application program interfaces] for you to make any kind of changes or adjustments to the ledger database.”

Additionally, QLDB allegedly uses a cryptographic hash function (SHA-256) to generate a secure output file of data’s change history, serving as a proof that “validates the integrity of data changes.”

“With QLDB, your data’s change history is immutable — it cannot be altered or deleted — and using cryptography, you can easily verify that there have been no unintended modifications to your application’s data,” according to the description on Amazon’s website.

Walter Montes, co-founder of the Costa Rican Blockchain Community, told Cointelegraph that — being a centralized product — QLDB cannot be compared to decentralized solutions, although it does attempt to do so in its roadmap:

“It makes no sense to compare things like transactions per second from a centralized service to a decentralized one. There are reasons why these things are decentralized and these are not merely technical ones. Amazon seems to miss the point by comparing QLDB with a blockchain.”

Even if one attempts to compare QLDB with permissioned blockchains, which are common among industry-level corporations because of their security, there are major distinctions between the two, says Montes:

“Permissioned blockchains handle cryptography in a decentralized way, which provides properties like historical evidence […] Another relevant point is the value of the smart contracts or chaincodes, which function as agreed and signed rules on how to modify the data. At least in the public information, they only address the immutability promise, but what about the governing rules of data? Without that, they only log whatever happens, with no real proactive control.”

That technically makes QLDB a database, argues Eyal Shani, a blockchain researcher and former software engineer, as well as Aykesubir consultant:

“QLDB is a normal database from that sense, [while] a blockchain database is also an immutable ledger […] the QLDB tech is another layer of software which eases the development of ledger-like software.”

Montes also agrees that QLDB resembles a conventional database, adding that its cryptography feature still makes it inferior to blockchains in terms of safety.

“Cryptography may calm down some users but doesn’t provide the security and robustness that a blockchain provides. [It is more] like a marketing tool.”

Moreover, the fact that there is a central authority overseeing the whole process might make it less reliable among competing businesses:

“Imagine six banks of the same size trusting one of them (a competitor) to hold a ‘cryptographically linked-list’ that they can verify. They simply won’t trust it. [Instead], they’d end up creating their own data store and then checking data versions daily. Cryptography is there in part to verify things, but when you can’t even do that, it falls short.”

Why QLDB avoids decentralization?

So who are the potential users of Amazon’s QLDB solution? Perhaps those who have become skeptical of the blockchain buzzword, now that the hype has begun to settle, suggests Shani:

“Some believe in that as much as Satoshi and some don’t want to hear about decentralization, possibly because of the bad reputation it had and the excessive amount of speculators in the cryptosphere.

“It’s marketing buzz, we see it with artificial intelligence and [the] Internet of Things, too. That may continue to happen until creating a real decentralized blockchain is as easy as creating a database today.”

Therefore, with further development of blockchain comes greater adoption. It might take more time until decentralization becomes a more trusted solution among corporations looking to shield their data from tampering:

“Decentralization of trust as a concept is something that could fundamentally disrupt some industries, but it’ll take time until we get there. The public and the regulators would have to change their mindset in order for that to happen fully […] Meanwhile, the use of blockchain-like applications and tokenization of assets is already a big jump to many industries and will ease the change into blockchains in the long run.”

Amazon Managed Blockchain: Add-on to QLDB or independent blockchain solution?

Amazon Managed Blockchain, which was announced along with the QLDB, “makes it easy to create and manage scalable blockchain networks using the popular open source frameworks HyperledgerFabric and Ethereum,” but also works with QLDB itself, according to the company’s website.

Further, the product automatically scales depending on the needs of specific applications and is deployed in managing certificates, inviting new users to the network and tracing metrics, such as memory and storage resources and usage of computer, Amazon argues. AWS CEO Andy Jassy claims that this service “is going to make it much easier to use the two most popular blockchain frameworks [Ethereum and Hyperledger Fabric].”

Shani questions that argument by stating that Ethereum and Hyperledger blockchains are already “easily” set up in the industry’s present circumstances. The blockchain researcher also emphasizes the vagueness of Amazon’s press release:

“Governance in distributed protocol is an important aspect, but it’s unclear in what manner Amazon achieves this. If they implemented it in a centralized manner, how different is that from QLDB?”

Montes, in turn, doesn’t believe that a managed blockchain service offering may be around for long because “it limits open scalability (in a technology that is based on network-effects) by locking it up into a single cloud provider.” However, such solutions might be useful for testing and proof-of-concept (PoC) operations, he adds.

Still, the fact that a company as large as Amazon announced new blockchain-related products might seem like a healthy sign for the industry.

“From a macro point of view, the more research and development being done around Ethereum, the more the protocol strengthens and grows into a global adoption as a standard,” Shani concludes.

Blockchain Could ‘Speed up the Economy,’ Says Nigerian Presidential Candidate

The presidential candidate of Nigeria’s leading opposition party has promised to support blockchain and cryptocurrency, local news outlet the DailyPost article reported Nov. 24.

The Nigerian news outlet reportedly analyzed the Peoples Democratic Party (PDP) candidate Atiku Abubakar’s “Get Nigeria Working Again” policy that he reportedly promised to enact if he is elected president February 16, 2019.

DailyPost reports that in the document, the politician declared that “he aims to speed up the economy positively through blockchain and cryptocurrency.”

According to DailyPost, Abubakar stated that to unlock “the potentials of the new economy” PDP “shall promote the production of a comprehensive policy on blockchain technology and cryptocurrencies.”

DailyPost also quoted Abubakar platform as stating “regulation will provide clarity” in this “industry that consists of 1,800 currency types.” The terms of the mandate are also promised to be “managed in a way that provides job opportunities as well as income for the government and people of Nigeria.”

As Cointelegraph reported in mid-October, the Nigerian government has been partnering with local startups to develop blockchain in the country. In March, Nigerian regulator Nigeria Deposit Insurance Corporation (NDIC) warned against the use of cryptocurrencies because transactions are not insured.