The initial speculative trend of the blockchain industry, which gave it a negative appearance, is gradually decreasing. The market is starting to clear itself from this “wild west” brand, and corporations are beginning to look into the available technologies and even integrate them.
For many years now some of the major companies with ties to different business fields were developing their own proprietary DLT solutions, as well as supporting the developments by the third parties with investments.
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One of such examples is Overstock that invests in blockchain startups through the venture division Medici Ventures and helps them develop. They have even submitted an application to the SEC to register their preferential shares on blockchain. Perhaps, the only one of those startups known to the public is Evernym. Other projects, such as Symbiont, PeerNova, Netki, etc. are relatively unknown.
DeepDive, a company that develops DLT products, has a similar position regarding the publicity for corporate solutions. In one of their articles, they write that, unfortunately, at crypto conferences, the main conversation topics are speculations in cryptocurrency and related fields: exchanges, mining, etc. Despite the significant activity in the crypto community regarding the use of DLT for supply chains, work process organization and asset tokenization, it all comes down to cryptocurrency, instead of practical technology applications.
This unnecessary hype only repels the corporate sector. People have an active mental link that blockchain is equal to cryptocurrency. However, the potential scope of blockchain applications is much broader: cybersecurity, duplicate codes and identifiers problem solution, financial and accounting registers. There is a lack of understanding that DLT is relatively easy to integrate into the existing software solutions and the association “Blockchain is Bitcoin” still persists.
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Solutions, developed by well-known ICO startups, have serious disadvantages, even though their code is publicly available and accessible for verification. Corporate integrations require a focused security audit, that is usually provided by companies such as DeepDive.
In addition to the technical implementations and product development, the blockchain industry has legal issues in financial operations and tools integration. Consider how significant players such as Grayscale, Coinbase and Bakkt tackle them.
Grayscale Investments, a subsidiary of DCG, has recently received the approval of their application for Bitcoin trust, by meeting SEC requirements.
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While Coinbase acts as a depository of Grayscale assets, providing storage and maintenance as securities, it is also actively working on introducing masses to cryptocurrencies. To work on financial instrument promotion related to blockchain more effectively, large players unite themselves in consortia like the Crypto Rating Council.
All of this combined demonstrates how much work and effort is needed to legalize both cryptocurrencies and financial instruments based on them as well as to integrate blockchain technologies into markets and various corporate systems. Although cryptocurrencies and corporate DLT products are often not connected, the industry is gradually moving towards mass adoption, albeit from completely different sides.
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