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How to participate in the token economy? A definitive guide

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Token Economy

Heard enough about blockchain and bitcoin but wondering how you can be a part of this exciting digital token economy without losing your shirt?
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These days, everyone is bombarded with blockchain and bitcoin news. It has become the new dinner table conversation. If you have wanted to take part in this exciting digital token economy, but did not know where to begin, then, you are in the right place because we are going to explore all the different ways you can get your feet wet in the token economy, including the free options that are available.

Let us begin.

Creating content in the form of articles, blogs, YouTube videos, etc., is one way to set your foot into the world of cryptocurrencies. This is also the easiest way to start earning crypto without actually investing any of your fiat earnings.

  • How does it work?: You create content on blockchain-based crypto platforms, and based on the engagement you create, each up vote, comment and/or viewership creates a monetary value for your content.
  • Benefits: Depending on how well your content does, you will see an immediate monetary benefit from your content.  You also get the lion’s share of the income generated by your content.
  • Drawbacks: Compared to popular entertainment platforms, like YouTube and Netflix, crypto platforms are yet to garner a large audience.  Although more and more users are joining the movement, it is still in its infancy.

Examples

  • Basic Attention Token LogoBasic Attention Token (BAT )

You can start earning cryptosimply by using Brave Browser and its native crypto currency called Basic Attention Token (BAT), instead of using a mainstream browser. Brave Browser also helps you to block trackers and ads to save you time, all the while helping you choose which ads you want to pay attention to. You will be rewarded for viewing an ad. It also gives you free BAT each month for you to tip your favorite publishers who are verified on Brave Browser.

Download Brave Browser here, and get started today.

CryptoTapas is a verified publisher on Brave. Consider a tip (costs you nothing).
Basic attention token-how it works

Publish0x logoBeing a relatively new platform, your profile has to be approved to start writing articles, however, you can still start earning crypto by being a reader. That is a unique feature of Publish0x – both publishers and readers are rewarded in multiple cryptos on Publish0x.

Another popular blockchain-based blog that helps people monetize their content instantly.  If your content is good, you could generate substantial earnings. Look at one of the posts that’s trending today on Steemit.  It has made $256 already. Not all posts manage to make that kind of money, but if you keep posting regularly, you can build your own viewership and make some money on the side.

Steemit- how it works

Minds logo

In line with Steemit, Minds.com also helps users to create and monetize their content. In addition, you can use the tokens your earned on the platform to boost your content. One token will give you 1,000 impressions. You can use this to advertise your own content or other content.

Dlive logoPewdiePie made DLive sensational by walking away from his 93 million user base on YouTube to become exclusive content creator on DLive. YouTube (and other mainstream channels) pay content creators a miniscule percentage of the ad revenue. Blockchain-based platforms reverse that. They give content creators the major share while they take only a small share to maintain the platform.

Imagine BC logo

Imagine BC is a combination of multiple platforms in one.  They want to help you monetize your attention and your intellectual property. You can check the whole interview we did with the CEO of Imagine BC here. Their platform will be open to the public shortly – so get on the ground floor of this project.

  • Crypto Lending

If you have already invested in cryptocurrency, or considering it, you may want to learn about crypto lending platforms.  These lending platforms not only lend money, they pay depositors decent interest rates for depositing their tokens. Some of these platforms provide custodian facilities to address the safety issue. 

  • How does it work?: You deposit your crypto onto their platform.  They will use this crypto as collateral to extend loans to those who are in need.  In turn, you get a decent interest rate for putting your money on their platform.
  • Benefits: Much higher interest rate than any bank or institution in America (and most developed countries).  Ability to earn your crypto by simply depositing on their platform. Automated and easy process. Your original deposit remains in place while you earn interest.
  • Drawbacks: Your coins will be in the custody of a third party.  Although some of these platforms use reliable custodians, that itself does not guarantee the safety of the funds.

Examples

Celsius Network logo

We like Celsius Network because it is backed by Alex Mashinsky who is on a mission to change the current financial system. He is a successful entrepreneur with a deep knowledge of how Wall Street works, and he brings this knowledge to Celsius Network. Interest rates range from 2.5% to 10%.

Demand and supply determine price.  Staking exploits this basic economic premise.  In simple terms, staking is the process of holding on to the cryptocurrency you own, and keeping it in a wallet for the company to verify that you do indeed hold the asset. 

  • How does it work?:  Once you have bought the cryptocurrency, you have to follow the instructions provided by the specific project. For example, some projects require you to hold your cryptocurrency in a specific wallet, like MyEtherWallet. Exchanges such as Binance and KuCoin have been pretty good at helping their customers stake the coins straight from the wallets on the exchange (Warning: We do not recommend that you hold your assets on any exchange; when you hold a crypto asset on an exchange, you do not own it and consequently, it can be stolen during an exchange hack).
  • Benefits:  Staking does not need investors to have technical knowledge, just enough computer literacy to follow the simple instructions.
  • Drawbacks: Traders swear that staking does not fetch as much profit as trading does.  Also, while you may be receiving dividends for holding the crypto asset, given how volatile the markets are, the actual value of your asset may continue to drop and your dividends may not be worth much.

Examples

  • PundiX LogoNPXS: This staking program enables you to keep your NPXS tokens on MyEtherWallet (or supporting exchanges) and they verify the proof of your ownership each month by taking a snapshot (snapshot in this context involves screening the blockchain itself to confirm the wallet addresses that hold NPXS on a given date); the addresses that hold tokens on the day that the snapshot is taken will be rewarded with a pre-set percentage of NPXS tokens.

 

  • Kucoin logoKuCoin: KuCoin is an exchange that shares the profits from its trading platform with those who hold KuCoin Shares (KCS). Dividends are distributed at the end of each day. KCS must to be held on the KuCoin exchange itself.

 

  • Neo logoNEO: All holders of NEO receive a dividend in the form of GAS, a native currency on the NEO platform. GAS is required to be paid as ‘fees’ for any services on the NEO platform. NEO in turn pays the gas earned on the network to those who hold NEO in their wallets.

 

  • Trading

Many describe the cryptocurrency market as “a speculators wildest dream”. In which market can you find an asset that rises and falls in double digit percentages,and yet increases 100% in value over the course of a year? Hard to fathom, but bitcoin did precisely that in the past year.

  • How does it work?:  You can open an account with Coinbase and start trading, that is, buying and selling crypto assets.
  • Benefits:  Volatility in the cryptocurrency market means that it has a great upside for people with trading experience.  Sometimes the volatility may cause people to lose large sums of money, however, those who are able to play the volatility have gained significantly.
  • Drawbacks: Not for people with lack of knowledge on how markets work and how to trade.

Examples

  • Trading, for the experienced
    • coinbase logoCoinbase: Coinbase is quite popular among the American audiences. They have a limited number of crypto assets listed, however, most of these projects go through a stringent background analysis, which means that most of them have potential.
    • binance logoBinance: Relatively new exchange that has quickly risen in popularity. Binance lists a lot more assets than Coinbase. However, they are going to shut down trading for Americans from September, 2019. If you are not American, you may be able to use the platform to trade.
  • Copying other traders, for the not-so-experienced
    • etoro logoeToro: eToro offers a feature the allows its customers to copy the trades of their more experienced (and hopefully profitable) traders. This means you can simply choose to follow other veteran traders and get in on the action with them.
  • Investing

Investing in Cryptocurrency

Many people in the crypto space swear by bitcoin. Why not? Even in this volatile market, bitcoin has spiked 100% from its prices of last year. It is only 55% of the value of its all-time high. So,if you bought all of your bitcoin at the peak of $20,000, you would still be underwater. However, if you continued to buy bitcoin at set intervals without paying attention to the price, then your dollar cost averaging would have kept you afloat. At least, that is the theory of those that keep buying a small amount of bitcoin each month.

  • How does it work?: The process is simple, you buy your digital assets from one of the known exchanges, like Coinbase.
  • Benefits: According to one theory, right now, only about 1% of 1% of the world’s population, with access to internet, is invested in cryptocurrency (specifically, bitcoin). If the blockchain becomes the norm in the next decade, and let’s say it captures 10% of the total internet user market, the potential upside is huge (Warning: not a financial advice).
  • Drawbacks: The volatility of this market is the major drawback. No one knows which crypto project will become successful and which will bite the dust. There are over 2,000 projects,which can make selection somewhat overwhelming. The digital assets listed on Coinbase are usually regarded as a good start because of the vetting process they have. You can check our top five cryptocurrency picks that have long-term potential here.

Examples

  • HODLing: HODLing (short for “Hold On for Dear Life”) is the word that crypto lovers use to indicate that they are not going to sell their assets based on price action. They are in this space for the long-term, and short-term corrections do not bother them. For many investors in bitcoin, this strategy seems to have worked out so far.
  • IEO: Initial Exchange Offers are ways to invest in newer crypto projects through exchanges that offer these assets for the first time to their customers. These are similar to IPOs. but without complications and fewer barriers to enter.
  • STOs: A Security Token Offering is a method of investing in a project that aims to comply with securities laws. Investors in STOs may stand to gain dividends and price appreciation if the project succeeds.
  • ICOs: Initial Coin Offerings, although a dying breed within the crypto space, still exist. Most ICOs require participation using cryptocurrencies such as bitcoin or Ether. ICOs ruined the capital of many investors who thought they were catching the next bitcoin or Ethereum.

Investing in crypto is very risky. Thorough research is required before investing.

Mining Rig

We included mining further down the list of the token economy because it takes specialized equipment in many instances to participate. Nevertheless, there are many platforms that deliberately keep their mining protocols CPU friendly. One can also participate in mining pools, which combine the power of many computers onto a single platform to mine highly competitive coins (like bitcoin) and then distribute these to miners in the pool, based on the computing power they contributed. Mining pool operators take a small cut as fees.

This means that anyone with a decent computer can participate in the mining process.

    • How does it work?: You select a crypto an asset that you want to mine, and then confirm that you have the computing power required to participate.  The process includes downloading the wallet, syncing it with the network and allocating your computing power to the network to participate.  It’s that simple. If you are using a mining pool then you simply register and follow the instructions specific to the mining pool.
    • Benefits: If you participate early in a project that has potential, before the competition arrives, you could (in theory) make a decent profit from mining. Catching these projects early, before other miners enter with a lot more computer power, is somewhat of a challenge. 
    • Drawbacks: You can mine newer cryptocurrencies that have lower computing power requirements, however, they may not be successful enough for you to be able to sell it in the market. Also, be aware of the energy costs; you have to ensure that your revenue exceeds your costs.

Environment: Some mining operations can create massive amounts of heat.

Examples of mining pools:

  • Antpool and Slushpool are popular mining pools. As stated before, you have to ensure that your electricity costs are not higher than the rewards you get from either mining coins yourself or through pools.
  • Creating your own cryptocurrency

create your own cryptocurrency

If you have an amazing idea that you believe will revolutionize the decentralized token economy, you can create your own cryptocurrency. Build the platform, and invite people to test your platform by offering (we will talk about airdrops next) your tokens to them to test the platform. For instance, let’s say you created 2 billion tokens and give out 500 million tokens for free with an airdrop or bounty program, or as a reward for people to perform certain actions.

Let’s say, people like your idea and you see traction on your platform. Now, you can pay fees to a reputable exchange to list your token. If your idea is viable and has a decent following, there is a good chance that your tokens will be worth something. As an example of this, let’s say you have spent $100,000 on creating the platform, website and a listing on the exchange. After listing the tokens, let’s say they are worth 1/10th of a cent; that is, you could get 10 tokens for a cent. This may sound like nothing, but the 1.5 billion tokens you kept for yourself are now worth $15 million!

You have just created $15 million worth of capital from a mere $100,000 total investment. Some tokens were created without that initial capital. DogeCoin is a classic example, which was created to mock the Initial Coin Offering (ICO) frenzy and madness around cryptos that were sprouting everywhere. The irony is that DogeCoin itself has a market cap of $386 million dollars as of today (July 1, 2019).

Instead of just giving out tokens for free, you can pitch your idea to initial investors (VC and retail), and sell the tokens to them at very low price. This is the idea behind ICOs. When you sell the tokens that you created on the blockchain through a crypto exchange directly, it is called an Initial Exchange Offering (IEO).

If you issue the tokens with a promise of paying out dividends in the future, and in compliance with securities laws, then you are issuing security tokens through a process called Security Tokens Offering (STOs).

  • How does it work?: If you have a background in basic computer programming, you could code your own cryptocurrency on top of an existing blockchain, like a bitcoin blockchain or Ethereum blockchain. If you do not have any technical background, then you can use platforms that can help you create your own custom tokens in minutes.
  • BenefitsIf your idea is really viable and you have the know-how to pull it off, you may be able to raise the capital you need without begging for VC funding, at least, that was the concept behind ICOs before the scammers swarmed in and scammed people out of their hard-earned money. This method is still in use, however, you have to have a great product, a team and a problem that needs a blockchain solution.
  • Drawbacks: Creating your own tokens is easy, but getting people to accept and use it might be an uphill battle in this day and age.

Examples:

  • Assetplatform or Coinpress [no affiliations, please do your due diligence] help you to create your own cryptocurrency in minutes.
  • Airdrops

AirdropsWhen a company creates it’s own token, it needs people to know about it and start using it on their platform, to create traction for their project. What most projects do is start a website, create an explainer video, and tell people why their project may have a shot at solving an issue that needs a blockchain. Since people are not going to spend money to test your platform, companies give out free tokens for people to test out the platform. Think of these tokens as ‘free samples’ that companies give out when they launch a product.

These free tokens could be given out to everyone who owns tokens of a certain platform (bitcoin, for example). Since people do not have to do anything to get these free tokens, it is called an airdrop. Some airdrops may require people to be registered to receive the free tokens ahead of the launch. This is intended to create awareness of their project within the crypto community.

Stellar ran one of the biggest campaigns in history by giving away $125 million worth of Stellar Lumens.

airdrops list

We have a full article on top websites that keep track of all airdrops. You can check it out here.

  • Bounties

Companies may reward tokens to people who perform certain actions, like tweeting, commenting, registering, subscribing, sharing on Facebook, liking, etc. There are bounties of all sorts. Some bounties require that you contribute to the coding, while others may require that you write a review or an article.

  • How does it work?Find the projects that are giving out bounties (see examples below as to where to find these projects); perform the simple tasks and get rewarded.
  • Benefits: Relatively simple tasks to perform. Some of these projects may potentially become something substantial. This is an easy way to get free tokens without investment.
  • Drawbacks: These bounties may sometimes be worth only a few cents, or less. So, you have to decide whether or not it is worth your time.

Examples

  • Bitcointalk is the best platform to find all the bounties offered by various projects. This forum makes it a lot easier to keep track of the many projects that provide instructions on how to take part in their bounty programs.
  • Faucets

There are sites that give away free tokens, including bitcoin, for just logging in at certain intervals or for just signing up. These are called faucets. Although this sounds like a scam, some legitimate faucet sites do exist.

  • How does it work? You sign up at various faucet sites and perform the simple actions prompted. You receive a micro payout each time you perform the action.
  • Benefits: An easy, non-technical and cost-freeway to earn your free tokens.
  • Drawback: These micro-payouts are really micro. Unless you accumulate a substantial amount through faucets, it may not be worth your time.

Examples:

  • Cointiply: This faucet pays you for rolling a dice on the site, or watching videos, or playing games, etc.
  • Bonus Bitcoin: This is another faucet that gives away free satoshis (units of bitcoin) simply for claiming (hitting claim button) every 15 minutes. There are other ways to earn bitcoin satoshis on this faucet.

 

Bitcoin ATMWhile cryptocurrencies, as a whole, are still lagging in terms of mainstream acceptance, bitcoin and Ethereum are slowly becoming household names, especially bitcoin. This means there is a growing demand from people who want to put some small change into bitcoin. There is also a small group of people who hold bitcoins,and who want to cash out to fiat for their immediate needs.

Both these groups present an opportunity for a bitcoin ATM, which can help people buy and/or sell bitcoin and other popular cryptocurrencies. Just like traditional ATMs, the host of these machines gets to earn a commission each time a transaction happens.

  • How does it work: The process is similar to starting a new privately-owned ATM service, however, it is important to ensure that bitcoin and cryptocurrency sale is permitted in the jurisdiction you want to operate in. Once you confirm that it is legally okay to proceed, you check the various vendors that provide bitcoin ATMs and pick a machine that meets your budget, fees and space specifications.
  • Benefits: Relatively new opportunity and if you find a place with good traffic (like a banking district or shopping mall or places where people come to spend money) it could fetch some decent returns. Of course, you have to perform your cost-benefit analysis and consult a professional if this business is right for you.
  • Drawbacks:The majority of people who are interested in cryptocurrencies are well-versed with online buying and selling options. There is a growing interest among the general populace that want to at least buy a small fraction. This is the limited target audience, however, it is growing in size every day. Also, the need for bitcoin ATM’s could be solved with a simple app payment option once those become more widely used.

Examples

General Bytes: There are now a few players in the market that offer one-way (where you can only buy or sell), two-way (buy and sell) and point of sale machines. General Bytes offers various options for people interested in owning bitcoin ATM.

  • Earn by playing games that pay out cryptocurrency

crypto gambling

What can be better than having fun playing video games? What about earning free crypto? There are surprisingly innovative games that pay out crypto.

DigiByte was working on rewarding players of popular games like Counter-Strike, League of Legends, etc. At the time of this writing, clear information is quite lacking on how to earn DigiByte while playing those popular games.

  • How does it work? Most crypto gaming platforms will reward you for performing certain tasks, or reaching a certain level. When you unlock a level, you will receive a crypto reward.
  • Benefits: Turning what you already love doing into making some extra dough on the side is not a bad thing at all. You do not spend any extra energy to mine the crypto, instead you simply get paid crypto for playing games.
  • Drawbacks: Most of these crypto gaming platforms are not popular. What you earn playing these games may be very small in value, and sometimes could go bust before you cash it out.

Examples

  • Storm Play: We tested this platform for the purpose of this article. You can earn crypto in two ways. One way is to complete micro tasks, like taking a survey. We took a survey that required two minutes and resulted in 45K bolts (translates to about 15 cents). Not bad if you are doing this once in a while during down times. You will need to earn 200K bolts before you can withdraw. They also have a referral system to invite friends. If you would like to, you can use our referral code (ZFWRKUUF) which will fetch you 6000 free bolts.

storm play app

  • Gambling, although we don’t commend it

There are platforms that specifically let you gamble over the internet. The rewards are paid out in cryptocurrencies (like bitcoin) and most do not require your ID, although they may also be the ones that could run off with your funds one day.

  • How does it work? You create an account on the crypto gambling platform, and transfer cryptocurrency to your assigned wallet address within your account on the platform. Once your cryptocurrency is deposited, you can start placing bets online.
  • Benefits: Provides an anonymous gambling experience. Most payouts are instant. Some platforms may offer sports betting as well.
  • Drawbacks: Gambling, especially online gambling, could be considered illegal in many jurisdictions. Most of these online crypto gambling sites operate out of jurisdictions with zero to none investor protection protocols, which means, if you lose your funds, there may be no recourse available.

Examples

Wagerr: This platform offers lotto and sports betting opportunities.

What is Wagerr?

What is Wagerr? & How does it work?

Fortunejack: One of the leading places to play bitcoin video casino games online.

  • Taking Salaries in cryptocurrency

Salaries in Cryptocurrency

You may be surprised, but some companies are already forward thinking, and are offering their employees salary payment in crypto. Some blockchain companies even grant their employees stock options in crypto with similar guidelines as regular stock.

If you happen to work for a company that gives you an option to participate in tokenomics, you should look into it.

We discussed the intricacies of tokenomics in this elaborate article.

 

  • Taking payments in cryptocurrencyaccepting bitcoin

You can start accepting cryptocurrency in your business. You can simply start by accepting bitcoin or Ethereum, if you want to remain with mainstream crypto, or you can start accepting other cryptos that you believe in.

  • How does it work? You can start by using PoS machines that accept cryptocurrencies. Alternatively, you can provide your own personal wallet for people to scan and send you money. PoS machines will help you verify the transfers quite easily, while personal wallets may take more time, unless, you use cryptocurrencies like ICON. Bitcoin, with its lightning network, should make transfers fast to verify.
  • Benefits: There is a potential that the bitcoin or Ethereum that you accept for your services could increase in value. Since not many customers will pay using crypto, you could save up these crypto as an investment to hedge against mainstream vehicles.
  • Drawbacks: Cryptos may be difficult to liquidate. There may be restrictions in many jurisdictions and volatility is another factor that needs to be taken into account.

Example:  

PundiX (NPXS): PundiX is a manufacturer of point of sale (PoS) machines that accept cryptocurrency in place of fiat.

Pundi X in coffee shop

Pundi X – Making cryptocurrency accessible to everyone

More and more businesses across the world are using Pundi X solution to harness the power of blockchain technology. We have been deploying our blockchain-based point-of-sale (POS) solution and solidifying partnerships with governments, payment companies, and retailers. Together, we will achieve fast-paced growth. There are many reasons why people are now turning to digital currency.

  • Simply use crypto services to receive a piece of the pie

Ever wanted to take back control of your data, but did not know how? Or, wished your data received more than a like or a thumbs up?

You can start using some of the blockchain-crypto services to digitize your identity and start taking back controlof your data. Eventually, when more people start demanding better control and monetization of their private data, these platformswillwork better.

  • How does it work? You sign up with the blockchain service provider to create a digital identity that is unique to you, which sits on a blockchain without compromising your personal data. Once the ID is created, it is then tagged to your online footprint. Whenever an advertiser comes to pitch an idea to you based on your online footprint – the blockchain ID will act as the gatekeeper. Only those that are ready to work with the customer, in terms of usage of data, are allowed to see your footprint, and in the process, securing you a bigger chunk of the pie.
  • Benefits: This is an effective way to stop the exploitation by tech giants like Facebook, Google etc. from benefiting from user data and details of their social activity, without ever compensating those who create the data.
  • Drawbacks: All crypto services are in a relatively new phase. It will take a while for them to build the traction they need to go after the entire activity on the internet.

Examples:

hu-manity logoHu-manity.co: Richie Etwaru, CEO of Hu-manity.co, is very passionate about fighting for individual data privacy rights. He wants to eventually get the same rights to your private data as an actual property. His team has built an app for you to start participating in this fight. All you have to do is sign up on the app, and follow the steps; Hu-manity’s team will then go out and act as your private data gatekeepers. Based on your permission settings – anyone utilizing your data will reward you for the privilege. Check our exclusive interview with Richie to learn more.

imagine bc logoImagine BC: While Hu-manity wants to create digital property rights for your online identity, Imagine BC wants to create a platform where you receive rewards for all of your online activities. If and when this is realized, Imagine BC could drastically shift the way we view our private data and the content we create, we create and how we should be rewarded. Imagine BC will open doors to public registration shortly. You can see the exclusive interview here.

Resources:  Here are few resources for your reference.

Mining: Here are the places where you can find the latest projects that are available for mining:  Bitcointalk | Bitcoingarden | Reddit Channel | Bitcoin Forum

Airdrops: Check this article for details.

News: Stay up-to-date on the crypto market updates: Bitcoinz.news | CryptoZombie (YouTube) | Coindesk

Disclosure:  We have included referral links, wherever feasible, in this article.  You do not have to use them if you do not want to. Use of referral links does not mean endorsement or guarantee.

Thank you for reading the article.
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We do not endorse or guarantee the accuracy of the information and claims made.

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About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

RK Reddy is an ardent fan of Blockchain and Cryptocurrencies. You can see the excitement about this new blockchain technology in every article on Cryptotapas.com. Sometimes this excitement leads to an overly optimistic view. Guilty as charged. RK Reddy says what may seem like an ‘overly optimistic expectation’ today may become an everyday norm in 5-10 years; look at the history of cars or airplanes, Blockchain and Cryptocurrencies belong to a similar frame of reference.”  Of course, that is just his opinion.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.


CryptoSpace

V-ID is bringing real world use case to Blockchain, can it succeed?

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Vidt Token review

VIDT Review, use cases, future prediction

What follows is the byproduct of our research on whether or not V-ID is a good project.  

We have a tendency to FOMO, so read everything with a grain of salt and always DYOR.

What is V-ID?

Anything digital can be altered. How then can you be confident about the authenticity of the digital files you are dealing with?

“V-ID is a blockchain powered document certification service. The VIDT API enables organisations to certify and secure their digital data against fraud and manipulation.”

You can tag digital files using V-ID and anyone around the world can verify its authenticity by simply using V-IDs free checker.

If any information is changed within the file, V-ID flags it.

This technology has an immediate use case in the real world to fight digital frauds. Especially in dealing with:

  • Invoices
  • Scientific papers
  • Contracts
  • Official documents
  • Diplomas/certificates
  • Data from Internet of Things

Watch this quick video to learn about V-ID.

Introduction to VIDT V-ID Blockchain Powered Validation

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

Take a simple example of purported crypto ‘recommendation reports’ that float on the internet. How do you know they are what subscribers were given?

How can you be sure that the document is not manipulated by someone to ‘alter the buy up to and sell at’ prices?

In this simple situation, using V-ID, one could verify the authenticity of the document.

In a world of Deep Fakes, a solution like V-ID can be a lifesaver.

How big is the problem that V-ID solves? 

According to the Javelin Strategy report, Identity fraud cost $16.8 Billion dollars in 2019 alone.  

Obviously this includes credit card and account takeover frauds. However, when a solution like V-ID becomes integrated, there is an opportunity to curb these identity thefts as well.

Fraud Detection and Prevention which was valued at $17.33 billion is expected to grow at an 18% (CAGR) rate from 2019 to 2025.

The more diverse our technology becomes with the advent of Internet of Things, Artificial Intelligence, Cloud Computing, Augmented Reality and reliance on smart mobile devices, the more we grow vulnerable to fraud.

In our opinion, the fraud space is only going to grow bigger and faster.  

V-ID has an opportunity to place itself as a reliable solution by leveraging the blockchain’s resilience.

VIDT Technology

Source: V-ID

Using V-ID

Any solution’s success will depend on its ‘ease-of-use’. We tested the V-ID ‘certification’ to get a taste of the platform.

When we scanned the QR code of the document, it took us straight to the document where we could easily verify that it was indeed ‘authentic’.

The ease at which you can verify someone’s credentials, certifications, diplomas, etc., is simply awesome.

Users can verify the authenticity of other documents through their free online checker. Obviously, the company has to be signed up with V-ID for the documents to be ‘stamped’ on blockchain.

V-ID promises verification in 5 seconds.  Here is a video that shows how the verification works.

VIDT V-ID verification live demo

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

All in all, the concept behind V-ID is quite simple and easy to use.  

This ease of use accompanied by an amazing use case is what forms the basis for blockchain’s adoption.  The tool makes you forget about the blockchain altogether.

Does V-ID need Blockchain?

Yes. We think V-ID has a blockchain use case.

When it comes to providing a hack-resistant environment and resiliency to the underlying system, blockchain really shines.

The V-ID makes use of blockchain the backend without inundating the end users with the intricacies of ‘how blockchain works’ is quite admirable.

“Currently V-ID offers anchoring in Ethereum, Bitcoin, IBM Hyperledger, Fantom, LTO Network, Digibyte and Binance Chain.” 

For V-ID, in our opinion, Blockchain is not just a fancy jargon to allure people to the project but rather it is a smart technology choice to meet the business objectives.

Team

Vidt Team

Source: VIDT

Marnix van den Berg, Founder & CEO, has over 17 years of experience.  He is supported by 3 other Founders on the project.

Pim Voets is the Founder and Lead Concept Design, Ceciel van Helden is the Founder and Lead Programmer, Wico van Helden is one of the Founder.  

The teams section of the website shows about 9 team members and 6 advisors, including Chris Robinson, Ex-CTO of American Express.  

Just between the 4 founding members have a combined experience of over 70 years. Wico van Helden has hands-on experience in taking a company IPO.

Progress, Case-studies and traction

V-ID has been associated with many brands.  They showcase few case studies on their website:

VIDT Case study

AMSPEC is using the V-ID technology to verify the authenticity of their inspection reports

How AmSpec protects data integrity with V-ID

Amspec has started to utilise V-ID blockchain validation technology to protect the authenticity of their inspection reports. This means that recipients of a …

V-ID made history by bringing 17th Century Rembrandt to the blockchain.  This verification was made possible with CMS Law acting as notary, collaboration with Duowes Fine Arts and V-ID.  

VIDT Rembrandt on chain – V-ID collaboration with Douwes Fine Art and CMS

For the first time, V-ID’s validation platform, known for securing digital files against manipulation, extends its activities into the physical world, by val…

V-ID is bringing certificates and diplomas onto the blockchain.  To this end V-ID has collaborated with NYENRODE and HBO Drechtsteden.

V-ID successfully installed the first IBM Watson-connected IOE sensor with V-ID data anchoring.  

IBM & V-ID install first IoE sensor on IBM NL headquarters’ roof

www.internetofenvironments.org

V-ID partners with Caltrix Consultancy to offer a tailored solution for any financial organisation to comply with KYC/AML challenges. 

LTO Network and V-ID entered into a partnership by rolling out an immediately applicable, GDPR-compliant blockchain solution for companies and governments. 

This alliance allows for any party to verify the authenticity of the diamond using the certificate, and the authenticity of the certificate using the V-ID service.

The brands with which V-ID has worked with and the diversity of the projects they have been involved in bring a lot of confidence in this project, in our opinion.

Price – Revenue Model

Companies need cash flow to sustain and grow. It is important to have a revenue plan for the company to thrive.

V-ID offers 3 different pricing options that you can see below.

VIDT Price chart

Euro 2 per file may seem like a big deal but companies have the option to use the verification only for sensitive documents.

For example, on invoices or contracts, to ensure authenticity.  

Challenges to consider

Icon Latest UpdatesOne of our favorite projects, ICON, also rolled out the Broof concept which helps organizations verify certification.

Blockchain projects, like ICON, with existing capabilities could potentially ‘extend’ their solutions in the verification arena.  This could pose stiff competition.

The verification problem is so big that it can accommodate more than one player, however, the more players you have the more it dilutes the upside potential.

What Blockchain identity verification will not solve!

Demand for counterfeits

When all is said and done, counterfeits exist because they have market demand.  Without demand a product doesn’t sustain long.

There are millions of people who want to experience luxury on budget, by choice or because of lack of choice.

The projects like V-ID cannot solve the counterfeit market for those who specifically seek them out.  

However, the project does solve the ‘authenticity assurance’ demand for people who are paying the full price for the genuine product.

Market for ‘copies’

Digital products have an amazing advantage which is its major flaw and that is: it can be replicated without much effort.

If someone is deliberately seeking out for a pirated copy of something, there is so little you can do.

VIDT, Coinmarketcap and where to buy and sell?

V-ID Blockchain has its own native crypto with ticker symbol: VIDT.

We have to specify this because there is another project on coinmarketcap with VID symbol and we had few folks who seemed to be confused.

At the time of this writing, VIDT was ranked at 224.

At this time, you can buy and sell VIDT at KuCoin.

In conclusion

Blockchain finds a great ‘real-life’ business use case in V-ID.  

The association of the project, even if indirectly, with big brands like IBM, AirBus and more is just a testament to the viability of this solution.

While it may be possible for other projects to try and emulate the V-ID solution, the focus and dedication of the V-ID team could put up a mighty fight, in our opinion.

Ultimately, the problem of fraud is quite big and could easily accommodate success of multiple players.

In the end, we are coming to the same opinion about V-ID that Chris Robinson, ex-CTO of American Express, did and that is “V-ID is a rare combination of 3 things — A great idea in a large and almost green space market. A company with a proven track record and real-world customers. And, finally, an exceptionally high quality team and advisors.

Thank you for reading and sharing this article. Stay safe and healthy!

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Crypto News Today #43

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Cryptocurrency Weekly News

What a week for the crypto bulls to come out!

Bitcoin performed exceptionally well and all the hibernating Crypto bulls spewed their predictions all over the internet.  

The hype frenzy was quite unreal and we are worried about the newbies that might buy into the hype and get in at the peak.

While most hypers were hibernating, we are keeping our calm and tracking the crypto space for the past 4 years.

If you want to see all that contributed (and continues to contribute) to the Blockchain, Bitcoin and crypto adoption – you just have to see the most important news since 2017.

In the spirit of continuing the tradition of keeping up with what matters, let’s dive into this week’s digest!

Brave and Guardian bring Firewall and VPN to iOS

brave-logoBrave Privacy browser that supports the Basic Attention Token (BAT) has partnered with Guardian to bring Firewall and VPN capabilities to the Brave Browser on iOS platform. In an announcement, Brave team disclosed that “with this partnership, the companies are integrating their technologies to enable the fastest, safest, most private Web browsing experience. Brave now offers Brave Firewall + VPN, available for download from the App Store. This partnership allows people to take back control of their own data, browse the Web, and use their apps more safely and securely.”

Ledger market data breach

Ledger Nano S reviewUnauthorized third party access using an API Key has compromised the contact and order details at Ledger.  A total of 1 Million email addresses might have been compromised. According to the official statement “Contact and order details were involved. This is mostly the email address of our customers, approximately 1M addresses. Further to investigating the situation we have also been able to establish that, for a subset of 9500 customers were also exposed, such as first and last name, postal address, phone number or ordered products. Due to the scope of this breach and our commitment to our customers, we have decided to inform all of our customers about this situation.”

Coinbase explores [more] new digital Assets

coinbase best exchangeCoinbase is exploring more digital assets to add to their platform.  These 19 digital assets include, as per the official post,  Ampleforth, Band Protocol, Balancer, Blockstack, Curve, Fetch.ai, Flexacoin, Helium, Hedera Hashgraph, Kava, Melon, Ocean Protocol, Paxos Gold, Reserve Rights, tBTC, The Graph, THETA, UMA, and WBTC. Obviously, there is no guarantee that all of these tokens are going to be added but it is quite interesting to see some of the good projects making the list.

Putin signs Crypto bill into law

Russia just passed a bill that will allow the companies in Russia to issue digital assets as long as they seek and procure approval from the Bank of Russia.  According to Reuters (translated) “They can be an object of collateral, purchase and sale transactions, exchange of one type of digital asset for another. At the same time, CFAs are not and are not recognized as a means of payment.”

SEC Wants to Start Scrutinizing Binance Chain Transactions

sec crypto regulations“The Contracting Officer has determined that CipherTrace Inc., is the only source that can reasonably meet the SEC’s requirement […].  CipherTrace products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.,” read the official statement issued by the SEC.  This makes it clear that the transactions that people have conducted on Binance assuming they are ‘immune’ from the US government’s scrutiny are going to be surprised by what follows.

Cardano mainnet launched

cardano staking newsCardano has successfully launched its mainnet and introduced its ‘Staking’ phase ‘Shelley’. The entire crypto community has been eagerly waiting for the launch and has received the upgrade quite positively with Cardano (ADA) price coasting at 13 cents. Generally, when the community is not happy with the upgrades and mainnet launch, it tends to show in the negative price action. The stabilizing price movement indicates that the Cardano community has welcomed the mainnet launch.

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

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We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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What Are Smart Cities and the Role of Blockchain In Smart Cities?

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What Are Smart Cities and the Role of Blockchain In Smart Cities?

IT experts have designed smart cities to develop, deploy, and promote sustainable development practices.

Now, what are smart cities? 

A smart city is a framework mostly composed of Information and Communication Technologies or ICT to address growing urbanization challenges.

A considerable part of a smart city framework or an ICT framework is that it consists of an intelligent network of connected objects and machines. 

These machines transmit information through cloud applications and with the use of wireless technology. 

Cloud-based IoT applications receive, analyze, and manage all this data in real-time, which helps municipalities, enterprises, and citizens make better decisions. 

The use of smart phones and connected cars and homes citizens engage with smart city ecosystems. 

A way to cut costs and improve sustainability is to pair devices with the city’s physical infrastructure and services. 

With the help of a smart city framework, we can find solutions to many community problems. For instance: 

  • Traffic lights connected to cloud-based applications can receive data from sensors and cars. In return, light cadence and timing in response to real-time traffic can improve, which reduces road congestion
  • Parking meters and electric vehicles charging docks can communicate with cars to find the nearest available spot
  • With the help of smart garbage cans synced to waste management companies, garbage is collected and scheduled to be picked up when needed instead of the pre-planned schedule
  • Instead of plastic cards for driver’s licenses and ID cards, citizen’s smart phones take their place. In return, access to the city and local government services are speed-up and simplified

Together, smart city frameworks help in optimizing infrastructure, public service, utilities, and mobility.

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Why Are Smart Cities Being Built?

Urbanization is a problem faced by every country all over the world. 

According to statistics, 54% of the total population of the world lives in cities. The number is estimated to reach 66% by 2050. 

Over the next three decades, urbanization will make another 2.5 billion people migrate to cities, and to keep up with this rapid expansion, environmental, economic, and social sustainability is a must. 

Smart cities can provide such a framework to rely on.

Examples of smart cities  

AMSTERDAM SMART CITY:

A shining example of a well-connected smart city would be Amsterdam. The initiative of making Amsterdam a smart city began in 2009, and it includes over 170 projects. 

It sends traffic and transportation data to related parties such as developers who create mapping apps connected to the city’s transportation system. 

Due to this, navigating the city is simple and easy. The smart city infrastructure supports a floating village of houses, which helps with urbanization with a sustainable and eco-friendly alternative.

COPENHAGEN SMART CITY:

One of the smallest cities in the world, Copenhagen, is known worldwide for its mobilizing expertise. 

In collaboration with MIT, Copenhagen is leveraging open data to build an innovative bike system. 

Real-time data is shared to monitor and manage air quality as well as traffic congestion.

How Do Smart Cities Become Successful?

Along with people, dwellings, businesses, and traditional urban infrastructure, we will need four other essential elements to enable smart cities to succeed. The four elements are:

  •     Security that can be trusted
  •     Flexible monetization schemes
  •     Open information
  •     Extensive wireless connectivity

Risks   

Probably the most significant concern about smart cities is the danger of privacy breaches. 

Governments, businesses, and individuals spend millions of dollars on preventing leakage of data to outsiders, and as little as possible is shared. 

The key enabler of sustainability in smart cities would be the complex ecosystem that shares information and combines it in real-time. 

Only with the cooperation of multiple sectors can better and sustainable outcomes be achieved and to receive real-time contextual information, while making sure data is kept secured. 

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Role of Blockchain in Smart Cities

blockchainThe role of smart cities is to incorporate technology as the groundwork to take the edge off the problems that plague the current system. 

Examples of current smart city capabilities are universal identification (ID), green energy, water, pollution management, forms of transportation, wireless internet systems, and promotion of local businesses, to name a few. 

The ‘Internet of Things’ serves the current technology needs of smart cities; this term is used to define the integrated network of gadgets with planted exclusive identifiers. Examples include traffic management and e-commerce. 

A traffic management program called SCOOT improves green light time at intersections by providing inductive loop and magnetometer data to a supercomputer, in London, coordinating the traffic lights to enhance the traffic across the city. 

An astounding forty-seven thousand new jobs in Barcelona were created due to the implementation of a network of fiber optics that provides free and fast Wi-Fi, which supports the IoT and the integration of smart parking, lighting, and water management. 

In Amsterdam, the IoT-based infrastructure was tested by allowing traffic flow, public safety, and energy usage to be monitored and tweaked depending on real-time data. Moreover, cities like Baltimore and Boston have introduced smart trash cans that transfer information to determine the best pickup route for garbage disposal crew. 

India was the pioneer country to successfully enact a smart city project across 12 of its cities, in the year 2015. 

All of the above examples demonstrate the reliance on IoT infrastructure and blockchain can make IoT become more resilient and efficient.  

It is evident that Blockchain gives the groundwork for the management of transactions by providing security and transparency. 

Today many smart cities have a large scale Blockchain implementation or distributed ledger technology. 

By the next year, Dubai is aiming to become the first Blockchain-powered smart city in the world.

Since 2012, Estonia has used distributed ledger technology to keep records of its citizens. 

Companies like Hancom are the emerging suppliers of services and products related to IoT hardware for smart city development. 

The Hancom group will incorporate Blockchain technology to set up a 470-acre smart city development project in Gapyeong Malang Malang, as the basis for smart city development. 

This company also developed the 30-acre Augury Square in Atlanta, which will incorporate the use of cryptocurrency, pushing forward the usage of digital currency into the daily lives of its inhabitants. 

Information collected and kept in a cloud-based framework can be encoded by a Blockchain system to ensure the security of data in a smart city. 

Blockchain can be used for identification, for proof of citizenship, tax data, voting, to name a few. 

The elimination of paperwork in such a system helps to manage and reduce pollution in smart cities. 

Other services that can incorporate Blockchain in smart cities are: 

  •     Use of internet sensors to identify general repairs and road maintenance
  •     They connect to healthcare services for emergencies
  •     They are providing first responders with pertinent medical data
  •     Connection of residential utilities and rent to the Blockchain

Blockchain provides the framework to unite the services in a single system capable of tracking, security, immutability, transparency and above all SECURITY.

Thank you for reading and sharing this article. Stay safe and healthy!

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We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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