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Blockchain technology can change the world, and not just via crypto

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Blockchain technology can change the world, and not just via crypto

Over the last three or four years, blockchain adoption has expanded tremendously, and each industry is exploring different use cases for the technology. There are multiple aspects of blockchain — from business to technical and more — but with the way the industry is exploding, it’s really hard to get it right.

It’s best to divide the blockchain topic into two main buckets in order to understand the development of the ecosystem and the key benefits and innovations it provides. One is cryptocurrency, where we cover industries like financial services, insurance and capital markets, including deals via private equity and venture capital. Then we look into the enterprise world, which is about how we apply blockchain as a technology in different industries.

Enterprise blockchain

Last year, we published our “Time for Trust” report, which covers the top five use cases for blockchain technology: provenance, payments and financial instruments, identity, contracts and dispute resolution, and customer engagement. These use cases will have a significant impact on the GDP of a country and the global economy.

The number-one use case is traceability, or provenance. In the future, with the decentralized technological revolution and evolution, you will need to understand and provide full transparency for your consumers. For example, if you are buying medicine for cancer, which is very high priced, you will need to know that it’s authentic, not fake. And this is where we have a technological solution that is enabled by blockchain technology. It is the same with buying haute couture expensive clothes, cars, etc. Consumers who are paying a lot of money must be sure that they are buying authentic items, which is why those supply chains could constitute a killer use case for blockchain — especially in the next decade.

The second use case is around peer-to-peer trading. But how does P2P trading make sense within the supply chain? It is around the logistics market. Say, for example, a company wants to send a container from Amsterdam to Australia. It needs to go to a transport company, which will move a container onto a ship, and then actually it goes ahead. There are also transport providers on the other side of the trade, and they do the same. They unload the container and make sure that it is shipped to the importer. But what if you had a marketplace or platform where you could see how many ships are traveling in the next day or next hour? And if there is a space available, you could directly, yourself, place the container that you want to ship out, meaning that you don’t need a middleman. This is what the future looks like with this kind of decentralized technology.

And then the third — and the last bucket — is around document sharing. How can you store all your bills of lading, letters of credit and certificates in a digitized manner? At the moment, you can do it with a cloud solution, but it’s easy to hack a PDF. And there have been cases where transport companies have faced millions and billions of dollars worth of fraud, forcing them to stick with paper documents because then they know that the paper is exact proof, and they have something tangible on their hands. But with blockchain, you can add a timestamp and completely track how a document is being generated, where it is coming from, who has opened it, who has edited it and who has altered it.

Related: Circling back to blockchain’s originally intended purpose: Timestamping

You can completely track that, and that’s also quite a lot of time. There have been many business cases already. For example, if you only put a bill of lading, just one document is saved on the blockchain. And it also saves a hundred dollars per container. So, you can multiply that by the number of containers shipped per day, and that’s already a business case worth billions. There is a huge potential in this use case. So, we see these three buckets in the supply chain.

A mixed feeling about blockchain

But now the question is: What is the status quo at the moment? There is a mixed feeling about this topic, first because blockchain technology itself is super complex — it’s not like the internet of things. With IoT, it’s: “Okay, this is my device, and this is now a digital version of it. This is what IoT does.”

But what does blockchain do? This is the technology behind the curtain. This is why people are having a difficult time understanding it — understanding that it is something like the internet protocol. You don’t really go into detail about what HTTP is doing and how it works, you just take your website and then do whatever you want to do. This is what we are talking about. This is really the topic.

The second thing is the lack of awareness and understanding of blockchain, which consists of five different aspects: immutability, encryption, distribution, tokenization and decentralization.

Related: Understanding the systemic shift from digitization to tokenization of financial services

Those are the five aspects, and the immutability, encryption and distribution provided by blockchain tech have been well established. What companies now need is to make a big jump toward decentralization and tokenization. It’s critical for businesses to understand the tokenization model and how they can incorporate it into their current business model. Moreover, companies need to truly understand the use of tokens — fungible, nonfungible and security tokens.

The only recommendation to companies is to have more and deeper education on this topic, to get into the details of how it relates to their business and what kind of problems it solves — rather than just exploring the technology on a surface.

What comes in the future, and what comes in the next year?

The first, foremost topic is about interoperability. The landscape in the last five years has exploded — literally exploded. If you look at how the internet has developed, we had VPNs in the nineties and then the bubble boom and the way the internet became popular. Today, some companies are still using VPNs, while others are using the internet, and you don’t really see the difference. And this is how we see private and public blockchains working together. So, there is no debate: Public blockchains will prevail, and private blockchains will prevail. And this interoperability topic is really in the market, but a tremendous amount of work needs to be done. This is what companies and solutions will be coming up with in the next five years.

The second topic is about how we integrate with other technologies, as blockchain is just a back-end technology — or a technology kind of behind the curtain. That’s why it’s super important. At the same time, it’s super strategic because it involves multiple companies, but it’s still a technology that is a backbone. And it’s not that just because you have blockchain, it solves everything in your company. So, I think companies need to understand how to integrate it as a form of digital transformation. What we need to do is examine how these technologies will integrate with the existing landscape. This is a major, major topic. Without it, nothing will work. It is indeed a topic that we need to address.

The third futuristic topic is one of my favorite topics. It’s around governance: blockchain governance, but also supply chain governance. This addresses the question of how we manage the supply chain stakeholders involved in the ecosystem. This too goes hand in hand and is something we also need to develop.

And the fourth topic is all around the business model because ultimately, companies forget that we need to make money out of it and also save money. Sometimes, blockchain solutions don’t fly because they’re not able to do that. Like, how do we enable paperless business models? And how do we make revenue out of it? If we are making revenue, how do we share that with our different partners?

I think these are the major topics that will be key in the development of the blockchain ecosystem in the next five years and will help blockchain to reach the next level. This tech will, step by step, reach the level of mass adoption, and incorporating it is a smart strategy that will allow companies to be front-runners in the digital economy and the future of the business world.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Husen Kapasi is the blockchain lead at PwC Europe (advisory), with a focus on enterprise blockchain. He leads the PwC Europe blockchain community, which consists of around 300 members across Europe, and drives topics of blockchain in supply chain across the PwC Global Network. He has been engaged in the blockchain space for five years, with previous experience in digital transformation consulting focusing on IoT. He has a wide range of experience in blockchain implementation across more than 10 industries. He supports clients starting from blockchain strategy through implementation and plays a key role in developing collaborative industry ecosystems as well as tech partnerships.

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BTC, ETH, XRP, ZEN, UNI, OMG, AXS — Technical Analysis Sept 28

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BTC, ETH, XRP, ZEN, UNI, OMG, AXS — Technical Analysis Sept 28

Bitcoin (BTC) was rejected by the $44,000 horizontal resistance area.

Ethereum (ETH) is following a descending resistance line and potentially trading inside a descending wedge.

XRP (XRP) is following a descending support line.

Horizen (ZEN) has broken down from an ascending support line.

Uniswap (UNI) has broken out from a descending wedge.

OMG Network (OMG) is following an ascending support line.

Axie Infinity (AXS) has broken out from a descending resistance line.

BTC

On Sept 27, BTC was rejected by the $44,000 resistance area and created a long upper wick (red icon). This is a bearish sign since the area had previously been acting as support, and the rejection now validates it as resistance.

Technical indicators in the daily time frame are bearish. Both the RSI and MACD are decreasing. The former is negative while the latter has just fallen below 50.

The next closest support area is found at $38,000.

ETH

ETH has been decreasing underneath a descending resistance line since Sept 3. Most recently, it was rejected by the line on Sept 16.

Due to the long lower wicks, the support line cannot be accurately determined. However, it’s possible that ETH is trading inside a descending wedge.

Despite the wedge normally being considered a bullish pattern, technical indicators are neutral. The RSI is right at the 50-line and the MACD is below 0, although it is increasing.

Therefore, the direction of the trend cannot be accurately determined at the current time.

XRP

XRP has been following a descending support line since Aug 17. So far, it has been validated multiple times, most recently on Sept 21. The final touch of the support line (green icon) also coincided with the 0.618 Fib retracement support level at $0.85.

Despite the fact that XRP is trading above a confluence of support levels, technical indicators are not bullish. The RSI is at the 50-line and the MACD is negative, even though it is moving upwards.

The closest support and resistance levels are found at $0.76 and $1.07 respectively.

ZEN

ZEN has been decreasing since Sept 15, after creating a double top pattern and a long upper wick. The pattern was also combined with a bearish divergence in the RSI.

Shortly after, it broke down from an ascending support line. The breakdown is supported by the MACD and RSI, which are both decreasing.

The closest support area is found at $53.

UNI

UNI has been decreasing since Sept 2. After the Sept 7 drop, it created a descending wedge, which led to a low of $17.73 on Sept 26.

However, UNI rebounded and broke out from the wedge. The breakout is supported by the increasing MACD and RSI.

The closest resistance area is found at $26.15, created by the 0.618 Fib retracement resistance levels.

If UNI is successful in moving above it, it may move toward new highs.

OMG

OMG has been following an ascending support line since July 20. However, since Sept 6, it has failed to break out above the $10.60 area, which is the 0.618 Fib retracement resistance level.

Despite the rejection, technical indicators are bullish. The RSI has generated a hidden bullish divergence and the MACD is positive.

Therefore, an eventual breakout would be likely. This could take OMG toward the $15.33 all-time high price.

AXS

AXS has been increasing since Sept 21 when it bounced at the $48.28 support area. The next day, it created a bullish engulfing candlestick and broke out from a descending resistance line.

Following this, it reclaimed the $63 horizontal area and validated it as support.

Both the MACD and RSI are increasing, supporting the continuation of the upward movement.

The next resistance area is found at the all-time highs of $94.50.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Bitcoin (BTC) Fails to Move Above $44,000 Resistance

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Bitcoin (BTC) Fails to Move Above $44,000 Resistance

Bitcoin (BTC) attempted to move upwards on Sept 27 but was rejected by the $44,000 resistance area.

While BTC is still trading inside the upper portion of a descending parallel channel, the price action is lacking bullish signals.

BTC gets rejected

On Sept 27, BTC made an attempt at moving above the $44,000 area but was promptly rejected (red icon). The area had acted as support in August and the beginning of September but turned to resistance after the breakdown on Sept 20. The rejection created an upper wick and a bearish candlestick. 

Besides trading below resistance, technical indicators for BTC have turned bearish as both the RSI and MACD are decreasing. The MACD has just crossed into negative territory while the RSI is below 50. 

If BTC were to continue moving downwards, the next closest support area would be found at $38,000.

Current channel

The six-hour chart shows a descending parallel channel, which usually contains corrective structures.

Currently, BTC is trading inside its upper portion. Furthermore, it’s trading just above the 0.5 Fib retracement support level.  

Despite being above a confluence of support levels, technical indicators are bearish/undecided. The MACD is negative and has lost its strength while the RSI has just fallen below 50.

The two-hour chart shows that BTC is following an ascending support line and has made three higher lows since Sept 21. While this can be seen as a bullish structure, the price action is not bullish. 

The previous resistance area at $43,000 that was expected to act as support did not. On the contrary, BTC fell right through it. Furthermore, both the MACD and RSI have turned bearish.

While there is very strong support at $41,500, created by the 0.786 Fib retracement support level and the ascending support line, the price action does not seem bullish.

Wave count

The most likely wave count still indicates that the decrease from Sept 7 to Sept 21 was part of an A-B-C corrective structure, in which waves A:C had an exact 1:1 ratio. This is also supported by the presence of the descending parallel channel.

However, the movement since the low does not seem impulsive, casting some doubt on the possibility of this being the correct count.

Alternative counts could see the movement as a flat A-B-C corrective structure (upper image), or in the more bearish case a 1/2-/1-2 wave structure (lower image). 

At the current time, the correct count cannot be determined.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Europe becomes largest crypto economy with over $1T in transactions — Chainalysis

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Europe becomes largest crypto economy with over $1T in transactions — Chainalysis

DeFi has become a major catalyst for Europe’s crypto economy. Large institutions have also upped their share of transactions significantly.

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Europe becomes largest crypto economy with over T in transactions — Chainalysis

The region of central, northern and western Europe, or CNWE, has emerged as the world’s most active cryptocurrency block, receiving over $1 trillion worth of digital assets over the past year, according to new research from blockchain analytics firm Chainalysis. 

The report, which was released Tuesday, found that the CNWE region accounted for 25% of global crypto activity between July 2020 and June 2021. The region witnessed a sharp uptick in transaction volume across all crypto sub-categories, especially decentralized finance, or DeFi.

Chainalysis describes crypto transactions as anything involving trade, investments and business dealings.

Europe has also become a hotbed for institutional investing, with transactions values in this category growing to $46.3 billion in June 2021 compared with just $1.4 billion in July 2020. Perhaps surprisingly, the United Kingdom is the single largest crypto economy in the region at $170 billion worth of transactions. Nearly half, or 49%, of the value was sent via DeFi protocols.

“The U.K.’s growth is driven mostly by growing institutional investment, based on the large-sized transfers driving most of its transaction volume,” Chainalysis senior content marketing manager Henry Updegrave told Cointelegraph. 

A secular bull market for Bitcoin (BTC), the growth of competing smart contract platforms and the arrival of decentralized finance all contributed to crypto’s massive rally during the study period. It comes as no surprise that CNWE’s crypto market activity peaked in May 2021 during the height of the bull market, which was one month removed from Bitcoin hitting $64,000.

Chainalysis’ data corroborates a growing body of evidence showing that large institutional investors have become a driving force within crypto. Wealth managers, family offices and other institutional players have poured billions of dollars into Bitcoin and Ether (ETH) investment products offered by Grayscale, CoinShares, 21Shares and others.

Related: Crypto asset manager Cobo raises $40M to launch DeFi-as-a-service

Beyond the advanced economies of Europe, Chainalysis research has documented the growing uptake of crypto in emerging markets. The Chainalylsis 2021 Global Crypto Adoption Index named Vietnam, India and Pakistan as the leading countries for adoption based on on-chain value received, retail transactions and peer-to-peer exchange trade volume.

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