A new study of the global open-source platform, GitHub, offers key lessons on blockchain development—how projects have grown, what’s likely to come next, and the implications for financial services firms.
Repositories reveal interesting trends about organizations
The core code supporting Bitcoin was published in April 2009. Since then, the number of projects on GitHub related to blockchain has grown significantly, averaging more than 8,600 new projects a year. In 2016 alone, there were almost 27,000 new projects (figure 3).
The growth in the number of projects has been matched by the rapid growth of content produced to develop these blockchain technologies. Please see figure 4, and Repositories by year in our interactive dashboard.
In analyzing blockchain repositories and their content, we noticed that increasingly more organizations appear to be getting involved. In 2010, organizations developed less than 1 percent of all projects. By 2017, their blockchain projects accounted for 11 percent (organizations currently account for 7 percent of total—not just blockchain—software development on GitHub). And recent data about the rate at which commercial organizations can find success with blockchain initiatives through open source seems promising; some high-profile, large commercial entities are already doing so. (Please refer to Repositories by organization in our interactive dashboard.)Of particular significance, some projects that organizations have developed have resulted in new platforms (such as Ethereum, Ripple, Corda, and Quorum) which some developers now use to build applications. Organization-owned projects also tend to be updated more frequently than those developed by users, and are reportedly five times more likely to be copied, implying that the blockchain community has deemed them most relevant.When a project is copied, all of the content becomes available to the account that copied the project, thus working as a de facto knowledge-transfer mechanism. This process is commonly referred to as a citation network, where projects that are most often copied occupy a more central role in the network of projects, which we refer to as project centrality. Under this rubric, some of the most central projects have been developed and maintained by organizations: Bitcoin core, the C++ and Go implementation of Ethereum, Python clients for Ethereum, and the Bitcoin Improvements Proposal. To interactively explore a depiction of the various networks in GitHub, please see Network visualization in our interactive dashboard.
When exploring the aforementioned interactive graph, keep in mind that the initial projects of Ethereum and Bitcoin are maintained by organizations (foundations), and that a vast amount of blockchain projects and applications in GitHub are actually built on top of these two projects. In short, organization-led projects are the backbone code for thousands of other projects. Out of the 20 most central projects in the blockchain space measured by popularity, citation, and collaboration , 18 were created and maintained by organizations.
Organizational commitment in open source appears to be dominating the core development of blockchain because it is most likely more demanding and purposeful than individual participation in development. Once resources are put into place by an organization, there is generally more incentive to ensure that the project is successful. Given that organization participants are tied to one another beyond any particular project, there is often greater accountability to one another, which also drives ongoing development.
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Posted in Blockchain, Deloitte, Report, Technology, Tools Tagged with: Bitcoin, C++, Corda, Ethereum, GitHub, Go, Python, Ripple
Which control principles are essential for blockchain adoption on a global scale?
Since its mention by Satoshi Nakamoto in the 2008 white paper ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, blockchain technology, also called Distributed Ledger Technology (DLT), has attracted significant attention among the global financial services community. Researchers and investors are increasingly interested in the transformative and disruptive ability of this technology to:
- Facilitate an exchange of value
- Enable the safe storage of value
- Achieve operational efficiencies
- Secure cost savings
- Increase industry transparency
- Enhance customer experiences
In this paper, we consider three macro factors which we consider essential to the widespread adoption of private DLTs within the financial community in the long term. These macro factors are:
- Legal and Regulation
Although this paper discusses each factor in isolation, financial institutions should view all three as interdependent and complementary when considering DLT adoption.
When introducing DLT into the enterprise, it is essential that the DLT system is capable of integrating and interoperating with other systems, including other blockchain solutions or technologies. Even within individual DLT implementations, the blockchain component is likely to be a single part of a larger whole, with additional data stores, messaging systems, interfaces and touch points to both internal and external systems. Institutions therefore need to ensure that all systems are capable of interconnecting and communicating with one another.
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Posted in Deloitte, Report Tagged with: Bitcoin, Blockchain, Cybersecurity, DLT, ERC20, Financial Services, Peer-to-Peer, PKI, Smart Contract
New cryptocurrencies are emerging almost daily, and many interested parties are wondering whether central banks should issue their own versions. But what might central bank cryptocurrencies (CBCCs) look like and would they be useful? This feature provides a taxonomy of money that identifies two types of CBCC – retail and wholesale – and differentiates them from other forms of central bank money such as cash and reserves. It discusses the different characteristics of CBCCs and compares them with existing payment options.
In less than a decade, bitcoin has gone from being an obscure curiosity to a household name. Its value has risen – with ups and downs – from a few cents per coin to over $4,000. In the meantime, hundreds of other cryptocurrencies – equalling bitcoin in market value – have emerged (Graph 1, left-hand panel). While it seems unlikely that bitcoin or its sisters will displace sovereign currencies, they have demonstrated the viability of the underlying blockchain or distributed ledger technology (DLT). Venture capitalists and financial institutions are investing heavily in DLT projects that seek to provide new financial services as well as deliver old ones more efficiently. Bloggers, central bankers and academics are predicting transformative or disruptive implications for payments, banks and the financial system at large.
Lately, central banks have entered the fray, with several announcing that they are exploring or experimenting with DLT, and the prospect of central bank crypto- or digital currencies is attracting considerable attention. But making sense of all this is difficult. There is confusion over what these new currencies are, and discussions often occur without a common understanding of what is actually being proposed. This feature seeks to provide some clarity by answering a deceptively simple question: what are central bank cryptocurrencies (CBCCs)?
To that end, we present a taxonomy of money that is based on four key properties: issuer (central bank or other); form (electronic or physical); accessibility (universal or limited); and transfer mechanism (centralised or decentralised). The taxonomy defines a CBCC as an electronic form of central bank money that can be exchanged in a decentralised manner known as peer-to-peer, meaning that transactions occur directly between the payer and the payee without the need for a central intermediary.3 This distinguishes CBCCs from other existing forms of electronic central bank money, such as reserves, which are exchanged in a centralised fashion across accounts at the central bank. Moreover, the taxonomy distinguishes between two possible forms of CBCC: a widely available, consumer-facing payment instrument targeted at retail transactions; and a restricted-access, digital settlement token for wholesale payment applications.
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Posted in BIS, Blockchain, Report Tagged with: Bank for International Settlements, Bitcoin, Blockchain, Central Bank, Cryptocurrency
Crypto prices rally
The story of Q2 begins with a rally that saw the total value of all cryptocurrencies rise to $100 billion, up from $25 billion at the start of the quarter.
Another way to put it is that the total market value of blockchain tokens skyrocketed 4x to an all-time high above $100 billion.
ICOs emerge as ‘killer app’
ICOs helped propel this growth and established a powerful trend in Q2.
The supply of new tokens exploded and crowdfunding and investment returns stunned the world. (To track the escalating funding totals, CoinDesk even went so far as to launch its own dedicated ICO tracker, a free tool that tallies fundraisings via the mechanism).
One useful metric that underlines ICO dominance is how much more successful ICOs were versus traditional VC funding in the blockchain industry.
Mixed sentiment around ICOs
As part of the State of Blockchain, CoinDesk conducted a sentiment survey designed to leverage the insights of its global readership.
This quarter’s survey had over 1,300 respondents, and it served to capture the unease some investors felt as the blockchain use case took off.
In 2017, bitcoin’s total domination of the ecosystem shrunk considerably.
At the start of the year, bitcoin represented almost 90% of all the value in cryptocurrencies. By the end of Q2, that number tracked down to almost 41%.
Posted in CoinDesk, Report, Strategy, Technology Tagged with: Bitcoin, Cryptocurrency, Etherum, Hyperledger, ICO, VC
Installation du groupe de travail
France Stratégie, laboratoire d’idées public, a pour mission d’éclairer les choix collectifs. Son action repose sur quatre métiers : évaluer les politiques publiques ; anticiper les mutations à venir dans les domaines économiques, sociétaux ou techniques ; débattre avec les experts et les acteurs français et internationaux ; proposer des recommandations aux pouvoirs publics nationaux, territoriaux et européens.
Pour enrichir ses analyses et affiner ses propositions France Stratégie s’attache à dialoguer avec les partenaires sociaux et la société civile. France Stratégie mise sur la transversalité en animant un réseau de sept organismes aux compétences spécialisées.
Le département Développement durable et Numérique est chargé des politiques sectorielles (environnement, énergie, transport), du développement du numérique (technologie, implications numériques et sociales) et de leurs déclinaisons industrielles.
Il place, pour l’ensemble de ces sujets, le développement durable, en particulier la lutte contre le changement climatique et la préservation de la biodiversité, au cœur de ses préoccupations sans oublier pour autant la compétitivité industrielle et les questions de redistribution.
Dans le cadre de ses travaux, le département est amené à collaborer avec des organisations non gouvernementales, des universités et des entreprises ainsi qu’avec d’autres administrations et instances gouvernementales.
La blockchain, technologie sous-jacente à la crypto-monnaie Bitcoin, est inscrite à son programme de travail. Un groupe de réflexion ad hoc a été créé en vue de la production et de la publication d’un rapport à l’automne 2017.
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Posted in Blockchain, Strategy, Technology Tagged with: Bitcoin, Blockchain, France Stratégie
Bitcoin Big Data
7 Startups, $45M Total Funding
Companies that develop tools to analyze activity on the public ledger to increase transparency.
213 Startups, $421M Total Funding
Companies that allow users to buy and sell crypto-currencies and implement trading strategies.
Bitcoin Financial Services
142 Startups, $111M Total Funding
Companies that provide typical banking services using bitcoin technology.
36 Startups, $400K Total Funding
Companies that offer gambling opportunities using bitcoinas the stakes.
75 Startups, $129M Total Funding
Companies that build the functionality that supports the continued development of the bitcoin ecosystem.
70 Startups, $269M Total Funding
Companies that develop the computer hardware associated with processing bitcoin transactions.
Bitcoin News and Data Services
57 Startups, $5M Total Funding
Companies that provide news and raw data services around the bitcoin ecosystem.
107 Startups, $478M Total Funding
Companies that enable merchants and consumers to pay for real world goods and services using bitcoin.
27 Startups, $2M Total Funding
Companies that provide business services such as recruiting and tax prep, but with a bitcoin focus.
Bitcoin Trust & Verification Services
16 Startups, $102M Total Funding
Companies that help verify a bitcoin user’s identity for regulatory purposes.
108 Startups, $398M Total Funding
Companies that offer consumers a place to securely store their bitcoins.
153 Startups, $855M Total Funding
Companies that are working on blockchain distributed ledger technologies.
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Posted in Blockchain, Report Tagged with: Bitcoin, Blockchain, Venture Capital
Plus mature et diversifié, le marché du bitcoin s’est distancé progressivement de l’économie informelle et du « web de l’ombre ». Les activités illégales, qui représentèrent jusqu’à la moitié des volumes, n’en pèsent plus que 3% à 6%.
Read more about “Bitcoin Economy”
Posted in Les Echos, Technology Tagged with: Bitcoin, Blockchain, Cryptocurrency