ICO Update: A Slowdown in Sight?

ICO data for last February is now available and shown in Figure 1 below.


We can immediately see that both the number of ICOs and the total investment volume has decreased. The latter, which amounted to 1.2 billion USD for the month, is 20 percent less than the total for January this year. The same goes for completed ICOs which decreased 21 percent. Among them, only one ICO surpassed 100 million dollars, reaching 150 million. And it managed to distance itself from the runner-up by a cool 100 million.

Figure 2 confirms the decline in total monthly investment but shows that the median declined only slightly or about 1.2%.

Even so, the median investment per ICO is still above 16 million dollars.((The average is much higher but probably not significant as the statistical distribution

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Blockchain Technology and Human Development revisited

I was invited to Canada to discuss my blockchain technology paper. Here are my opening remarks at the panel organized by Government Affairs and IDRC.

Speaking about a seemingly complex subject such as blockchains poses a challenge not only for me but also for you, the audience. More so when the time is scarce. It is probably not the same challenge, however. So perhaps the best way to start this conversation is to take a step back and start with technological innovation. Technological innovation has been around longer than you and me, for sure. But what has changed nowadays is the frequency in which innovation is happening, especially since the dawn of digital computing and electronics.

The Internet is no doubt the best example here. Initially conceived with government support and public

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Chasing ICOs (away?)

Recent events seem to suggest the cryptocurrency bubble is finally starting to deflate. Bitcoin, Ethereum and most of their crypto cousins are significantly down while regulators in several countries are finally beginning to take action on the ground. Nobel laureate economists are also speaking up against the digital currency, arguing that the new currency is not capable of fulfilling the three core functions that define money.

Does this mean that ICOs are on the way out?

If we look at the latest ICO data,((Data was obtained from tokendata.io. Sample size includes 1032 ICOs completed by the end of 31 January 2018. 485 or 47% percent did not report any funding. The total number of successful ICOs is thus 547. The DAO ICO is not included as it is considered a failure. Hdac, quoted by some

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An Overview of Blockchain Technology and Digital Identity

Like previous digital technologies, such as the Internet, for example, blockchain technology (BCT) has been driven by a high degree of techno-optimism not yet backed by on the ground impact or reliable evidence. Undoubtedly, the technology, which is still in its infancy, has enormous potential in many sectors and could promote human development if harnessed strategically.

One of the many BCT innovative traits is the use of sophisticated cryptographic tools to generate unique identities for individuals interacting within its distributed network. In general, such identities are pseudo-anonymous, immutable, secure and directly created and managed by the individual. This in principle makes BCT an ideal candidate to propel further innovation in the digital identity sector. The critical question

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Cryptocurrencies and Development

While not the only cryptocurrency around, Bitcoin was the first to solve the well-known double-spending problem that characterizes digital currencies. Tackling the issue demanded the creation of blockchain technology (BCT) combined with the use of a brute force algorithm known as proof of work.

Created in 2009, Bitcoin is now one of the largest (and most unstable) currency in the world (Says & Says, 2017). Launched in the fringes of the Internet and initially used only by computer geeks, the cryptocurrency has now become a hot financial asset attracting both traditional and new investors. Word out there is that Bitcoin billionaires do not spend because they fear losing money as Bitcoin rapidly appreciates over time and ad infinitum (Tucker, 2017).

Bitcoin and its crypto-cousins have

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Identifying the Displaced

After remittances and land titles, refugees are perhaps one of the primary targets of blockchain technology (BCT) initiatives promoting development or social impact. Bitnation, Aid:Tech and the UN World Food Programme, among many others, are good examples. Last month, at a BCT meeting in New York, UN Women shared its plans to launch a blockchain lab in early 2017. And women refugees are a top priority in the lab’s agenda.

No doubt refugees have become a critical issue of global scope, especially after the forced displacement of hundreds of thousands of Syrians in the last few years. Syrians escaping civil war had no choice but to leave their homes, belongings, and country seeking more peaceful and secure lands. What is different today is the scale of this forced migration which seems unprecedented

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Identifying the Unidentified

Identity access and management (IAM) is perhaps one of the areas where Blockchain Technology (BCT) could make a real difference. Research I am currently undertaken indicates that over one hundred BCT startups around the globe are focusing on this area. Add to this number the many other startups and organizations who have been engaged with digital identity for many years now but do not use BCT.1 See this report by OneWorld Identity for details and examples.

Also, factor in target 16.9 of the UN Sustainable Development Goals (SDGs) that explicitly calls for universal legal identity provision, including birth registration for all children around the globe.2 Links to other SDG targets are listed here. The ID2020 global public-private partnership is now spearheading these efforts.

IAM

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Endnotes   [ + ]

1. See this report by OneWorld Identity for details and examples.
2. Links to other SDG targets are listed here.

Blockchain Technology and Human Development

The blockchain tsunami has reached the shores of all seven continents in the world.  It would be fair to say most Capitals have been flooded, slowly coming to terms with the potential impact of the new technology. Cryptography, hashing, Merkle trees, peer-to-peer networks, distributed trust and governance, proof of work and stake algorithms, and smart contracts are a few of the buzzwords that many if not most are still trying to fully grasp. They come with the territory.

I started to follow Bitcoin from a distance in 2011. At the time, the cryptocurrency was closely associated with the Dark Web and dubious financial transactions. Two years later, blockchain technology (BCT) started to gain ground as perhaps the most relevant and innovative technology supporting cryptocurrencies. The creation

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Blockchain ICOs Revisited

A couple of weeks ago, Coindesk launched an ICO tracker which seems quite comprehensive and includes data starting in 2014. It has information on 164 ICOs1 I downloaded the data on 18 August but was unable to replicate some of the charts Coindesk has on its web site. The data I downloaded ends on 27 July of this year whereas the  Coindesk site includes data until 31 July. and the data is expected to be updated every week or so.

In a recent post,  I shared some insights on the nature of ICOs. In a nutshell, ICOs should not be equated with crowdfunding nor are they comparable to the more traditional IPOs. What has really changed since my initial posting is the fact that SEC is now planning to get involved in the process and will soon start to regulate how ICOs are run and managed. In the

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Endnotes   [ + ]

1. I downloaded the data on 18 August but was unable to replicate some of the charts Coindesk has on its web site. The data I downloaded ends on 27 July of this year whereas the  Coindesk site includes data until 31 July.

ICOs: Crowding-in Blockchains?

Nowadays, ICOs (or Initial Coin Offerings) are all the rage. Unlike traditional IPOs, ICOs allow startups to streamline the capital raising process while at the same time enhancing the number of potential investors.  While venture capital is still part of the equation, other non-traditional investors and stakeholders are more than welcome to join. How is this possible? Is venture capital being democratized?

By default, blockchain technology (BCT) has built-in financial incentives. In the now classic case of Bitcoin, such incentive is the generation of a cryptocurrency. Users mining the Bitcoin blockchain to process network transactions get rewarded a certain amount of Bitcoins for their efforts which are computationally expensive and power hungry. Without such incentive, Bitcoin network

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