What Is the Process of Tokenization or How Can Any Person Create His/Her Own Token? 1537

tokenization

In this article, we will consider such a concept as tokenization. We will learn how it is used by various companies and how the technology of blockchain is used here.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of “tokenization”
  2. The process of tokenization in the modern sense
  3. Tokenization in tandem with blockchain technology
  4. Conclusion

1. The concept of “tokenization”

Initially, tokenization technology was used to implement secure online payments. With its help, you can encrypt the data of real details and replace them with the generated hash code – a token. This is how the first concept of tokenization looked like, and the modern designation, which is now widespread in blockchain projects, has gone from there. Today the word “token” refers to a unit of an asset in a certain company.

2. The process of tokenization in the modern sense

Tokens can be compared to the labels that fill the desktop of each computer. Shortcuts are created in order not to litter drive “C” with heavy files, but at the same time to have quick access to them. Shortcuts are just the way to the program, folder, etc. If you delete a file where the shortcut leads, then the latter will not represent itself any more.

So, by analogy with the creation of shortcuts on the computer, in our time, the business is tokenized in various spheres of activity. Tokens can be created for anything (electricity, oil, gold, cattle, wheat, real estate, part of any enterprise’s funds, intellectual property, etc.). Tokenization works with both physical and virtual objects. This practice greatly simplifies and accelerates the mobility of assets, because you need logistics, a certain amount of documentation to move a real object, and the converting of the token is slightly more than nothing.

Tokenization of homogeneous objects is a fairly simple task. For example, one token is equal to 1 gram of gold, but it can be further divided into smaller parts. It is necessary to increase the liquidity of the asset. Tokenization problems arise if the items that need to be transferred to the digital space have different values ​​(real estate, art objects, etc.). In this case, this process becomes a little more complicated, since it requires the contribution of additional variables. Platforms that offer to tokenize heterogeneous objects already exist (Artex, Atlant, etc.), but each of them is confined to its own narrow niche.

3. Tokenization in tandem with blockchain technology

Probably, it seems strange, but in fact, the technology of blockchain is not mandatory to produce a tokenization of the project. Actually, anyone can make an issue of tokens, backing them up with any of their tangible or intangible property. To do this, you only need to run the platform, where you can transfer the rights to own the asset in the token.

Then why do the overwhelming majority of projects use blockchain technology for the tokenization of their own assets? It’s all due to the transparency that this technology provides. With its help, it is guaranteed that there is no third-party intervention in the data registry. ICO tokenization in tandem with blockchain eliminates the issue of confidence in the developers. Also, the undeniable advantage of using this technology is the absence of intermediaries between buyers and sellers of assets, which simplifies and significantly speeds up the exchange process.

4. Conclusion

The process of tokenization involves the transfer of tangible or intangible assets into the digital space (tokens). This significantly increases the liquidity and mobility of the asset. With the help of blockchain technology the process can be completely transparent and safe, and also you can remove any intermediaries from the chain.

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Football Fans Will Soon Be Able to Buy Tickets for Games Using Blockchain 176

uefa launches a blockchain app

The UEFA wants the fans to have the smoothest experience ever. Right now, buying tickets for football matches is one of the most problematic areas: tickets are often falsified and stolen, moreover they are very hard to get. That’s why the organization is researching new technologies to fix the problem.

UEFA has recently announced about the testing of blockchain for developing a ticketing app. The app works via bluetooth on electronic devices and will be used when entering the stadiums.

The report said: “Fine-tuning and improvements took place at several test events, and the system was first used for 50% of the tickets distributed to the general public for the 2018 UEFA Europa League final between Atlético and Marseille in Lyon.

The Association will keep on developing its blockchain-based app, and, hopefully, football fans will soon have an opportunity to use it.

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Forbes Published 5 Main Blockchain Tendencies for 2018 780

blockchain trends

Blockchain is one of the most rapidly developing technologies of all times. Its main features (speed and transparency) earned recognition and approval from businesses and companies from all over the world.

Forbes has conducted a research and established 5 major paths that the blockchain is likely to follow this year.

1. Companies actively implement blockchain. For example, we have recently reported about the pilot version of election in Ukraine conducted on blockchain.

2. Implementation of this technology follows a thorough research. With blockchain being fairly new, the more conventional fields that are not related to digital technologies or computer sciences treat it very carefully. For example, the Stanford University created a research center for possible introduction of blockchain in the future.

3. The hype is going to fade. Blockchain has been marketed as a panacea for quite a while. Many people were sure it would help to solve major world problems. However, the results coming from this technology, though being mostly beneficial, are not as phenomenal as everyone thought they would be.

4. New and smaller projects are more likely to implement blockchain since they are more adaptable to changes and upgrades. Huge companies like Amazon find it way more difficult.

5. The personal information on people and other important data will be secured a lot better with the help of blockchain. Scammers never rest, however, blockchain will ensure that they have the hardest time ever hacking and stealing.

Thus, we can definitely see a lot of potential for blockchain. More and more companies choose to implement it. Hopefully, this technology will keep flourishing and bring benefits to those using it.

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Playboy Accused a Crypto Firm of Fraudulence 731

playboy is suing a crypto company

Playboy Enterprises submitted a lawsuit to the court of LA against the Canada-based company Global Blockchain Technologies. The plaintiffs claim that the abovementioned enterprise violated the contract concluded between the companies and refused to liquidate the damages ($4 million).

GBT was supposed to assist Playboy with implementing the blockchain technologies through an intermediary service. The firm, however, denies the accusations. According to The Los Angeles Times, GBT’s representative claimed:

Global believes it has a strong defense to the action and will be vigorously defending same.

We would like to remind that Playboy readers might soon get an opportunity to pay for it in cryptocurrency.

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Algorithm of Action for Victims of Scam ICO 1226

scam ico

The market for initial placement of coins is saturated with fraudulent projects, which initially promise to “change the world”, but after receiving funding, they stop being in touch. There are, of course, those which simply are not able to fulfill their obligations, and the product for which the investors’ money was spent is not necessary for anyone. Some particularly brazen scammers removing their site, leave on it not quite censorship messages, as it was with the Lithuanian startup, which wanted to “bring the blockchain” into the vegetable and fruit industry.

In this article, we’ll talk about what you need to do in order to get your money back if you have already invested it in a fraudulent ICO.

Contents:
(please, click the topic to scroll down to it)

  1. Is it real to return your money if you’ve invested in a scam ICO?
  2. What to do in the beginning? Collect evidence
  3. Who to sue?
  4. What do you need to know about the court?
  5. Conclusion

1. Is it real to return your money if you’ve invested in a scam ICO?

As practice shows, surely, there have been similar precedents in history, but to a greater extent they concern only the United States and Canada. For example, in 2017 on the initiative of the SEC, the founders of the scam project Munchen returned 15 million dollars to their depositors. Another example, the organizer of the cryptostart PlexCoin Dominic Lacroix was arrested, sentenced to 8 weeks of imprisonment, and fined personally for 10 thousand, and his company for 100 thousand dollars.

The Securities Commission is actively working in this field, but, unfortunately, outside of North America it is not yet particularly developed. For example, in the CIS countries no ICO scammers have been caught yet. But, despite this, there is still a chance to get your money back. Please read this material to know what to do in such an unpleasant situation.

2. What to do in the beginning? Collect evidence

So, unfortunately, you have already realized that you gave your money to criminals, what should you do? To begin with, you need to collect as much evidence as possible:

  • screenshots of correspondence in Telegram or other messengers;
  • copies of e-mails;
  • white paper and road map of the project.

If you personally talked on the phone with the organizers of the ICO, then you need to contact the provider to give you a printout of your calls. If you have a personal contact in offline, you must specify the place, date and time of the meeting. If this happened in a public place, it is likely that the fraudster’s face has got into the surveillance cameras.

3. Who to sue?

The overwhelming number of ICO projects has a similar structure. Often, in order to start the production and sale of digital tokens, the organizers register a special issuing company. As a rule, they are created in the Seychelles or the Cayman Islands or in Estonia and Singapore. Unfortunately, finding out data about an issuing company is a rather difficult task. The only place where you can find out which legal body is in charge of this project is an agreement to sell tokens or Token Sale Agreement.

But, it is worth noting that a registered issuing company cannot conduct operational activities, and it is even more complicated to find any information about who conducts it than about an issuing company. Of course, you can try to look for tracks through the project team, but if the organizers of the ICO have created a scam from the very beginning, then they hardly indicated their real names there. Most likely, charges will have to be raised against the issuing company.

4. What do you need to know about the court?

The good news for victims of fraudulent ICO is that there are virtually no “loopholes” in the world where financial criminals can remain in the shadows. Banks from different countries of the world cooperate with each other and transmit information about the movement of money; therefore, to hide a large amount of stolen money every year becomes more difficult.

The bad news is that defrauded investors can demand financial compensation only through local courts of the countries in which the issuing company is registered. Litigation is not a cheap pleasure:

  • Estonia – 7-8 thousand euros;
  • The Cayman Islands – 30-50 thousand dollars;
  • Singapore – 80-130 thousand dollars.

These figures do not include government fees and other related costs. In order for “battle to worth the blood,” the amount of lost funds must significantly exceed the costs associated with the court. An alternative way to save money in this matter is to file a collective claim. For this it is necessary to collect in one place a certain number of the same deceived investors and to divide the costs equally.

5. Conclusion

There are a lot of scam projects on the ICO market, so it’s quite difficult for an investor who is starting not to get bogged down by criminals. But even if you have become a victim of swindlers, albeit low, but still there are the chances of getting your investments back. It is necessary to adjust to a lengthy lawsuit, which will also require financial injections from your side.

How to Spot a SCAM?

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How to Remove Scammers from the ICO Market? Review of ILP Funding 1020

ilp as a solution of scamming

The ICO market is developing by leaps and bounds. If for the whole of 2017 all start-ups attracted a little more than $3 billion, then just for 5 months of 2018 this figure reached 13.7 billion. This method of collecting investment is fairly simple and very convenient for all parties. But it has a downside: the fact is that along with honest teams in the market there are a lot of scammers who simply take money from trusting investors. An unprofessional investor has a much higher probability of getting trapped than getting a profit. The ICO market does not have any administrative control, regulatory rules and verification. In this article we will talk about one of the options for solving this problem, namely ILP funding.

Contents:
(please, click the topic to scroll down to it)

  1. What is ILP?
  2. The main advantages of ILP
  3. Forecasts for ILP
  4. Conclusion

1. What is ILP?

This alternative to IPO in the crypto world (and not only) was first proposed by the international company Tokenote. The abbreviation ILP stands for Initial Loan Procurement. To eradicate fraudulent schemes, all participants (both borrowers and creditors) undergo a procedure for verifying the identity through a digital ID. Only after this the borrower can create smart contracts, and creditors (investors) make investments. Directly crowdfunding takes place on the Blockhive platform, where internal currency is the HIVE token. The main idea of ​​the developers is the modernization of the ICO market and the elimination of its main shortcomings.

2. The main advantages of ILP

  • Combining the simplicity of the ICO and the legal responsibility of the parties. Clever contracts in this concept are signed by means of a digital signature, so they have legal force, and then they are stored in the blockchain.
  • All procedures meet the necessary requirements of international law, therefore ILP provides for prevention of money laundering schemes. This is achieved through verification and authentication of all participants in the process.
  • One of the main differences between ILP and ICO is the lack of funding based on tokens. The fact is that within the ICO, start-ups, in pursuit of initial investments, can release an unlimited number of tokens, creating a glut in the market. In ILP, there are loans, not tokens, so the problem of inflation is solved by itself.
  • Due to the fact that investments are fixed in the legal field under the guise of loans, they cannot be taxed. This is a huge plus, as in our time in many countries there are quite impressive taxes on the cryptocurrency.
  • Within ILP, investments are protected from speculative schemes, as investors derive their profits from the company’s real revenues, rather than from the artificial increase in the price of tokens.
  • ILP funding need not necessarily be related to cryptocurrencies, this method of attracting investments is much more universal than ICO (private companies, government structures, etc.).

3. Forecasts for the development of ILP

This method of issuing digital credits can potentially have a great future, since ILP is as simple as ICO, but it has a much greater range of functions, and is also in the legal field. For this reason, ILP is unlikely to be prohibited even in such countries as China, where the ICO is banned.

4. Conclusion

The ICO market is certainly one of the most highly profitable investment instruments in our time, but due to the lack of regulation, there are a lot of scammers here. A novice investor has virtually no chance of succeeding in this field. ILP is one of the solutions to the problem of fraudulent schemes in this area.

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Top Books About Blockchain and Cryptocurrency Which Are Worth Reading 2966

top crypto books

Cryptocurrency and blockchain became so popular that people started writing books about them, and if more than 1,000 books on this topic have already been written in the West, then in the CIS countries people came to this only in early 2017. Such literature makes it possible to more clearly understand all the nuances, positive and negative aspects of the blockchain technology. Below we compiled a selection of the best books about digital currency that will help you get all the knowledge you need about the crypto world.

1. “Bitcoin for Dummies” – Williams, 2017.

This book will tell you in detail about all the subtleties of working with digital currency, the authors touch absolutely all vital aspects of the blockchain. Having studied the stated information, you will get knowledge about the nature and formation of bitcoin. One of the main advantages is that it describes all the risks that keep up with the cryptocurrency. The author focuses attention on cyber security. Having studied the stated information, you will master the system of blockchain’s work, you will be able to protect yourself from cyber scammers and correctly implement the cryptocurrency at the exchange.

2. “Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money”- Nathaniel Popper, Williams, 2016.

Nathaniel Popper, together with Williams, wrote an amazing and most truthful story about the emergence and implementation of bitcoin in the general turnover, as well as those individuals in its history who hindered and helped it. The story goes on behalf of different people: Satoshi Nakamoto, the brothers Winklevoss, various millionaires and bankers. An important component of the book is the analysis of the reasons for which the blockchain entered the general circulation.

3. “Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World”- Don Tapscott, Alex Tapscott, 2017.

The book narrates about the cryptocurrency as a means of business breakthrough. It can be divided into two parts: in the first there is a story about the system of work of the blockchain, its strengths and weaknesses, and also there is an analysis of all those pressing financial problems that can be solved with the help of blockchain. In the second part there is interesting information that sheds light on the causes of the blockchain’s impact on the global and the involvement of more and more investments in digital currencies.

4. “Bitcoin – the people’s money” – Adam Tepper, 2016.

The author of the book is Adam Tepper, a general director of several companies, a successful programmer in the past. In his book he described the importance of bitcoin as a universal financial means. Bitcoin in this book is described as an object of universal attention, as the engine of the financial market. The book pays much attention to investments in crypto assets. The author claims that it is necessary now to invest in digital currencies, since in the near future their price will grow, and all thanks to their introduction into the overall turnover.

5. “Mastering Bitcoin” – Andreas Antonopoulos, 2017.

The author of the book is Andreas Antonopoulos – the founder of bitcoin business in London and the director of several start-ups, a former software engineer. The book describes all the details of digital coins, predicts the development of cryptocurrencies, their introduction into the global financial market and regulation by different countries. The book is divided into 2 parts: the first is aimed at inexperienced people in the crypto world, the second – at investors and people who want to start their business using the cryptocurrency. It should be noted that this book is perfect for students of economic universities that study

digital currencies.

6. “Blockchain: Blueprint for a New Economy” – Melanie Swan, 2017.

The book tells about the nature of blockchain technology. The first part is devoted to beginners and will help them familiarize themselves with the principles of the registry, according to the author this is the main stage before studying bitcoin. The second part is devoted to the indivisibility of the blockchain and bitcoin. The author claims that today’s work of the blockchain will be transformed into something else in the future.

 

7. “The Internet of money” – Andreas Antonopoulos, 2018.

This book was written by Andreas Antonopoulos after the publication of her previous book “Mastering Bitcoin”. In general, these books are similar in content, but if in the first book the main question was “How?”, then in the second it is “Why?”. The process of the formation of the cryptocurrency as a financial engine and the potential for its development are described in detail. The main idea of the book: “The Internet is not a phone, bitcoin is not money.”

8. “The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order” – Paul Vigna, Michael Casey, Mann, Ivanov and Ferber, 2017.

The book is telling about the influence of news and imaginary panics on the course of digital currencies, about their influence upon international economic market. The book also contains research of the blockchain’s importance in modern realities: how it was created, its functions and what to do in order to join the new world of economy.

Conclusion

So, we’ve finished our list of top-10 literature about bitcoin. Having read at least a half of these books, you will come to know all the particulars of cryptocurrencies and blockchain technology. The information, stated in these books, is an invaluable source of knowledge for any beginner in the crypto world, however even an experienced user will find here something new and unusual.

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