Can Blockchain Become an Integral Part of Autonomous Vehicles?

A decade ago, the thought of self-driving cars was far from reality, but with 2020 looming large, massive strides have been made in the field of autonomous vehicles. Meanwhile, in the space of a decade, Bitcoin has thrust cryptocurrencies and blockchain technology into the mainstream consciousness. The latter has become a tool that is quickly being integrated into the world of finance, governance, logistics as well as the motor industry.

Some of the world’s leading automobile companies have been exploring the applications of blockchain technology and how it can be used to improve vehicles, the systems that operate them as well as how they interact with the world around them.So how is blockchain being used to drive the development of autonomous vehicles around the globe?

Machine-to-machine communications
As recently as August 2019, Daimler carried out a test run in which trucks made machine-to-machine payments using a blockchain platform without any human interaction. Frankfurt-based bank and financial services firm Commerzbank tested payments between the trucks and electronic charging points, which were settled using the blockchain technology.

The banking firm tokenized euros, which were then used by Daimler to test and process the payments using the pilot platform. The success of the project could be a potential driver for the use of blockchain technology to facilitate settlement systems for autonomous vehicles.

While this is the latest instance of blockchain-powered autonomous vehicle interaction, there have been a number of major projects that are leveraging blockchain technology to store and use vehicle data.

Back in May 2018, the Mobility Open Blockchain Initiative (MOBI) was launched by a joint venture made up of over 30 companies, headlined by major automobile companies BMW, General Motors, Ford and Renault.

The principal work of the project was the creation of the MOBI Vehicle Identity Standard, which is looking to create a blockchain-based database for Vehicle Identity Numbers, which goes further than the current system that is used to register newly created vehicles.

By storing data on a blockchain, digital certificates for information including vehicle identity, ownership, warranties and current mileage can be securely stored in an electronic wallet. This data will be immutably stored on the blockchain and cryptographically verified. The vehicle can then communicate with various networks and pay for parking or tolls autonomously.

The data of the vehicle can only be accessed by permissioned parties. This would then allow service providers and government entities to verify credentials and track certain data in real time. This connection with the world around the vehicle will also allow for digital currency transactions to happen autonomously in a cryptographically secure network.

It is an ambitious project but it is easy to see the benefits for the industry. A shared but secure database of vehicles that can interact with the world in real time could be useful to a number of industries, from dealerships and service departments to vehicle insurance companies.

Aside from its involvement in MOBI, GM has been making its own moves to use blockchain technology. In December 2018, the company filed a patent for a blockchain-powered solution to manage data from autonomous vehicles.

The patent builds on an original filing back in 2017 and sets out in detail how the platform would work, allowing the distribution and communication of data between autonomous vehicles and services and facilities on roadways or in cities.

GM’s patent suggests that a blockchain system would be best suited for this type of information sharing. The range of data shared would be anything from navigation, charging and refueling services, validity of licenses as well as recording balances for payable services like tolls and parking.

The American vehicle manufacturer isn’t the only company looking to develop technology in this vein. Multinational IT giant IBM is well known for filing patents for future blockchain-based projects, and it has made some big moves in the field of autonomous vehicles as well.

In April 2019 the company filed a patent for a project that would allow it to manage data and interactions for self-driving vehicles using blockchain tech. This specific patent outlines technology that would allow autonomous vehicles to identify nonautonomous vehicles around it and predict their behaviour based on data from those vehicles’ driving record.

When making use of the blockchain technology, other users data remains secure, but autonomous vehicles can access the information in order to improve their navigation on the road. Only authorized parties would be able to access this data in real time, because it is cryptographically secure.

A practical example would be an autonomous vehicle driving on a highway. As it progresses, it can scan the license plates of nearby vehicles with sensors in order to access the necessary data using a blockchain-based application.

Payment solutions for autonomous vehicles
Blockchain technology and cryptocurrencies have proven their worth as disruptive payment alternatives, and this very application is one that is being actively developed for use by autonomous vehicles.

In July 2019, Daimler announced that it had partnered with a blockchain startup to develop a hardware wallet solution for vehicles. The solution is a blockchain-based platform that would allow for the use of vehicle identities to process secure transactions on a blockchain ledger.

The end goal is to provide a software solution that will power a marketplace for vehicles that goes further than just autonomously paying for tolls or parking. The platform could be used for ride-sharing and secure exchange of traffic information to alleviate congestion.

Alternative solutions
The applications of blockchain technology are seemingly endless, and creative ideas have led to some ingenious use cases. For example, in May 2019, a research project was announced involving Honda and General Motors that would look into the interoperability between electric vehicles and smart power grids. The project is working under the scope of the aforementioned MOBI consortium.

The project will explore the possibility of using electric vehicles to stabilize the supply of energy in smart grids. The parties hope to develop a platform that will see electric vehicle users earn rewards for storing power and exchanging it with the grid when needed.

An academic perspective
The examples of blockchain’s use cases in the development of autonomous vehicles and the improvement of their processes is clear to see. Alejandro Ranchal-Pedrosa, a researcher in blockchain technologies at the University of Sydney, has done significant research in the space.

Having co-authored a published use-case paper on blockchain technology for autonomous vehicles, the researcher told Cointelegraph that the applications of the technology in the automotive industry are plain to see, from payments per transport or unit of fuel, data-sharing for traffic and better transport to insurance.

Ranchal-Pedrosa believes there is one major hurdle to overcome in the use of blockchain tech in autonomous vehicles:

“It is understandable that the industry is taking its time, mainly, in my opinion, due to the scalability problem of blockchains and the latency requirement for autonomous vehicles which is why in most cases the automobile industry would leverage offchain protocols, when possible. We showed how offchain protocols and its fully trustless exchange of infinitesimally fragmentable goods give the possibility of new applications to the industry.”

It is difficult to identify the most beneficial use case of blockchain technology considering the massive potential and variety of possible uses. Various industries will tailor the technology to serve their greatest needs, but Ranchal-Pedrosa believes the most popular use case in the field of autonomous transport will be for transactional exchanges:

“The biggest influence is without any doubt towards the possibility of exchange of goods on-the-go, in a trustless manner. Insurance companies may or may not find blockchain technologies as the best fit for their services, but trustless exchange of transport (sort of a carpool in which you can sign a contract with literally anybody to pay per kilometer), fuel, or any other product/service seems to me like a perfect fit for the current industry, and especially the future autonomous vehicles and machine to machine communications.”

Crypto Custody: Adoption Shortcut or Blockchain Purists’ Nightmare?

The major digital asset services platform Coinbase has recently announced the long-anticipated completion of a deal that has been in progress since at least May: the acquisition of Xapo’s institutional business. The move projects Coinbase Custody to the status of the world’s largest institutional digital asset custodian, securing more than $7 billion on behalf of over 120 clients globally. According to some estimates, Coinbase could now be holding over 5% of all Bitcoin in circulation.

Xapo, founded by early crypto evangelist Wences Casares and reported to be stashing cryptocurrency in secure vaults hidden in the Swiss Alps, has stated that the decision was prompted by the need to focus on the firm’s core retail exchange business.

The community response in the wake of the news revealed a complex amalgam of sentiments and considerations with regard to the emerging custody concentration dynamics — ranging from excitement for the upcoming onslaught of institutional investors to concern over monopolistic tendencies to excavation of prophecies from Bitcoin’s early days.

The role of custody
Put simply, custody is a service of securely storing somebody else’s assets in a way that ensures regulatory compliance and allows users to perform operations — such as on-demand retrieval, collection of dividends or collateralizing derivative instruments, to name a few. While keeping track of where and how their money and stocks reside is easy for most individuals, it is a task traditionally outsourced on an institutional scale.

As crypto assets become a prominent part of the financial ecosystem, with institutional actors leveraging immense volumes of cryptocurrency, the question of how to go about storing and handling digital wealth at scale comes to the fore. However different from traditional financial instruments, blockchain-based assets still need to be secured in an organized manner to ensure a comparable level of compliance and protection.

Alex Lam, co-founder and CEO of digital asset services platform RockX, observed to Cointelegraph that custodians in the crypto space do for institutional actors what hot and cold wallets do for retail investors:

“For large financial institutions and corporations who trade on a much larger scale than regular market participants, the security provided by trusted third parties bearing the burden of custodianship will give these legacy organizations the confidence and certainty they have come to expect in more traditional markets.”

Legitimizing the asset class
In traditional finance, custody is seen as the layer responsible for security and stability of the system, as it ensures that the assets held are both safe and compliant with the existing regulatory frameworks. Many stakeholders of the digital asset domain expect institutional custody to do the same job in the still-volatile cryptocurrency markets, serving as a legitimizing force for the industry in the eyes of both regulators as well as capital-rich financial firms wary to invest in the space.

Charles Lu, CEO of Findora, a blockchain service for building decentralized financial applications, said in a statement to Cointelegraph that he sees maturing custodial services in the blockchain sector as lowering the barriers for institutional investors to enter the market, which is a welcome development:

“Institutional investors require built-in support for automated compliance, as well as security, privacy and transparency. To succeed, the crypto finance ecosystem needs to listen to the needs of the market. Until more regulated, secure, reputable custodians enter the market, widespread institutional investment in digital assets will remain low.”

Tom Maxon, head of CoolBitX’s operations in the United States, emphasized the role that financial regulators play in shaping the custodians’ business, telling Cointelegraph that:

“Custodians tend to be large and reputable firms that are responsible for holding customers’ assets or securities for safekeeping in order to minimize the risk of their theft or loss. As this role is mandated by regulators overseeing the operations of financial institutions, they are unlikely to abandon the use of a custodian to enter into the cryptocurrency realm.”

Maxon added that the role that centralized exchanges currently perform in the crypto space is similar to that of institutional custodians, although such platforms are not particularly well-equipped for this position, saying, “It is widely-known that centralized exchanges are often hacked, making them unreliable and too risky for centralized crypto exchanges to be considered custodians by regulators.”

Interestingly, while many commentators associate the emerging centralized crypto custody trend with the prospect of a more efficient and straightforward regulatory framework for the industry over time, some are worried about the current lack of oversight.

For one, entrepreneur and investor Roy Sebag pointed out in a tweet how Coinbase has amassed an enormous pool of value without having to go through standard auditing and financial reporting procedures, which would be unimaginable in the traditional finance.

Kevin Sekniqi, co-founder and chief protocol architect at AVA Labs, and Amani Moin, the company’s chief protocol architect for cryptoeconomics, noted to Cointelegraph in a joint statement to Cointelegraph that there are certain scenarios that are likely to engender the increased likelihood of consolidated crypto custody:

“Concentration of custody in and of itself is not necessarily disastrous, but concentration of assets increases the impact of black swan events. Given the lack of clear regulations in the crypto space, this risk is heightened even more than in traditional finance.”

Diverging assessments
As there seems to be some degree of agreement among industry experts with regard to what is happening on the crypto custody front, opinions differ considerably about what the consolidation trend means for the industry. Generally, the valence of evaluations hinges on whether the speaker views the arrival of traditional financial institutions in the crypto space as a positive thing or otherwise.

Jill Carlson, the co-founder of Open Money Initiative, articulated the feelings of the angst-ridden part of the community, wondering if the trend toward consolidated crypto custody was a step in the direction of “recreating the same, broken financial system.” Mike Poutre, managing partner at a blockchain-focused hedge fund Terraform Capital told Cointelegraph that he sees the Wall Street agenda behind the growth of crypto custody sector, saying:

“The big banks and brokerage firms want to introduce custodial relationships so they can produce more products to sell their existing customers. Their motivation is revenue based – pure and simple. Governments want to introduce custodial relationships so they can maintain their control over their citizens — pure and simple. Crypto purists should be very worried. Wall Street will most likely win this. Coinbase’s recent acquisition shows the writing on the wall.”

Lars Seier Christensen, chairman of the blockchain network Concordium, is skeptical about the very idea of outsourcing the custodial function to a third party in the domain of crypto finance. According to Christensen’s statement to Cointelegraph:

“It is a somewhat strange discussion as one of the main advantages with crypto is that you are your own custodian, per definition. Picking an external custodian is just introducing another point of failure and risk. This is only relevant for non-professional players in the industry — which may of course include some institutions that are not very serious about the space. In my view the role of being a custodian is vastly overestimated and there are far too many of those projects out there compared to potential clients.”

Institutional investment vs. ideological purity
Paradoxically, in order to get anywhere close to making the dream of an open, decentralized financial system come true, the crypto industry has to cooperate with the old guard that it aspires to eventually take down. Some experts who spoke to Cointelegraph on the matter saw the expansion of concentrated custody as a compromise between the crypto movement’s foundational ideas and the need to funnel institutional money into the space for the sake of mainstream adoption. RockX’s Lam said:

“Concerns that this marks a centralization of the cryptocurrency market are, to an extent, valid. However, if we are truly dedicated to bringing the cryptocurrency revolution mainstream, it is necessary to welcome institutional actors into the space.”

If the cryptocurrency industry is indeed hoping for institutional investors to join in, then the infrastructure has to be present. Maxon of CoolBitX commented regarding this:

“If we are aiming for cryptocurrency to become a viable alternative to the existing financial system, regulated custodian services will become necessary. With that, however, the industry could come to resemble aspects of the old order to which it was born to oppose.”

Other observers contend that adding a centralized layer on top of the crypto ecosystem’s decentralized foundation is nothing criminal, as Hans Sundby, head of crypto for blockchain protocol Geeq, told Cointelegraph, “A custodian is just a third party that offers a regulatory compliant, secure and efficient way of handling large investments and holdings.” CEO and founder of the Credits Blockchain platform Igor Chugunov told Cointelegraph that custody is something the crypto community will have to accept:

“It is not an attempt to copy someone, it is an attempt to cope with the issues that concern the audience of new investors, which the market of crypto needs. Moreover, we should take into account the strict security requirements demanded by regulators. Application of custody makes sense to me: the end justifies the means.”

Twitter user Oded Leiba noted that the emergence of crypto custodians is in line with the renowned computer scientist Hal Finney’s 2010 prediction that “Bitcoin banks” would arrive at some point, creating an arrangement in which the original cryptocurrency is used for interbank transactions while consumers deal with the second-level, derivative digital asset system. Perhaps far-fetched 10 years ago, such a prophecy doesn’t sound unfeasible today.

Announcement: Revised VX Release Model

(And an extra bonus)

As you all know, we launched the ViteX trading platform not too long ago. Additionally, many of you are eagerly anticipating the release of the VX mining functions (check out the five mining methods here). Currently, we are on track to launch VX mining abilities and subsequently, begin releasing VX in September of this year.

However, there is one thing that we need to change regarding the VX daily distribution curve (don’t worry, it’s for the good of everyone). Under the current model, early VX miners will get a disproportionately large percentage of VX as the early participants. This fundamentally goes against what we want to achieve with ViteX, which is meant to be a truly decentralized exchange. If the early users are rewarded with a disproportionately large percentage of the VX, when more and more users join later, the VX will still be concentrated in the wallets of the early users. Simply put, this would not be good for the long-term development of ViteX.

In light of this, we plan to add a buffer phase after we launch our VX mining features to allow for more time to attract VX miners.

Introducing the two-phase release model
After the official launch, there will be two phases. During the first phase (“buffer phase”), 10,000 VX will be released per day. This will last for 1–2 months. Once we feel that enough users have joined in, the second phase will start. During this phase, the release schedule will be identical to what we have previously mentioned:

• During the first year, the number of VX released will decrease by 0.5% every day. 477,032 VX will be released on day 1. According to this formula, 80.13% of total supply will be released in the first year.

• During the second year, the number of VX released will decrease by 0.2% every day. 37,051 VX will be released on the last day of the second year. It decays by 0.5% every day in the first, and decays by 0.2% every day in the second year.
  The new release graph will look something like this:
  

An Extra Bonus
Users who participate in VX mining on the first day of the VX mining launch will get 30x on the first VX dividend payout!

Note: you must hold more than 10 VX in your ViteX account in order to be eligible to receive dividends.

Additionally, as a little extra incentive: since the launch of ViteX, trading fees have been accumulating in the dividend pool. Currently, the dividend pool contains about: 21300 VITE, 74.9 USDT, 0.0075 BTC and 0.36 ETH. However, once the VX mining function is launched, the total amount of these collected trading fees will be completely released to VX holders during the first dividend payout (which you also conveniently apply that 30x bonus). So, all the more reason to come and trade on ViteX!
After that, the dividend pool distribution will accumulate according to regularly scheduled programming — that is, dividends will be distributed at a daily rate of 1%.

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Vite Bi-Weekly Report Aug 1~15, 2019

This one’s going to be short & sweet, as our team is currently busy going full steam ahead to get the Vite Mainnet ready for launch.

System Developments
Go-Vite

v2.3.2 includes:

• Optimized node discovery efficiency.
• Built-in multi-level contract cache development; tested to improve data synchronization efficiency.
• Design and development of built-in smart contract timing function.

Vite Wallet App
Completed:

• Vite Wallet iOS 2.6.0 is available for testing — this updated version includes dynamic quotas, one-click coin purchases, and more.
• Vite Wallet Android 2.3.2 was released — this new version includes added support for 10 new types of smart contracts and bug fixes in the cross-chain withdraw function.
• Web wallet 2.7.0 UI optimization completed, package size reduced by 7%. Testing has been complete and will be released soon.
• The new version of the airdrop page was released.
  In process:
• iOS ViteConnect mechanism is being improved to better the user experience. Development is 20% complete.
• Android v2.4.0 undergoing one-click coin purchase, quota and -
• ViteConnect optimizations. Development is 60% complete.
• Research on DEX mobile adaptation ongoing.
• Research on Flutter front-end technology. Flutter dual-end application to improve the development efficiency of iOS and Android.
• Gateway page development and market module development 10% complete.
  Gateway
• Cross-chain token BTC transactions now support faster deposit confirmation times.
  ViteX Exchange
  -The exchange contract was upgraded and now supports the functions: 1) staking to lower trading fees, and 2) placing orders on behalf of someone else.
• Development of the market-making as mining function has been completed and will now undergo testing.
• Exchange server optimization development has been completed and will now undergo testing.
• Exchange API specs have been completed and the API is under development.
• ViteX trading website v2.0 will include mining dividend earnings — development is 30% complete.
  Community Building

ViteX Deposit and Trading Contest
The ViteX launch celebration never stops. We launched an all new ViteX Deposit and Trading Contest on August 7th with a total prize pool of 200,000 VITE! Stay tuned for results
Vite Airdrop Update
Have you collected your daily airdrop rewards? If you haven’t yet, now would be a good time to check out our updated airdrop function! Get 10 VITE when you complete all the mission tasks.

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Libra Members Consider Quitting Project Due to Gov’t Pressure: Report

At least three of Facebook’s early backers for its planned Libra stablecoin launch are considering withdrawing their support in light of the fierce regulatory pushback.

A report from the Financial Times on Aug. 23 alleges that two founding partners of Facebook’s Libra Association have held discussions about what their “right next steps” should be.

One further — again unnamed — backer is purportedly concerned that their public support for Libra will draw unwanted regulatory scrutiny of their own, independent businesses.

Blame games
As previously reported, the Libra Association is the newly-established, independent governance consortium for Libra. It counts 28 founding members — including Visa, Mastercard, PayPal and Uber and Spotify — each of which was required to invest $10 million to join.

In an interview with the Financial Times, one partner noted that:

“I think it's going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra].”

Another backer criticized the social media giant for its ill-conceived strategy, saying that:

“Some of those conversations [about regulation] should have taken place before the launch, to understand how regulators would think about this, so there wasn’t so much pushback.”

The tension reportedly goes both ways. One partner admitted that Facebook is itself becoming “tired of being the only people putting their neck out.”

Both Facebook and the Libra Association have reportedly declined to comment.

Regulators swoop in
As reported this week, the European Commission’s antitrust regulators — have become the latest to join the rounds of regulatory probes into Libra since the project’s unveiling this June.

The regulatory backlash governments, regulators and central bankers worldwide reached such a fever pitch that by late July, Facebook was prompted to warn its investors that the stablecoin may never be released.

During a hearing at the United States House of Representatives Financial Services Committee earlier that month, lawmakers had asked Facebook how they could be expected to trust a firm whose collection, storage and misuse of customer data had landed it a $5 billion penalty.

The furore has not, nonetheless, quite prevented new potential members from pursuing their interest — including Monex Group Inc — owner of the hacked Japanese crypto exchange Coincheck — Taiwanese digital currency trading platform Maicoin, and even Zckerberg’s arch-rivals, the Winklevoss Twins.

UK Employee Explains Why He Chose a 100% Bitcoin Salary

"People always ask how I am coping with living on Bitcoin,” a British software developer told The Mirror in an interview this week, “but the truth is that my lifestyle hasn’t really changed.”

The Mirror — a British daily tabloid founded over a century ago — ran its interview with 24-year old Zakk Lakin on Aug. 22.

An employee at crypto exchange Coin Center, Lakin was given the option to receive part — or all — of his salary paid in cryptocurrency, and he went the full monty.

100% Bitcoin
Lakin noted “buying things with crypto is easier than people think,” given that there are multiple online retailers that accept cryptocurrency and even third-party tools that allow you to settle invoices on platforms such as Amazon.

In the future, he predicts, more and more retailers — from gas stations to eateries — will open up to cryptocurrency, enabling him to spend less in fiat and more in BTC.

When it comes to his paycheck, he added, under the current crypto market conditions:

“I convert all of my permanent outgoings (such as rent, direct debits etc) to British pounds on payday to avoid any issues around the Bitcoin price movements and then the rest is left for disposable income/savings."

As The Mirror notes, as an exchange employee, Lakin is spared the platform fees when he sells and trades his holdings for fiat currency.

Aside from running his own Bitcoin node, Lakin said his choice to be paid in Bitcoin was shaped by a sense of the importance of using the cryptocurrency as it was originally intended — as electronic cash. He added:

"On top of it all, the conversations it creates are always worth it for spreading awareness and educating others about Bitcoin and cryptocurrency."

Bitcoin in Albion
As reported, the governor of the Bank of England, Mark Carney, memorably claimed in 2018 that Bitcoin had failed as a currency by traditional measures. Volatility loomed large in his criticism, with Carney saying at the time:

“If you had taken out a £1,000 student loan in Bitcoin in last December to pay your sterling living costs for next year, you’d be short about £500 right now. If you’d done the same last September, you’d be ahead by £2,000. That’s quite a lottery.”

This July, Carney argued that people need to acknowledge the issues Facebook is attempting to solve with Libra, regardless of the project’s potential pitfalls. If Libra can conform to regulatory demands, he stated a week later, the stablecoin could have genuine use cases.

India: Supreme Court Gives Central Bank 2 Weeks to Justify Crypto Ban

India’s supreme court has slammed the country’s central bank over its handling of a cryptocurrency business ban and ordered it to address complaints.

Judge: RBI has not properly responded to representation
In the latest session of an ongoing hearing into the actions of the Reserve Bank of India (RBI) on Aug. 21, the Court ruled officials had not appropriately responded to concerns from the cryptocurrency industry over its actions.

The RBI forbade banks servicing crypto operators such as exchanges in July 2018, effectively ending the ability for such platforms to continue operating in India.

On Wednesday, the move came in for severe criticism from the Supreme Court’s Justice Rohinton Fali Nariman.

As summarized by advisory resource Crypto Kanoon, present at the hearing, Nariman gave the RBI just two weeks to justify its actions.

“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer,” one update on Twitter reads.
RBI agrees to 2-Week deadline
Discussing the final outcome of the hearing, which is now over, Crypto Kanoon summarized:

“Case takes the most unlredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”

The case comes at the same time as the Indian government considers making cryptocurrency illegal for all Indians. In July, a government committee recommended Delhi move to ban all tokens except an official digital version of the rupee.

Subsequently, as Cointelegraph reported, an expert estimated the state would lose a market worth around $13 billion if it signed the ban into law.

Australia’s Biggest Bank Says Its ‘BioTokens’ Can Help the Environment

The Commonwealth Bank of Australia is currently prototyping blockchain tokens meant to enable landowners, environmental groups, developers and governments to invest in sustainable development.

Commonwealth Bank’s ‘BioTokens’
The bank announced in a press release published on its website on Aug. 21 that it is working on “BioTokens,” enabling sustainable investments co-developed with BioDiversity Solutions Australia.

Per the report, the project is part of broader developments meant to support regional businesses across Australia and enables the creation of crypto assets representing biodiversity credits for New South Wales Government’s Biodiversity Offsets Scheme.

The government project in question — introduced in 2017 — requires companies to find and purchase biodiversity credits to offset development impacts. Such credits can be generated by landholders establishing stewardship sites to protect biodiversity on their land.

The tokens will reportedly be also accompanied by a dedicated on-chain digital marketplace. BioDiversity Solutions Australia managing director, Rod Barnaby, commented:

“Developing a digital marketplace is part of a broader project we have been working on to help stakeholders participate in the NSW Biodiversity Offset Scheme. Our vision was to help facilitate the protection of precious environmental ecosystems, while also creating an alternative source of income for landowners and rewarding them for preserving biodiversity on their land.”
BioTokens can be programmed, regulatory compliance automated
Sophie Gilder, the bank’s head of experimentation & commercialisation for blockchain, AI and emerging technology, claims that the project creates an accessible and transparent marketplace enabling the trading of tokens representing biodiversity assets.

She also addressed the system’s compliance in another quote included in the press release:

“The BioTokens can be programmed with complex scheme rules so that compliance and administration is automated, market activity is transparent and real time, and marketplace participants have a simpler, streamlined experience.”

As Cointelegraph reported at the end of June, United States-based clean energy development firm Clearway Energy Group is launching a pilot program for trading renewable energy credits on a blockchain.

Japan’s Largest Gift Card Marketplace Launching Blockchain Gift Cards

Japan’s largest gift card platform Amaten will issue tokenized gift cards in partnership with blockchain network provider Aelf.

United Kingdom news outlet Verdict reported on Aug. 20 that Amaten partnered with Aelf — one of the 30 blockchain providers certified by the China Electronics Technology Standardization Institute — to issue gift cards on the blockchain. Amaten plans to build its framework on top of Aelf’s platform to tokenize its gift cards, enabling them to be exchanged and managed on the blockchain.

Gift cards and blockchain: “a completely natural fit”
This initiative will reportedly enable tracking gift cards from their issuers to the customer, which is expected to decrease fraud.

The current gift card system has never evolved to match today’s digital world, says Amaten chairman Tom Kanazawa. “It still suffers from basic fundamental shortcomings and is very inconvenient. I believe that the gift card industry can be a perfect use case for blockchain. The two are a completely natural fit.”

Verdict claims that the gift card industry is currently worth $340 billion globally, and $21 billion in Japan. While Amaten intends to initially launch the platform in Japan, the company also plans to expand overseas, first in Korea and China, but ultimately even further.

Crunchbase claims that Amaten “is currently the largest marketplace for gift cards in Japan with 70% of the market share Japan’s first gift card marketplace of Japan More than 70,000 registered users.” Furthermore, Verdict also claims that the firm has an annual revenue of $110 million.

As Cointelegraph reported in July, major U.S. cryptocurrency wallet and exchange Coinbase has entered the crypto gift card market, allowing customers in certain countries to exchange coins for brand e-certificates.

Vitalik Buterin Talks Scalability: ‘Ethereum Blockchain Is Almost Full’

Ethereum co-founder Vitalik Buterin says the Ethereum blockchain is almost full. In an interview with The Star published Aug. 19, he said the hurdle that faces big organizations interested in the Ethereum ecosystem is the still-thorny matter of the blockchain’s scalability.

“Scalability is a big bottleneck”

Buterin’s stark comments were made as part of a discussion of what he perceives to be the biggest roadblocks to the widespread adoption of cryptocurrencies. He conceded that:

“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining.”

As for how to improve the situation, Buterin said that networks need to evolve away from the idea that every computer is required to verify each and every transaction to a model whereby a computer on average verifies only a small portion of the transactions on the blockchain.

The improved scalability this would provide would bring costs down by a factor of over 100, he claimed. And while security is to some extent sacrificed by such a move, the compromise would be fairly modest, in his words.

Beyond scalability improvements and other technical advances, Buterin noted that the challenge remains in terms of transforming blockchain technology into something people will actually use.

Bitcoin’s rival or…?
In recent comments, Buterin has argued that the future of crypto is pluralist and revealed his openness to hybrid solutions that involve both Ether (ETH) and Bitcoin (BTC).

The co-founder clarified his stance in response to a proposal to implement the Bitcoin Lightning Network as an interface for Ethereum contracts to enable instant payments in Bitcoin, while simultaneously triggering a series of events on Ethereum, or any other chain.

In July, Buterin had proposed using the Bitcoin Cash (BCH) blockchain as a temporary scalability solution for the Ethereum network.