Cryptocurrency Midday Report
Jul 11, 2018
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A South Korean firm, Lotte Global Logistics has joined the Blockchain in Transport Alliance (BITA). The alliance was formed in 2017 to develop blockchain applications in the logistics industry. Adoption of blockchain technology has been a major focus for BITA as well. Lotte Global Logistics’ resources form the largest network in South Korea for parcel delivery. Additionally, companies in BITA include: FedEx, Uber, UPS and GE Transportation.
Oliver Hart, winner of the Nobel Prize in Economics for work on contract theory recently discusses smart contracts. He stated that smart contracts do not solve the problems of incomplete contracts that his work is focused on. He noted that smart contracts are not suited for the long term which is due to the long-term being hard to predict. An example he gave was that a factory might use a smart contract for and locate its factory near coal. If coal is not a good energy source in the future, the factory may not be incentivized properly.
According to reports, the telecom blockchain industry is posed to be worth about $1 billion by 2023, an 84% CAGR from current day. Security concerns are among the highest in the telecom industry, and blockchain technology is seen as an improvement in this area. Regulatory uncertainty is the biggest thing weighing down blockchain integration.
Lai Xin, chief engineer of ThunderChain, a project created by Chinese tech giant Xunlei, believes that blockchain technology, while proving to be a technological innovation, will be a huge social innovation too. He says that the mass adoption of blockchain tech will be able to change the way established businesses do their work, because blockchain could eliminate the need for a third party. Lai Xin says that his will spur innovation, create answers to more of societies issues, and release a new wave of demand and skills to the market.