Defi, discovering Decentralized Finance

DEFI DECENTRALIZED FINANCE - Very often in recent years we hear more and more often about defi, Decentralized Finance. But do we really know what is meant by this term and do we know all the tools it uses? Let’s find out together.

Defi, discovering Decentralized Finance

The defi, decentralized finance, is the set of services that offers a classic bank but in a decentralized way, therefore in the absence of a hierarchy or central control.

At the basis of the defi we find smart contracts, or smart contracts generated by an automated computer program, which automates an action to the occurrence of certain requirements. The goal of smart contract is to make it possible to make all types of transactions, mostly financial. Within the defi can take place an exchange of value, loans and remunerated deposits, data sharing and so on.

Decentralised finance makes it possible to eliminate intermediaries partially (by definition weak) or totally (by definition strong). The former relies on traditional peer-to-peer platforms, while the latter uses Distributed Ledger technologies. Distributed Ledger is a collection of archives that have the same data records, subject to maintenance and control through a complex of computer servers, called nodes.

Dapp, the decentralized applications

The main purpose of decentralized finance is to create dapp (Decentralized Apps or decentralized applications) that target end users, offering financial products accessible to anyone, setting interest rates automatically on the basis of supply and demand. The only tool they need is a wallet containing crypto or tokens. These dapp have common characteristics that make them perfect for this type of products, among which we can remember:

Until now, the majority of Dapp built are located on the Ethereum Blockchain that in 2021 moved a volume of transactions greater than Visa, equal to 11.6 T of transactions against about 1OT of the payment giant.

Examples of application of the definition

Hedera has partnered with Neuron lnnovations, a London-based aviation technology company, to test the safe sharing of airspace by commercial and military drones. The UK has selected these drones that have performed a collection of millions of data points, taking advantage of Hedera’s public register consent service to "collect, store and order". Neuron sensors recorded the location and direction data of the drones, while Hedera’s consent service recorded the data collected by each drone on its decentralized public ledger. The main result that attracted interest is the demonstration of monitoring unmanned vehicles.

Palau

Palau is an island in the Pacific Ocean located about 500 km east of the Philippines, and became independent only in 1994. At present it does not have its own national currency, since it still uses US dollars, of which it was part until 1994 and with which it has maintained excellent relations. In November 2021 they announced the collaboration with Ripple and it is expected that within the first half of the year the national stablecoin will be launched, guaranteed by the government and collateralized in USD. As a result, the interest on the part of the state to exploit the ripple blockchain that allows a reduced power consumption and scalability at low cost.

READ ALSO --> Importance of the DEFI as a disruptive of traditional finance

Disney and Metaverse

DISNEY METAVERSE - That Disney had a whole world of its own was clear for a long time, not only since the various "Disneyworld" exist but since the brand has become synonymous with a complex system made of heroes, princes and princesses can fill an entire collective imagination. However, what the company’s leaders have recently declared leads Disney to embark on a new path to maintain its brand in contemporary society.

The Disney project in the Metaverse

Disney CEO Bob Chapek, said from the last quarterly report to investors:

"The initiatives we have carried out so far are merely a prologue of the moment when we will be able to connect even more closely the physical and digital world, making possible a storytelling without borders at/'intemo of our Disney Metaverse".

The project described above defines a technological leap in virtual reality, by the Californian multinational of entertainment, starting from the place they currently occupy between the platforms Over The Top.

"My vision is to use Disney+ as a platform for the metaverse - explained Chapek again -. The project is to use digital and physical components on a 'three-dimensional canvas' on which storytellers can draw, so as to create experiences that are usually found only in amusement parks, movies or books: all this can be combined without limits, boundaries or constraints. Our creatives are already waiting to enter the metaverse".

"A headset could also be there - said Chapek - but not everyone will have to use it, the use of a helmet is not necessarily in our plan."

Even Disneyland in the metaverse?

The former vice president of digital describes the possibility of creating a kind of theme park in the metaverse, as an innovation in the pandemic context to live unique experiences, but social and shared with other users thanks to augmented reality, artificial intelligence, the lot and with the help of wearable devices, smartphones or other.

Without forgetting that 2023 will also be the year in which Disney will celebrate its first centenary, we really expect a big change of pace, a real entrance into a new Disney era. "Looking at this next frontier, and seeing the unique combination of our brands, franchises, physical experiences, digitals and a global reach - concluded Chapek - we see limitless potential that excites us more than ever in view of the upcoming centenary of the Walt Disney Company."

READ ALSO --> Vinophila, the first virtual Expo dedicated to the world of wine

Introduction to some fundamental elements of Blockchain

BITCOIN BINANCE NFT - Blockchain, bitcoin, binance, NFT and many more are words and concepts that are increasingly becoming part of our lives. But do we really understand them? Let’s try to make a little bit of clarity with a general overview.

Bitcoin

The bitcoin story begins on October 31, 2008, when the name first appeared on an encryption site. A user who had the pseudonym of Satoshi Nakamoto claimed to have invented an electronic currency that could create a monetary system devoid of the need for a third party trustee and have solved one of the most important problems of electronic payments "the double spending". To demonstrate this, Satoshi published a paper entitled "Bitcoin: a peer to peer electronic cash system" where he explains the operation of bitcoin. The bitcoin white paper began to spread in the various forums.

On January 3, 2009, the genesis block (first block) will be generated by Satoshi Nakamoto’s computer. Bitcoin is a cryptocurrency:

The so-called double-spending (dopp ia spending) is nothing but the problem that could occur when someone was able to spend several times the same token.

Binance

Changpeng Zhao became the 11th richest man in the world with assets of more than 90 billion dollars. He owes his fortune to the creation of the Binance exchange. In November last year, Binance reached a value of well over $300 billion. CZ’s passion for cryptos began in 2013 during a poker game with BTC China CEO Bobby Lee and investor Ron Cao, who convinced him to invest in cryptocurrencies.

Thanks to the knowledge acquired after years of assiduous study, CZ sold his apartment and coated everything in Bitcoin. Through his small fortune, obtained through the investments of btc, in 2017 he founded Binance, which has since established itself as the best exchange in the world.

According to Bloomberg, most of his wealth was obtained through Binance, of which he is presumed to own 90%. The cryptocurrency company is said to have generated over $20 billion in revenue last year. According to the available data, the volume of exchanges on the stock exchange is almost the same as that of the next four major exchanges combined.

What is an NFT

An NFT, non fungible token - translated into Italian: non fungible token, that is, something you can’t physically touch - has been the subject of much discussion lately.

NFTs are the focus of attention of artists, singers and influencers large and small. It can now be defined almost as a mass movement, but why are we talking about a real revolution?

An NFT, defines in an indissoluble way the property of a physical or digital element, written in the blockchain, that is in the internet. The singers own the rights to the song that is placed in a multimedia network, but the artist receives only a small percentage of the revenue, in fact most of the earnings will go to the platform itself that markets it. The NFT then defines the decentralized ownership of something. If until now the whole system had been centralized, both in the material properties and in the digital ones, now everything can change.

NFTs will revolutionize not only the artistic field and the ownership of an element, but also university certifications, in fact it will no longer be possible to counterfeit a degree, or the definition of ownership of a property, everything will go through the blockchain and then the NFT. They also have a twist in the metaverse, like skins, images and all those decorative elements that distinguish one avatar from another.

In the new reality of the metaverse it will be possible to have NFT that distinguish us from the others, a bit like the garments signed today. To buy NFT there are various platforms, one of the most common and most capitalized is "Opensea".
At the moment you can buy videos, JPEG and multimedia content, but the step to overcome the barrier of the virtual and see widespread NFT products in the most practical areas of life, is really short.

READ ALSO --> The tax treatment of cryptocurrencies in Switzerland

Web3 the ultimate answer to our quest for freedom?

WEB3 - In recent days the Western world has been hit by a new layer of violence and death. Social media is a way of spreading news immediately and without precedence. Comfortable from our sofas we can observe live, what is happening in the war zones thanks to tiktok, fb and Instagram.The problem arises when the government does not want this news to be spread.

The Russian censorship

The Russian government has banned Facebook, Instagram and Tiktok, calling them tools to spread fake news. History does not always repeat itself, but often as a melancholic poet does "kissed rhymes". Where the government restricts the press and the dissemination of news, citizens lose their rights at that time.

And it is precisely the web3 that makes the difference, because it is decentralized and not governed by anyone, allows anyone to be able to connect to the web without any interference.

The turning point of Web3

Is the web3 the next step that will enshrine freedom of expression? (Web3 is an idea for a new iteration of the World Wide Web based on blockchain technology, incorporating concepts such as decentralization and token-based economics. Some technicians and journalists have compared it to Web 2.0, in which they say that data and content are centralized in a small group of companies known as "Big Tech" or possible censorship.

Some experts argue that web3 will provide greater security, scalability and data privacy for users and will combat the influence of large tech companies or web censorship.

READ ALSO -> Switzerland’s tax handling of cryptocurrency

Switzerland's tax handling of cryptocurrency

TAX HANDLING CRYPTOCURRENCY - Switzerland has a distinct advantage in establishing and expanding FinTech business models, such as DLT-based services. Switzerland has evolved into an innovation hub for developing technology-based financial solutions as a well-established, leading financial center with an investor-friendly tax and legal environment. This is also due to the Swiss government's and legislators' quick actions to enhance the legal and regulatory climate.

The path of cryptocurrency tax treatment

Several regulatory provisions have been in place since 2017 to allow FinTech business models to be created in a technology-neutral environment, with measures appropriate with their size and dangers, while always keeping public interests in mind. FinTech enterprises have limited prospect of long-term success if clients and the functioning of financial markets are not protected.

This is also valid for taxes. Unlike several of our neighboring nations, such as France, Swiss tax legislation does not provide any special provisions for cryptocurrency at the time of writing. As a result, the taxation of these digital assets will be based on existing legislation and tax authority practice based on the similarity of tax consequences of other assets.

This essay will summarize the critical elements of cryptocurrency taxation in Switzerland. It's important to remember that Cantonal Tax offices may also have slightly different practices and that every tax case is unique.

Tax handling of cryptocurrency: Taxation strategies

The Federal Department of Finance (FDF) has been revising Swiss tax legislation in light of rapid advancements in blockchain technology and the new problems brought by cryptocurrencies. It released a report (in French) in June 2020 that outlined the potential need for tax law reforms to deal with developments in distributed ledger technology.

The FDF looked into whether changes to income tax, wealth tax, VAT, withholding tax, and stamp duty was necessary. However, the investigation judged that the existing Swiss regulations were adequate. On the one hand, the current legal framework supported by authorities in practice can account for the vast majority of situations encountered. On the other hand, the existing quo ensures that Switzerland remains a desirable location for cryptocurrency innovation and investment.

Similar activities have taken place on a global scale. For example, in October 2020, the OECD published a paper on virtual currency taxation that provided a country-by-country summary of tax treatment. However, this document merely addressed generic, non-binding factors that public policymakers should consider when considering cryptocurrency taxation.

While there are no intentions to change Swiss tax law, a proactive strategy is nevertheless required. Potential future tax concerns for individuals and professionals may only be predicted by closely watching technological advancements.

So let's deep into taxation.

What exactly is a cryptocurrency?

Cryptocurrencies are decentralized, peer-to-peer computer networks that generate encrypted and virtual money. Blockchain is the most well-known network of this type, validated by "miners." Users who make IT resources available to ensure transaction security are miners. They are in charge of the blockchain system and ensure that the transaction user genuinely owns the cryptocurrency. This operation referred to as "mine," is carried out using sophisticated mathematical equations and is remunerated by the system's creation of cryptocurrency.

There are various sorts of cryptocurrencies

To figure out how a cryptocurrency is taxed, we must first determine how it is classified in Switzerland. Based on FINMA (the Swiss Financial Market Supervisory Authority) guidelines, the Swiss Federal Tax Administration (FTA) has identified three types of cryptocurrency:

• Native tokens: These can be used to make electronic payments and do not provide the issuer any rights. These are "pure" cryptocurrencies like Bitcoin or Ether, and they are the subject of this article.

• Asset-backed tokens: these tokens are issued as part of an issuer's initial coin offering (ICO/ITO) and include issuer rights. They can be debt obligations that require the issuer to pay the holder interest and even give the holder voting rights under company law.

• Utility tokens: these tokens are also issued in conjunction with a funding round. Unlike asset-backed tokens, they do not give the bearer any ownership or payment rights. They give you the only right to use an electronic service that runs on a blockchain platform.

READ ALSO ---> Discovering meme tokens with Oliver Camponovo

Native tokens have their own set of tax regulations.

Cryptocurrency holdings and certain capital gains must be declared on your tax return in Switzerland. You must consider the declared value and the cryptocurrency's origin to ensure that they are accurately declared. Whether they came from the taxpayer's personal or company fortune, they will be taxed differently.

Tax handling of cryptocurrency: Income Tax

The first thing to remember is that capital gains from a private wealth asset are tax-free. This regulation also applies to bitcoin capital gains. As a result, realized gains deriving from the sale of cryptocurrency are not taxed. Any losses incurred as a result of the sale of cryptocurrency assets, on the other hand, are not tax-deductible.

However, there are several circumstances in which cryptocurrency is not considered part of a person's private wealth. When cryptocurrency is earned through self-employment, it is considered business wealth. When virtual money is employed in ordinary trading, this is the case. How can you tell if your cryptocurrency is part of the regular trading market? There are several criteria, the most important of which are:

• Use of leverage,

• After fewer than six months, the cryptocurrency is sold.

• In any calendar year, a total volume of transactions that exceeds five times your total assets at the start of the tax period

• The requirement to raise funds through cryptocurrency transactions to compensate for lost revenue.

However, we should stress that only a thorough examination of your circumstances will indicate whether or not your activity qualifies as that of a professional trader.

Every Canton has the authority to decide whether or not a person's cryptocurrency transactions are considered self-employed. Furthermore, each Canton has a different tax treatment. Given the authorities' discretion, it is recommended that you seek legal guidance from an expert if you want to conduct any significant transactions.

Taxation and AHV

This is a crucial issue because it might significantly influence your assets. Taxation and AHV (old age and survivors' insurance) are the main drawbacks of the company wealth classification. All gains are taxable if the bitcoin transactions are considered business-related. Unlike profits derived from private wealth, these gains can no longer be deemed exempt. Furthermore, because bitcoin is virtual security, any securities (physical or virtual) activity deemed business-related is likely to include cryptocurrency activity by definition and vice versa. AHV contributions, on the other hand, can be deducted from realized cryptocurrency gains because they are computed based on actual income flowing from business wealth. There will be an increase in business costs as a result of this. And what about the bright side? Those who own cryptocurrencies as part of their business assets can deduct any realized losses and any value decreases!

The main question for blockchain miners is whether mining is done as a self-employed activity. If this is the case, the cryptocurrency received is taxable as self-employment income. Because they are considered company assets, any capital gains derived from their disposal will be taxed.

It's worth noting that mining categorization is a point of contention in Switzerland. The Cantons of Bern and Zurich, for example, have decided that a miner's work is always regarded as self-employed. In contrast, the Cantons of Zug and Lucerne assess the nature of such activity on a case-by-case basis before making their decision.

In the case of self-employment or cryptocurrency trading, taxable income is comprised of cryptocurrency obtained through mining on the one hand, and realized capital gains arising from the business wealth on the other, i.e., realized gains from the sale or purchase of cryptocurrency after short-selling it.

Tax handling of cryptocurrency: Wealth tax

Cryptocurrencies are considered things that can be valued and traded under Swiss tax law. As a result, they are assets subject to wealth tax. The tax rates differ from one Canton to the next.

Each year on December 31, the Swiss Federal Tax Administration determines the taxation value of the most widely used cryptocurrencies. Bitcoin, Bitcoin Cash, Ether, Litecoin, and Ripple are among them. When declaring virtual assets, taxpayers must relate to this taxation value. If the FTA has not assigned a value to a cryptocurrency, the asset holder must report the value as of December 31 using the platform's value. The taxpayer must declare the purchase price if the platform does not allow the user to determine the value of the virtual currency.

Business wealth is valued for tax purposes in the same way as private wealth is valued, i.e., according to the taxation value of the currency on December 31 of that year.

Asset-backed tokens have their own set of tax laws.

The civil law relationship between the investor and the issuer determines the tax status of asset-backed tokens.

If the holder earns interest on their investment, they must pay tax on it in the same manner that a taxpayer who receives interest on other investments does. In a similar vein, the issuer's payment of benefits to token holders computed based on a portion of profits is deemed taxable income from wealth.

The same regulations apply to capital gains tax deriving from asset-backed token transactions for native tokens.

The rules for wealth tax are the same as they are for native tokens.

Utility tokens have their own set of tax laws.

The civil law relationship between the investor and the issuer impacts the tax treatment of utility tokens.

If these tokens grant access to a service, there is no taxable income, and no payment is made to the token holder.

Utility tokens follow the same regulations as native tokens regarding capital gains and wealth taxes.

Correctly declaring  your assets in Switzerland and the use of a Voluntary Disclosure

What are the benefits of adequately declaring cryptocurrency? Because any taxpayer who fails to report their assets risks receiving an additional tax assessment as well as being prosecuted for tax evasion. The latter procedure could result in a punishment ranging from a third to three times the tax owing.

It's important to note that this option is only available once, and it doesn't imply you'll be able to avoid paying taxes or interest for late payments. However, once in a lifetime you declare your undeclared cryptocurrency wealth and income (and other if any) through a voluntary disclosure, you can escape the fine. The tax authorities must have no prior knowledge of tax evasion to be qualified for this procedure. The taxpayer must completely cooperate with the authorities in determining the amount of tax owing and paying it back.

READ ALSO ---> The boom in cryptocurrencies rises to 3 trillion

Ferrari and Velas Network AG, the partnership for NFT

FERRARI VELAS NETWORK NFT - In recent years, the rise of cryptocurrencies and blockchain technology has been inevitable. October 2021 was an exciting month for all cryptocurrency investors, as the price of bitcoin skyrocketed to $67,000, and Ethereum quickly followed suit. However, it is not only these blockchain technologies that attract interest. Among the best known are the NFT, which from art to sport are gaining more and more importance.

The partnership between Ferrari and Velas Network AG

Mission Winnow has left Ferrari but Cavallino certainly does not lack the possibilities of new sponsors. After Banco Santander, a new Premium Partner was announced. This is Velas Network AG, a world leader in the blockchain and NFT sector, which has already proven to be able to create and integrate technological products and services.

To announce the same Scuderia Ferrari with the words of team principal Mattia Binotto.

"We are pleased to start this collaboration with Velas Network AG, a company that makes innovation and performance the hallmark of technologically advanced products and services: are all values that we share and that led us to choose Velas as one of our Premium Partners".

The agreement was also discussed by Farhad Shagulyamov, CEO of Velas Network AG:

"After building the blockchain of the next generation, which devotes particular attention to performance and sustainability, it was natural to collaborate with another icon of excellence like Ferrari. Velas has introduced a series of innovative technologies in the world of blockchain and its derivatives that will now be showcased thanks to the presence at the top of motorsport".

But what are the NFT

Non-fungible tokens (NFT - "Non Fungible Tokens") are digital goods.  They represent a wide range of unique, tangible and intangible objects. It ranges from collectible sports cards to virtual real estate and even digital sneakers, but also and above all art! The key features of NFT are non-interoperability, indivisibilityâ, indestructibility and verifiability.

One of the main advantages of owning a digital collector’s item over a physical object is that each NFT contains distinctive information. Such information makes it different from any other NFT and easily verifiable. This makes the creation and circulation of false collector’s items unnecessary because each object can be traced back to the original issuer.

Read also -> Discovering meme tokens with Oliver Camponovo

Discovering meme tokens with Oliver Camponovo

MEME TOKEN OLIVER CAMPONOVO - In recent years, the rise of cryptocurrencies and blockchain technology has been inevitable. October 2021 was an exciting month for all cryptocurrency investors, as the price of bitcoin skyrocketed to $67,000, and Ethereum quickly followed suit. The most notable event, however, is another.

What you need to know about Meme token

In recent years, the rise of cryptocurrency and blockchain technology has been unavoidable. October 2021 was an exciting month for all cryptocurrency investors, as the bitcoin price skyrocketed to US$67,000, and Ethereum quickly followed suit. The most notable event, however, was the Shiba rose, which stunned the entire cryptocurrency community. Shiba quickly overtook Dogecoin's ninth position in marketcap, and investors made every effort to keep the meme coin crown. As a result, meme coins have quietly dominated many significant cryptocurrencies.

So, Oliver Camponovo, what's the big deal, and why are meme token making headlines? What exactly are meme coins? Is it coins, memes, or memes about coins? What's the deal with SafeMoon, Shiba, and Dogecoin?

Memecoins, also known as meme tokens (crypto assets that can purchase coins), are digital tokens inspired by popular sarcasm, social media puns, jokes, and memes. As a result, their concept is primarily derived from the internet. There are currently around 130 meme coins in the crypto market. Meme coins differ from traditional cryptocurrencies in that they are created without a specific goal or reason. Dogecoin was the first and most popular meme coin. It was created in 2013 as a parody, but it is now one of the most successful cryptocurrencies.

Even though their initial reputation was created as a joke, meme coins have done quite well in the cryptocurrency arena. People have already made a lot of money from these coins.

The only difference between a meme coin and a crypto coin is that meme coins do not currently have a utility like Bitcoin or Ethereum, designed to solve real-world problems. That being said, some meme coins are doing great things other than being memes, such as earning dividends. Dogecoin, for example, can be used on both a Mastercard-backed card and BitPay. It allows you to spend the coin wherever Mastercard is accepted, just like any other currency. There is a good chance that Tesla will accept Dogecoin as payment very soon!

How powerful can meme coins become?

Currently, predicting the future of meme coins, like all other cryptocurrencies, would be difficult.

At the moment, Dogecoin is the only original and largest meme coin. To understand its value, consider comparing it to Bitcoin, the first and original cryptocurrency and the most valuable at the moment. Dogecoin reached its peak in May 2021, with a value of $0.74 and a market cap of more than $35 billion. It is currently trading at $0.27. As a result, it is incomparable to other meme coins. SafeMoon is now worth $0.00000508 and has a market cap of $40 billion.

Shiba Inu is currently ranked third among the most popular cryptocurrencies, with Doge and Coinbase ranking 13th.

What's important to know here is whether Dogecoin users are selling out into Shiba. That could be a ruse to raise the price, and they may be able to repeat this trick in the future with a new token. So far, this remains an open question.

So, what makes these coins so valuable when their face value is less than a pound?

Memecoins are accessible to almost everyone, which means that as their value rises, so will their volume. Alternatively, as demand rises, so does the price. As a result, meme coin owners are well aware of how they can profit from them.

So, Oliver Camponovo, does this mean that meme token will take over the crypto market and make you rich?

Memecoins have the potential to work in parallel with traditional cryptocurrencies, personally I do not see them replacing in any way traditional crypto coins! To be realistic, there is always the possibility that they will fail. On the other hand, if you invest a pound in these coins and skyrocket in value, you could become a millionaire. SafeMoon, Shiba Inu, Dogecoin, and other cryptocurrencies are good examples of this. In addition meme coins mey be the driver of the young generation into the blockchain world and a link between blockchain and metaverse!

Meme coins can be used for a variety of purposes, including:

In theory, meme coins can replace existing payment mechanisms such as Paypal and bank transfers, and a few shops already accept them. We are very likely to start paying our bills with Shiba Inu instead of dollars through PayPal soon.

The key takeaway, as well as which meme coins are doing well:

Shiba Inu is a legitimate meme coin that is doing quite well in the market at writing. This coin's value increased by 60 million percent in 2020, reaching an all-time high, and it's dropped quite a bit since then. However, when compared to where it started, it has made significant progress.

Floki is another new and not-so-popular meme coin that is currently holding the grip, and it is now at 20.8 percent. Elon Musk's Shiba Inu inspired the coin.

However, keeping in mind that these coins are doing well right now does not mean that they will continue to do so. In this industry, anything can happen at any time. In any case, you must research before selecting or dropping any coin on any cryptocurrency.

Disclaimer: This is not a piece of investment advice. Do your research and eventually ask for advice from tax advisors and legal professionals in the function of where you live.

To discover the banking and fintech trends of 2020, click here

Analysis of the future of finance and blockchain with Oliver Camponovo

FINANCE BLOCKCHAIN OLIVER CAMPONOVO - The only thing that comes to mind when we hear the term "Distributed Ledger Technology (DLT)" is "Bitcoin." Bitcoin is merely a small fraction of the massive DLT pool, which will astonish you. Other examples of public DTL technologies are Ethereum and all the EVM chains that have allowed for smart contracts and the development of an entirely new Decentralized Finance infrastructure.

But, first and foremost, what is a Distributed Ledger Technology?

DLT is a technology that has the potential to alter the financial services infrastructure. It provides increased transparency, efficiency, decentralization, automation, cost savings, and other benefits. It will serve as the cornerstone for the financial services infrastructure of the future.

Financial services reimagined

By next year, it is expected that 80 percent of banks will have started initiatives on both public and private DTL. However, there are still many obstacles to overcome because formal legal frameworks do not yet exist, which can be a stumbling block in large-scale adoption. Furthermore, updating the entire financial infrastructure via DLT takes a significant amount of time. Finally, the top DTL resources are unavailable on the market and difficult to obtain.

The question here is whether the investment in DLT is worth all of the hardship.

The solution is straightforward! It enables parties to digitally transfer assets without the use of a "middle" party. Yes, indeed! It is well worth the hype, as it allows for transparency and autonomous business rule execution. Yes, indeed! It's well worth the effort. It reduces risks, speeds up and simplifies transactions, simplifies dispute resolution, and performs binding agreements in real-time. That is why the pain of modernizing financial infrastructure is worth it for DLT

.

Many improvements can be achieved:

So, what should financial services companies do now?

Given the massive amount of change that DLT will bring, now is the moment to recognize that there is still much work to be done. Companies must conduct cost-benefit evaluations and develop roadmaps. Legal and regulatory tax guidelines must also be worked out between the financial industry and the government; in Switzerland, the Parliament recently authorized such a new legal infrastructure, making DTL application easier.

Global Payments:

Because DLT offers lower fees, real-time settlement, and rules, it has the potential to flourish in the future of global payments.

Global transactions are currently complicated and expensive, with several steps to complete a process. Manual and repetitive operations are common. The payments are cleared through local clearing networks. Payments are also delayed by weeks and are occasionally refused if the corresponding bank fails to meet certain conditions. Similarly, each party's identity and re-verification takes a significant amount of time.

All of these obstacles can be overcome with DLT. To begin, there exist digital identification profiles, which are sufficient for quick verification. Currency conversion is also simplified, and authorities have access to transaction data.

As a result, DLT is more cost-effective because it eliminates the need for human resources and correspondent banks.

El Salvador, for example, recently created such a system and went even farther by declaring Bitcoin to be legal cash, allowing anybody to receive and send Bitcoin. The economy of El Salvador is still founded on remittances from outside, and the saved commissions of roughly 400 million dollars will be saved by the people and reinvested in the country. Are you shocked that El Salvador's economy is booming?

Processing of commercial property and casualty claims

It is now possible to lower the risk of fraud using DLT. Thanks to distributed ledger technology (DLT), which can help to speed the claim submission process by utilizing smart assets. It is possible to reduce processing time and eliminate unnecessary procedures. With the use of records, any fraudulent action can be quickly discovered.

Not only that, but DLT can make it easier to integrate credible data sources, reducing the need for manual labor.

Syndicated Loans:

Syndicated loans pose a risk of a single customer borrowing a considerable amount. Usually, the lenders are in the form of groups as the borrowing amount is enormous. Once again, the record-keeping functionality of DLT can make this process easy, effective, efficient, and risk-free.

Participation of financial institutions in syndicated loan opportunities can be made more accessible with DLT.

Trade Finance:

Every year, around $18 trillion of trade involves finance! DLT can boost trade efficiency by streamlining the processes involved in trade, such as capital efficiency and faster settlement. It also minimizes the risks as all records are trackable.

“And this is only the start of a global revolution that will shake the foundations of financial infrastructure.

Only those economies, politicians, managers, and individuals that begin to use this technology will be able to stay in the game. Even dinosaurs have gone extinct, so start learning and adapting.”

To discover the banking and fintech trends of 2020, click here

Is the hype about Metaverse for business worth it? This is Oliver Camponovo

METAVERSE BUSINESS - Welcome to the grid of always-on virtual spaces where you may mingle and interact in ways you never thought possible! Welcome to the Metaverse, the augmented reality cloud, the mirror universe, and the three-dimensional Internet. It's coming, and it's going to be massive!

The new "buzz" in the market is "metaverse," which is hitting the Internet like a wave and capturing the interest of the tech and business industries. The Metaverse is gaining traction where one of the most popular online sites is rebranding to promote this futuristic concept.

What exactly is METAVERSE?

Metaverse can be thought of as a "virtual habitat." Virtual reality headsets, smartphone apps, augmented reality devices, and other gadgets are used to create online spaces of interconnected virtual communities where humans may interact more realistically and meet, work, and play outside of traditional ways of communication.

The word "metaverse" is derived from "meta," which means "beyond," and "verse," which refers to "universe." As a result, it relates to a virtual world separate from the actual one, in which physical commodities such as land and buildings can be transferred for digital cash. Humans can now explore places, make friends, buy things, develop virtual assets, and even attend virtual events in this new "world."

The entire "pandemic scenario" and lockdown tactics have elevated the Metaverse notion even more. More audiences are exploring the virtual world for leisure and business due to remote working regulations and the "work-from-home trend." It has created a plethora of commercial options.

While Metaverse can be interpreted in various ways, three key features are presence, interoperability, and standardization. Interoperability refers to the movement between virtual worlds with avatars and other digital things, and presence refers to the experience of being in the virtual world. Interoperability of services and platforms across the Metaverse is built on the foundation of standardization.

Why is METAVERSE important in business?

With the future of Metaverse in mind, major corporations such as Google, Apple, Microsoft, and Facebook are already planning to embrace it ahead of their competitors. There's no denying that the Metaverse has the potential to revolutionize our culture, society, and politics. Nonetheless, it has the potential to create new industries, innovative social networks, improved gadgets, and new consumer behavioral patterns and patents.

Because of the way Metaverse works—blockchain technology—businesses can significantly profit from it. It's nearly impossible to tamper with a record after it's been made and added to the chain because of its decentralized database shared across networks of computers. This system maintains the integrity of data and eliminates the possibility of fraud.

When it comes to real-world use cases, the entertainment business is most important for customers to use virtual reality. The entertainment business will significantly gain from the Metaverse, from training to developing new products and services.

Tokens that aren't fungible (NFTs)

NFTs represent virtual assets such as films and photographs. Users who are registered on blockchains own these virtual assets. It makes it possible to trade and accumulate NFTs as digital assets. Businesses employ NFTs for promotional purposes as well as to monetize their assets. Popular brands like Louis Vuitton and Nike have expressed interest, opening up new marketing and promotion opportunities. Coca-Cola produces and sells these memorabilia as well. It suggests that NFTs have the potential to become a tool for business owners to take advantage of the Metaverse's growing possibilities.

The Metaverse can assist enterprises in a variety of ways, many of which are yet to be discovered, but which include:

The Metaverse can transform customer and company relationships:

By providing additional locations for potential customers and improving their involvement with their products and services, they can expand their market. Sotheby's Metaverse, an online marketplace where clients may purchase NFT art, is the best example.

In the Metaverse, corporate interest is fast growing. The entertainment sector is capitalizing on this opportunity, and online games are evolving from simple video games to a vast universe, and Roblox and Fortnite are the best examples.

On a traditional scale, Metaverse can allow new currencies to enter the market

Businesses can now sell their services on a whole new and distinct marketplace as blockchain cryptocurrencies gain popularity. The best feature of Metaverse is its decentralized nature, which allows people to make decisions rather than having them made for them from the top down. This decentralized character is a key sign of how new currencies will develop and how new businesses will operate. Companies can now use the Metaverse to implement their business strategies and concepts. This trend will continue to improve as cryptocurrencies become more widely recognized and integrated into society.

Metaverse can bring new conversational tools to improve and simplify teamwork

The Metaverse provides new modalities of collaboration and teamwork for commercial firms, in addition to monetary incentives. During the epidemic and shutdown, there was an upsurge in meeting cooperation over Zoom, which was handy but also limited. Metaverse can help close the gap by combining the convenience of online conferencing with the efficacy of in-person meetings via virtual conference rooms.

Are there any risks for enterprise businesses in the Metaverse?

At the time, there were two major hazards associated with Metaverse adoption. The first is the unpredictability of blockchain technology's future, and the second is the threat of cybersecurity. This and any other hazards associated with Metaverse and other blockchain technology should be monitored by businesses and corporations.

Take-away

Metaverse has the potential to be a game-changer in the modern corporate environment, where data science, virtual reality, and artificial intelligence dictate the rate of growth, profit, and productivity. However, by transferring our entire lives to a purely virtual platform, Metaverse will raise the traditional cybersecurity threat to a new and more serious level. Metaverse, without a doubt, allows us to escape the confines and limitations of the physical world. However, the shift is still ongoing, and there is still plenty to learn.

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