Chinese Retail Giant To Use Blockchain To Track Beef, Prove Food Safety

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The Chinese[1] e-commerce giant JD.com is implementing Blockchain[2] to track the supply chain of its meat sales, Business Insider reports[3] on March 3.

JD said that customers will be able to monitor their meat from the farm in Australia[4] where it was raised, all the way to their doorstep. When the system becomes operational later this spring, customers will be able to check how the meat was raised, butchered, and transported. The tracking system is the result of a partnership with Australian beef producer HW Greenham & Sons Pty Ltd.

In China, counterfeit goods often “slip under the radar”. In August 2016, 319 pigs contaminated by prohibited drugs, including salbutamol and clenbuterol, were discovered[5] in southeast China. Blockchain technology provides a solution in boosting consumer confidence, as it allows to verify the origin of the meat in seconds.

Chief technology officer at JD, Chen Zhang, said that the new Blockchain-based system will reassure consumers that they have purchased “safe, reliable products for their families.”

“Consumers in China don’t just want quality imported products, they want to know that they can trust how and where their food is sourced, and blockchain helps us deliver this peace of mind,” said Zhang.

Blockchain has also proven a boon to food suppliers who, in addition to improving consumer confidence, can use the distributed ledger system to track the origin of foodborne illnesses like salmonella. This more accurate method of tracking would allow suppliers to quickly locate the source of the contaminated products and could lead[6] to less food waste during the recall process.

Last year, the US retail giant Walmart[7] teamed up[8] with IBM[9] to build a Blockchain platform on which they could identify and remove recalled foods from their products list. JD, Walmart, and IBM are all members of the Chinese Blockchain Food Safety Alliance, along with Tsinghua University, according to Business Insider.  

Blockchain Platform to Help Small Firms Enter in Manufacturing

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An established technology company is using Blockchain to dismantle barriers to entry for manufacturing firms and their buyers, with a new platform billed as “the way forward into the Industrial Revolution 4.0.”

SyncFab, which launched in Silicon Valley five years ago, is working[1] with the US Department of Energy’s Clean Energy Smart Manufacturing Innovation Initiative and the cities of San Leandro, San Francisco and Oakland. The team believes smart technology will help smaller manufacturers with minimal marketing budgets who struggle to gain free exposure on search engines- allowing them to bid for more contracts and showcase their capabilities with ease.

Meanwhile, purchasers looking for precision parts have a greater chance of finding a provider who is local to them. Expenses also tumble because the procurement process, where brokers, agents and inefficient software cost time and money, is streamlined dramatically. SyncFab argues that local sourcing lowers the minimum number of parts that a buyer needs to commit to while creating a more responsible and eco-conscious supply chain at the same time.

At the heart of this Smart Manufacturing Blockchain[2] is the MFG Token, a utility token which doubles up as a payment method and a reward mechanism for manufacturers who participate in auctions quickly, offer competitive rates and maintain production records on the Blockchain.

Perks for purchasers

SyncFab[3] is targeting forward-looking companies who want to reduce their overheads and invest in smart technologies within the Industrial Internet of Things (IoT for short.)

Although hundreds of millions of dollars have been invested in modernization, this expenditure has mostly been restricted to large multinational companies, and until now, smaller businesses have been at risk of falling behind. With the industry projected[4] to reach a value of $4 tln by as early as 2025 according to consulting firm McKinsey.

The SyncFab platform aims to help purchasers of all sizes slash their procurement costs, as their request for quotations (RFQs) would be matched with manufacturers who have the technical expertise, machinery and capacity to make their product. This is achieved by comparing the buyer’s product criteria with the order histories and earlier product designs of potential candidates. The company believes Blockchain also paves the way for greater transparency[5], enabling changes in product specifications and material requirements to be communicated in real time, eradicating costly mistakes and delays.

SyncFab’s whitepaper[6] cites a report into cyber risks by Deloitte, in which executives said the biggest threat facing their business[7] is the theft of intellectual property. The technology company believes its platform can assuage these fears by encrypting these assets on the Blockchain using top security protocols, affording protection to users who don’t have the budget for specialized cybersecurity staff.

Merits for manufacturers

In addition to rewards[8] in the form of MFG Tokens for fast bids, SyncFab says its platform will allow manufacturers to focus on what they do best: production. This is because they receive upfront investment from purchasers after successful bids, and they need to spend less time looking into the background of their customers before commencing a project.

Auction listings on SyncFab include details of the purchaser’s budget, providing guidance to the manufacturer. Sometimes, the buyer will also add a “tolerance amount” to indicate what they would be prepared to pay beyond this. Although bidders would be automatically excluded from a race if their quote was too high, SyncFab does give manufacturers the chance to revise such offers making it easier to understand boundaries, achieve compromise and win business with a would-be client.

Token sale underway

SyncFab’s sale of MFG Tokens[9] is scheduled to run through until March 15, 2018. Those who purchase the MFG before March 11 would be eligible for a five percent bonus, the company states.

SyncFab has successfully reached it’s soft cap of 15,000 ETH and has a hard cap of 33,000 ETH for its token sale. If this is achieved, additional deliverables in future would include a live data feed to manufacturing suppliers, allowing updates about the progress of an order to be sent to purchasers in real time through the Blockchain.

 

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Popular S. Korean Chat App Operator Kakao To Launch Blockchain Subsidiary

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Kakao, the service provider for major South Korean[1] mobile messaging app KakaoTalk, will be establishing a Blockchain[2] subsidiary tentatively named “Kakao Blockchain” and is considering launching an Initial Coin Offering[3] (ICO), Huffington Post Korea[4] reported today, March 5.

Jae-sun Han, a partner and Chief Development Officer of tech startup incubator Future Play, will be the representative of the new organization. The concrete business plan for the Kakao Blockchain subsidiary will be introduced on March 20, according to Huffington Post Korea.

Since it is currently illegal to run an ICO based in South Korea, Huffington Post Korea writes that the ICO for Kakao would be located abroad, most likely in Singapore[5] or Hong Kong[6]. The hypothetical “Kakao Coin” could then be used as a native currency on various Kakao-provided apps, like KakaoTalk, Kakao Driver, and Kakao Games.

Cointelegraph contributor Joseph Young tweeted today, March 5, that KakaoTalk and KakaoPay, their mobile payment service, have “90% penetration in messaging and fintech markets in South Korea:”

Rumors of an all out cryptocurrency ban[10] in South Korea caused the crypto markets to drop severely in January 2018. Since then, the government has clarified that there is no planned crypto ban[11].

Last month, popular messaging app Telegram[12], registered in the British Virgin Islands,  reported that they had raised $850 mln[13] from 81 investors in what was effectively a closed ICO pre-sale. For US-based investors, Telegram filed an exemption with the US Securities and Exchange Commission[14] (SEC) so that their tokens did not have to be registered as securities, and only so-called accredited investors could contribute.

Inspired By Venezuelan Petro, Cambodia May Issue A National Cryptocurrency

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Following last month’s launch[1] of the Venezuelan[2] government-backed Petro[3] coin, Cambodia[4] is considering launching its own crypto project named Entapay, a press release[5] for the Association of Southeast Asian Nations (ASEAN[6]) Blockchain Summit reported March 2.

The Blockchain[7] Summit, which will be held in Phnom Penh on March 7, describes Entapay as a project based on the “quantum entanglement” of security and encryption, writing that it will use Blockchain technologies to create a fast and secure user experience.

According to the press release, Entapay is “expected to become the connection between integration payment of encrypted currency and the real world”:

“It has the great potential to even replace VISA as the new mainstream payment mode.”

The press release compares the Entapay project directly with Venezuela’s Petro, which they classify as a digital currency that “assist[s] the country in avoiding the Western world’s economic sanctions – while providing a new channel of economic development for a country suffering from severe inflation.” A similar currency in Cambodia, the press release notes, could help the country take advantage of the Blockchain revolution.

The ASEAN Blockchain Summit, themed “Tomorrowland Built on the Blockchain”, will help to promote Blockchain-based financial technology in Southeast Asia and abroad, in part by building the first institute for Blockchain technologies in ASEAN, according to the press release.

This Blockchain Summit is not the first time that Cambodia has ventured into Blockchain. Last summer, the National Bank of Cambodia partnered[8] with a Japanese[9] Blockchain identity company to test distributed ledger technology for payment services.

At the end of February 2018, the Marshall Islands also announced that they would release their own cryptocurrency[10] with an Initial Coin Offering[11] (ICO) and free trading.

GE Transportation Joins Global Blockchain Trade Association

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GE Transportation[1], a global supplier of railroad, mining, marine, drilling, and energy generation equipment, announced[2] that it joined the Blockchain in Transport Alliance[3] (BiTA) in a press release published March 1.

The trade association consists of more than 230 participants[4] including UPS[5], FedEx, Penske Logistics, and Warren Buffet[6]’s BNSF Railway, with a collective revenue exceeding $1 trillion, according to the GE Transportation blog post.

According to their website, BiTA formed in 2017 to implement and develop Blockchain[7] technology in the transport and logistics industries.

Craig Fuller, Managing Director of BiTA noted that GE Transportation has always been “on the forefront of technology,” adding that the association is glad GE will be an active participant “helping to lead the blockchain framework for the industry.”

Chicago-based GE Transportation is a division[8] of the US multinational conglomerate General Electric (GE). According to Monica Caldas, Chief Information Officer for GE Transportation, a “[d]igital Industrial leader” should first apply advanced technologies internally to boost productivity and then “apply those learnings for our customers’ benefit as well.”

As reported[9] by Cointelegraph in January 2018, the logistics industry employs the most people in the world. As the industry grows, it faces problems of scaling sustainably and efficiently, which Blockchain tech can be used to address.

BMW ‘Is Working With’ Another Blockchain Firm, This Time To Track Cobalt, Report Says

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German[1] car manufacturer BMW has allegedly closed a second partnership with a Blockchain[2] startup, this time to source ethical cobalt for its products, Reuters reports[3] March 5, citing the startup’s CEO.

Just a week after the automotive giant unveiled a deal with Chinese Blockchain supply firm VEChain[4], Douglas Johnson-Poensgen, the CEO of little-known UK-based startup Circulor, told Reuters they are collaborating with BMW to track so-called ‘clean’ cobalt supplies in order to ensure their ethical provenance.

Cobalt is sourced overwhelmingly from the war-torn Democratic Republic of Congo, where some supplies are reported to involve the use of child labor and informal setups known as ‘artisanal’ mines, Reuters notes.

Blockchain tech, Circulor’s CEO says, is the auto giant’s ticket to ensuring a sustainable supply chain.

“We believe it makes economic sense to start with sources that aren’t a problem,” Johnson-Poensgen told Reuters.

“Once the system is proven and operating at scale, one can tackle the harder use cases like artisanal mines.”

Almost no further information has surfaced regarding Circulor or their alleged partnership, which has to be officially acknowledged by BMW.  Additionally, Circulor appears not to have an official website, with their London registration[5] and incorporation as a Private limited Company in November 2017 their only publicly-available information.  

The latest move continues the trend in the automotive industry, specifically in Germany, focusing on the use of Blockchain to foster innovation and cut costs.

On March 5 Cointelegraph reported that Mercedes Benz owner Daimler[6] had launched a brand new cryptocurrency. Known as MobiCoin, the currency is designed to reward drivers for safe and eco-friendly driving and is currently in a three-month test phase with 500 car owners.

In late February, Cointelegraph reported that Porsche[7] had successfully implemented and tested Blockchain tech in cooperation with Berlin-based startup XAIN.

European Commission To Release Bloc-Wide Blockchain Framework, Says Draft Document

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The European Commission, the EU’s executive arm, is set to reveal plans for a joint regulatory effort on fintech[1], including Blockchain[2], Reuters reported[3] Monday, March 5.

A copy of a draft document seen by the publication, due for release “as soon as this week,” suggests a desire for EU regulators to adopt blanket rules governing issues such as crowdfunding and “[b]lockchain technology standards.”

This, Reuters suggests, forms part of a move to end the “patchwork” system of regulations currently in force across member states of the bloc.

“An EU framework would offer a European passport, and, at the same time, ensure the proper management of platforms and the protection of fund providers,” the draft reportedly states.

Unlike cryptocurrency, Blockchain treatment has become a central focus for the European Commission, which early last month unveiled[4] its dedicated EU Blockchain Observatory and Forum.

Billed as “one of the world’s most comprehensive repositories of blockchain experience and expertise,” the entity should function as a melting pot for various bodies to “discuss and develop new ideas and directions” involving Blockchain technology.

Meanwhile on the topic of cryptocurrency, the EU’s financial services chief Valdis Dombrovskis said during a Commission speech[5] Feb. 26 that lawmakers “stand ready” to introduce regulation if necessary.

At the same time, the EU “must embrace the innovation” of Blockchain, he concluded.

Russia: Blockchain Will Be Used To Protect 2018 Presidential Exit Poll Data

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A Russian[1] polling research center will use Blockchain[2] to monitor exit poll results for its 2018 presidential elections held later this month, an official press release[3] announced Monday, March 5.

According to the release, the country’s Public Opinion Research Center[4] (VTSIOM) has partnered with local startup 2chain, which reportedly specializes in smart technology and ICO marketing consulting.

The move marks one of the world’s first implementations of Blockchain in official voting. Russian authorities having already keenly pursued[5] the idea at lower levels.

Together, VTSIOM and 2chain will create a Blockchain database of information gathered from the polls, allowing the organization to circumvent DDoS attacks and other common malicious threats, especially on polling day itself, officials say.

“Until now with exit polls we had to practically shut down the website on polling day in order to avoid it being taken down by DDoS attacks and other breakin attempts from numerous anonymous hackers,” VTSIOM general director Valery Fyodorov explained, continuing:

“Thanks to Blockchain we can enhance the level of data protection from cyber-attacks several fold, avoid weak points while transferring information, and guarantee the integrity and immutability of data.”

The concept will have “no parallels” anywhere else in the world upon launch, as similar ideas from Estonia[6] and Ireland[7] are still in their planning stages, according to Fyodorov.

The progress of the Blockchain model will feature real-time updates which anyone can track using a dedicated portal[8]. The project is set to launch March 12, with elections beginning March 18.

EU’s Proposed Digital Tax Doesn’t Apply to Fintech Activities: Expert Take

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In our Expert Takes, opinion leaders from inside and outside the crypto industry express their views, share their experience and give professional advice. Expert Takes cover everything from Blockchain technology and ICO funding to taxation, regulation, and cryptocurrency adoption by different sectors of the economy.

If you would like to contribute an Expert Take, please email your ideas and CV to a.mcqueen@cointelegraph.com[1]

The topic of cryptocurrency/ICO regulation is high on the world’s agenda these days. Last week, at a two-day meeting in Madrid, Spain, the International Organization of Securities Commissions (IOSCO) Board[2], which consists of 32 of the world’s market regulators, unanimously agreed that a deep analysis of the nature of cryptocurrencies was required to devise regulations to protect investor rights[3]. On March 19 the G20 Finance Ministers and Central Bank Governors will meet in Buenos Aires, Argentina, and on April 20 in Washington DC to discuss the same topic some more.

EU Commission’s proposed digital tax on tech giants

Meanwhile, the EU Commission has proposed a temporary EU-wide tax on digital companies with revenues above 750 mln euros ($922 mln) worldwide and with EU digital revenues of at least 10 mln euros a year. Excluded from the tax is revenue from electronically supplied media, streaming, online gaming, IT solutions, cloud computing services, and “fintech” activities[4]. The Commission’s proposal[5] is subject to changes before its publication which is expected in the second half of March.

The temporary cross-border tax of one to five percent would apply to digital transactions within the EU, between EU countries and third party countries, and to purely domestic digital transactions based on where their users are located, rather than where companies are headquartered. It will reduce the appeal of smaller low-tax states until a more comprehensive solution is established for a new digital tax nexus within the existing corporate income tax framework. Commission’s temporary digital tax proposal resembles a concept of nexus by “cookie” (Internet cookie, that is) which may not constitute the “traditional” kind of physical presence nexus test as defined under OECD Model Tax Conventions. The proposed tax will not be a transaction-by-transaction tax, but instead calculated by the business’s aggregated gross online revenues that meet the defined thresholds. The Commission would seek international agreement on a permanent tax plan through an update of the OECD Model Tax Convention. Once an agreement is reached on long-term tax rules, the short-term measures would cease to apply.

To minimize tax compliance burdens, for greater efficiency and better compliance the Commission may introduce a simplification mechanism based on the one-stop-shop model for declaring and collecting the tax at EU level.

Blockchain applications to tax administration

“Blockchain is, without a doubt, one of the most promising technologies for tax administration because of its ability to deliver reliable real-time tax information, by not only changing the relationship between taxpayers and tax authorities but also altering the way we register taxes or submit and store information, especially on an international level,” explained Victor Sint Nicolaas of Summitto[6], a Dutch startup that is developing a Blockchain Value Added Tax (VAT) system.

 Sint Nicolaas explained:

“The potential of digitizing taxes has been noticed by EU countries, some of which have adopted Standard Audit File for Tax as a means to file tax returns electronically.  EU countries are looking for ways to improve VAT collection, since it is the largest contribution to government budgets. Currently, the EU VAT system loses 50 bln euros annually to missing trader fraud, through which fraudulent companies collect VAT which they never return to the government. If transactions were recorded on a distributed ledger, tax authorities can know with certainty how much VAT is due, which reduces the risk of fraud. Furthermore, the global registration can make it easier for businesses to use invoices for other financial services.” 

In the US, after the Internal Revenue Service (IRS) issued guidance stating that it would tax cryptocurrencies as property[7], Libra[8], a startup Blockchain company located in New York, began developing a cryptocurrency and Blockchain-oriented accounting and tax software.

“LibraTax tracks crypto activity and establishes a cost basis to calculate capital gains and losses and report taxable events. It automatically synchronizes exchange trades, wallet and cryptocurrency Blockchain transactions, establishes cost basis values for Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Monero, Zcash and generates reports on acquisitions, disposals, balances, tax lots, for purposes of US Tax Form 8949” explained Jeremy Drane, LibraTax’s Chief Commercial Officer.

LibraTax is available to taxpayers for free in 2018, he added. The software may come in handy to the 13,000 customers of Coinbase who have been informed of the imminent data handover of transaction records from 2013-2015 to the IRS[9].

Another Blockchain-based accounting platform developing tax systems focused on taxing crypto for ICOs is Balanc3, the part of New York-based development studio ConsenSys[10].

The accounting system covers more than just tax such as financial reports, bookkeeping, invoice tracking, payroll management and portfolio analysis. Griffin Anderson, Founder of Balanc3 explains that the Balanc3 platform gives users the ability to track cryptocurrency/token transfers and compile live financial reports which translate this data into formats that are well-understood by accountants, regulators and the IRS. The developer plans to make the product available for customers, including exchanges and crypto funds, later this year.

Anderson adds that “The Balanc3 team is also behind the Accounting Blockchain Coalition, which is the go-to group for determining the tax treatment of cryptocurrencies. They are addressing issues such as to how to tax forks, airdrops, and like-kind exchanges.”

Blockchain technologies and unprecedented global transparency laws are helping to accelerate changes in the way businesses manage tax. One thing is for certain, the tax function for governments, companies, and individuals will look very different in the future.

The views and interpretations in this article are those of the author and do not necessarily represent the views of Cointelegraph.

Selva Ozelli, Esq., CPA is an international tax attorney and CPA who frequently writes about tax, legal and accounting issues for TaxNotes, Bloomberg BNA, other publications and the OECD.

Steve Bannon Lauds Cryptocurrency As A Tool To Resist the ‘European Establishment’

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Steve Bannon, former Chief Strategist to US President Donald Trump, said that cryptocurrencies could be an asset to the European[1] anti-establishment movement at an event[2] sponsored by the Swiss[3] newspaper Die Weltwoche on March 6.

At his lecture in Zurich, Bannon stated that cryptocurrencies[4] and the Blockchain[5] will “empower [the populist] movement, empower companies, [and] empower governments to get away from the central banks that debase your currency and makes slave wages.”

With cryptocurrency “We take control of the central banks away. That will give us the power again.” Bannon sees broad use and integration of cryptocurrencies and the Blockchain as means of emancipation from establishment forces that have created “a new serfdom.”

“Once you take control of your currency, once you take control of your data, once you take control of your citizenship, that’s when you’re going to have true freedom,” said Bannon.

Bannon accused governments, central banks, and tech companies of taking away the rights and identities of ordinary people and using them for their own purposes.

Bannon is travelling in Europe on a speaking tour following right-wing victories in the recent Italian[6] elections. In the lecture, Bannon speaks at length about how cryptocurrencies and the Blockchain can be instruments of the movement of right nationalism.

Previous to working at the Trump administration, Bannon was a founding member on the board of Breitbart News, which became known as a voice of the alt-right movement in the US with an outspoken brand of anti-establishment far-right rhetoric and reporting. Bannon was an adviser to President Trump as well as a member of the National Security Council before being dismissed[7] from the White House in August 2017.

As previously reported[8] by Cointelegraph, the canton of Zug in Switzerland is establishing a global hub for crypto and Blockchain that’s come to be known as “Crypto Valley”. The Swiss Financial Market Supervisory Authority (FINMA) has implemented forward-thinking policies towards cryptocurrencies, making Switzerland a competitive environment for developing crypto, Blockchain, and distributed ledger technologies.