Outside of all the consistent value speculation and novelty of cryptocurrencies, a compelling trend towards an additional open finance system this movement is that the enlargement of the infrastructure and regulation needed to facilitate a transition toward open financ tools. Parallel with the emergence of cryptocurrencies is that the stress on open financial tools, either built directly on blockchains as open protocols or hybrid services for digital assets offered by commercial entities ingratiated with legacy systems. These assignments expand on thoughts of cryptocurrencies by building clear and open financial instruments for creating and tapping into the facility of digital assets.
Financial services perspective
The financial services sector one in each of the primary industries to explore blockchain and is recognized globally as a business with high potential to be actually wedged by blockchain technology. At a practical level, decentralized and distributed ledger technologies have the potential to fundamentally redesign the ways in which financial institutions interact with each other, regulators, and their customers. Historically, use cases for blockchain technology in financial services include open finance, customer on-boarding, regulatory reporting, and cross-border payments. Moving forward, revenue-generation use cases for crypto-trading services, loyalty programs, securities- lending services, and others have started to come into focus. While global institutions begin to spin up blockchain-focused teams, and internal investment increases, it is important to note the emerging disruptors in this space. As discussed in our earlier examination of enterprise organizations vs. emerging disruptors, new blockchain start-ups are not constricted with legacy technologies, operating systems, or business models. Many incumbents are taking note, and some of the biggest names in the financial services space are currently investing heavily in and acquiring blockchain capabilities.
● Scalability is a key issue to deal with as organizations look to explore the numerous potential blockchain solutions out there to them.
● Security is an important consideration: 84 percent of respondents indicated they believe blockchain-enabled solutions will be more secure but remain unclear as to what new threat matrix may develop.
● Consortia creation and collaboration is imperative to enable the financial services industry to unlock the true potential of the technology. According to our global survey, 45 percent of respondents said they would look to join a consortium and partner with others to develop and reap the benefits of blockchain.
Importance of blockchain’s financial tools and services:
Financial tools and data privacy: The pace at which innovative technologies are hitting the crypto market is incredible, and entrepreneurs are making the most of this to enhance the growth of their company. Bitcoin Profit System, for instance, has a simple trading interface that allows entrepreneurs and investors to participate in various trading options even if they are amateurs in this sector.
Integrated financial services: The growth of open financial tools built on blockchains is open to hybrid services for different digital assets provided by commercial entities that are integrated by secure legacy systems. An open financial system will only exist if there are proper innovations and infrastructure in the related spheres.
Improved regulations, identity standardization, and increasing regulation: Traditionally, entrepreneurs had to play the guessing game whether their investment will be safe or not. Data privacy and security was a primary concern back then. However, the open financial system along with its tools and services are making the process much easier. Standardization and improved data security are the orders of the day now.
Blockchain tools have shown a demonstrable shift within open financ services from efficiency and cost savings toward a broader portfolio of blockchain applications designed to include new revenue streams. It is clear the financial services industry is at the tipping point of critical change and those who understand both the opportunities and challenges will emerge as winners.
A rapidly growing ecosystem of companies is looking at how blockchain technology can be used to improve the administration and enforcement of IP rights across multiple jurisdictions. The Blockchain and Intellectual Property Law field is numerous and could impact both the governance of IP rights and the IP industry itself.
Blockchain for registered and unregistered rights could arguably be used to provide proof of creation, existence, ownership and/or first use, to register IP rights, to facilitate the administration and management of IP rights on a global scale, thereby potentially contributing to the emergence of “global IP chains” and to enforce IP rights and fight counterfeits in a more efficient way.
While applications of blockchain technology could help to alleviate some of the challenges that rights-holders face, the technology will not solve all issues. But one thing is certain: the disruptive nature of the technology, the multiplicity of potential applications emerging, and their practical and legal implications deserve the attention of regulators and legislators.
There are four primary types of IP protection: patents, trademarks, copyrights, and trade secrets. Therefore, an IP protection strategy must include an understanding of the scope of each type of protection and how it can be applied to a specific innovation. Clients seeking the assistance of an IP attorney are usually able to identify the “property” that they would like to protect.
A patent can protect a machine, process, or article of manufacture. A U.S. patent holder has the right to exclude all others in the United States from making, using, selling, offering for sale, importing, and, in some cases exporting, implementations of their claimed invention for the duration of the patent (typically, approximately 20 years). This is an exceptionally powerful right, granted by the U.S. government that is given to the inventor in exchange for the public disclosure of their invention. While patents are a flexible and powerful form of IP, they are also usually the most expensive and most difficult to obtain due to the fact that a relatively protracted application process is required. Owners of pending patent applications may mark commercial embodiments of those inventions as “patent pending,” which can provide some competitive advantages against potential copiers during the patent process.
Copyright exists in any original work of authorship (e.g., literary, musical, architectural, and pictorial works) that has been fixed in a tangible medium (e.g., a book, a photograph, a compact disc, or a digital memory device). The holder of a copyright has the exclusive right to reproduce, distribute, perform, display, prepare derivatives of, and digitally transmit the work, and may also mark works with a copyright notice.
Computer programs and databases are considered literary works as it relates to copyright laws. While it is useful to keep and maintain copyrights in software source code and database schema and contents, especially since there is little effort needed to obtain the copyright in the first place (e.g., original authorship and a fixed medium), the protection provided by a copyright is somewhat limited and primarily intended to prevent true piracy as opposed to mere imitation.
A trademark is a name, word, phrase, logo, symbol, design, image, color, or combination thereof that is used to identify the source of goods or services bearing the mark. A trademark holder has an exclusive right to mark goods and services with the mark in order to put consumers on notice of their source, and the duration of a trademark that is continuously maintained and used by the mark holder is indefinite.
There are no significant software-specific considerations with trademarks. Trademarks should be considered for software application names or logos that an owner would like to distinguish from other applications.
4. Trade Secrets
A trade secret is: (1) any information (e.g., a process, formula, design, instrument, pattern, method, or compilation of information), (2) that the holder has taken reasonable measures to keep secret and (3) that derives independent economic value from being neither publicly known nor readily ascertainable by proper means by those who can make economic use of it.
A software application should be evaluated early in its development to determine the extent to which it can be maintained as a trade secret. Where important software features are embodied in user-facing or clientside processes, relying upon patent protection may be the better option. Where features or databases containing important information are kept server-side, maintaining them with a high level of security, encryption, and access control may allow them to be kept as trade secrets indefinitely.
With the current influx of investment in blockchain technology, growing popularity across a wide variety of industries, and the recent upsurge of blockchain and intellectual property law, this space is poised for significant growth in the years to come. Many have likened Blockchain’s revolution to the early days of the internet, poised to be the very next iteration of disruptive technology. There are many firms looking to be at the forefront of adopting blockchain, from startups to Fortune 500 giants, and with the right investments in intellectual property, as well as smart partnerships, these organizations can position themselves for success in the promising new world of blockchain.
Want to know more about Blockchain and Intellectual Property law and its implications in your business? Request for a free quote to reach out to us on [email protected] and our experts will get back to you with the best solution for your business.
The demand for Blockchain in Human Resource (HR) is growing and is having its impact on the Human Resources function. While blockchain is widely associated with many forms of industries like, Music Industry, Tourism Industry,Bankingetc, and many forms of cryptocurrencies, blockchain technology is set to revolutionize how the HR and recruitment functions operate within the business. No longer confined to cryptocurrency, blockchain’s capabilities can be extended to sectors such as logistics, fashion, healthcare, and even humanitarian causes. Various areas of hr operations are directly being affected by blockchain.
Manpower Recruitment Manpower Recruitment is a time-consuming process and utilizes resources within the HR department, so much so that organizations hire third party agencies or recruiters to claim back the time. All this comes with a price and incurs expenses and are counterproductive. Looking into Resumes will be easier, grades, certificates, work history and experience will be easily verified and visible to people with direct involvement.
Checking and Verification It has been found that a majority of early adopters of blockchain in Human Resource (HR) sector currently use it to verify digital identities and this is because the data stored comes from trusted sources such as authorized institutes. Being able to verify individuals’ identities, background and work experience alongside real-time information relating to pay and claims will undoubtedly free up some much needed time to allow HR to focus on the more strategic goals of the business.
Cross Referencing The process of employee referencing has gone for big change a lot over the years and it looks likely to change again in the near future. As HR will have access to a candidate’s employment record that is accurate and reportedly impossible to falsify, the referencing process will become more transparent and address fraudulent credentials, increasing the chances of you hiring talent better suited to the business.
Smart Contracts It has been found and reported that high numbers of early adopters of blockchain are already utilizing smart contracts within their organizations. Smart contracts between an employer and its workforce will make it possible for workers to be paid automatically this is by virtue of a code which will determine what happens to the money once it comes in and certain conditions are created. The distribution of wages can happen instantly with no risk of delays or fraud.
Employee data records The current procedure to hire and on-board a new recruit is lengthy. From conducting the interviews, checking qualifications, validating work background and gathering references or applying for the necessary security checks – it all so time-consuming. This process continues throughout employment. As blockchain would already have stored all of this important validated information, it would significantly reduce the time and energy spent on this process, easing the whole HR experience.
Assured and Secured Transactions All transactions in a blockchain setting can be anything from an exchange of personal information, work history, records to financial details and crypto-currencies. The capabilities of cyber-security are changing the future of these transactions as the information stored on blockchain technology is secured through cryptography which makes it extremely difficult to tamper with.
Attendance The blockchain technology is used to store biometric data, such as a fingerprint or iris scan, for legal ID and record and data storage. Organizations could use this technique of storing unique employee data to track attendance and expenses for wages and claim purposes. Human resources would have visibility to the real-time data and there would be no dispute that the records are accurate, strengthening the trust element in payment authorization and looking into claims made.
Compliance & Auditing
With the data stored within the blockchain already accurate and validated, audit checks for compliance would be easy to conduct and readily visible to those authorized. It looks like blockchain technology would be a welcome addition to HR that is likely to free up time and resources needed to focus on core business goals and objectives whilst strengthening the role of HR as a strategic partner.
With the introduction of blockchain in Human Resource (HR) segments, the operations have become pretty safe and streamlined, transactions have become safe and records are easily accessible. In case, you are looking to understand blockchain’s implications in HR sector in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.
The blockchain in retail market size is expected to grow from US $80.0 million in 2018 to US $2,339.5 million by 2023, at a Compound Annual Growth Rate (CAGR) of 96.4% during the forecast period. The blockchain in retail market is driven by the growing need for increased efficiency and speed in retail and supply chain transactions and focus on preventing fraudulent activities in the retail industry.
Value Drivers for Blockchain in Retail
Provenance/Authenticity Blockchain’s initial impact focuses on sanctioning retailers to produce a lot of reliable data to customers, who notably for a few product classes – more and more base their purchase choices on product content, origins, purity, and authenticity. Currently, counterfeit or contaminated product actual an enormous toll within the type of lost sales and whole injury, caused partially by the problem customers have in differentiating fakes from the real thing. Recently, retailers have recognized the gravity of this issue. In fact, Amazon has begun taking counterfeit resellers to court. Using blockchain technology, retailers will offer customers with indisputable proof of the birthplace and credibility of their product at each step within the offer chain. One sneaker manufacturer, as an example, is using blockchain and 3D-printed smart tags, scannable by a smartphone, to prove product authenticity.
More Secure Transactions, Faster Settlement A second promising application lies in transaction settlements. Today, each player within the retail price chain pays a steep value to make sure the validity of the exchange of products, cash, and knowledge. They must compensate third parties for his or her services and stay up for every to complete its work before receiving payment or a dealings confirmation. Blockchain-based secure transactions will cut back the requirement for such third parties. By guaranteeing business transactions, substantially reducing fraud and increasing the efficiency of business partnerships, blockchain would free significant resources that can be redirected to more innovative and valuable ways of working across the value chain.
Supply Chain Visibility Blockchain can also dramatically improve visibility into advanced retail offer chains, like data on product standing and placement. Retailers and distributors these days should reconcile data from multiple systems and use this knowledge to optimize inventory levels. In many provide chains, this lack of visibility causes over-ordering upstream, which ends up within the bullwhip effect: demand-supply variability that may inflate prices significantly for upstream provide chain partners. The visibility provided by the ever-present data obtainable on a blockchain will greatly cut back these prices. Blockchain-enabled user access management will guarantee proprietary data is protected by limiting permission to look at or modify knowledge to the suitable parties. The level of blockchain’s granular management through permissions is comparable to what’s provided by gift systems these days however at a way lower price.
Networked Loyalty Programs Many firms area unit broadening their shopper loyalty programs to hide multiple brands. For instance, airlines provide passengers a chance to earn further points for rental an automotive from the most well-liked venders, or shoppers at a grocery chain get discounts on gasoline at affiliated stations. The noncurrent technology that tracks loyalty points imposes high prices and delays on collaborating merchants and customers. Legacy mainframes will take days to method transactions, forcing customers to attend for points to post to their account. The use of blockchain will create following these points quicker, cheaper, safer and far a lot visible to reach the house owners of the points and therefore the firms’ provision to them.
The rapid pace of improvements in blockchain technology means that within one to two years blockchain could replace processes and provide a solution to many of the challenges faced by the industry today. Retailers face another such inflection point with blockchain. Its ability to deliver inexpensive, secure sharing of information and value will drive game-changing benefits as discussed above. Early movers might gain the lion’s share of the advantage by not solely availing themselves of those advantages, however additionally mitigating blockchain limitations and characteristic key building blocks for additional value creation.
Blockchains are built on a series of innovations in organizing and sharing data. The objective is to make one version of the reality, used by all participants, containing a far richer dataset than exists in any one system these days. This will inturn enable new industry processes to be developed, based on the use of transparent real-time data, and the expansion of auto-executing ‘smart’ contracts, with business logic encoded into the ledger. If we talk about the Stock market, Blockchain offers huge potential for tracing securities lending, repo and margin financing and monitoring systemic risks.
Beyond using the technology as an operating procedure for an exchange system, the blockchain has also found, through cryptocurrencies, a use as a way of raising capital, in place of traditional stock and equity markets.
1. Primary Market activities
Beyond using the technology as an operating procedure for an exchange system, the blockchain has also found, through cryptocurrencies, a use as a way of raising capital, in place of traditional stock and equity markets.
For several months already, a new form of public offering has been flourishing, not only because they deal with start-ups, but mainly because they are in the form of cryptocurrencies, like Bitcoin or Ether, from where comes the initialism ICO – Initial Coin Offering, with reference to IPO – Initial Public Offering. These operations are a quick way of securing financing – capital can be raised in as little as a few hours to a few days – for entrepreneurs in the world of blockchain, allowing them to test their ideas or project on a community of experts.
Taking into account the potential of this technology, these capital raise also attract more and more investors looking for added value, even if they do not always understand the technological specificities of the project.
2. Secondary Market activities and Trading
The blockchain has not only prompted innovation on the primary market, with the appearance of ICOs: it may also have a revolutionary effect on secondary market and trading activities.
The distinctive aspect of this process largely relies on the manner in which an efficient process of order matching and price formation is conceived. Essentially, the ability to use the blockchain, with an added value, for negotiating activities, depends on two factors: First, the nature of the financial instruments traded and second is the nature of the intended negotiating activity.
Using the blockchain for trading activities is conceivable even before the creation of the transaction for other instruments. This is typically the case for instruments whose trading price is purely bilateral.
The possibility of using a blockchain for trading purposes thus depends on multiple factors. Nevertheless, it can be expected that the application of the advantages provided by this technology to other segments of the value chain will have a major effect on trading activities. In particular, by streamlining the post-trading phase, blockchain is bound to have as much of an impact on the demand as on the supply of capital, by prompting a growing number of capital issuances on the markets and by increasing investment in and exchanges of instruments in circulation and therefore the volumes traded.
3. Post-trading activities
Blockchain can also simplify the landscape of traditional organisation and operation of post- trading activities.
In the traditional scheme of things, a transaction’s life cycle on the stock market requires the presence of a market intermediary, a trading platform and various post-trading infrastructures and intermediaries, including a clearing-house, a settlement agent, a depository and a central depository.
In the new model, the instruction to buy or sell a financial security on a stock market follows a complex cycle, both in technical and legal terms, due to the presence of these various entities. It is even sometimes difficult to track an order all the way from the investor to the delivery or payment: the clearing house makes it impossible to track an individual instruction due to multilateral settlement methods.
In financial markets, the steady disappearance of paper securities and their replacement with virtual assets has led to the replacement of physical settlement using cash, with digital trades. The need remains however, for a ‘golden record’, a way for market infrastructures and intermediaries to keep their individual databases updated by communicating with the other institutions involved at other levels of post-trading, in order to be able to reflect each transaction in the records for each intermediary/infrastructure. Therefore, golden record in the financial market would be a well innovated blockchain app that caters to the people of Stock market.
While music lovers have welcomed digitisation as the democracy of the industry, music industry has remained the same. Piracy through illegally downloaded content digs into the artist’s royalties and labels’ revenue. To add to this is the lack of a rights management system, which leads to loss of revenue to the artist and company. The revenue takes abnormally long time to reach the artiste. Area of concern is unpaid royalties, which are often suspended in various stages due to missing information or rights ownership
Artists are also suffering by a lack of sales transparency where although Digital Service Providers report a huge volume of transactions, they end up receiving payment for only 20 to 40 percent of these transactions. This has led to several artists choosing to keep their music off such on-demand streaming services, causing notable gaps in the libraries of popular
These very areas are where Blockchain can make a difference. As a publically assessable and decentralised database that is distributed across the internet, Blockchain maintains permanent and undeletable records in cryptographic form. Transactions occur across a peer-to-peer network, and are computed, verified and recorded using an automated consensus method, eliminating the need for an intermediate or third party to manage or control information. The very architecture of Blockchain being distributed and peer-to-peer brings immense potential to deal with the present woes affecting the music industry.
DIGITAL RIGHTS DATABASES
A main area in which Blockchain can bring immense and positive change is in the creation of a digital rights database. Digital rights expression is one of the main issues afflicting present day music industry. Identifying copyright of a song and defining how royalties should be split between songwriters, performers, publishers and producers is difficult in digital space. Artists lose out on royalties due to complicated copyright scene. Blockchain’s distributed ledger system, which ensures that no single entity can claim ownership, provides the perfect rightfull solution. Secure files with all relevant information such as composition, lyrics, linear notes, cover art, licensing, etc., can be encoded onto the Blockchain creating a permanent and inerasable record.
PAYMENT OF ROYALTIES
It has been observed that Blockchain technology can also be used to facilitate automatic payment of royalties through ‘smart contracts’. And the ‘smart contract’ encoded in the Blockchain enables the proceeds to directly reach the artists as well as the producers, writers and engineers. Such a system, removes the need for intermediaries and provides a transparent ecosystem that ensures all stakeholders receive their fair share of royalties.
Digitisation of the music and media industry has also left artists and producers to deal with the rampant problem of piracy, with users finding innovative ways to copy, record and distribute content, without compensating the copyright holders. The immutable security that Blockchain technology provides can be utilised to prevent it. By encode tracks on the Blockchain, which ensures that a unique record is created every time a song is played preventing copying of the content.
The music industry, disrupted by digitisation, is currently in a grappling due to age-old structures that are unable to cope with the present day digital demands. With this Blockchain technology offers solutions to build a healthy and robust ecosystem that can benefit both artists and producers. While there is still a lot to be explored on how Blockchain can revolutionise the music and media industry, it is clear that Blockchain technology is something that the industry is in dire need of.