DTCC to use blockchain on $11 trillion derivatives market

$11 trillion in derivatives are getting closer to the blockchain with the help of DTCC 
21 October 2017   1018

DTCC, the company that today settles the lion's share of U.S. securities, is moving forward blockchain.

The company reports that it has completed an early version of a blockchain that could one day support the trade of $11 trillion-worth of credit derivatives, as detailed by in an exclusive interview with coindesk.com. 

At first, the goal of the project was to upgrade the infrastructure underpinning the DTCC's centralized Trade Information Warehouse (TIW) for over-the-counter derivatives, reducing the time it takes to clear derivatives trades. In order to do that, the company teamed up with IBM, R3 and Axoni. Now, the partners are turning their attention to testing it, and preparing it for migration of the TIW data in a compliant way.

"The exciting thing is that there's continued comfort in the progress of the overall application and environment. There are always challenges, but we call it the 'noise of progress'."
 

Rob Palatnick
DTCC's chief technology architect

The man also reveals that Axo's AxCore protocol was originally derived from the public Ethereum blockchain, and that the DTCC's system uses the same Solidity smart contract language that powers its applications.

Still, AxCore has been modified to include a modular consensus mechanism that lets it tailor services to the specific needs of the DTCC, as well as submit real-time reports to both regulators and other counterparties. Unlike Ethereum, the DTCC implementation of AxCore does not include a token.

As reported, currently, the DTCC is working with regulators to align Axoni's built-in reporting database with regulatory requirements. According to Palatnick, the reports have to be as good as existing ones, but will be available on a continual basis as a result of the smart contract functionality. On top of that, the company is working with R3 and its network of over 100 global financial institution members to learn from standards-making bodies how to create "standards around what data should look like on a distributed ledger".

Following the launch, Axoni is to open-source the Axcore protocol.

'Kodak Miner' Turned Out to be a Scam

KashMiner by Spotlite USA was promoted as Kodak branded bitcoin miner 
17 July 2018   143

The KashMiner bitcoin miner, exhibited at the Kodak stand during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return. This is reported by BBC.

Spotlite USA is licensed by Kodak's lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its miner and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $ 3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential profit of its device, refusing to take into account the growing complexity and costs of bitcoin mining. The advertising materials reported that KashMiner brings $ 375 a month, which, subject to a 2-year contract, would allow the client to receive $ 5,600 of profit after paying a commission. Experts from the industry of cryptocurrency call this offer a scam.

There is no way your magical Kodak miner will make the same $375 every month.
 

Saifedean Ammous

Economist

CEO Spotlite USA Halston Mikail previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information.

While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.
 

Kodak Spokesman

In a phone call with the BBC, Spotlite's Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.