Big Four professional services firm EY is rolling out free software designed to help corporate clients use the ethereum blockchain – and it’s taken an unusual step to encourage adoption.
Announced Tuesday, EY’s protocol, internally code-named Nightfall, has been developed over the last year by the consulting firm’s team of over 200 blockchain developers and will be published in May. The protocol was created for such use cases as supply chains, food tracing, transactions between branches of a company and public finance.
Like other enterprise blockchain platforms, Nightfall takes advantage of a technology called zero-knowledge proofs to allow private transactions on a shared ledger. But unlike most such endeavors, EY’s software is intended to run on top of the public ethereum network, not a private variant.
Further setting the project apart is the unusual approach EY is taking to intellectual property. The firm said it will not merely open-source the code – that is, release it with a permissive copyright license – but put it in the public domain, with no license at all.
“We want to maximize adoption and community involvement, we want people to adopt it, and adapt it, and improve it. If we retain ownership, people may not invest that much time and energy in something they might not control,” EY’s global innovation leader for blockchain, Paul Brody, explained at a press briefing. “The cleanest way to make everybody use it is just to give it away with no strings attached.”
Nevertheless, Brody suggested this was a difficult decision, telling reporters:
“A year of coding work. This is a million dollars worth of stuff we’re giving away.”
A fine distinction
Stepping back, “open source” and “public domain” are not synonymous.
“The terms are often used interchangeably. Legally, however, they mean different things,” said Preston Byrne, a partner at the law firm of Byrne & Storm.
Open-source, while it allows software to be used without paying royalties, means the author retainscopyright and can, in theory, revoke or change the license, although “I haven’t seen this happen in crypto even once, given that the ability to inspect the code and play around with it is a key selling proposition for protocol adoption,” Byrne said.
Public domain, on the other hand, involves a waiver of copyright. This is rarer in software, Byrne said, since “it doesn’t provide a clear licensing framework for later contributions to the codebase,” creating the potential for disputes if, say, copyrighted code is added to a copyright-waived codebase.
But if a company “simply wants to give away its work, without more, there isn’t a ton of risk in releasing to the public domain,” he said.
SAP, Microsoft, Carrefour
According to Brody, EY’s solutions for Nightfall will run in the Microsoft Azure cloud environment and are integrated with enterprise software from SAP, to give clients “a comfort that this is not new and scary. This is a mature technology backed by the world’s leading technology companies.”
One of the solutions already in testing is a system for tracking software license transactions for Microsoft’s XBox video games platform, EY said. Using the solution, Microsoft can monitor its interactions with multiple game vendors and avoid litigation related to royalty payments.
Other important partners include European grocery chain Carrefour, which is using EY’s blockchain solution to trace oranges, eggs, and chickens (it’s also a participant in IBM’s Food Trust blockchain); pharmaceutical producer Merck; Italian winery Placido Volpone; and an “Italian buffalo mozzarella maker” and “a big Japanese car maker,” Brody said.
“People are very undisciplined in the supply chain industry,” he said, explaining blockchain’s appeal in this area. “The beauty of non-double spending on the blockchain is that if a vaccine from a distribution center goes to a farm, it has to come out of a distribution center.”
One of the most important principles EY is advocating with Nightfall is that an enterprise blockchain should deal not with hashes of digitized PDF documents, but with tokens bound to physical goods.
In pursuing this, EY took advantage of the ERC-721 standard for non-fungible tokens (NFTs) on ethereum, the most famous example of which is the collectibles known as CryptoKitties. (EY’s advisers included William Entriken, the main author of the standard, and the cryptography scholar Mary Maller, one of the leading researchers of zero-knowledge proofs.)
“We have made a big investment in the token technology,” Brody said. “We built a special kind of token, which is ERC 721-compatible, to separate a physical asset from the legal ownership of that asset.” For example, while a car is on a ship on its way to a buyer, the shipping company doesn’t own that car.
Further down that road, Brody said, it will be possible to distinguish and tokenize different components of traded goods. “We can envision a future where a power company owns a battery in your car and you can use it whenever you plug it in.”
Into the great wide open
For more than a year, Brody has been evangelizing the benefits of public blockchains for enterprises, which made EY stand out among an enterprise crowd more favorably disposed to private or permissioned ledgers.
“Imagine every car maker and any shipment company runs their own private blockchain. A bunch of silos doesn’t scale too well,” Brody said. “While private blockchains are useful, they don’t solve the problem of a massive, scalable transformation.”
Just as enterprises grew comfortable using public cloud storage, they will also come to embrace public blockchains, Brody believes. And the blockchain they choose, in EY’s vision, will most likely be ethereum.
The reason is the vast majority of the money raised in the space has been for companies that built on ethereum, and the vast majority of blockchain developers code on Solidity, the smart contract language written for ethereum.
“That’s a kind of developer momentum that makes me believe that, imperfect or not, unless they really screw up, ethereum is the choice,” Brody said.
Marc Hochstein contributed reporting.
Ethereum Price Prediction: ETH/USD may break below $150 – Confluence Detector
- ETH/USD dropped by 8.5% within one hour.
- Bears took the price from $165.35 to $151.15 before it recovered to $153.
ETH/USD lost a staggering 8.5% of its price within a single hour this Thursday. In the process, bears managed to break below the $160-mark as the price plummeted from $165.35 to $151.15. The confluence detector shows weak support levels on the downside as the price is expected to drop even lower if the bears keep maintaining their momentum. For now, the bulls have managed to take the price up to $153.
ETH/USD Confluence Detector
The resistance levels are at $162, $164.50-$166.50, $169-$171. At $162 we have a confluence of 15-min previous high, daily previous low, monthly pivot point resistance 2, daily pivot point support 1, and SMA 5.
From $164.50-$166.50 the confluences are Weekly 61.8% Fibonacciretracement level, hourly Bollinger band middle curve, 15-min Bollinger band middle curve, SMA 50, SMA 5, SMA 100, SMA 10, 4-hour previous low, daily 38.2% Fibonacci retracement level hourly previous high, and SMA 200.
Finally, at $169-$171, we have 4-hour Bollinger band middle curve, weekly 38.2% Fibonacci retracement level, SMA 100, SMA 10, daily Bollinger band middle curve, SMA 5, 15-min Bollinger band upper curve, SMA 200, and SMA 50.
On the downside, there are support levels at $138, $141, $149, and $152. At $138, we have the monthly 38.2% Fibonacci retracement level while at $141, the confluences are the weekly pivot point support 3 and monthly 23.6% Fibonacci retracement level. We then observe the confluence of 15-min previous low, weekly pivot support 2, and SMA 200 ar $149. Finally, at $152 we have SMA 50 and monthly pivot point resistance 1.
Ethereum Price Prediction: ETH/USD $155-150 must hold or face big trouble – Confluence Detector
- Ethereum price in the second half of trading on Thursday is trading in the red, nursing losses of 1.25%.
- Eyes on a critical near-term support area observed at the $155-150 price range.
Ethereum price on Thursday in the second half of the session is trading in the red, down some 1.25%. ETH/USD bears continue to pile on the pressure after running into big sellers within the $180 region.
ETH/USD has struggled through the month, after an initially promising start with the early April advances. The price had moved to its highest level since November 2018, before running into heavy sellers within the $180 region, a key area ahead of $200 territory.
Looking via the daily confluence detector, firstly the barriers of support; $161.71, monthly, weekly and daily pivot point support, $156.58, daily pivot point support. To the upside in terms of resistance; $168.54, weekly 38.2% Fibonacci, $170.25, daily pivot point resistance.
ETH/USD daily confluence detector
Bitcoin (BTC) Truly Decentralized, Ripple (XRP) and Ethereum (ETH) Are Horrible Projects: Analyst
True, since the creation of Bitcoin in 2008, thousands of other digital currencies have been active in the space. All the same, Bitcoin is perhaps the only true trustless project while altcoins are just bidding on what they seek to offer.
4/4 #Bitcoin is different, it's already:
Today its greatest asset is the fact that it is the ONLY Trustless project that exists in the world & that is what give it its Decentralization & Financial Valuation. The OTHERS are STATUS QUO
— Tone Vays [#UnderstandBit] (@ToneVays) April 23, 2019
Bitcoin is Truly Decentralized
Bitcoin is working with the idea of a trustless and a decentralized network. While other altcoins also claim the same values, they don’t have the unique blend that Bitcoin does. At first sight, it is clear to see that the creator of Bitcoin is still unknown, which makes the project as trustless as it could be since there is no interference from the founder.
Many developers continue to contribute to the Bitcoin ecosystem, but none of them can claim with certainty that they are the brains behind it. However, other cryptocurrencies created afterward all had founders, which in most cases are famous figures. Their opinion plays a huge role in some crucial activities, and this doesn’t make their networks trustless in the real sense.
Tone Vays, a derivatives trader, analysts, and content creator is of the view that people overestimate the legitimacy of useless tokens that make it into the Top 10. According to the influential figure, ETH, and XRP are horrible projects that have been next to Bitcoin over the past few years. However, he listed some projects that were amongst the top-ranked a while back but are no longer around.
1/4 People in #Crypto continue to overestimate legitimacy of useless tokens that make it into the Top 10 (even top 5). Yes, some horrible projects like $XRP & $ETH has been next to #Bitcoin in Forever but look at what else has made top 5 over the years! [My favorites highlighted] pic.twitter.com/MMZB3l2a7W
— Tone Vays [#UnderstandBit] (@ToneVays) April 23, 2019
In his image, he made available an image that highlights some leading cryptocurrencies that are now defunct. He tweeted that “The above image took a lot of time & I probably missed a few, so I reached out to my friends at @DataLightMe for some raw data on this. Even this list is incomplete as it’s hard to identify Top 10 #Shitcoins that no longer exists. [Insanity Highlighted]”
2/4 The above image took a lot of time & I probably missed a few, so I reached out to my friends at @DataLightMe for some raw data on this. Even this list is incomplete as it's hard to identify Top 10 #Shitcoins that no longer exists. [Insanity Highlighted] pic.twitter.com/cJG05CNPDE
— Tone Vays [#UnderstandBit] (@ToneVays) April 23, 2019
Some Leading Projects Are Now Defunct
The image shows some projects such as Lxcoin, CHNCoin, Bullion, Freicoin, Devcoin, and more that have been discontinued. He also highlights others that were amongst the leading cryptocurrencies at one point but are now way down on the ranking list. Some of the cryptos include; Auroracoin, Namecoin, NXT, Peercoin, Paycoin, The Dao, Primecoin, DigixDao, Omni, and many more.
Since 2013, the top 10 ranking list has changed so many times that it is hard to keep track of legitimate projects. Bitcoin has been the only constant, with Ethereum, Litecoin, and XRP a few others that continue to retain their spots.
Thus, Tone Vays concludes that:
“Bitcoin is different, it’s already: Fast enough, anonymous enough and, cheap enough. Today its greatest asset is the fact that it is the only trustless project that exists in the world & that is what gives it its Decentralization & Financial Valuation. The OTHERS are STATUS QUO”
While there have been arguments in support of other cryptocurrencies, it is worthy to note that Bitcoin is still cryptocurrency that decides the direction of the market. It is the project by which others are compared. It’s market dominance which is over 50 percent shows that investors and traders have more trust in Bitcoin that other cryptocurrencies.
Even though it is unclear how the cryptocurrency list will look in a few years, you can predict that Bitcoin will continue to lead the market just by looking at historical charts.