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Samsung is another big company that plans to issue its own cryptocurrency. Similar stories have already emanated from Facebook and JPMorgan Chase, with badysts speculating on various cases of using these cryptocurrency tokens.
Although it has not yet been officially confirmed, a "Samsung Coin" could find an application as a means of payment on the app store of the company and be exchanged on crypto-encrypted exchanges. The company revealed that its flagship smartphone, the Galaxy S10, would be endowed with an integrated wallet of cryptocurrency.
With these mega-companies exploring the blockchain scene, it may be important to see how their implementation of virtual money compares to each other and to the rest of the virtual currency ecosystem.
Samsung is preparing a new mainnet and cryptocurrency token based on an ETH blockchain
On Wednesday (April 24, 2019), an internal source at Samsung revealed that the blockchain division of the company was developing a blockchain main network based on Ethereum. According to the source, the project would also create a virtual badet called "Samsung Coin".
At present, Samsung's hierarchy has not offered any confirmation of the proposed main network and token for the blockchain. However, the reports seem to reflect the company's recent activities in the field of cryptocurrency and blockchain technologies.
Answering questions at the Blockchain Expo in London on Thursday 25 April 2019, the Moritz von Widekind, Head of Business Development and Financial Technology at Samsung SDS Europe, said the company had not decided anything concrete yet.
According to the Samsung Executive, different departments of the company are working on the project. Von Widekind also added that the proposed token could be launched on the company's NextLedger business block platform.
Samsung recently participated in a $ 4 million round for ZenGo, a wallet application for smartphone cryptocurrency. NextLedger continues to attract keen interest from companies around the world, and more recently Indian IT giant Mahindra.
In the absence of an official Samsung word, it is impossible to know for sure how the token that was reported would work. However, given the business model of the electronics giant, some plausible badumptions need to be made.
Samsung Coin could be used as payment token in the payment application of the company, Samsung Pay. The token can also be traded publicly on crypto-currency exchanges on the market.
Like the proposed Facebook coin, no one can know for sure how the "tokenomics" of cryptocurrency would work. If this turns out to be a payment coin, can it compete with the likes of bitcoin?
Facebook makes another game to a payment system
In December 2018, Cointelegraph began reporting that Facebook, the largest social media platform in the world, was looking to launch its own virtual currency integrated with the application. Like Samsung Coin, there is no official word on the cryptographic project form that could best describe the Facebook coin (FB Coin).
Some badysts and commentators claim that FB Coin will be a stable element linked to a basket of fiduciary currencies and used for money transfers in the platform applications. Such an initiative could potentially be a huge deal in the cross-border remittances market.
According to the 2018 World Payment Report (WPR), global mobile money transactions exceeded $ 41 billion in 2016. This figure represents more than 8% of all cashless transactions, which shows the growing appeal transactions with an electronic wallet.
The WPR study also showed that large high-tech companies such as Google, Facebook and Tencent accounted for more than 70% of the global money transfer market as early as 2016. An excerpt from the report states:
"These companies are leveraging their large platform user base to impact the payments space, focusing on a seamless user experience, value-added features, and the use of network effects." The incumbents should learn BigTech and invest in technology platforms to compete with them. "
The proposed FB coin is not the company's first foray into the digital currency scene. In 2011-2012, the social media giant launched FacebookCredits and Facebook Gifts.
However, the company discontinued the FacebookCredits service in 2012. The company has launched a peer-to-peer (P2p) payment service for the Messenger platform in 2015, but has recently announced that it will not be used. was also.
Some commentators have even identified Facebook's decision to discontinue the Messenger payment service as a clear indication of the imminent launch of its cryptocurrency token. Earlier in April, Nathaniel Propper of The New York Times said Facebook was seeking $ 1 billion in venture capital funding for the proposed token.
According to Propper's report Twitter account:
"One person I spoke to said that Facebook was talking about using money as collateral for its cryptocurrency. Facebook designed the coin to maintain a stable value, attached to a basket of currencies held in bank accounts. "
Has blockchain technology finally helped Facebook decipher the code to establish an operational digital payment system? Does the social media giant now have the expertise to manage a payment platform or is FB Coin going to find another user outside the payment sphere? Only time will tell.
Consumer use cases for private blockchain crypto-currencies
In mid-February 2019, Wall Street giant JPMorgan Chase announced its own cryptocurrency, becoming the first bank in the United States to adopt virtual currency in its commercial activities. According to the bank, JPM Coin will run on Quorom, a private blockchain powered by Ethereum.
Unlike FB Coin, we know a lot about JPMorgan Chase's projects in cryptocurrency. JPM Coin, which is a stable position, will first be deployed in the bank's internal settlement protocols to increase the efficiency of the process as a whole.
From the outset, some commentators have expressed the position that JPM Coin could challenge Bitcoin and XRP on the payments scene. However, even according to JPMorgan Chase, the adoption of JPM Coin will be reserved for large corporate clients.
However, there are plans to evolve the use of JPM Coin beyond the internal transaction paradigm used by JPMorgan Chase. An excerpt from the project FAQ reads as follows:
"Over time, JPM Coin will be extended to other major currencies. The capabilities of the product and technology are independent of the currency. "
On Thursday (April 25, 2019), Cointelegraph also announced that the Nike shoe giant was looking to launch its own cryptocurrency. Nike reportedly filed a trademark with the US Patent Office for "Cryptokicks."
An examination of the deposit document shows that cryptokicks are described using a language that indicates that it is a form of cryptocurrency or currency system. digital payment.
The democratization of payments at the global level is one of the fundamental principles of bitcoins and blockchain currencies in general. Thus, the question of how the cryptocurrency tokens created by these companies fit into such a philosophy becomes more and more relevant.
According to Jerry Brito of Coin Center, these companies create internal payment systems and are fake imitations of real cryptos like Bitcoin. In February, Brito commented:
"There is a lot of confusion. […] I see people who see it as a cryptocurrency. It's not a cryptocurrency. Cryptocurrency is open and unauthorized cryptography. If you want to download it, you do not need permission, you just need software. "
Some critics badume that there is no decentralization and qualify these efforts as companies related to the private investor, the private intranet having more success than the public internet in the 1990s. While the public Internet has become more popular and popular than corporate intranet protocols, some critics claim that authorized blockchains will end up being the second most abusive of their public counterparts without permission.
Samsung may well be aware of this notion and might be more inclined to accept a hybrid business blockchain than another full license. Cointelegraph has contacted Samsung for further comments on this, but has not received any information to date.
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