Innovation

Cryptocurrency

    1

  • The cryptocurrencies are not a speculative transitory phenomenon, but a reality destined to grow and consolidate, thanks also to the inevitable entry into the market of traditional actors (banks and financial institutions) and of the progress of regulation

  • 2

  • The creation of a cryptocurrency successful project requires the identification of the coin mission (functional and industrial area of reference), the choice of the blockchain architecture more consistent with the objectives, the consensus algorithm definition and the ICO strategy

  • 3

  • Business Changers has created a permanent observatory on cryptocurrencies and closely monitors the developments in both technology and legal aspects, thanks to an international network of companies highly involved in this phenomenon

Instant payments, minimum transaction costs, transparency and security: these are the main promises of the cryptocurrencies. Despite the lack of governance and regulation are critical aspects, the cryptocurrencies will spread more and more


Cryptocurrencies are here to stay forever. They are not just speculation, they are not a bubble, but a phenomenon that is already changing the world. Every day, across the globe, a new cryptocurrency is born.

First of all, what are cryptocurrency? A cryptocurrency represents a digital currency (sometimes a digital asset) that allows the exchange of value between peers using cryptographic tools and the blockchain technology. The cryptocurrencies adopt a decentralized control model in opposition to fiat (traditional) currencies managed through banks (central and commercial banks).

The decentralization generates specific characteristics that can be assessed both positively and negatively:

  • Traditional currencies are printed and governed by central banks.The cryptos are generated by individuals (through a process called mining) using simple computers or, in some cases (e.g. the Bitcoin), specialized hardware (ASIC – Application Specific Integrated Circuit)
  • With traditional currencies, the wealth of an individual or acompany is kept on bank accounts, so it is more easily accessible. With the cryptocurrencies the possessed value is stored on the wallet and accessible only to the owner
  • When making a payment with cryptocurrencies,the transaction is irreversible. With traditional currencies, the banks can reverse transactions if necessary
  • With the cryptocurrencies, every transaction, although easilyidentifiable on the blockchain in terms of value and execution date, is anonymous, meaning that the sender and the recipient are not traceable.
  • More generally, with the cryptosno transaction can be blocked, as well as the deposit or withdrawal of money.

The above points can be seen both as an advantage and as a problem. The fact that as of today the regulation of the sector is just starting, we must proceed with caution. It is also true that the cryptocurrency adoption is a phenomenon that cannot be stopped and that is only in its infancy.

The first decentralized crypto was born in 2009, the Bitcoin, created by Satoshi Nakamoto, apparently a simple software developer, whose true identity has never been discovered. Today there are thousands of coins and a multiplicity of exchanges (virtual places to exchange fiat and cryptocurrency coins) on the Internet.

How is a coin born? With an ICO (Initial Coin Offering), which is somewhat reminiscent of the IPO (Initial Public Offering). An ICO allows to raise capital to finance a new coin. Potential investors pay with already well-known cryptocurrencies (for example Bitcoin, Ethereum, etc.) and in return receive a quantity of the new coin related to the ICO. If the project behind the new coin is valid, it is likely that its value will rise over time and then those who made the initial investment will make money. Conversely, if the project goes wrong, instead of gains, there will be losses. Sometimes ICOs are also used to circumvent the regulation of the collection of capital (funds raising) and at the global level there is a lot of work to do from a regulation point of view.

Institutional actors are still studying ICO and cryptos and evaluating a possible entry into the market. The opportunities for the traditional economic operators (banks, financial institutions, etc.) are considerable. For example, central banks could complement the fiat currency issue with cryptocoins, solving the problem of regulation. At the same time, how would the market react? Users who see the cryptos as an instrument of freedom, would adopt the crypto issued by a central bank?

Bank of Canada is experimenting with its own crypto (CAD-Coin), which is the digital equivalent on the blockchain of the Canadian dollar. With the support of Bank of England, researchers at the University College London have created a centralized cryptocurrency, called RSCoin. Four other banks (UBS, Deutsche Bank, Santander and BNY Mellon) are creating their own cryptocurrency (USC) with the aim of using it to implement financial transactions between the various banks branches.

It is soon to determine which approach will prevail between the one completely decentralized in the hands of individuals and the completely centralized one in the hands of the central and commercial banks; the only certain data is that cryptocurrency is here to stay and change financial services in a potentially significant way .

Business Changers has been active in the blockchain and cryptocurrencies world for several years and has identified the critical success factors for a cryptocurrency project:

  • Coin mission: what is the project behind the coin issue?What are the differentiating elements compared to the thousands of other already existing coins?
  • Blockchain type: private, public or hybrid, each with its advantages and attention points, as well as different ways of identifying the participants
  • Blockchain architecture: block size, hierarchy, communication protocol, type of encryption used, type of wallet, etc.
  • Algorithm for consent: PoW (proof of work), PoS (Proof of Stake), PoB (Proof of burn)and so on

Business Changers has created a permanent observatory on blockchain and cryptocurrencies and carefully monitors not only the technological developments, but also the developments related to the legal and regulatory world, at European and global level.

Instant payments, minimum transaction costs, transparency and security: these are the main promises of the cryptocurrencies. Despite the lack of governance and regulation are critical aspects, the cryptocurrencies will spread more and more


Cryptocurrencies are here to stay forever. They are not just speculation, they are not a bubble, but a phenomenon that is already changing the world. Every day, across the globe, a new cryptocurrency is born.

First of all, what are cryptocurrency? A cryptocurrency represents a digital currency (sometimes a digital asset) that allows the exchange of value between peers using cryptographic tools and the blockchain technology. The cryptocurrencies adopt a decentralized control model in opposition to fiat (traditional) currencies managed through banks (central and commercial banks).

The decentralization generates specific characteristics that can be assessed both positively and negatively:

  • Traditional currencies are printed and governed by central banks.The cryptos are generated by individuals (through a process called mining) using simple computers or, in some cases (e.g. the Bitcoin), specialized hardware (ASIC – Application Specific Integrated Circuit)
  • With traditional currencies, the wealth of an individual or acompany is kept on bank accounts, so it is more easily accessible. With the cryptocurrencies the possessed value is stored on the wallet and accessible only to the owner
  • When making a payment with cryptocurrencies,the transaction is irreversible. With traditional currencies, the banks can reverse transactions if necessary
  • With the cryptocurrencies, every transaction, although easilyidentifiable on the blockchain in terms of value and execution date, is anonymous, meaning that the sender and the recipient are not traceable.
  • More generally, with the cryptosno transaction can be blocked, as well as the deposit or withdrawal of money.

The above points can be seen both as an advantage and as a problem. The fact that as of today the regulation of the sector is just starting, we must proceed with caution. It is also true that the cryptocurrency adoption is a phenomenon that cannot be stopped and that is only in its infancy.

The first decentralized crypto was born in 2009, the Bitcoin, created by Satoshi Nakamoto, apparently a simple software developer, whose true identity has never been discovered. Today there are thousands of coins and a multiplicity of exchanges (virtual places to exchange fiat and cryptocurrency coins) on the Internet.

How is a coin born? With an ICO (Initial Coin Offering), which is somewhat reminiscent of the IPO (Initial Public Offering). An ICO allows to raise capital to finance a new coin. Potential investors pay with already well-known cryptocurrencies (for example Bitcoin, Ethereum, etc.) and in return receive a quantity of the new coin related to the ICO. If the project behind the new coin is valid, it is likely that its value will rise over time and then those who made the initial investment will make money. Conversely, if the project goes wrong, instead of gains, there will be losses. Sometimes ICOs are also used to circumvent the regulation of the collection of capital (funds raising) and at the global level there is a lot of work to do from a regulation point of view.

Institutional actors are still studying ICO and cryptos and evaluating a possible entry into the market. The opportunities for the traditional economic operators (banks, financial institutions, etc.) are considerable. For example, central banks could complement the fiat currency issue with cryptocoins, solving the problem of regulation. At the same time, how would the market react? Users who see the cryptos as an instrument of freedom, would adopt the crypto issued by a central bank?

Bank of Canada is experimenting with its own crypto (CAD-Coin), which is the digital equivalent on the blockchain of the Canadian dollar. With the support of Bank of England, researchers at the University College London have created a centralized cryptocurrency, called RSCoin. Four other banks (UBS, Deutsche Bank, Santander and BNY Mellon) are creating their own cryptocurrency (USC) with the aim of using it to implement financial transactions between the various banks branches.

It is soon to determine which approach will prevail between the one completely decentralized in the hands of individuals and the completely centralized one in the hands of the central and commercial banks; the only certain data is that cryptocurrency is here to stay and change financial services in a potentially significant way .

Business Changers has been active in the blockchain and cryptocurrencies world for several years and has identified the critical success factors for a cryptocurrency project:

  • Coin mission: what is the project behind the coin issue?What are the differentiating elements compared to the thousands of other already existing coins?
  • Blockchain type: private, public or hybrid, each with its advantages and attention points, as well as different ways of identifying the participants
  • Blockchain architecture: block size, hierarchy, communication protocol, type of encryption used, type of wallet, etc.
  • Algorithm for consent: PoW (proof of work), PoS (Proof of Stake), PoB (Proof of burn)and so on

Business Changers has created a permanent observatory on blockchain and cryptocurrencies and carefully monitors not only the technological developments, but also the developments related to the legal and regulatory world, at European and global level.

    1

  • The cryptocurrencies are not a speculative transitory phenomenon, but a reality destined to grow and consolidate, thanks also to the inevitable entry into the market of traditional actors (banks and financial institutions) and of the progress of regulation

  • 2

  • The creation of a cryptocurrency successful project requires the identification of the coin mission (functional and industrial area of reference), the choice of the blockchain architecture more consistent with the objectives, the consensus algorithm definition and the ICO strategy

  • 3

  • Business Changers has created a permanent observatory on cryptocurrencies and closely monitors the developments in both technology and legal aspects, thanks to an international network of companies highly involved in this phenomenon