Cryptocurrency: Entrepreneurs Take Advantage of New Technologies | Vandeventer Black LLP
Our previous article in this series examined the legal framework surrounding blockchain technology. This article will examine the practical uses of technology. Blockchain technology has implications for many business owners, even those who are not interested in the speculative trading element of cryptocurrency which is akin to trading on the stock exchange. Besides replacing cash, cryptocurrencies have many other applications or use cases; some of the more recent uses include non-fungible tokens, tokenization, and wallet transfers.
A recent trend in blockchain technology is the creation, sale, and trade of non-fungible tokens, or NFTs. NFTs can take many forms, but the most common are digital collectibles. NFT collectibles can be released as a single show featuring a digital artwork, such as Beeple’s “Everydays – The First Five Thousand Days,” which recently sold for $ 69 million. Another popular NFT collectible is the recently released NBA Top Shot from the National Basketball Association. The product is a 21st Century version of sports collectible cards which are digital images of players as well as game highlights (or “moments”) which can be purchased separately or in sets. Additionally, NFTs are used to safeguard physical assets, serving as both title deed and certificate of authenticity. Like physical collectibles, ownership of an NFT typically does not confer any intellectual property rights on the owner, only ownership of the digital collectible itself.
Business owners looking to capitalize on blockchain technology may wish to research tokenization, the process by which NFTs and other tokens are created. Tokenization allows blockchain users to break down an asset into standardized units and sell said units as digital assets exchangeable for a product or commodity, such as a stock in a business, ownership of real estate, or equity. to an investment fund. . These tokens can then be traded on a secondary market. One of the best examples of this can be found on the Bitcoin SV (BSV) network. Rather than trading cryptocurrencies for cryptocurrencies or trading cryptocurrencies for fiat currency, users are exchanging tokenized assets for BSV. BSV tokenization is in its infancy, but entrepreneurs are already creating, trading and profiting from various tokenized assets such as time, Tacos, TVN, and even social media posts. Regulation aside, it’s easy to see how this seemingly niche technology can one day be used for equity capital generation or demand-driven pricing for goods and services traded on the exchange. By combining tokenized assets with smart contract functionality, the possibilities are potentially limitless. In one example, the nation of Tuvalu, with its population of 13,000, seeks to use the BSV platform for its national digital currency as well as other government records.
Some companies may wish to avoid all the intricacies of the cryptocurrency world by avoiding it altogether. Others, however, may want to understand the technology by creating the necessary accounts and making wallet-to-wallet transfers, to gain insight into the world of blockchain technology. Some companies set up wallets to prepare for possible ransomware attacks, in which hackers typically demand payment in cryptocurrency, as in the recent ransomware attack on the Colonial Pipeline. Setting up and funding a wallet can take days, which can be difficult if a company’s network is taken offline by ransomware. Wallet systems currently lack some of the user error protections offered in the fiat banking system, it is therefore essential to understand the technology. Having these systems in place before a ransomware attack can prevent an already bad situation from turning into long-term loss of productivity, if a company has made the decision to pay a ransom.
The cryptocurrency market is still in its technological and regulatory infancy, and with regulators slow to adapt innovation-friendly rules that deal with this nascent technology, only time will tell what impact cryptocurrency will have on. businesses. Vandeventer Black will continue to monitor developments in this rapidly changing industry. 
 Chloe Weiner, Beeple JPG Sells For $ 69 Million, Setting Crypto Art Record, NPR (March 11, 2021, 2:48 p.m.), https://www.npr.org/2021/03/11/976141522/beeple-jpg-file-sells-for-69-million-setting-crypto-art-record.
 Patrick Laurent et al, The tokenization of assets is disrupting the financial sector. Are you ready?, Deloitte, https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/financial-services/lu-tokenization-of-assets-disrupting-financial-industry.pdf.
 Patrick Thompson, LIU: Bitcoin’s first time-backed token, Coingeek, (May 19, 2021) https://coingeek.com/liu-bitcoins-first-time-backed-token/.
 Make RelayX Tickers more useful, Medium (April 13, 2021) https://relayx.medium.com/giving-relayx-tickers-more-utility-a339af56eefe.; see also Silver button, https://www.moneybutton.com/ (digital market with NFT) (last visited May 27, 2021).
 Social networks on Blockchain, Bitcoin Association, https://bitcoinassociation.net/enterprises/use-case/social-media-on-blockchain/; see also, for example, Twetch, https://twetch.app (a competitor of Twitter); and The fluidity, https://streamanity.com/ (a YouTube competitor) (all last visited May 27, 2021).
 Other projects include prepaid debit cards that convert BSV to fiat on demand, and price aggregators that allow users to search for consumer goods for sale on other sites and see conversion rates in. real time. See RelaisX card, https://relayx.com/card; and Online trading of collectible card games, https://tcgox.app (all last visited on May 28, 2021).
 Technological development, still in its infancy, often takes place through hackathon competitions. See, for example, Bitcoin SV hackathon, bsvhackathon.net, https://bsvhackathon.net/hackathon/upcoming/october-2021; RUN2k21, CLASSES, https://run.network/hackathon/; and HandCash Hackathon, Treasury, https://hackathon.handcash.dev/ (all last visited on May 26, 2021). However, some large companies also offer enterprise solutions in the space. See in general Taal, https://www.taal.com/ (last visit on May 26, 2021).
 Koroi Hawkins, Tuvalu chasing digital immortality on blockchain, RNZ, (March 14, 2021, 9:43 p.m.) https://www.rnz.co.nz/international/pacific-news/438341/tuvalu-chases-digital-immortality-on-a-blockchain; see also Ed Drake, Central Bank of Norway rates Bitcoin SV among ‘open blockchain’ for CBDC, Coingeek (May 3, 3021) https://coingeek.com/central-bank-of-norway-weighs-up-bitcoin-sv-among-open-blockchain-for-cbdc/ (citing a report in which the Central Bank of Norway considered BSV for Central Bank Digital Currency (CBDC)).
 For example, if you accidentally send money to the wrong address, no one has the ability to reverse the transaction except the owner of the address that received the funds. Although it may seem unlikely, it is quite easy to do when the addresses generally look like this: “13LGR1QjYkdi4adZV1Go6cQTxFYjquhS1y”.
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