We all agree that Blockchain is the future, and that Bitcoin is not. Bitcoin introduced the world to the concept of Blockchain, and since then more than 10,000 projects have been started with a total of tens of billions of dollars. That’s interesting considering that 10 years ago no one heard of the word “Crypto Currency.” But the dominant technologies used for Crypto Currency, mostly Bitcoin’s Blockchain and Ethereum’s DAPP platform – are by themselves flawed. That is to say, by itself, Bitcoin cannot sustain a global payments system capable of competing with the US Dollar. This is due to a number of factors including but not limited to transaction speed, price volatility, security flaws, incompatibility with fiat technologies, and other factors.
BOScoin is a Self-Evolving Cryptocurrency Platform for Trust Contracts. Now with the introduction of projects like BOScoin, all that has changed. BOScoin represents multiple cutting edge idea frameworks based on a solid technology stack that can take Crypto to the next level.
For example, they have introduced the concept of “Public Finance” – that means, public participation creates credit “credit creation through participation, global finance through collective intelligence, and the communization of assets.”
Actually Peer-to-peer lending has been around for a long time and is currently a multi-billion dollar industry, with orbiting industries being Micro-finance and Crowdfunding. But what was lacking was technology. When you combine the concept of a voting system into the decision-making process of lending, it creates an efficient and transparent mechanism for credit creation.
The concept of decentralization is a good start, BOScoin has taken it a step further to say that user participation will determine variables on the output of loans. To further that end, they have developed a robust un-hackable voting system based on Homomorphic Encryption, which means you can manipulate data without decrypting it – which means without the private key.
Another interesting thought, much of the reason that regulations exist is to prevent fraud. But if a system were so secure that stealing was impossible – it would be almost unnecessary to have government and government regulations. Imagine a world where every US Dollar was traced and tagged such that if you robbed a bank you couldn’t use the money as the police would be immediately notified. The careers of aspiring bank robbers would end overnight.
BOScoin is building such a robust system. Their approach is ‘build it and they will come’ and while competition in the Crypto space is fierce, their technology is fiercer. Recently they announced their “Reverse ICO” program for existing companies with revenue. This is a copy model from a ‘reverse merger’ whereby a company can become public with use of a public shell. Lawyers keep such shells on the books so that in days, after hefty fees usually, they can take any company public without going through the IPO process.
How many companies that have engaged BOScoin is not clear – but what is clear is that the process of a reverse merger is a great fit for companies looking to get into Blockchain but don’t want to spend the big capital layout. From BOScoin.io:
RIPP is targeting reverse-ICO firms that are already operational with their own business models, and looking for additional financing through blockchain based ICOs or Public Financing, not the traditional financial system. Our partners can conduct business quickly, without the need for extensive technological investments into the blockchain. Furthermore, raising post-ICO capital on BOSNet through Public Financing is drastically cheaper than using the traditional financial system with its high fees.
The idea here is smart – use the ICO method to raise capital for your company but without going through the ICO process. In the regulated world this would be known as a ‘secondary offering’ but in this case, instead of offering stock, they would be offering tokens or Crypto securities.
Of course, this would be only possible in South Korea or a few other limited jurisdictions without the use of registration statements and regulatory compliance – but the idea is a step in the right direction. ICOs in general led to a toxic environment that is only started to implode, but the facts remain that 99% of investors lost 99% of their money. That’s a conservative figure, some estimates have that as high as 99.9% if we are to include ponzi scams and frauds (who were actually just frauds not real ICOs).
ICOs remain illegal in most jurisdictions such as the United States with a few notable exceptions, but they are called STOs as they are registered Securities Tokens Offerings. STOs are no different than stock offerings with the exception of the underlying technology. The US regulatory stance was really very clear from the beginning – if you offer a security you have to register it.
But a big corporate wanting to do a reverse-STO using BOScoin would have no problem solving the regulatory quagmire especially companies who are already publicly traded. Let’s use Amazon (AMZN) as an example, who has a team of general counsel dedicated to their 10q filings who would have no problem assisting in a secondary offering using Crypto Securities as the underlying. Of course, there would need to be a regulated Crypto friendly exchange to trade them, but that’s coming soon too.
It seems that no matter how you look at the Crypto landscape, you will once again find BOScoin in the middle.
Disclosure: I am/we are long BOS-USD.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.