A Banking Institution and an Oil Giant Gets Ready to Implement Blockchain

A Banking Institution and an Oil Giant Gets Ready to Implement Blockchain

Shinhan Bank to use blockchain in an effort to curtail human error; Abu Dhabi National Oil Company (ADNOC) to apply the technology to increase the efficiency of its operations; Busan, South Korea to build a blockchain-powered virtual power plant (VPP)

Blockchain technology continues to gain momentum. More and more use cases are planned for the technology, as well as for Distributed Ledger Technologies (DLT). Firms are seeing the advantages these technologies can bring such as its reliability and accuracy, transparency and efficiency, and use for idle resources.

Shinhan Bank’s Blockchain will Lessen Human Error

The project is headed by Wi Sung-ho, CEO of Shinhan Bank, in an effort to digitize the bank. The bank has integrated blockchain with its services and its internal protocol management. The project is intended to increase accuracy in managing financial information. Smart contracts are used to enhance the reliability of work products. On 30 November, the bank used blockchain to execute Interest Rate Swaps (IRS). This is the first instance a local financial institution implemented the technology for finance.

According to the bank, before the technology was implemented, a set of standardized rules were non-existent. This caused market participants to depend on their records where errors, even with cross-checking, are a possibility.

After the project is proven stable, it will be expanded to cover other departments.

Shinhan Bank is South Korea’s first bank and is currently one of the largest in the country.

ADNOC’s Blockchain Implementation for Increase Efficiency

Abu Dhabi’s state-owned oil company joins forces with IBM to launch a value chain management system on the blockchain. Through this system, transaction time will be reduced and the value chain made more efficient. Companies can ascertain the exact value of oil by utilizing the system with its enhanced ability to track oil molecules.

Abdul Nasser Al Mughairbi of ADNOC says the project is the first-ever blockchain application in the oil and gas business.

For transparency, data will be made available to investors and consumers in the future.

City in South Korea to Establish Blockchain-Powered Virtual Power Plant (VPP)

Busan, South Korea has a project centered on VPP, powered by blockchain and built on the participation of locals. The power plant will gather unused electricity from various energy sources from Busan factories, solar power plants, and public energy storage system (ESS).

The projects was jointly envisioned by Nuri Telecom, Pusan National University, Korea Industrial Complex Corporation, and Busan City Gas. 4 billion won (roughly 43.5 million) will be allocated by the government for the endeavor.

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South Korea Supports Blockchain with Tax Credit

Blockchain, Cryptocurrency–South Korea has continued its progressive stance towards cryptocurrency and the innovation it offers for fintech by providing tax incentives for blockchain development. Despite the crypto markets entering into their twelfth month of a bear cycle, with the price of Bitcoin slipping below $4000 after making a rally to start 2019, the South Korean government has quietly added blockchain to the list of research and development fields that can qualify for a tax credit. The move is an attempt to boost interest in the space of blockchain, while mining the field for the potential innovation it could provide for financial technology, banking and improved economic practices. According to a report published on Jan. 8, the local Ministry of Strategy and Finance has announced the updated tax law, which will go into effect this coming February. The news follows on a similar report covered by EWN earlier in the week, which saw the city of New York open its first Blockchain Center for research and development–with the support of a $100,000 injection by the local government–despite the otherwise declining state of the industry. While 2017 may have witnessed “blockchain” become one of the more overused terms in business and financial circles, with some companies going so far as to change their name to reflect the technology (and a subsequent boost in stock price), the phrase fell out of vogue through 2018’s crashing coin prices. Instead, companies haves switched gears for the more technical “distributed ledger technology” to avoid the associations with the negative price movement of crypto, while still taking advantage of the innovative technology. From computing giant IBM to social media behemoth Facebook, companies in numerous sectors have found ways to implement blockchain and blockchain development, with the latter creating a division to capitalize on the technology. Even with the connotations of cryptocurrency, as the primary underlying technology to most tokens, blockchain has found a resurgence in the bear market as more investors appreciate the breadth of what can be accomplished. Countries like South Korea, with their progressive approach to supporting innovation through technology, have found ways to encourage growth in the space as opposed to pursuing restrictive policies geared towards cryptocurrency. New York, in particular, has been mindful of the impact both cryptocurrency and blockchain could have upon Wall Street and their banking empire, and has tread carefully on regulating the industry to the point of suffocation. Even with coin prices looking to continue their bear trend for the foreseeable future, crypto investors have largely been heartened by the growth in recognition for tokens and blockchain. The price movements that characterized the bull run to end 2017, when crypto market capitalization ballooned to nearly $1 trillion, appear to be an anomaly in retrospect, at least given the relative influence of the industry. Instead, the focus has shifted to growing the technology organically, with adoption for Bitcoin and blockchain being less about revolutionary change than incremental improvement. Given the fall in BTC price below $4000, the industry is waiting on shaky ground for what 2019 will bring. The post South Korea Supports Blockchain with Tax Credit appeared first on Ethereum World News.
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South Korea’s Government Adds Blockchain Research and Development to Tax-Deductible List

It has been announced that blockchain research is among the research fields that have been declared eligible for tax credit in South Korea. The news was made public by the Ministry of Strategy and Finance who also revealed that the new tax code is to list wearable robots and fine dust reduction technology among fields eligible for tax credit. These changes are due to be effected in February. What This Means As a result of these new changes, a certain percentage of the expenses of businesses who are involved in Blockchain research will be tax deductible. For small businesses, it is 30 to 40 percent and for medium businesses, it is 20 to 30 percent. The current rate tax-deductible is 0 to 2 percent for large companies, 8 to 15 percent for medium companies and 25 percent for small companies. A Booming Business This new development can be seen as the South Korean Government recognizing the potential in blockchain technology and supporting it. In recent times, the scope of application of blockchain has gone beyond just cryptocurrency and includes other areas like logistics, finance and so on. According to the World Trade Organization, blockchain will add billions to the global trade industry over the next few years. Considering how much money most countries make from global trade, the support of the research behind Blockchain is a good idea. This same narrative can be seen in the opening of blockchain research centers in places like Australia and the United States as well. An Expensive Endeavour As much as governments are benefiting from blockchain products, developments like this also help the blockchain industry. Blockchain is a notorious tech and energy-heavy endeavor and thus, businesses exploring its use need all the help they can get. A prime example of this is the mining of Cryptocurrency which is infamous for the amount of energy it requires. Its large energy requirement has even led to people stealing energy in order to mine their currencies. Companies that mine cryptocurrency have also been moving operations to places that offer cheaper electricity. However, this is getting more difficult as places like Norway have started ending their energy subsidies and last year, the cost of crypto mining increased more than 40 times in the country. By offering tax breaks to blockchain research firms, their work can be done with more ease and efficiency and more beneficial blockchain products can be brought into the world.
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