Coinsilium Group Limited (NEX: COIN), the accelerator that finances and manages the development of early-stage blockchain technology companies has announced that it has signed a Memorandum of Understanding (MoU) to enter into a strategic alliance with Oraclize Limited (Oraclize), a London-based blockchain technology development company providing infrastructure layers for Smart Contracts via its Oracle solution.
Oraclize has been providing Smart Contract and Oracle solutions to a wide range of organizations for the last two years, from blockchain startups to established corporations. Coinsilium has the core commercial skills, blockchain industry connection and a demonstrable track record in spotting early trends in the industry and identifying some of the most viable blockchain propositions.
The Alliance will leverage the parties’ complementary skill sets in order to jointly develop and build a Smart Contract System (SCS) for the next generation of blockchain-powered applications, now being referred to as ‘Blockchain 2.0’, as well as develop commissioned, customized commercial applications for third parties
The objective is to provide an enterprise standard foundational layer to enable commercial-scale development of market-specific SCS managing token issuance and implementation of governance protocols for many vertical markets.
With the market now set for rapid growth, certain vertical markets have been identified where Smart Contracts look set to play a significant future role. Early-stage discussions are now being advanced with regard to the specific market verticals, where management believes it has the right connection network in place and can draw on the industry knowledge and expertise required to develop effective commercial propositions.
Eddy Travia, Coinsilium’s CEO commented:
“We are pleased to be entering into this Alliance with Oraclize. It affirms our confidence in the potential of Smart Contracts and together we will be working to create our own proprietary solutions as well as targeting material revenues through the provision of commercial services in this rapidly growing sector.”
“We look forward to keeping shareholders updated as we embark on this exciting new opportunity.”
Thomas Bertani, blockchain expert and the CEO and founder of Oraclize stated:
“We are very proud to be forming this alliance with Coinsilium who we regard as a pioneer in the blockchain technology space. Oraclize and Coinsilium share a common objective which is to support the development of a versatile smart contract ecosystem and we look forward to building innovative blockchain-based solutions with Coinsilium.”
A “Smart Contract” is a computer program executed in a blockchain which can control the issuance, storage and transfer of digital assets (or “Tokens”). ‘Oracles’ connect Smart Contracts to trusted sources of external data. “Token” issuance and governance are essential parts of the economic model of blockchain protocols.
Token-based systems create a bridge through which ‘title’ or ownership rights to tangible assets can become tradable via the issuance of a corresponding digital asset (or Token). Blockchain enables this to take place in a secure environment for issuers and traders while removing intermediaries and the financial burden of legacy execution and settlement systems.
The Board of Coinsilium believes that Smart Contracts are now one of the fastest-growing segments in blockchain because they perform a vital role in most blockchain solutions. Commercial models are now being developed around the world in areas such as financial inclusion, P2P lending, smart derivatives, digital identity and rights management.
Coinsilium started investing in smart contract technologies more than a year ago with its early investment in Smart Contract platform, RSK Labs, in January 2016. Since then, the Company has witnessed the considerable growth in cryptocurrencies and Smart Contract applications which have confirmed its initial vision.
In 2016, over USD $200m was raised via the issuance and sale of a range of new digital tokens by various blockchain enterprises. The market is now growing rapidly with announcements in Q1 alone of over USD $150m in new token issues targeted for the first half of 2017.
Multi-million-dollar hedge funds, such as Polychain Capital backed by Andreessen Horowitz and Union Square Ventures, have recently emerged with the sole objective of acquiring and trading blockchain-based tokens.