An Exponential Idea For Blockchain Exposure - MarketWatch

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• An Exponential Idea For Blockchain Exposure - MarketWatch
• Blockchain technology may help streamline the flow of $550 billion dollars this year - Roll Call
• Accounting Giants Launch Tool For Assessing Blockchain Risk - Forbes
• 4 blockchain security lessons from Euroclear's CISO - CSO Online

An Exponential Idea For Blockchain Exposure - MarketWatch Posted: 22 Oct 2019 06:25 AM PDT Bitcoin has been in the spotlight for both positive and negative reasons this year, but even with increased chatter about the world's largest cryptocurrency, blockchain and related investments seem to be overlooked. As has been previously noted, there are several exchange traded funds on the market today dedicated to blockchain theme. Others offer ample though indirect blockchain exposure, a group that includes the iShares Exponential Technologies ETF XT, -0.33%. The $2.53 billion XT, which is almost 5 years old and holds almost 200 stocks, tracks the Morningstar Exponential Technologies Index. "The Morningstar Exponential Technologies Index focuses on finding high-growth companies that are in the early stages of developing technologies that are expected to have a broad impact on society and transform how we live and work," said Morningstar in a recent note. "The index, which comprises 200 stocks, differs from other tech-focused indexes in a few important ways. For one, the holdings are not limited to the tech sector. They can come from any sector, as long as they are poised to benefit from one or more of the exponential tech themes." Blockchain is often viewed through the lens of technology and XT reflects that view with a 34.57% weight to that sector, but the fund also offer exposure to blockchain's other applications. The health care and communication services combine for about 41% of XT's roster. While XT is a versatile ETF, what may be keeping some investors at bay regarding blockchain ETFs is perception of an intimate link between blockchain and bitcoin's price action. "Even though blockchain and crypto are fundamentally distinct concepts that may ultimately have different endings, the blockchain hype cycle has very much tracked Bitcoin's cycles," according to a recent BlackRock podcast. Some investors may be burned out on hearing about bitcoin and its various fits and starts, but that could actual be a positive for long-term adoption and prove beneficial to ETFs, including XT. "In the last year and a half, this trough of disillusionment has set in. People have started to tire of the buzz and have started to question it," according to BlackRock. "But as is typical in that classic Gartner hype cycle, the fundamentals – speed, privacy, security and scalability – are actually improving. That doesn't mean we're going to see widespread adoption, and a lot still needs to happen. But we're certainly starting to see meaningful progress." Related Links: A New Small-Cap ETF With A Buffer A Nifty Video Game ETF With Exciting Possibilities © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. More from MarketWatch

Blockchain technology may help streamline the flow of $550 billion dollars this year - Roll Call Posted: 22 Oct 2019 01:00 AM PDT Remittances are poised to grow to $550 billion this year, making them the single biggest source of external funding for recipient economies, according to the World Economic Forum. More money is pumped into developing countries this way than by direct investment. But it's often costly and inefficient. Fintech, specifically blockchain technology, may be able to help. Show Notes: Get breaking news alerts and more from Roll Call on your iPhone.

Accounting Giants Launch Tool For Assessing Blockchain Risk - Forbes Posted: 22 Oct 2019 01:53 AM PDT Getty The growth and adoption of blockchain technology in the enterprise space is getting up to full steam at the moment. It is also being aided by the likes of the Accounting Blockchain Coalition (ABC), an alliance dedicated to educating businesses and organizations on accounting matters relevant to digital assets and blockchain. This coalition, which adds another institutional and trusted edge for those looking to enter the blockchain and digital asset space, is in some powerful company hands. The members include BDO USA; BPM USA; ConsenSys; Crowe LLP; Michigan State University Eli Broad College of Business; Microsoft; RSM and Vertex, Inc. Both BDO and BPM are massive accounting firms in the US, with the latter rated in the top 50 accounting firms and the former boasting 60 offices and more than 400 independent Alliance firm locations nationwide.  The aim of this coalition is to provide guidance on best practices and serve as a knowledge-sharing platform as organizations address the sweeping changes and resulting opportunities created by the implementation of blockchain. Towards that end, the coalition has now taken a rather large step in making the adoption of blockchain that much easier. It has launched a risk assessment tool that provides accountants, auditors, CFOs, compliance leads, and others, guidance to evaluate digital assets and blockchain technology. More so, and quite impressively, it has it also suggests actions to mitigate threats. Working to legitimize assets and blockchains This coalition is, of course, a positive step towards the growth and promulgation of blockchain technology in an enterprise sense. However, it is also pleasing to note that these major accounting, auditing, and technology firms are actively building tools to better the space.  Co-chairman and RSM US's Bennett Moore said that the purpose of this tool is to assist users who are considering a risk assessment of certain common processes associated with the use of blockchain technology.  The tool can be used as a baseline for businesses using or considering using blockchain technology within their organization. It can help evaluate specific considerations for how their business is organized and how they're actually using digital assets and blockchain technology.   Other similar tools and documents from various accounting and consulting firms address risk-identification, too, but none of them really try to provide guidelines on internal control activities or suggest actions to mitigate the threats and vulnerabilities identified. It is this added step that ABC's tool takes that makes it unique. Why this tool is important? Enterprises are getting to a stage where they would be foolish to ignore the blockchain revolution that is happening. However, because the space is still so new and untested, it is still quite easy to fall into traps around the technology.  For this reason, a trusted tool, like that of ABC's, offers a huge weapon for enterprises looking to integrate, good and trusted blockchain technology. "As blockchain technology continues to mature and deliver real business value to enterprises, it will be paramount that businesses leveraging the technology understand both the new and traditional related IT risks." Co-chairman and RSM US's Bennett Moore told me. "The value of blockchain technology is still primarily process-driven. Enterprises will need to maintain detailed, secure, and efficient processes to properly take advantage of its benefits while maintaining compliance with regulators."  "The focus of this tool is to help businesses exploring the use of this technology understand the common processes, the associated risks to be aware of, and some potential internal control activities, from a broad perspective, that might be useful in mitigating those risks."  "The Accounting Blockchain Coalition intends for this tool to be a useful first step in businesses' risk assessment of using blockchain technology." "Blockchain technology is an accounting technology" Of course, the use of this tool to benefit a range of enterprises is only one side of the coin. It is equally pleasing to see the firms involved in the ABC building such tools and looking to make an impact in the space.  Moore, as the co-chairman of RSM US - the fifth-largest accounting firm in the US - admits that blockchain and accounting have some pretty close ties and that it is unsurprising that the sector is paying attention to this technology. "The development of this tool certainly points to the fact that the accounting industry is paying attention to this technology and its current and potential use," Moore said to me. "At its core, blockchain technology is an accounting technology. It has the potential to drastically change the way compliance is supervised and achieved, moving from a point-in-time, retrospective review to a real-time, embedded compliance review." "The development of this tool shows that accountants have already been taking the first steps to understanding how the processes associated with blockchain's use are both new and familiar parts of existing IT risk frameworks. As the use of blockchain continues to proliferate, it will provide new opportunities to match authorizations, supporting documentation, journal entries, and the value transfer components of a business' transaction on both sides near instantaneously."  "To achieve the potential compliance, accounting, and legal automation that blockchain could provide, it will be vital that businesses and their advisors understand, review, and plan for the associated risks of using blockchain technology."  Moving beyond interest What is also quite apparent with this next big step in the coalition is that enterprises are starting to progress further away from exploring and experimenting; it is now about making meaningful changes with the new technology. Moore explains it as such: "The vast majority of enterprises engaged in trade organizations like the Accounting Blockchain Coalition are not only evaluating blockchain technology, but also building solutions using the technology." He goes on to conclude:  "Accounting firms are building auditing, taxation, and general accounting software solutions using blockchain; technology firms are building software tools to re-think the backend of and the concept of ownership in financial services, supply chains, and numerous other industries; and educational institutions are not only educating on the value of the technology, but also using blockchain to issue degrees and proof of certifications to students' new smart identities.

4 blockchain security lessons from Euroclear's CISO - CSO Online Posted: 22 Oct 2019 03:00 AM PDT If you believe the hype, blockchain will solve most of the world's problems, from coffee growing and logistics to shipping, medicine delivery and voting. It's also seen as a tool to improve security, maybe even kill the password. Analysts don't expect blockchain hype to abate anytime soon: IDC predicts growth in blockchain spending across Europe will rise from $800 million in 2019 to $4.9 billion in 2023. [ Keep up with 8 hot cyber security trends (and 4 going cold). Give your career a boost with top security certifications: Who they're for, what they cost, and which you need. | Sign up for CSO newsletters. ] Despite headlines about major companies launching blockchain-based projects and pilots, the reality is that success stories of blockchain projects in production are less common. Just 24% of enterprises globally say they have blockchain-based technologies in production, according to Deloitte's 2019 global blockchain survey. Another notorious study found a zero-percent success rate among the projects it tried to study. This means blockchain best practices and learnings are hard to come by. Real-world data on how to secure blockchains is even harder to find. Euroclear, a Belgium-based financial services company, has been experimenting with blockchain technology while avoiding additional risks to its business. [ Prepare to become a Certified Information Security Systems Professional with this comprehensive online course from PluralSight. Now offering a 10-day free trial! ] Euroclear's blockchain project

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