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The co-founder of Ethereum invests $ 6.5 million in former competitors




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Ethereum co-founder and CEO of ConsenSys Joe Lubin, speaking at the RISE 2018 conference.

Ethereum co-founder and CEO of ConsenSys Joe Lubin, speaking at the RISE 2018 conference.2018 S3studio

Ethereum's co-founder, Joe Lubin, has made an unusual partnership with DrumG, a stealth startup emerging today and founded by several top-tier R3 executives, one of the most important competitors of the ethereum blockchain.

In the $ 6.5 million cash investment by the blocker startup ConsenSys of Lubin, the company will take a minority stake in DrumG and Lubin himself will join as an external member of the Administrative Board.

Unusual partnerships between individuals who have invested so much time and money to build competing platforms are the result of a series of equally unusual conditions in the rapidly evolving blockchain ecosystem.

In many cases, the creators of open source platforms designed to replace intermediaries between sectors with a shared and distributed ledger are the same people who help companies build on those platforms.

To remove that potential conflict of interest, Drumerm of Bermuda is the latest of a new generation of companies founded by people who helped build these blockchains, but who then left to help companies create real applications on a vast scale. range of interconnected registers.

"The decentralized web of the future-web 3.0, which connects corporations to public blockchains, is definitely an interlaced future," said Lubin, who in addition to being CEO of ConsenSys sits on a series of tips for companies that is helping to build . "There will be hundreds of thousands of decentralized protocols for reliable transactions and automated agreements."

As part of the investment, for undisclosed terms, Lubin states that not only will he sit on the advice of DrumG, but DrumG himself will have a "significant presence" within the ConsenSys financial technology ecosystem. Currently there are more than 50 projects managed by ConsenSys, many of which are in the financial sector.

Lubin says he first met DrumG co-founder Tim Grant, when he was still managing director of the R3 Lab and Research Center, helping to create use cases for the emerging consortium of distributed ledgers. Over the years the two have attended many of the same events and about nine months ago the potential that they could work together came to be discussed seriously.

Then, on 27 August 2017, DrumG was formally incorporated into Bermuda and conversations began to become increasingly serious. To date, DrumG takes its name from the road Grant grew up in West Central Scotland – has 20 employees in London, New York, Singapore and Bermuda and will use today's investments to complete and expand more tools in progress.

As a result of the close ties with ethereum and the distributed Rope of R3 register, DrumG will initially focus on the two platforms with as many as 10 blockchains to be added soon.

To help companies better understand how such a wide range of blockchains can help them create the most efficient system in every industry, DrugG has created a database of what Grant calls "blockchain". The metrics of those dimensions are then used to generate benchmarks that compare the potential value added or saved by different platforms.

DrumG also has a provisional patent in the United States on technology designed to standardize the way its customers talk about corporate workflows, transforming those standardized processes into what Grant calls "corporate protocols" that can be sold to what they hope will be a fraction of total intermediaries Currently, DrumG is not generating revenue and will also use the investment to finalize two projects close to completion.

In particular, DrumG is preparing to launch the Titanium Network, a decentralized and encrypted database for information on trading and evaluations of over-the-counter (OTC) investment banks. Currently, this sharing of OTC data requires companies to provide their information to trusted third parties who then compare them with competing companies and generate insights based on aggregate data. Those third parties reassure them to sell the consensus insights to the same companies that originally created the data.

Instead, the Titanium Network eliminates those brokers by moving anonymized transaction data into an authorized version of the blockchain etherum and generating the same information using automated processes. Built in collaboration with the Swiss banking giant Credit Suisse, the platform will be demoed at this year's Sibos conference in Australia and expected to enter live in the second quarter of next year.

Grant says DrugG is also building a second nameless platform for customers, including large hedge funds, early brokers and fund managers seeking to replace the complicated post-trade services they currently use to reconcile their portfolios. Instead, the DrugG solution will rely on the R3 distributed distribution register to almost immediately record securities trading and more.

But one of these projects alone is only half a solution according to Grant. "The real goal for us is that somewhere on the line those networks should be able to interoperate – they should be able to work together."

Breaking the boundaries behind the super-competitive blockchain landscape will not be easy. The early days of blockchain idealism ended when competitors lived according to the mantra "all ships went up" and concentrated almost exclusively on the current broken financial system as the biggest competitor.

As Grant says, the current system dominated by financial intermediaries and centralized authorities is "divided into two" and if the blockchain builders fail to understand how to work together they run the risk of creating completely new infrastructures with completely different inefficiencies.

With traditional financial centers such as the United States showing a reluctance to create new regulatory paradigms for technology, Grant says he has sought advice from the global accounting giant EY before finally settling in Bermuda. To help blockchain innovators work in multiple competing jurisdictions, the small British territory in the middle of the Atlantic Ocean at the start of this year promulgated the Digital Asset Business Act to explicitly define regulatory requirements for a wide range of blockchain use cases.

DrumG co-founder Tim Grant moderated a panel with Premier Bermuda David Burt and ConsenSys CEO Joe Lubin. (1 October 2018)

DrumG co-founder Tim Grant moderated a panel with Premier Bermuda David Burt and ConsenSys CEO Joe Lubin. (1 October 2018)DrumG

Then, today, Bermuda Premier and Finance Minister David Burt joined Grant and Lubin on the stage of the Hamilton Princess Harbourview Ballroom in Bermuda to formally announce the partnership and discuss its potential impact on global and local economies. A recent report by the Bermuda Business Development Agency estimated that $ 286,000 will be generated on the island from every blockchain job created.

Excerpt from the Bermuda Fintech Strategy report from the Bermuda Monetary Authority.

Excerpt from the Bermuda Fintech Strategy report from the Bermuda Monetary Authority.Monetary authority of Bermuda

"Bermuda are setting standards for fintech companies and offer sophisticated, modern and well-regulated jurisdiction where innovators can bring their ideas to life," said Premier Burt, in a statement sent to Forbes. "We can not wait to follow DrumG Technologies as it leads the way."

While DrumG has definitely come out of stealth in style with its series A investment by a respectable blockchain leader and two live projects being completed, it has serious competition. At the start of this year, Ripple's managing director, Stefan Tual, left Ripple to found Coil, another distributed book production company that aimed to help businesses to build using Interledger's blockchain interoperability tool and XRP crioception.

Also this year, venture capital firm Boldstart Ventures helped launch mState to invest in enterprise-class blockchain projects. MState's first investment in Blockdaemon, based in New York, is designed to offer its customers the ability to implement applications based on Bitcoin, Ethereum, Stellar, Aion, Corda, Hyperledger Fabric, Multichain and Quorum.

Not only does Grant say he is not worried about this competition, he says it is a crucial aspect of replacing the global financial infrastructure on a network of blockchain solutions. If the mentality of "all ships gets up" is left to the bins of the history of the blockchain, Grant hopes that a new "convergence" will emerge.

"In the end, all of this will converge," Grant said. "Tribalism will dissipate, the walled gardens will come down and a big question is who will remain and in what state? Now nobody knows the answer, but we know that if you do not look ahead and start to prepare significantly, it is likely that you will be back . "

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Ethereum co-founder and CEO of ConsenSys Joe Lubin, speaking at the RISE 2018 conference.

Ethereum co-founder and CEO of ConsenSys Joe Lubin, speaking at the RISE 2018 conference.2018 S3studio

Ethereum's co-founder, Joe Lubin, has made an unusual partnership with DrumG, a stealth startup emerging today and founded by several top-tier R3 executives, one of the most important competitors of the ethereum blockchain.

In the $ 6.5 million cash investment by the blocker startup ConsenSys of Lubin, the company will take a minority stake in DrumG and Lubin himself will join as an external member of the Administrative Board.

Unusual partnerships between individuals who have invested so much time and money to build competing platforms are the result of a series of equally unusual conditions in the rapidly evolving blockchain ecosystem.

In many cases, the creators of open source platforms designed to replace intermediaries between sectors with a shared and distributed ledger are the same people who help companies build on those platforms.

To remove that potential conflict of interest, Drumerm of Bermuda is the latest of a new generation of companies founded by people who helped build these blockchains, but who then left to help companies create real applications on a vast scale. range of interconnected registers.

"The decentralized web of the future-web 3.0, which connects corporations to public blockchains, is definitely an interlaced future," said Lubin, who in addition to being CEO of ConsenSys sits on a series of tips for companies that is helping to build . "There will be hundreds of thousands of decentralized protocols for reliable transactions and automated agreements."

As part of the investment, for undisclosed terms, Lubin states that not only will he sit on the advice of DrumG, but DrumG himself will have a "significant presence" within the ConsenSys financial technology ecosystem. Currently there are more than 50 projects managed by ConsenSys, many of which are in the financial sector.

Lubin says he first met DrumG co-founder Tim Grant, when he was still managing director of the R3 Lab and Research Center, helping to create use cases for the emerging consortium of distributed ledgers. Over the years the two have attended many of the same events and about nine months ago the potential that they could work together came to be discussed seriously.

Then, on 27 August 2017, DrumG was formally incorporated into Bermuda and conversations began to become increasingly serious. To date, DrumG takes its name from the road Grant grew up in West Central Scotland – has 20 employees in London, New York, Singapore and Bermuda and will use today's investments to complete and expand more tools in progress.

As a result of the close ties with ethereum and the distributed Rope of R3 register, DrumG will initially focus on the two platforms with as many as 10 blockchains to be added soon.

To help companies better understand how such a wide range of blockchains can help them create the most efficient system in every industry, DrugG has created a database of what Grant calls "blockchain". The metrics of those dimensions are then used to generate benchmarks that compare the potential value added or saved by different platforms.

DrumG also has a provisional patent in the United States on technology designed to standardize the way its customers talk about corporate workflows, transforming those standardized processes into what Grant calls "corporate protocols" that can be sold to what they hope will be a fraction of total intermediaries Currently, DrumG is not generating revenue and will also use the investment to finalize two projects close to completion.

In particular, DrumG is preparing to launch the Titanium Network, a decentralized and encrypted database for information on trading and evaluations of over-the-counter (OTC) investment banks. Currently, this sharing of OTC data requires companies to provide their information to trusted third parties who then compare them with competing companies and generate insights based on aggregate data. Those third parties reassure them to sell the consensus insights to the same companies that originally created the data.

Instead, the Titanium Network eliminates those brokers by moving anonymized transaction data into an authorized version of the blockchain etherum and generating the same information using automated processes. Built in collaboration with the Swiss banking giant Credit Suisse, the platform will be demoed at this year's Sibos conference in Australia and expected to enter live in the second quarter of next year.

Grant says DrugG is also building a second nameless platform for customers, including large hedge funds, early brokers and fund managers seeking to replace the complicated post-trade services they currently use to reconcile their portfolios. Instead, the DrugG solution will rely on the R3 distributed distribution register to almost immediately record securities trading and more.

But one of these projects alone is only half a solution according to Grant. "The real goal for us is that somewhere on the line those networks should be able to interoperate – they should be able to work together."

Breaking the boundaries behind the super-competitive blockchain landscape will not be easy. The early days of blockchain idealism ended when competitors lived according to the mantra "all ships went up" and concentrated almost exclusively on the current broken financial system as the biggest competitor.

As Grant says, the current system dominated by financial intermediaries and centralized authorities is "divided into two" and if the blockchain builders fail to understand how to work together they run the risk of creating completely new infrastructures with completely different inefficiencies.

With traditional financial centers such as the United States showing a reluctance to create new regulatory paradigms for technology, Grant says he has sought advice from the global accounting giant EY before finally settling in Bermuda. To help blockchain innovators work in multiple competing jurisdictions, the small British territory in the middle of the Atlantic Ocean at the start of this year promulgated the Digital Asset Business Act to explicitly define regulatory requirements for a wide range of blockchain use cases.

DrumG co-founder Tim Grant moderated a panel with Premier Bermuda David Burt and ConsenSys CEO Joe Lubin. (1 October 2018)

DrumG co-founder Tim Grant moderated a panel with Premier Bermuda David Burt and ConsenSys CEO Joe Lubin. (1 October 2018)DrumG

Then, today, Bermuda Premier and Finance Minister David Burt joined Grant and Lubin on the stage of the Hamilton Princess Harbourview Ballroom in Bermuda to formally announce the partnership and discuss its potential impact on global and local economies. A recent report by the Bermuda Business Development Agency estimated that $ 286,000 will be generated on the island from every blockchain job created.

Excerpt from the Bermuda Fintech Strategy report from the Bermuda Monetary Authority.

Excerpt from the Bermuda Fintech Strategy report from the Bermuda Monetary Authority.Monetary authority of Bermuda

"Bermuda are setting standards for fintech companies and offer sophisticated, modern and well-regulated jurisdiction where innovators can bring their ideas to life," said Premier Burt, in a statement sent to Forbes. "We can not wait to follow DrumG Technologies as it leads the way."

While DrumG has definitely come out of stealth in style with its series A investment by a respectable blockchain leader and two live projects being completed, it has serious competition. At the start of this year, Ripple's managing director, Stefan Tual, left Ripple to found Coil, another distributed book production company that aimed to help businesses to build using Interledger's blockchain interoperability tool and XRP crioception.

Also this year, venture capital firm Boldstart Ventures helped launch mState to invest in enterprise-class blockchain projects. MState's first investment in Blockdaemon, based in New York, is designed to offer its customers the ability to implement applications based on Bitcoin, Ethereum, Stellar, Aion, Corda, Hyperledger Fabric, Multichain and Quorum.

Not only does Grant say he is not worried about this competition, he says it is a crucial aspect of replacing the global financial infrastructure on a network of blockchain solutions. If the mentality of "all ships gets up" is left to the bins of the history of the blockchain, Grant hopes that a new "convergence" will emerge.

"In the end, all of this will converge," Grant said. "Tribalism will dissipate, the walled gardens will come down and a big question is who will remain and in what state? Now nobody knows the answer, but we know that if you do not look ahead and start to prepare significantly, it is likely that you will be back . "


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