BCGH: Condos to follow banking into blockchain
The financial sector has been the first to adopt blockchain, with more businesses following next year, including condominium projects, says an enthusiast of the technology.
Blockchain is the second layer of technology that uses the internet to allow people to digitise data without copies, said Jirayut Srupsrisopa, chief executive of Bitkub Capital Group Holding (BCGH), a Thai startup valued at 525 million baht dedicated to creating a blockchain system for investors and enterprises.
“Previously, value had to be tangible, but from now on we can upload value online. Half of the economy will be uploaded to the cyberworld,” he said.
Value exchange still requires a middleman, but data can be shifted to the exchange without a middleman at anytime, anywhere, said Mr Jirayut.
“In the future, value exchange will be a form of tokenisation. We can take a fraction of condos to exchange for a fraction of a car. There will be fractional ownership of assets. Everyone can be an owner. And we can apply this to everything,” he said.
Blockchain’s ability to remove middlemen in business has revolutionised the world by enabling faster, cheaper, and safer borderless payments. The benefits of this technology also carry over to different industries that have large transaction volumes or require trust automation, such as real estate, supply chain, and trade finance, said Mr Jirayut.
“Blockchain is powerful in its ability to solve universal issues, such as lack of transparency and the demand for increased traceability, trust, and accountability. As a disruptive technology, blockchain’s largest challenge is crossing the chasm to become mainstream,” he said.
BCGH bridges the knowledge gap between blockchain services and “nontech users” by creating a blockchain system for retail investors as well as enterprises to learn about, invest in, and integrate blockchain technologies into their own infrastructures. The company offers holistic, accessible solutions that covers cryptocurrency trading, initial coin offering (ICO) consulting, blockchain-as-a-service and private wealth advisory.
“We are creating a stock exchange 2.0, and apart from stocks, we can trade other assets such as diamonds, gold, and condominiums. We believe in the future the market will be able to trade everything but the kitchen sink,” said Mr Jirayut.
Citing the World Economic Forum, he said 10% of the world’s GDP will be stored through blockchain by 2025. The company is creating an alternative global exchange market that is open to anyone who can buy the coins.
In the future, every charity, corporation and football club will have their own coins, said Jirasin Khanitthanant, co-chief executive of Bitkub Blockchain Technology.
Condos will follow banking into blockchain because projects come with a business plan, and a backlog that can be sold in fractions.
However, Mr Jirasin said, the model is complex, with many legal issues.
Any official document or sensitive data that should not be easily distributed can be safely stored with blockchain, such as a licence for alcohol sales, cosmetics, medical equipment and supplementary food.
“The authentication is being developed. We are working with charities, foundations, and organisations to apply blockchain where necessary for transparency and trust,” Mr Jirayut said.
In February, BCGH received the largest seed investment in the country of US$2 million (66 million baht). From there, BCGH was incorporated and launched the cryptocurrency exchange platform, Bitkub Online Co in March.
An ICO advisory and blockchain-asa-service business, Bitkub Blockchain Technology began operating in April, followed by the venture capital investment arm Bitkub Capital. Bitkub Blockchain Academy hosted its first cryptocurrency meet-up in July.
BCGH, with the support of the National Innovation Agency and European Blockchain Hub, will hold “Blockchain for Sustainable Development Goals Summit 2019” to bring in blockchain knowledge from European, US, and Asean countries, together with case studies from many sectors. The summit is scheduled for Friday at Gaysorn Urban Resort, on the 19th floor of Gaysorn Tower.