The head of a Chinese company that purchased a 27 percent stake in the Delaware Board of Trade denies that his company is placing a bet on bitcoin.Seven Stars Cloud Group, Inc. CEO Bruno Wu offered an update last week on the company’s vision, and how it relates to blockchain.
Seven Stars bought a reported $7 million stake in the Wilmington-based exchange, citing its technology and authorization by regulators to work in the blockchain world that allows for secure movement of documents and financial instruments.
Bitcoin, designed to work as currency, has been controversial with financial executives and others predicting the collapse of the market, which has seen wild swings in prices.
The State of Delaware is exploring the blockchain market in terms of economic development and its use in the state’s incorporation business.
Wu offered the following update:
“Seven Stars Cloud is a next-generation artificial intelligence and blockchain-powered financial technology company that offers supply chain and digital finance solutions aiming to disrupt and consolidate supply chain finance, risk management, and asset-backed digital securitization. Focusing on blockchain for a moment I want to be very clear and concise on how blockchain is powering Seven Stars Cloud business models.”
“With any game-changing emerging technology, there is always an adoption curve but also a steep learning curve. Throughout history, from the wheel to the printing press, to the internal combustion engine, to the internet, to smartphones, this has always been the case and will continue to be so until the end of time. In the case of the ingenious technology, blockchain, a major part of the learning curve has to do with blockchain’s seemingly tethered existence to bitcoin. It is therefore not difficult to comprehend why the terms ‘blockchain’ and ‘bitcoin’ often get confused since blockchain serves as a platform for cryptocurrencies; without blockchain, there would be no bitcoin.”
“However, Seven Stars Cloud is in no way a bitcoin-related company and it must be highlighted that the opportunities and possibilities of blockchain extend far beyond the world of cryptocurrencies. Although initially created for bitcoin, blockchain provides a more secure and transparent way of managing all kinds of data and therefore, the numerous applications and uses of this technology are infinite. What makes blockchain unique is that it does not require an intermediary to overlook transactions, the digital database is itself dispersed and decentralized, it can run on numerous computers and it can be updated in real-time. Combining all of these features makes blockchain much more resistant to cyber-attacks and reduces certain institutional and systemic risks that occur in all facets of business.”
“In this case of Seven Stars Cloud, we are applying blockchain and artificial intelligence to create a hybrid solution for supply chain finance, risk management, and asset-backed digital securitization. And these are only the first massive opportunities and markets we are targeting, with more plug and play opportunities to be announced in 2018.”
The Delaware Board of Trade opened this year as an alternative stock exchange and has expanded into technology that includes areas related to blockchain.