Gary Schwartz, Managing Director of Pegasus Fintech, speaks about key Blockchain use cases and the opportunity of Cryptocurrency, Blockchain and ICOs.
Listen to the full interview (18 mins) https://spaces.hightail.com/receive/dOda9IB5nQ
This relatively new cross-section of finance and technology could make your head spin. While it can be complicated, it’s pretty exciting stuff. But to make some sense of it, and talk about some of the other applications of blockchain, we’re joined on the line by Gary Schwartz, director of Pegasus Fintech.
Welcome to the show, Gary. Pegasus Fintech is a full-service blockchain, technology and token accelerator that supports regulatory compliant Public Initial BlockChain Offerings (or PIBCOs, for short). We’ll explain this all in due time.
- Let’s start off with what is cryptocurrency is. Bitcoin is an example of cryptocurrency, yes?
Correct. It is best to think of Cryprocurrency as the first use case of the public blockchain. Your listeners have all heard about Bitcoin and some may have heard of other coins which are alternative crypto currencies such as Litecoin, Monero, IOTA, Dashcoin
Some of these coins have different use cases – anonymity, self-governance etc. However, they all use a public blockchain.
- And let’s clarify what blockchain is. It’s a digital ledger of sorts, yes?
Yes – but it is much more than a ledger – it is a way of agreeing on transactions without a middle man (without what we, in the traditional world, need as a custodian) such as a bank or a broker. The blockchain uses many preexisting solutions such as asynchronous encryption, hashing even the internet (which is of course fundamental to the blockchain.) These all predated the blockchain.
… However, the magic of the public blockchain is its ability to allow for the safe transfer of digital assets from one person to another. This transfer based the blockchains consensus algorithm.
The key message here is there is “No more middle man”.
- What is the advantage of “no middle man”?
In a post Snowden, post WikiLeaks world – a world after the 2008 bank crisis, many globally do not trust the middle man – be that the bank, government, or multinational corporation. This new economy was founded by cyperpunks: libertarians – the hardcore blockchain founders were thumb-drive-and-shotgun-under-their-pillow at night folk.
- And how can this no-middle-man blockchain be used in other industries?
Marc – this is where things become really exciting.
When the mysterious Satoshi Nakamoto invented the blockchain solution for crypto-Bucks – Bitcoin etc., he most likely did not imagine the myriad of other use cases.
In 2018, there are so many industries that are using public and private blockchains to innovate and drive new efficiencies. Key examples are supply-chain managed of any assets from cradle to grave, digital rights management, automated legal contracts and the list goes on … and on.
However, I think we need to remember that this is circa 1998 on the internet …
Marc, remember dial up modems and early Mosaic and Netscape browsers? Look how far we have come. It is still early days – there are many inefficiencies and growing pains – however, there is no question that the Blockchain will evolve similarly.
- This brings us nicely to Pegasus Fintech. How is Pegasus embracing blockchain?
Pegasus sees another use case for the blockchain which is capital formation for companies. This is the natural evolution of crowd funding — on an international scale. Remember we live in a global economy that has no borders. We need to be able to access that audience of investors. I believe the “Attention Token” raised $26 million in 34 seconds.
I believe that this is one of the most compelling use cases for the blockchain. Some call it the stock market V.2. It is an accelerated way of building value for companies with healthy businesses.
- Are you referring to an ICO? Initial Coin Offering?
Yes – however we are approaching ICOs with a methodology that is based on the rigour and process of public market securities.
Initially – we saw a few bad actors and poorly thought out tokens which confused the markets. I think Forbes called ICOs “The Emperor’s New Coins.”
We want to build a new transparent process which we call a PIBCO — Public Initial Blockchain Offering – think PUBCO.
Companies sell TOKENs to the public – we treat these as securities and apply the same oversight that would be applied to any security.
- Do you see PIBCO as a standard?
Very much so. We are already working with a number of organizations and countries globally to implement PIBCO as a best-of-breed process. We want businesses and investors to see PIBCO as a way to run a capital raise on the Blockchain.
- For companies looking to raise capital or potential investors listening right now, what call to action can you suggest for them to get in touch with Pegasus?
There are many criteria for a successful raise on the Blockchain. I would suggest that any company listening that is considering a capital raise to go to pegasusfintech.com and read a little more about the PIBCO process.
Please reach out. We have a world class team that can suggest various options.