Skycoin is a high-performance blockchain project for a new decentralized networking protocol. Skycoin’s revolutionary ecosystem will overhaul the current internet with a faster, more secure replacement. Bitcoin was the first generation prototype for decentralized economics, created to give citizens across the globe unrestricted access to a financial transaction. In addition, Ethereum is blockchain 2.0, the platform designed for the ability to easily launch hundreds of blockchain projects.

Skycoin is blockchain 3.0, the next level of decentralized engineering with an incentivized ecosystem and infinite scalability. It combines and improves upon the benefits of Bitcoin and Ethereum while solving the problems of speed, centralization, and scalability that arose in their development and use.

Skycoin consists of an ecosystem of technologies that work together in unison to provide a complete package: 

• Skycoin – The digital currency that produces Coin Hours for network bandwidth.
• Skywire – Decentralized wireless mesh network for a secure, fast, Web 3.0
• Obelisk – Consensus algorithm that distributes a “web of trust”
• Fiber – Infinitely scalable parallel network of blockchains 

Ethereum: Second Generation Blockchain

Currently, Bitcoin and Ethereum have first mover’s advantage. Bitcoin is the first cryptocurrency which enables payments to be sent peer-to-peer without the involvement of a central authority. Ethereum expands Bitcoin’s use-case by offering a platform for deploying decentralized applications. Historically, platforms that have the first mover advantage may not come with the most practical use of available technology. We experienced this with some of the first websites, email services, and search engines.

Ethereum’s position grants it the status of the most used platform for creating decentralized applications. Bitcoin exists as the original blockchain, generation one, and Ethereum represents version 2.0. New technology typically requires multiple iterations to accomplish a useable scalable version that works effectively and efficiently. Ethereum is currently plagued with these issues of scalability.

Crypto kitties are the perfect example of how quickly a good idea on a platform that lacks scalability can hinder a network. Crypto kitties caused a record high of 30,000 transactions on the Ethereum blockchain to become stuck awaiting processing. In addition, security issues have also arisen in Ethereum. With an estimated 3,000 major security flaws said to exist in current smart contracts, the inability to amend contracts after they are deployed has led to large-scale attacks on the network where millions of dollars are lost, and the DAO hack is the perfect example of smart contract security gone wrong.

Skycoin: Third Generation Blockchain

How does Skycoin stack up against its predecessors? Skycoin comes in as the third generation project, solving the problems of scalability with Fiber. Therefore, Fiber is Skycoin’s infinitely scalable solution, rather than blockchain projects launching on one blockchain resulting in congestion of the network. Furthermore, Fiber implements parallel blockchains, allowing applications to have fully customizable implementations. The more projects that exist on Fiber, the stronger the system becomes.

Skycoin fixes the security issues present in Ethereum with CX, Skycoin’s general purpose programming language. In addition, CX allows users to program contractual agreements on the blockchain while enabling users to amend the digital contracts to address any bugs. The CX programming language is built on the premise of security for the average programmer. Skycoin solves many real-world problems and employs financial incentives for its users in Skywire.  Furthermore, it aims to update the internet with a faster, more secure version that pays its users for providing bandwidth.

Skycoin in S. Korea

Korea has set itself up as a country that consistently stays ahead of the technological curve. With a tremendous appetite for technological advancement, Koreans boast the position of being consistently first in the Bloomberg innovation index while also remaining a top contender for technical density. Therefore, Korea unsurprisingly has embraced blockchain technology, implementing classification standards & regulatory frameworks. Currently, some of the largest cryptocurrency exchanges are backed by the countries largest conglomerates.

The rollout of decentralized technology will be aided by Korea’s current technology status. In addition, Koreans are technically inclined, they want smooth running products that are easy and fun to use. Smartphones created a substantial advancement in the way we communicate, texting (often with a small charge) evolved toward applications that provided free text services. Furthermore, applications like Kakao talk that provided a better user experience eventually overtook the first movers and became the most used platforms in the country. The propagation of usable customer-focused technology is similar to blockchain projects and their iterations through time.

Ethereum provided for a significant testing ground as a platform for decentralized technology, Skycoin perfects the ideas and processes of Ethereum while creating a usable, incentivized platform that will increase the proliferation of blockchain in the region.

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Women in Blockchain Event in Seoul (19th July)

The women in blockchain event will be Korea’s first ever meetup to focus predominantly on females in the industry. It will be held from 7 pm to 9.30 pm at Google Campus Seoul and is free for all to enter.

Coindesk Korea, The Booth Drewing Company, and Beyond Blocks are all kindly supporting the event.

The organizers, KryptoSeoul said on their Facebook page:

We are extremely excited to bring together female power in the blockchain & crypto space. Also, it will be a perfect opportunity to learn about the South Korean market and mingle with female players in Korea and abroad!

Main Events at Women in Blockchain

The event will feature thought-provoking talks, panel discussions and, of course, the all-important networking and mingling session afterward.

Names at the event include:

• Yeolmae Kim: A leading blockchain industry analyst at Hanwha Investment & Securities and author of ‘Blockchain and Digital Economy’ report.
• Songyi Lee: An acting advisor for Metadium, a next-generation identity protocol powered by blockchain.
• Phu Styles: The founder of the Women in Blockchain Foundation and Venture Capitalist at Velorum Capital
• Eriko Suzuki: Director of Mistletoe Inc and Partner of Fresco Capital
• Ella Qiang: Director of Partnerships at Stellar
• Erica Kang: CEO and Founder of KryptoSeoul

To stay up to date with the latest news about the event, join the Facebook page, and, of course, register for your ticket on the Meetup page.

The post Women in Blockchain by TLDR x KryptoSeoul on 19th July appeared first on Startup Radar.

Korea’s Changing Attitude Towards Cryptocurrency

Despite Korea’s technological advancements, the country has been slow to adapt to the use of cryptocurrency. Korea’s media and government worry that crypto could be used by the public for money laundering or tax evasion. However, Korean officials are now emphasizing that they’re not completely opposed to digital currencies.

In order to allow cryptocurrency to be used lawfully in Korea, the government has appointed a dedicated cryptocurrency exchange panel. As well as this, the Bank of Korea has even released a report about using cryptocurrency as a means of payment.

The government has also spoken about giving ICOs legal status. Hong Eui Rrak of the ruling Democratic Party stated that lawmakers are currently working on legislation that’ll lift the government’s previous ban.

Hopefully, these positive announcements show that the Korean government is willing to make Korea a more crypto-friendly country.

New Crypto Classification System in Korea

Statistics Korea will be in charge of creating a cryptocurrency classification system. They have already begun reviewing the system and are set to publish their findings on the 25th July.

Statistics Korea has reported that:

“Cryptocurrency exchanges such as Bithumb and Upbit are expected to be officially classified as crypto asset brokers after the government’s current title of ‘virtual currency handler’ is removed…The blockchain industry will be managed as a formal industry, starting with the government’s industrial classification, and conducting surveys and statistics.”

Following the recent crypto exchange attacks in Korea, there have been efforts put in place to monitor exchanges and their practices.  The announcement regarding this decision states that:

 “If the technical problems of virtual currency are resolved and the acceptability of virtual currency in the general society is increased, it cannot be ruled out that it can be widely used as an investment asset and payment means.”

In the future, cryptocurrency exchange platforms will use sophisticated management systems like those used by banks.

What About Other Blockchain Related Products in Korea

The new regulations don’t just concern cryptocurrency exchange platforms. The government will loosen the rules for almost all blockchain related products. They plan to distinguish between blockchain related products and cryptocurrency exchanges in their regulations.

The new cryptocurrency regulations in Korea will label exchange platforms as “Cryptocurrency Exchange and Brokerage”. Other blockchain related products, such as dApps, will be classified as “Blockchain Software Development and Integration.”

Hopefully, these new cryptocurrency regulations will allow Korea to truly excel in their major technological industries.

Let us know: What Do You Think of the New Cryptocurrency Regulations in Korea?

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What is an ICO?

An ICO is an initial coin offering.  It is not like an IPO (initial public offering).  IPOs are regulated.  ICOs, on the other hand, are not regulated by the government.  An ICO is when a company attempts to raise funds, similar to crowdfunding, by distributing tokens to their investors.  It is seen as an innovative way of engaging with the community.  People can invest in a company’s funds for distributed shares.

Why is the South Korean Government Afraid of ICOs?

South Korea has a history of fraud and corruption.  There are undoubtedly scammers out there that will make false companies with false products and services.  This can result in people investing in a worthless company.  However, I feel it should be up to the investor to make the right decision.  It almost seems as if the South Korean government does not believe in their own citizens to make rational and informed decisions when it comes to investing.

Will South Korea Reverse its ICO Ban?

If South Korea reserves its ICO ban then ICOs will become heavily regulated.  The main goal of the South Korean government is to protect investors in the early stages.  I do feel the ban will not last for long.  The most likely outcome in South Korea is that the ICO ban is only temporary.  During this time the market will settle down and the South Korean government will work on regulations for consumer protections.  Once they step up these regulations, look for the South Korean government to take a step back and see how it works out.

We need to pay close attention to China.  If China decides to bring back ICOs then South Korea will watch closely to see how China does it then follow suit.  If you are tired of seeing South Korea follow China, you are not alone.  It goes to show that South Korea is not the powerhouse it thinks it is.  That can clearly be seen in how they are dealing with cryptocurrencies.  Korea will be holding their elections on June 13th.  Depending on who gets elected, a clearer picture of ICOs in Korea will be shown.

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Korea is dealing with very few job opportunities in Korea and things have gotten worse with the ban on ICOs and strict Korean government regulations on cryptocurrency exchanges.  A lot of companies in South Korea as looking outside of Korea to start their business.  Cryptocurrencies and ICOs are very hot right now.  Therefore, many Koreans are looking to cash in while the iron is hot.  In addition, many are looking to countries like Singapore, Japan, and even countries in Europe like Switzerland to launch their ICOs.

Korea has a strong mobile/internet infrastructure.  They should be taking the lead when it comes to this new and fascinating world of blockchain and cryptocurrencies.  By banning and making strict regulations when it comes to digital currencies, Korea is starting to see a lot of tech companies leave Korea.  Therefore, the longer Korea takes in bringing ICOs back to Korea, the longer it will take for Korea to catch up with the rest of the world.

Will Korea be able to Recover?

Global investments in Korea has halted.  Many Korean investors that are eager to invest in crypto and blockchain companies need to look outside of Korea.  Even big corporations like Naver and Kakao have created blockchain subsidiaries in Japan recently.  By banning ICOs in Korea they have forced the hand of many Korean companies.  If they want to compete with the rest of the globe they have to establish these companies outside of Korea.  Korean government regulations have stopped the progress of Korean innovation.

The Korean government announced recently that they might allow ICOs in Korea when certain conditions are met.  But what are these conditions?  Nobody really knows.  Which means no one really knows how long this will take.  As more and more companies leave Korea, it could come to a point where even if ICOs return to Korea it will be too late.  The impact this could have on the Korean economy is huge.  Just imagine if a company is successful with their ICOs.  Do you think they will move their company back to Korea?  Will they be considered Korean companies?  It seems to be the countries that are benefiting the most are countries like Japan and Singapore that are embracing this new technology, not banning it.

The post Korean Government Regulations on ICOs are Driving Businesses out of Korea appeared first on Startup Radar.

It is amazing to see how far South Korea has come in just 60 years.  During the time of the Korean War, South Korea and North Korea were dirt poor.  While North Korea has struggled to advance, South Korea has been an economic powerhouse.  South Korea’s GDP in 2017 was close to $1.5 trillion, which is bigger than Australia.  Just 20 years ago the startup ecosystem in South Korea virtually did not exist.  The Korean government was trying to grow and find new ways to create jobs in the economy.  Slowly they would realize that entrepreneurship was the key to job creation and a strong and innovative economy.  When you look at the Korean startup scene today, the community is strong and growing.  Over 500 million dollars a year has gone to funding late-stage startups for a few years now.  There is a lot of potential in FinTech and IoT which are key growth areas for Korea.  It seems the culture has changed as well as more and more young Koreans are looking to get into entrepreneurship.  Here are the five main components of the Korean startup ecosystem.

1) Entrepreneurs in Korea

The number of startups in South Korea in 2017 was close to 30,000 with over 100,000 startup employees.  Just 20 years ago the number of startups was below 2,000.  A vast majority of these startups are in Seoul.  This helps drive trends and word-of-mouth about new products and services. Seoul is essentially a single-market city within a conservative culture slowly adapting to entrepreneurship.

Many Koreans now have an alternative to working for a big conglomerate like Samsung, Hyundai, or LG.  The older generation is starting to embrace entrepreneurship a lot more than in the past. Now young Koreans have the alternative to be an entrepreneur and run their own business.

Foreigners working in Korea

One of the issues, South Korea has been having has been retaining foreign talent.  If you go on the internet you will find many horror stories of foreigners who have worked for big corporations like Samsung.  Usually, when foreigners join a Korean company they will be working with Koreans.  Many times they will be the ONLY foreigner in the company or team.  It is natural for many foreigners to feel isolated and most of the blame/responsibility will fall on them.  Add this to the lack of communication due to language barriers and you have a terrible working environment.  Therefore foreigners need young Korean entrepreneurs with a global mind in order to bridge the gap for a productive working environment.

The Korean Working Culture

The working culture and living culture in Korea is a bit different from the West.  The hours at a Korean company are very long.  While it might say 9-6…in reality you can’t leave at 6 pm.  You need to wait for at least an hour and if there is more work to do, you must finish it before you leave.  Even if that means working until 1-2am.  You most likely will not get overtime.  Korean bosses usually have crazy demands and deadlines which you can never question in public.  Thankfully young Koreans and foreigners are slowly moving away from this archaic Korean working culture.

The Korean government has encouraged more Korean entrepreneurs rather than foreign startup entrepreneurs.  For example, the TIPS (Accelerator Investment-Driven Tech Incubator Program for Startups) in Korea offers Korean government support to share the risk of business failure.  However, it requires for the startup to have at least one Korean startup founder in the company.  This is why you don’t see a lot of foreigners working in Korea.

2) Startup Funding in Korea

Funding in South Korea really started to take off in 2014.  It went from $71 million in funding in 2013 to $949 million in 2014.  Then went to an all-time high of $1.8 billion in 2015.  These days it has settled down to around $500-$600 million per year.  This shows that Korea has a large and diverse range of investors, Korea-based funds, corporate VCs, and Silicon Valley VC firms just to name a few.

Accelerators in Korea

There are many Accelerator programs, Angels, and VC firms in South Korea.  Some of them include:

Softbank Ventures Korea which specializes in IT startup investments.  They are famous for their $1 billion investment in Coupang.

STONEBRIDGE CAPTIAL who invests in early-stage startups through staged investments.

Korean Investment Partners, the leading venture capital firm in Korea.

MBK Partners, the largest and most successful independent private-equity firm.

SparkLabs, a Seoul-based accelerator for early-stage Korean startups that want to go global.

The Ventures, an early stage accelerator with strong connections in Southeast Asia and Silicon Valley

..just to name a few…

Corporate Support

I have not mentioned some of the big corporations that have started their own startup hubs like Samsung’s C-Lab Space or Naver and their Startup Alliance.  A lot of big corporations in South Korea are actively investing in local startups.  However, there is still a large talent gap compared to the United States.  We are talking about talented programmers, engineers, and developers.  The top graduates tend to want to work for global companies like Apple or Google.  Most of the gifted students in Korea tend to want to study abroad in the UK or the US.  Once there they usually don’t come back to Korea.

There is also the pressure from the old generation in South Korea to get stable secure jobs with big conglomerates.  Many Koreans still have a lot of fear about starting their own business, especially a startup.

3) Korean Startup Infrastructure

Currently, there are over 50 co-working spaces in Korea.  Some of the big names include WeWork, Fast Five, Fab Lab, Seoul Startup Hub, Google Campus Seoul, Maru 180, and the most recent HEYGROUND.  There are also over 100 accelerators, incubators, and Innovation Centers in South Korea.  HEYGROUND impressed me the most with their community of changemakers managed by ROOT IMPACT.  Their facility is great as well with their high-end design, open-concept workstations, as well as a restaurant and bar on the bottom floor.

The Korean government also assists in programs to help the startup ecosystem.  South Korea has the highest government backing per capita for start-ups.  I mentioned TIPs earlier but there is also the K-Startup Challenge which promotes collaboration between domestic and foreign startups.  All companies form the K-Startup Challenge work out of the Pangyo Global Startup Campus which was opened in 2016 by the Korean government as part of a new startup hub.

4) Korean Startup Community

Building networks and connections are the best way to form partnerships.  It is important to be a part of a strong community that helps one another.  Entrepreneurs helping entrepreneurs is what got Silicon Valley to the level it is today.  In Korea, there are many Startup communities like Startup Alliance which helps foster Korean startups expansion into the global market.  The Ministry of Science, ICT, and Future Planning, as well as Korean IT companies such as Naver, SK, and Kakao, helped create this community.

There is also Startup Grind Seoul which currently has over 1,600 members.  They hold events and meetups every month to help entrepreneurs in Korea network, learn, and provide support.

Startup Festival 2017

Lastly, there is the Startup Festival that occurs the same time every year (Late November/Early December).  The Startup Festival is organized by the Ministry of SMEs and Startups as well as KOFAC (Korea Foundation for the Advancement of Science and Creativity) to help bring in global startups, investors, and media into Korea.  As well as help Korean startups go global.  The event brings in investors, speakers, media, and startups from Asia, United States, and the UK for a 3-day matchmaking global startup conference.

5) Korea’s Strengths/Weakness

Korea’s Strengths

Korean culture

South Korean popular culture is growing every year.  Korean beauty products are thriving thanks to successful Korean startups like Memebox.  There are over 8,000 K-Beauty brands in South Korea.  Korean K-pop is bigger than ever thanks to groups like Big Bang, 2NE1, and EXO.  Also, the Korean IT infrastructure is one of the best in the world.  The country has the best internet connection and most Koreans own smartphones.  Koreans are early adopters of new technologies and early trend setters for fashion.

Korean Fintech

Fintech is also huge in Korea as Korea is becoming the leader in cryptocurrency exchange and services.  Korea looks to become the leader in the global financial centers.  Soon Seoul will become the FinTech hub of Asia.  One of the top Fintech startups in Korea is Viva Republica, which is the developer of Toss a mobile payment tool that is looking to go global after having much success in Korea.

Korean consumers

Korea has a great consumer market. Their middle class in the majority.  Most people living in Korea have smartphones and a credit card. They have the highest GDP per capita, great wireless penetration, great infrastructure, and fast LTE.  All these elements combine to make a great home market to grow your startup.  This is why Korea is able to support companies and startups in Korea that are focused only on the domestic market.  Korea has 50 million residents that are very tech-savvy.  That is one of the main reasons why Korea is able to support a massively scalable business.  Some examples would be companies like Naver, Coupang, and Ticket Monster that solely focus on the Korean market.

Korea’s Weakness

Cost of living

South Korea has some weaknesses they have to work on.  The cost of living in Seoul is very high.  Especially in Gangnam where you will need to put down a deposit of $10,000 and a monthly payment of at least $600.  This is just a studio apartment.  Therefore most Korean startup entrepreneurs communte in and out of Seoul to avoid the high living cost.  Office spaces are expensive as well, which is why many Startups are moving into co-working spaces.  Starting a startup is hard enough for Korean entrepreneurs, so the last thing they want to do is spend their money on rent.

Finding the right investor

Investors in Korea need more education on investing in startups.  There is a lot of “old” wealth in Korea which has come from real estate and family inheritance.  Most of these old investors WANT to invest in tech startups but they don’t know a lot about it.  Hopefully, this will change as successful startup entrepreneurs give back to the community.  Korea still holds a corporate mentality, therefore it is up to the 2^nd and 3^rd generations of traditional Korean startup entrepreneurs to the ranks of their family hierarchy.  This is the only way Korean startup will be able to go global, they need to throw away the old Korean corporate mentality and bring in fresh minds.  The lack of global know-how for Korean startups really holds back the development of the Korean Startup Ecosystem.

Where are the unicorns?

There have been many startup success stories.  However, South Korea does not have many “Unicorns”.  The only three that come to mind are Coupang (e-commerce), Kakao (Internet), and Yello Mobile (Mobile commerce) who all have established multi-billion dollar valuations.  Korea needs to produce more global startups, Unicorns, and exits are what boosts a startup ecosystem progression that allows Korea to attract global resources which in turn accelerate growth.  It is hard for most Korean startups to break out internationally due to their lack of localization ability.  Therefore most Korean startups tend to focus more on the local market which limits their potential.  Therefore, the Korean startup ecosystem is a bit behind the United States.  It will still take a few years to catch up.

Conclusion

South Korea needs to continue to invest in programs to help the Korean startup ecosystem.  Entrepreneurship has proven time and time again to be the #1 driver for job creation and economic growth.  South Korea will never be able to compete with Silicon Valley or Shanghai, however, they can leverage their own unique assets to create innovative startups.

As long as they push to bring in more and more international talent into Korea, the more likely Korean startups will have the chance to go global.  Korea’s potential is there and many countries are recognizing it.  I fully believe that the Korean startup ecosystem will continue to accelerate while at the same time produce global startups and hopefully Unicorns.

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Most startups in Seoul need to think about expanding the Korean market and going global.  Not to say there are disadvantages to starting out locally for Korean Startups.  It is great to start local and test the market in Korea and make sure it works first.  Then you can start going into other markets like Japan, China, etc.  Usually from what I see this will take about 3 years to fully test the market locally.  But there are times when there is no need to start local and in fact, you might be wasting time starting in a local market and even worse another company might see that you are having success in Korea and steal your idea!  This happens all the time!  So if you can go global right from day one then that is the right strategy.

Is your Company a Global Company?

So look at your company and see if you truly have a global company.  Most VCs not only in Silicon Valley also in Asia are hungry for startups with Global potential.  They are looking for that next big unicorn in order to pay back these huge funds.  When I say “global” I mean more than one market.  No company is truly global.  Even Google is not fully global.  As long as you can expand out of your local market…you will become global.

Lastly, when you go global you will come across a lot more competition and you might think this is a bad thing but competition is what drives innovation.  Competition can only make you stronger and you can learn from other companies to end up making your company truly special.  Those that stick to just the local market will have a hard time innovating and improving.  The key to any startup is constantly improving, learning, and evolving.  The best way to do that is to go global from the start and learn right away if you can compete with other global companies.

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