VANCOUVER, British Columbia, March 09, 2021 (GLOBE NEWSWIRE) — DMG Blockchain Options Inc. (TSX-V: DMGI) (DMGGF:OTCQB US) (FRANKFURT:6AX) (“DMG” or the “Firm”), a vertically built-in blockchain and cryptocurrency know-how firm, is happy to announce an replace on its mental property (IP) standing and using this IP for growing modern software program options on the blockchain ecosystem. DMG’s US know-how firm, Blockseer, based in 2013, was one of many first corporations working in information analytics of each the Bitcoin and Ethereum blockchains. With many governments signaling for each tighter rules in cryptocurrencies in addition to their higher acceptance of this know-how getting into the mainstream, Blockseer’s information and DMG’s total IP is proving to be present and beneficial in lots of new methods for these evolving market circumstances.
DMG’s IP and Patent Portfolio
Thus far, DMG completely owns and controls blockchain-specific patent pending know-how registered in the US. A short abstract of DMG’s (together with Blockseer) key patents filed are as follows:
- SELECTION OF CRYPTOGRAPHIC IDENTIFIERS IN A BLOCK: Filtering inbound transactions of a blockchain node in opposition to an inventory of cryptographic identifiers, excluding transactions that contain cryptographic identifiers that our information signifies are nefarious exercise.
- OFF NETWORK IDENTITY TRACKING IN ANONYMOUS CRYPTOCURRENCY EXCHANGE NETWORKS: A technique of facilitating identification info exchanged in cryptocurrency transactions utilizing cryptographically verifiable addresses in a cryptocurrency change community together with identification info between the transmitter pockets service system and the recipient pockets service system.
- PROVIDING DATA PROVENANCE, PERMISSIONING, COMPLIANCE, AND ACCESS CONTROL FOR DATA STORAGE SYSTEMS USING AN IMMUTABLE LEDGER OVERLAY NETWORK: A system for information provenance and information storage that permits a number of unbiased events (who could not belief one another) to securely share information, monitor information provenance, preserve audit logs, maintain information synchronized, adjust to rules, and deal with permissioning and management who can entry the information.
- CRYPTO TAINT TRACKING: A technique for detecting and monitoring tainted cryptographic wallets. The tactic measures a pockets’s propensity to have interaction in prison or suspicious exercise. Naturally, transacting with a prison is tantamount both to funding crime or laundering its proceeds, so it’s in our collective curiosity to establish – after which monitor or quarantine – any pockets with prison affiliation. The tactic additionally mechanically flags dangerous withdrawal requests in real-time for additional overview earlier than committing them to the blockchain.
First Mover Benefit for DMG and its Blockseer Subsidiary
DMG’s acquisition of Blockseer in 2018 was a strategic transfer based mostly on the way forward for compliance and good governance within the cryptocurrency house. Blockseer highlights DMG’s foresight to make sure the Firm was growing the suitable know-how and merchandise to unlock adoption upfront of regulatory compliance.
Just lately, with Bitcoin and Ethereum costs at all-time highs, together with main bulletins of firms, funds and others taking massive positions in Bitcoin, there was renewed curiosity within the provenance and traceability of Bitcoins. DMG’s Blockseer was one of many first merchandise to concentrate on crypto transactions and the provenance of Bitcoin by means of its monitoring and labelling software program. This know-how was at first centered on wallet-to-wallet transactions on the Bitcoin blockchain however is now being repurposed to have a look at the Bitcoin blocks themselves in the course of the strategy of ‘mining’ for Bitcoin and posting Bitcoin ‘blocks’ to the Bitcoin blockchain (transaction processing).
Blockseer’s Mining Pool Expertise
Late final 12 months DMG introduced the launch of its beta Bitcoin mining pool utilizing Blockseer merchandise. A side many cryptocurrency customers didn’t perceive about mining swimming pools was, and nonetheless is, the dearth of transparency in how swimming pools work, and why miners ought to care about which pool they hook up with. Utilizing Blockseer’s IP and the potential to know the nuances of the Bitcoin blockchain, Blockseer created a course of known as ‘Clear Block Mining’ along with many different enhancements to current Bitcoin mining swimming pools.
Present centralized mining swimming pools face vital regulatory challenges and safety points which have already negatively affected notion of the trade by coverage makers and governments all over the world. Lots of the current swimming pools have the next shortfalls:
- No trade group considerably concerned to make sure, outdoors of the Bitcoin Protocol itself, any norms, tips, guidelines or rules are in place and enforced for all to observe. It is not uncommon for a lot of industries to self-regulate or tackle requirements akin to ISO particular requirements that are trade centered.
- No third celebration, unbiased and/or skilled audit or auditing normal particular to this new trade to make sure people and firms are reporting operations precisely.
- No easy, conclusive approach to confirm current mining pool operators, who supply their providers to North American miners, are accurately calculating block rewards and transaction charges consistent with mining shares offered by pool subscribers.
- No actual KYC or AML as a spotlight by any of the overwhelming majority of mining swimming pools in the marketplace as we speak exhibiting they take any accountability in disallowing or a minimum of highlighting transactions their pool is concerned in from illicit sources and/or prison actors and that stated transactions are in opposition to their pool’s insurance policies or operations.
Current centralized Bitcoin mining swimming pools are missing regulatory requirements and auditable transparency, and due to this fact miners could also be inadvertently aiding nefarious or prison customers of Bitcoin. DMG’s proprietary KYC and AML applied sciences symbolize one of many trade’s greatest out there options to supply a legally compliant answer and a regulatory acceptable path ahead for Bitcoin miners and the underlying customers of Bitcoin on the whole, with out censorship of non-criminal transactions.
DMG intends to monetize Blockseer’s Pool Expertise by means of licensing it to different events and swimming pools and/or partnerships with different corporations and swimming pools. As beforehand disclosed, DMG will present updates on the phrases and circumstances of any potential transaction involving Blockseer’s Pool Expertise. DMG is inspired by the February 16, 2021 announcement of the transaction involving 500.com Restricted and BTC.com and believes the market demand is there for sturdy and technologically superior Bitcoin mining swimming pools.
Censorship vs. KYC, AML, and Accountable Transactions
Typically, miners hook up with the Bitcoin protocol through mining swimming pools, the overwhelming majority of that are based mostly in jurisdictions that don’t regulate mining pool actions. Thus far none of those current swimming pools supplies their mining shoppers with third-party audits, they usually could inadvertently be enabling transactions which may not be KYC, AML or Workplace of International Property Management (OFAC) compliant. This may more and more turn out to be a problem, particularly on the institutional degree for all entities concerned, when the members are domiciled within the U.S. or different western international locations which usually tend to make KYC and AML necessary requirements.
Censorship – Is It Actual?
Many who’ve been concerned with Bitcoin within the early days had been, and nonetheless are, in opposition to authorities censorship. Bitcoin has its core roots in decentralization and being devoid of Governmental management or manipulation. By filtering transactions based mostly on threat or propensity of threat associated to the counterparties’ previous historical past or present actions in opposition to recognized info from dependable sources (together with as much as 100% verified sources) creates the sensation, whether or not true or not, of censorship. Nevertheless, there are a number of arguments to make that Blockseer’s Clear Block know-how isn’t actually censorship of the Bitcoin blockchain. The primary argument, which is key, is that any transaction that Blockseer could reject can simply be included by any pool which doesn’t use Blockseer’s Clear Block know-how and included in its block of transactions. On this regard, transactions that Blockseer wouldn’t settle for can simply be accepted by every other pool which doesn’t adhere to the identical KYC and AML ideas. With the variety of mining swimming pools energetic and the break up of hashrate between all of them, there isn’t any current threat of transaction by no means being verified by a pool. Moreover, trying again on the spirit of the Bitcoin Protocol, there was no point out for or in opposition to including prison actions, but in as we speak’s society individuals, corporations, governments and nations are all centered on removing and eliminating the means (no matter it might be) of permitting corruption and prison exercise to thrive and develop. Bitcoin isn’t resistant to this.
DMG’s COO, Sheldon Bennett commented, “Our Blockseer crew has constantly centered on strategically concentrating on the development of the crypto trade and the way Blockseer can guarantee its blockchain know-how will create trade wanted merchandise. Current adjustments, together with higher institutional curiosity transferring into Bitcoin, and the regulatory alerts out there, present that that is each a quickly growing and cutting-edge house for which our merchandise are tailored. Blockseer is nicely positioned to assist pioneer this trade with our first two merchandise, Explorer and Walletscore, which permit customers to be correctly knowledgeable, conscious and guarded in an in any other case usually gray house. Increasing on Explorer and Walletscore, Blockseer launched its Pool Platform which will likely be built-in with Blockseer’s Mine Supervisor and Walletscore’s Clear Blocks, as one unified platform.”
About DMG Blockchain Options Inc.
DMG is a vertically built-in blockchain and cryptocurrency firm that manages, operates, and develops end-to-end digital options to monetize the blockchain ecosystem. DMG’s companies are segmented into three predominant divisions: information centre operations, information analytics and forensics and growing enterprise blockchains. DMG’s information centre operations concentrate on incomes revenues from block rewards and transaction charges by mining primarily bitcoin in addition to offering internet hosting providers for industrial mining shoppers. DMG’s information analytics and forensic providers present technical experience software program merchandise akin to Blockseer Pool, Mine Supervisor and Walletscore, in addition to working with auditors, regulation corporations, and regulation enforcement organizations. DMG’s permissioned blockchain know-how is concentrated on growing enterprise software program for the availability chain administration of managed merchandise. DMG’s technique is to turn out to be the area consultants throughout the enterprise verticals it focuses on. DMG’s administration crew contains seasoned crypto consultants, forensic & monetary professionals and blockchain builders with deep relationships all through the trade.
For extra info on DMG Blockchain Options go to: www.dmgblockchain.com
On behalf of the Board of Administrators,
Daniel Reitzik, CEO & Director
For additional info, please contact:
DMG Blockchain Options Inc.
E mail: [email protected]
Neither the TSX Enterprise Change nor its Regulation Service Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts accountability for the adequacy or accuracy of this information launch.
Cautionary Notice Relating to Ahead-Wanting Data
This information launch comprises forward-looking info based mostly on present expectations. Statements in regards to the Firm’s plans for the Blockseer Pool and its continued growth and anticipated outcomes and advantages, the monetization of the Blockseer Pool, potential transaction(s) with the Blockseer Pool, patent pending know-how and its supposed makes use of and outcomes, to extend petahash (PH) by self-mining, worth of bitcoin, plans and intentions, different potential transactions, acquisition of consumers, product growth, occasions, programs of motion, and the potential of the Firm’s know-how and operations, amongst others, are all forward-looking info. Ahead-looking statements include statements that aren’t purely historic, together with any statements concerning beliefs, plans, expectations or intentions concerning the long run. Such info can typically be recognized by way of forwarding trying wording akin to “could”, “anticipate”, “estimate”, “anticipate”, “intend”, “imagine” and “proceed” or the detrimental thereof or related variations. The reader is cautioned that assumptions used within the preparation of any forward-looking info could show to be incorrect. Occasions or circumstances could trigger precise outcomes to vary materially from these predicted, because of quite a few recognized and unknown dangers, uncertainties, and different elements, a lot of that are past the management of the Firm, together with however not restricted to, enterprise, financial and capital market circumstances; the power to handle working bills, which can adversely have an effect on the Firm’s monetary situation; the power to stay aggressive as different higher financed rivals develop and launch aggressive merchandise; regulatory uncertainties; entry to gear; market circumstances and the demand and pricing for merchandise; the demand and pricing of bitcoins; safety threats, together with a loss/theft of DMG’s bitcoins; DMG’s relationships with its clients, distributors and enterprise companions; the shortcoming so as to add extra energy to DMG’s services; DMG’s capacity to efficiently outline, design and launch new merchandise in a well timed method that meet clients’ wants; the power to draw, retain and inspire certified personnel; competitors within the trade; the affect of know-how adjustments on the merchandise and trade; failure to develop new and modern merchandise; the power to efficiently preserve and implement our mental property rights and defend third-party claims of infringement of their mental property rights; the affect of mental property litigation that might materially and adversely have an effect on the enterprise; the power to handle working capital; and the dependence on key personnel. DMG could not really obtain its plans, projections, or expectations. Such statements and knowledge are based mostly on quite a few assumptions concerning current and future enterprise methods and the surroundings through which the Firm will function sooner or later, together with the demand for its merchandise, the power to efficiently develop software program, that there will likely be no regulation or regulation that may forestall the Firm from working its enterprise, anticipated prices, the power to safe ample capital to finish its enterprise plans, the power to attain objectives and the worth of bitcoin. Given these dangers, uncertainties and assumptions, you shouldn’t place undue reliance on these forward-looking statements.
The securities of DMG are thought-about extremely speculative as a result of nature of DMG’s enterprise.
Components that might trigger precise outcomes to vary materially from these in forward-looking statements embody, failure to acquire regulatory approval, the continued availability of capital and financing, gear failures, lack of provide of apparatus, energy and infrastructure, failure to acquire any permits required to function the enterprise, the affect of know-how adjustments on the trade, the affect of Covid-19 or different viruses and ailments on the Firm’s capacity to function, safe gear, and rent personnel, competitors, lower within the worth of Bitcoin and different cryptocurrencies, safety threats together with stolen bitcoins from DMG or its clients, client sentiment in the direction of DMG’s merchandise, providers and blockchain know-how typically, failure to develop new and modern merchandise, litigation, improve in working prices, improve in gear and labor prices, failure of counterparties to carry out their contractual obligations, authorities rules, lack of key staff and consultants, and normal financial, market or enterprise circumstances. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion. The reader is cautioned to not place undue reliance on any forward-looking info. The forward-looking statements contained on this information launch are made as of the date of this information launch. Besides as required by regulation, the Firm disclaims any intention and assumes no obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case. Moreover, the Firm undertakes no obligation to touch upon the expectations of, or statements made by third events in respect of the issues mentioned above.