How will the new rules hurt Walmart and Amazon? The Indian government recently updated its policies for foreign direct investments (FDI) in e-commerce platforms, and the changes could throttle Walmart (NYSE: WMT) and Amazon.com's (NASDAQ: AMZN) growth in the country. The new rules, which go into effect on Feb. 1, will ban online retailers from offering exclusive sales, prevent them from selling products in which they own equity interest, and introduce new restrictions on discounts and cashback offers. The rules are aimed at helping smaller retailers compete more effectively against Walmart's Flipkart and Amazon. The new FDI rules could hurt Flipkart and Amazon in several ways. First, both companies frequently partner with big brands to launch platform-exclusive sales, especially for smartphones. Amazon previously launched an exclusive sale withXiaomi (NASDAQOTH: XIACF), and Flipkart did the same with Oppo. The new rules wil...
By now, you have probably heard a thing or two about the promise of blockchain and Bitcoin. At a high level, blockchain technology is a way of securely managing access and information. The core of blockchain hinges on the idea of decentralization, which essentially distributes power and risk equitably across players in a network.
Blockchain startups are finding a niche and clever ways to optimize industries, by replacing intermediary parties (brokers, agents, etc.) with smart contracts that automatically verify actions without compromising data security. Platforms like Gameflip and Filecoin are able to solve fundamental marketplace challenges, worth billions of dollars, which have been terrorizing ecosystems for decades.
Other companies, like SparkleCoin, are driving blockchain adoption at scale by empowering everyday consumers to purchase real-world products and services from the world's largest online retailers using cryptocurrencies.
How does it work in practice?
In the case of Bitcoin, blockchain stores the details of every transaction of the digital currency, and the technology stops the same Bitcoin being spent more than once.
Why is it so revolutionary?
The technology can work for almost every type of transaction involving value, including money, goods, and property. Its potential uses are almost limitless: from collecting taxes to enabling migrants to send money back to family in countries where banking is difficult.
Blockchain could also help to reduce fraud because every transaction would be recorded and distributed on a public ledger for anyone to see.
Who is using it?
In theory, if blockchain goes mainstream, anyone with access to the internet would be able to use it to make transactions.
Currently only a very small proportion of global GDP (around 0.025%, or $20 billion) is held in the blockchain, according to a survey by the World Economic Forum’s Global Agenda Council. But the Forum’s research suggests this will increase significantly in the next decade, as banks, insurers and tech firms see the technology as a way to speed up settlements and cut costs.
Companies racing to adapt blockchain include UBS, Microsoft, IBM, and PwC. The Bank of Canada is also experimenting with the technology.
A report from financial technology consultant Aite estimated that banks spent $75 million last year on the blockchain. And Silicon Valley venture capitalists are also queuing up to back it.
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