May 4 / 2019
Latest News / Blockchain news

Samsung to build blockchain Mainnet on Ethereum

By Christopher Attard

Ethereum has been given a nebulous nod of approval by the South Korean electronics giant Samsung, which has covertly publicised that it is developing its own Ethereum-based blockchain network.

With this move, Samsung joins the swelling ranks of the token economy that is slowly but surely creeping into the all-but-stagnating banking sector. Rumours circling about its own private blockchain have yet to be officially confirmed by the giant, but it’s likely that some kind of hybrid public-private blockchain will come from the giant.

Samsung token by 2020

The prospective vertical makes sense in the grand scheme of things, with projects like EOS, Tron and even Binance all having their foundations cemented in Ethereum. In fact, it’s not at all unlikely that Samsung will follow the pack upon completion of its internal blockchain – launching its very own ‘Samsung Coin’ token.

As per Facebook and JP Morgan’s moves to push their internal stablecoins – not to mention EY’s Ethereum-based Nightfall launch – there is every reason to believe that Samsung will be diving head first into this space by 2020 as it builds on a thriving token economy that compliments the development of the Web 3.0.

Continuing on this speculative train of thought, it’s also highly probable that when Samsung goes public with its blockchain initiative, the coin could also be publicly listed on cryptocurrency exchanges like the long-awaited Wall Street-backed Bakkt exchange alongside Bitcoin and Ether.

Stablecoin to bolster Samsung Pay?

Samsung’s blockchain task force has been actively developing several projects for at least a year now, surveying the intersection between payments and stablecoins. As per comments from a person “familiar with Samsung’s internal situation,” Samsung’s blockchain task force is in an “internal experimental” stage for blockchain integration.

The source told CoinDesk Korea:

Currently, we are thinking of private blockchain, though it is not yet confirmed. It could also be public blockchain in the future, but I think it will be hybrid – that is, a combination of public and private blockchains… The market expects Samsung Coin to come out, but the direction has not yet been decided.

The same way Facebook, Telegram, Line and WhatsApp are playing with the idea of creating payment systems similar to WeChat, it’s only natural that Samsung will do the same thing. At the end of the day, big tech now has skin in the game, which is to say that this is a safe hedge if there’s ever been one.

In fact, Samsung recently invested $2.9 million into crypto hardware startup Ledger, with the CEO Pascal Gauthier giving insight into the firm’s business moves at the Malta A.I. & Blockchain Summit on May the 23rd.

Samsung Mainnet to be based on ETH

As developers and enthusiasts know, Ethereum allows companies to explore blockchain without having to start from scratch. In this sense, it has acquired a key position that is driving innovation in the same way that Bitcoin is lifting the entire space due to its network effects as the first mover.

Barely four months ago, Samsung announced that its Galaxy S10 phone will support Ethereum (ETH). A couple of months later in March, Samsung then officially revealed its cryptocurrency wallet, which is compatible with ether (ETH) and Ethereum-based ERC20 tokens, though Bitcoin has yet to be added. As the evolution of altcoins and stablecoins matures, it was inevitable that bigger companies would get into the race, even if the legacy banks shun the space. Truth be told this only serves to bolster speculation into fact.

Indeed, Samsung joins a growing list of corporate and financial giants that are eyeing bespoke crypto. More specifically, most of them will probably be eying stablecoins due to their utility as instant fiat intermediaries if nothing else.

Putting it all together

With another expected high-profile ETH-based Mainnet launch, one begins to wonder how long it will be before Google and other smartphone companies jump on the bandwagon. Leading the charge on the smartphone front, Samsung also just participated in a $4 million investment round for ZenGo — a cryptocurrency wallet application. Clearly, the hype is not only real, but demonstrable.

Join the Malta A.I. & Blockchain Summit in May 23-24 and listen to Samsung’s Patrick Chang bring everyone up to speed on the latest developments.

This is not financial advice.

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