Recently, Far From TV had a chance to speak with visionary, influencer, Marine, and co-Founder of Kadima Ventures – Tim Wales.
Kadima Ventures, Inc. of Arizona, a state known for more than just campasLogic, Carvana, GoDaddy and LifeLock. Arizona is bustling with startup, tech and B2B businesses. Kadima Ventures helps these tech startups develop and commercialize their innovative ideas and products to the point that they are ready to scale. Kadima the Hebrew word meaning “Forward”, boasts this unique startup incubator/accelerator program and an ecosystem of supporting “Kadima” companies.
Recently, during the Kadima Ventures Innovation Forum 2018, Tim Wales had many words of wisdom to impart to all the young entrepreneurs in attendance, “…if you design something and you have prior art, find a way to put it on a blockchain so it’s distributed and verifiable. Whether you are creating Art or Code, be ready to protect your ideas. The number of patents being filed for these technologies is rapidly increasing.”
According to the National Law Review, the number of published applications shows roughly a tenfold increase over the number of issued patents. Note that patent applications are published 18 months after they are filed. This means that the number of pending applications is likely much greater than what is shown below.
Number of Hits By Keyword
Keyword Issued U.S. Patents Published Applications
blockchain 61 522
cryptocurrency 55 373
bitcoin 279 1126
Ethereum 6 74
distributed ledger 7 204
smart contract 11 160
Many misperceptions cause developers to miss great opportunities to secure patent protection for their ideas. Many cryptocurrency and blockchain technologies can be patented and many clones already are arising.
Blockchain, the technology at the heart of bitcoin and other virtual currencies, also has the ability to help solve the many problems that plague the US Patent office including their backlog and other generally antiquated problems. However, according to Wales, “…the US patent office is unlikely to fund such a project.”
Wales continued to explain that “At Kadima Ventures, we focus on blockchain technology that have real use cases in today’s world, and it’s the use cases that will win the battle. Most of the young scientists and entrepreneurs that have developed these disruptive technologies have the technical skills to code their MVPs, but they lack the experience in sales process or ability to sell their use case.”
As an example Wales points out that the newly minted ICO Shipchain, a fully integrated system across the entire supply chain, from the moment a shipment leaves the factory, to the final delivery on the customer’s doorstep; with transparent blockchain contracts. is now in direct competition with Samsung, the world’s biggest maker of smartphones and semiconductors, after they recently announced their use of blockchain technologies to manage its vast global supply network. ShipChain has beaten Samsung to market, it can easily be run over by them.
What is that next big innovated build up for blockchain?
According to Wales, Smart Wallets (the place you store your digital currencies and tokens) will be that next big push for the Blockchain ecosystem. “With the amount of exchanges being marketed in the ICO, crypto, blockchain wallet world, the average citizen does not have an easy to set up a wallet. It’s not easy to properly secure your cryptocurrency hot wallet, cold wallet, hardware wallet, etc. and how to properly secure tokens.” Wales notes the recent incident with Ian Balina, a cryptocurrency YouTuber known for his (sponsored) ICO reviews, was apparently hacked out of $2 million during a livestream session. “It’s cybersecurity reasons like these that are the number one factors stopping the Visa, Mastercard, Discovers, and Big Banks from adopting these technologies.”
However, the efforts are still there for FinTech and banks to run trails or experiments in blockchain. Recently, the biggest US bank based on assets (JP Morgan Chase) joined forces with the National Bank of Canada, among others, to develop an application based on its Quorum technology for debt issuance on the blockchain (corporate bonds, Treasury bonds, etc.) The test involved the issuance of $150 million of a one-year floating rate Yankee CD alongside a “simulation” of the issuance on the blockchain, according to the announcement. JPMorgan acted as the sole dealer.
Some of the biggest challenges that exist in the blockchain ecosystem are the Securities and Exchange Commission, Know Your Client (KYC) rules, and Cyber Security. “Cyber Security is one of the most sought after areas and yet one of the biggest challenges the entire ecosystem needs to work at.” said Wales.
Wales continued to say that since “We don’t trade fiat currency on the Internet, and those who do need a 3rd party; parties that have insurance, and mitigate our risk. However, this is what blockchain can do best, once fully secured, and trusted, the technology will eliminate the middleman, which makes the transaction safer, more transparent, and faster. Unfortunately, most Cyber Security experts aren’t being hired by these new wallet companies.”
Kadima will soon announce a deal where they will give 20+ blockchain use cases to a company called Nexus Earth -The World’s First Three Dimensional Blockchain.
Nexus Earth -The 3D Chain is an evolution of Blockchain protocol, built from the ground up to provide a strong foundation for Nexus and other future projects using the technology. Using a unique implementation of three consensus channels, Nexus transforms the blockchain into a 3D process called the 3 dimensional chain.
Wales continues to say that “…their security layers are the best we’ve seen to date.” Kadima Venures currently operates 10 different blockchains, as they use Blockchain as a service, and have the ability to choose the best blockchain based on use case.
Are American made chips, parts, and other electronic components more secure?
“The American in me and the Marine in me say, I hope so! But, with the amount of overlap in these big multinational companies, I feel ‘Made in America’ is a false hope.” said Wales. “Kadima is getting heavy into software development and blockchain development in the semiconductor space, and we know that not all the components are made here in America. But, in today’s reality there are no borders in the digital world and there are no boarders in employment. At Kadima we employee people in American and in over 14 other countries around the world, we treat them all like Americans, it’s our philosophy.”
But now that semiconductor chips have code that is resident in their fabric for computing crypotcurrency mining, blockchain transactions, and even cold storage, if we are really to trust them, there needs to be new ways of assessing that trust.
GovTech: Government process is low hanging fruit for Blockchain innovation.
Federal Government contractors apply for hundreds of millions of dollars in grants and awards producing (or not producing) products that sometimes never come to market. “Blockchain disruption in this process could save taxpayers more than hundreds of million of dollars when we take into consideration the current budget, as well as, black budget money, dark money, and projects that are kept off the books” said the former Marine, a man who has served his country and understands the government contractor process.
Kadima has spent time trying to fix government technology transfer, when Kadima finds an idea or concept for a corporation, “…one of the first things we do is scour government labs and Universities because those scientists are trained to create, but not market.” Kadima will drive these technologies to market, and save their startups millions of dollars in R&D.
The challenges in our education system, government, and process’ sounds like a job for Blockchain
Cyber Security experts are not without jobs. According to Tech Republic there are more than 1 million open cybersecurity jobs worldwide.
“Our education system is not doing us a good service, we are not passing process on, we aren’t educating our people to fix that process, and that pushes our country to a different level that maybe doesn’t produce America as the global leader anymore.”
Wales continued to say “Kadima has spent over $500,000 in promoting STEAM initiatives. Taking vendors that are trying to drive new programs, bringing attention to these programs, and the different ways to teach engineering, cyber security skills, and drive those into the classroom; because other countries education systems are so much more advanced than ours. Here in Arizona, our teachers are on the brink of walking out because of the broken system (and that they are paid next to nothing). That is why Kadima takes 5-25% of net revenue to support STEAM initiatives and programs.”
Next year Kadima will produce a national tour, through corporate sponsors, to bring interactive components and educational tools out to different regions across the country and into classrooms.
A philosophy that Wales and the team at Kadima promotes is “…to hold corporations responsible for advancing the classroom through the funding of things to advance the classroom, then the classroom will change. Although it’s a whole political challenge”
Tim Wales, visionary, Marine, and co-founder of Kadima Ventures ended our conversation with this: “If you are a entrepreneur today, and you are frustrated, maybe even 2nd guessing yourself; just remember the world is wide open for you right now. Carpe Deim.”
If you are a entrepreneur or startup, and you are looking strategic partnership in an accelerator or incubator, there are a long, long, long list of amazing companies that would very much like your business. If you are looking for visionary leaders to help guide your technology and innovative ideas to critical mass, then you should visit the Kadima.ventures website.
Tony Sklar, Sr. Technology Reporter
For up-to-date tech news, please follow us on twitter at @FarFromTV
In case you missed it: