Real value of BTL Group Ltd.’s (TSXV:BTL) Interbit is the speed and ease in which a complex record keeping system can be created
SmallCapPower | December 13, 2017: BTL Group Ltd. (TSXV:BTL), incorporated on March 28, 2011, is an enterprise technology platform provider that is developing Interbit, a proprietary private Blockchain. Interbit platform helps companies greatly reduce risks and costs by securely streamlining existing IT infrastructures. Through its suite of APIs and smart contracts, Interbit allows businesses around the world to improve efficiency in trading and operations, accelerate development of internal systems, and embrace new revenue generating opportunities, while providing the high levels of security and audit required in regulated enterprise environments. Blockchain is a shared ledger technology wherein every transaction is recorded by all participants and agreed upon democratically. Since every participant has an identical copy of the ledger, historical information cannot be altered. This allows the ability to transfer ownership of assets without a central clearing party, without auditors, and without a custodian. BTL Group has created a program that automates a lot of those manual processes. This increases business efficiency by reducing the time, cost, and risk of any data transfer.
Investment Highlights
- Interbit can improve operations of nearly any business
- Successful pilot tests with mega-corporations (Visa, BP)
Interbit – Applications and use cases
The Interbit platform includes a suite of API’s and smart contracts that allow application developers to quickly and easily incorporate the best of Blockchain into enterprise applications. Applications powered by Interbit can drive enormous efficiencies by reducing or eliminating the effort and costs of conventional processes by which multiple parties/systems interact with a common data set.
BTL is already working with global organizations in the following sectors:
Interbit – How can businesses benefit
Enables institutions to issue and transfer assets over a network using JavaScript and smart contracts. Interbit allows:
Interbit in Energy Trading and Confirmation
Successful completion of European energy trading pilot with BP, Eni Trading & Shipping and Wien Energie
This pilot project has proved that Interbit can streamline many trading and back office processes across the energy trade lifecycle such as confirmations, actualizations, invoice generation, settlement, audit, reporting and regulatory compliance, allowing enterprises to significantly reduce risk, costs and the threat of cyber-attack, as well as increasing their trading opportunities.
Along with its clients, BTL Group has invited additional energy companies to a six month go-to production phase, where BTL Group and the participating companies will work to launch a live, commercial version of the energy-trading solution.
Interbit in Banking and Finance
Cross-border settlement platform proof-of-concept was successful
Powered by BTL’s Interbit platform and built-in collaboration with VISA Europe, the proof-of-concept trading and settlement application was built to perform realistic, high volume and high-velocity simulations of cross-border transfers.
This first of its kind Blockchain-based, cross-border settlement solution offered forward thinking banks a unique opportunity to explore the numerous benefits offered by Blockchain technology and smart contracts.
Interbit – What next?
The real value of Interbit is the speed and ease in which a complex record keeping system can be created. Traditionally an application of this nature would have to include networking, backups, database, security, and more. Interbit has all these base application requirements already and in a very simple package.
BTL’s business model for commercializing primarily includes:
- Licensing the Interbit platform
- Client enablement on Interbit
- Partnerships and JVs
Market opportunity – over US$5 billion
The Energy Trading and Risk Management market is estimated to be worth US$1.1 billion and is expected to grow at a CAGR of 3.5% over next four years. With ~US$9 trillion is settled daily between banks, and this industry is estimated to be worth US$4 billion annually by 2019.
Conclusion
BTL Group shares have surged over 600% in the past year given the increased investor interest in the Blockchain space, which has the potential to fundamentally change and lower transaction costs. According to analysis by the Economist, annual revenues earned by the banking system for processing payments were approximately US$1.7 trillion in 2014, or 2% of global GDP at the time. Hence there exists significant potential for Blockchain technologies to capture a large portion of this opportunity. Blockchain will fundamentally alter today’s platforms for finance, insurance, and governance, among others. Given such an enormous opportunity, BTL Group looks poised for strong growth in revenues and earnings over the next several years, as the Blockchain market gains more market acceptance. With the revenues expected to grow meaningfully over the coming years, the stock price could continue to make new highs.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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