Tag: Blockchain

Building new nations on the blockchain

On By mehranmuslimiblogIn Bitcoin, BlockchainLeave a comment

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Have you ever considered starting your own country? The constant stream of ‘bad news’ from around the world might well inspire you to create a new nation, not necessarily a utopia, but one that follows a different set of rules and is more efficient and less corrupt than many existing countries.

Bitnation

The blockchain has provided an opportunity to do just that. Bitnation was formed in 2014 and says it is Governance 2.0. You are welcomed to the Internet of Sovereignty, also known as Bitnation Pangea. And here you can create your own Decentralised Borderless Voluntary Nation (DBVN). Choose your Code of Law and Decision Making Mechanism, write a Constitution and provide Governance Services to Citizens. That promises to take up quite a bit of your spare time!

The Free Republic of Liberland

There is also the Free Republic of Liberland with its motto of “To live and let live.” It’s actually a micronation that claims a disputed plot of land on the western bank of the Danube River, between Croatia and Serbia. Its official language is English and it has a flag, a coat of arms, a constitution and laws. It prides itself on offering all its citizens personal and economic freedom and it is accepting applications for citizenship – you can even take a trial to play for its football team. Its economy runs on donations of Bitcoin and Bitcoin Cash and its founder Vit Jedlicka says, “If you are a cryptocurrency enthusiast and disappointed by the attitude of your country towards the emerging crypto assets, becoming a ‘citizen’ of Liberland can be an option for you.”

The Floating Island Project

And then, if you’re a fan of the sea there is the Floating Island Project in French Polynesia, which puts the concept of ‘seasteading’ at the heart of its philosophy. Founded by The Seasteading Institute, it aims to found an indefinite number of floating cities in and around French Polynesia, with the target-year for the establishment of its first city being 2022. The inaugural island will accommodate 300 houses and be making use of its very own cryptocurrency, named Varyon (VAR).

All of these nations are blockchain based, and each one believes that “we can do better with technology and innovation rather than ideology, politics and argumentation.” And, as Vit Jedlicka said, “It’s easier to create a new country than try to fix an existing one.”

Will existing governments tolerate the building of new nations n the blockchain? Only time will tell, but these first few could inspire many more people to create a micronation where innovation and new ideas can breathe. They may not be viable in the long run, but perhaps people will get sufficiently tired of the old nation-states to consider supporting them.

 

Can the blockchain block spam marketing?

On By mehranmuslimiblogIn BlockchainLeave a comment

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Spam mail is a downside of the Internet that we have come to accept. Nobody likes it and web-based mail hosts like Hotmail developed spam folders to siphon off the rubbish from the ‘real’ communications. It’s a flawed system, but it does reduce the problem of having your inbox filled with offers of every dubious kind. Less easy to handle is the cold callers who want to sell you something, usually some kind of financial product these days.

For blockchain watchers the announcement that the Telecom Regulatory Authority of India (Trai) is planning to use blockchain to prevent unsolicited telemarketing communications is an interesting one.

The report in the Business Standard says that Trai is turning to the blockchain after years of being unable to control this type of call, because by using the new decentralised technology it will be possible to track spammers very speedily through data matching even when they use normal 10-digit phone numbers. To date, 230 million subscribers have reportedly registered for Trai’s “Do Not Disturb” registry, which came into effect in 2010, but the registry has so far failed to crack down on telemarketers.

India has a large population and Trai estimates that “some 30 billion commercial messages are sent out every month, of which many may be unsolicited, making telemarketing a brisk business opportunity.” To date, it has proved very difficult to track the spammers as they have been using the 10-digit mobile number and not the special numbering series allotted for telemarketing. Trai says that a blockchain-enabled digital record will show the entire communication between the various entities, and thus make them traceable.

The blockchain-based rules will record all communication between subscribers and entities, with the most important element being “capturing customer consent for information and authorised telemarketing agencies.” Currently Trai is debating the draft regulations and trying to decide how explicit consent should be given with regard to unsolicited commercial communication. The organisation also believes that the consent should be reviewed periodically.

Trai Chairman RS Sharma stated that Trai is “probably the first organisation” to implement blockchain as a RegTech(regulatory technology) “on such a large scale.”

In light of the recent General Data Protection Regulation (GDPR) that came into effect in Europe last week, it will be interesting to see how storing personal data on the blockchain interacts with the GDPR regulations. Perhaps we will learn something from Trai’s use of blockchain for its Telecom Commercial Communications Customer Preference Regulations 2018.

 

Is the blockchain magic dust?

On By mehranmuslimiblogIn BlockchainLeave a comment

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The hype around the blockchain suggests that it can do anything you want it to; that it’s like magic dust that will save the world. Is it as fantastic as the blockchain messiahs claim it is, or does it actually have some limitations?

What is the blockchain?

It’s a series of linked blocked and each block is composed of a series of transactions. Think of a train where you have a series of carriages that are coupled together, or any item that has units linked together.

In the case of the blockchain, the transactions there are specific rules about how you input the data about the transactions (consistency), you can’t overwrite data that is already inputted (immutable) and each transaction has an identifiable owner. Added to this, there is a consensus about what is in each block without the need for a central party controlling it (decentralisation).

Decentralisaton is the perceived ‘magic’ of the blockchain, because this factor guarantees that there is “no single point of failure.” In other words, nobody can mess with your transaction on the blockchain. You also don’t have to trust a central body; hence it is called ‘trustless’. This is the element that gets everyone most enthusiastic.

What’s the downside of the blockchain?

Creating the system described above is not so easy. Building in consistency and preventing bugs corrupting the data is a real challenge and one that needs to be taken slowly, because if you don’t, the chances are you will lose consistency and then the blockchain is worthless.

Think of it this way: if you have a centralised database and something goes wrong, you fix it by starting over. But, you can’t do that with a decentralised system. And the reason for that is, you need consensus, or the agreement of all players in the system, in order to change the database. The blockchain is a public source with no central ownership. That is its big claim to fame, but also one of its weak links.

When it comes down to it, decentralised systems are very difficult to work with, expensive to maintain, hard to upgrade and a pain to scale. It would be much easier to stick with a centralised system, but where’s the ‘brave new world’ feeling in that?

What’s the upside of the blockchain?

In a nutshell, it removes a single point of failure or control. It is answering problems in sectors where IT infrastructure is outdated, such as healthcare, logistics and financial services. For many blockchain believers, the main appeal was that it would remove government control and prove to be a liberation movement, but as we’ve seen in the last few months, it is extremely hard to bypass governments and their regulatory bodies.

It is also proving hard to scale the blockchain for sectors where that is needed; money being the exception. As Jimmy Song writes in Medium: “Immutability and difficulty in changing the rules is a positive for money and not a detriment. This is why blockchain is the right tool for the job when it comes to Bitcoin.”

But, for other business sectors with specific IT requirements, it is not the case that a blockchain solution will cure all your ills, but that is how the blockchain is being sold. Being wary doesn’t necessarily mean that you need to turn your back on the blockchain completely, it just means “Caveat emptor” (let the buyer beware) as the Romans used to say.

 

The East-West ICO Divide

On By mehranmuslimiblogIn Bitcoin, Blockchain, ICOLeave a comment

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The saying “East is East and West is West” curiously even applies to ICOs. You might have assumed that there was a universal view of ICOs, but it isn’t so: in the West, enthusiastic support for an ICO is primarily based on the ‘ideas’ that the ICO platform brings to the blockchain party, while in the East they are much more concerned about the ICO’s ability to generate a return on investment.

The divide exists in other ways as well. For example, the Asian market took off on its own, informed by the ecosystems around bitcoin and ethereum but also distinct from them. Zhuling Chen, co-founder of Aelf, a cloud computing startup based in Singapore, attributes this to the fact that, “At the very beginning, the information coming from Asia to the US was very limited. We didn’t know what’s really going on.”

 

The differences between the Asian and U.S. ICO markets became more clearly visible during Blockchain Week in NYC. Brady Dale, writing for Coindesk says:

“If one common theme ran through our conversations about Asia, it was this: retail and institutional investors all want returns to realize much more quickly than investors do in the U.S., which may help explain why it has always had a vigorous ecosystem of exchanges.”

Another Asian investor explained it more succinctly: “Asians love to gamble.” Jason Fang told Coindesk:

“They don’t want long lockup periods like so many Western projects expect. Instead, they want to see tokens get released, listed and realize some of the gains that come from retail investors and market makers buying into a new coin.”

Another view, according to Ricky Li of Altonomy, one of Asia’s largest crypto funds, also pointed out that Asians want in and out quickly, and that they have a tendency “not to diversify their portfolios over time.” He also said:

“Chinese companies and their neighbors will raise funds in ether and largely maintain those positions, sometimes failing to lock in gain or riding volatility through their whole portfolio.”

A lack of software documentation in Asian languages has been another divider between East and West. But overall, it seems that the demands of ICO investors are quite different, and ICOs trying to please a global audience will need to take this into account when building their roadmap and strategy.