Not so long ago, the internet was hailed as the solution to humanity’s ills. It would shine a light on all corners of the globe, bringing new knowledge and exchange. But growing concerns about fake news, surveillance, cybercrime, social media addiction and monopolised power have tarnished that shine. Without ignoring the internet’s positive impact over the past few decades, these difficulties remind us that a technology-driven utopia - or technotopia - is a fiction. People and governance always shape the use and impact of a technology.
Today’s advocates of blockchain and digital currencies describe the potential for more privacy, transparency, accountability, efficiency and competition in all forms of commerce, finance and bureaucracy. Some see blockchain as providing technologies for democracy itself, from elections to budgeting. While some claims seem overblown or premature, there are already some fascinating applications in the fields of logistics, inventory and supply change management.
Despite these advances, there has been a growing backlash from opinion leaders as the technology’s drawbacks become better known. Perhaps you’ve heard that Bitcoin alone uses 0.25% of the world’s electricity? Other blockchain systems, such as Ethereum, use similar approaches that require computers to burn electricity unnecessarily. Perhaps you are concerned about the number of accidents, hacks and scams possible in this new space, where the law has not yet found its feet? Or you may have heard that crime and terror networks could use these technologies to transfer funds. Blockchains and digital currencies pose important questions to both their advocates and regulators.
“By acting responsibly today, we can help make sure we are collectively able to reap the benefits of this powerful technology tomorrow,” explained co-founder of Ethereum Joseph Lubin. The following month, a coalition of cryptocurrency organizations and investors representing $650m in market capitalization established Project Transparency. It seeks to protect investors by enabling more disclosure within the digital currency sector.
These initiatives are welcome, but neither address how the technology affects wider society and the environment. If this sector is going to disrupt incumbent organisations (management-speak for people losing their jobs) then the general public will soon ask what the upsides really are.
In recent months, many blockchain projects explicit about their social mission have launched. Bflow.io offers a system for reporting corporate sustainability. Alice.si strives for greater accountability from charities. Provenance.org tracks tuna from shore to plate, giving consumers confidence in sustainability. BitLandGlobal is seeking a step change in land registration by the rural poor.
