Stefaan Verhulst
“In its seven years of existence, Bitcoin has gained widespread attention with its disruptive potential in finance. Some see it as a form of digital gold, offering a safe haven against capital controls and asylum to people whose currency is debased.
The invention of cryptocurrency coincided with a global crisis of legitimacy in the 2008 financial meltdown, which was followed by bank bailouts and for the people, a cycle of austerity. In that seminal white paper, mysterious creator Satoshi Nakamoto described Bitcoin as a purely peer-to-peer version of electronic cash that would allow “online payments to be sent directly from one party to another without going through a financial institution”. The core invention is distributed trust and Nakamoto stated that it was put forward as a solution to the “inherent weakness of the trust based model”, where financial institutions act as trusted third parties.
Bitcoin, I will argue, is not just an innovation in banking and finance, but at its core, concerns a challenge to governance systems that can lead to an evolution of humanity. For so long, social progress has stagnated, with the selfish and callous sides of man taking the upper hand. Unprecedented levels of government and corporate corruption in recent years have signaled a breakdown of systems of accountability. This deep failure of democracy has exposed the existence of individuals who exhibit a total lack of conscience and empathy for others. They embody a dark side of individuality, with aggressive and narrow selfish desires that often come in conflict with the public good. Now, the destructive actions of this minority seem to have become a threat to civilization itself. We shall explore how Bitcoin provides a new model of governance that is resilient to these adversarial forces.
Security holes within representative democracy
In the US, the launch of constitutional democracy brought a significant departure from the monarchy of olden times, where the king acted as ordained ruler. Yet, the foundation of this governance has not fundamentally changed, as it still relies on authority, requiring people to trust those who claim to represent them in the form of elected officials.
Representative democracy has increasingly become a mask used by ruthless individuals to hide and gain a grip on the populace. Behind the veil of secrecy, corporate masters behind the charade of electoral politics sponsor political candidates, who with campaign promises keep people passive and manage down their expectation levels. With future faking, which involves making plans that will never happen, and gas-lighting, a tactic known to challenge one’s memory, they deceive and gain power over others.
Money as a weapon of control
Money dependent on systems of representation requires trust to work. With the creation of the Federal Reserve and other central banks, private corporations began taking over the supplying of money. This centrally planned money production intermediates human relationship by dividing all into classes of creditors and debtors, where the former are masters, while the latter often become de-facto slaves.
The hidden captains of this managed democracy direct the flow of currency through financial engineering and have created incentive structures that are bent toward preserving their power. Stimulated by toxic asset bubbles, derivatives and quantitative easing, these incentives work like invisible hands of the market. They suppress democratic values by controlling information, which is the currency of democracy and suppressing free speech with economic censorship, as was seen in the case of the financial blockade against WikiLeaks. With radical deregulation, this system promotes fraud and depravity, exemplified in HSBC’s money laundering and top bank’s currency rigging. Through oppressive monetary policy and predatory lending that is presented as humanitarian aid, institutions such as the IMF and World Bank indebtdeveloping countries, holding whole populations in poverty.
All of this has resulted in the creation of a two-tiered justice system and derisked capitalism, where those in power are never allowed to fail and are not held accountable either by markets or the legal system….
Bitcoin as a new security model
Bitcoin brings an elegant solution to this systemic parasitic rent-seeking and exploitation. As asset-based digital cash, it offers an alternative to the promissory system of value creation by decree from above. Currency is its first application and Bitcoin’s underlying technology, the blockchain is a public asset ledger. This is a distributed database that records a history of transactions in the network without anyone in charge. Once data is verified, no one can undo it. This immutable timestamp goes beyond simple accounting of monetary transactions.
Bitcoin enables a new security model and it addresses the problem of security holes in the existing trust-based model of governance. Author and security expert Andreas Antonopoulos called this “trust by computation” that has “no central authority or trusted third party”….
Governance without central authority
Over the decades, democratic governments have become vehicles of control that have lost their fail-safe. Increasingly, people are held hostage by this corrupted political system. Satoshi’s white paper published in 2008 cleared a path for evolution. This wisdom can help humanity solve the problem of a historic failure of accountability.
Bitcoin ungoverns people as well as unbanking them around the world. Proof-of-work distributes what used to be third party trust across a massive global decentralized network, fostering a kind of self-governance in each individual. People who till now have been blindly handing over their consent to institutions can instead choose to be equal under the law of mathematics.
Governance without central authority can at first seem inefficient. But it is more secure than the current system of representation. The more the system reduces the need to trust a third party, replacing it with a borderless network, the lower the security risk becomes. With Bitcoin, governance can be innovated to function as a platform of consensus. Rather than a system to govern others, it can be used as settlement; to work out disputes and reconcile conflicts. Distributed trust as its core technology enables the capacity to set up rules agreed to by everyone, which cannot be altered by one person or group. The Bitcoin blockchain opens a door into a pluralistic society where all can participate in creating governance models and currencies that manifest their values through the principle of mutual aid and voluntary association….(More)”
Paper by Jeremy De Beer, Ian McCarthy, Adam Soliman and Emily Treen for the Open and User Innovation Conference 2016: “The increase in crowdsourcing requires both companies and crowds to have a better understanding of previously neglected legal issues. Focusing on the crowdsourcing of solutions, we raise and address two related questions: how and why organizations manage intellectual property issues when engaging in crowdsourcing activities? The answers lie in discussing the hazards of having inadequate intellectual property management strategies in place and the need to manage three considerations: two legal and one strategic. Legally, managers need appropriate ‘terms and conditions’ to (a) acquire sufficient rights from the crowd to achieve their objectives, and (b) mitigate exposure to liabilities associated with using materials submitted by the crowd. Strategically, managers need to accomplish these legal goals without dissuading participation by the crowd due to unnecessarily exploitative practices or onerous obligations. We present a number of examples demonstrating how companies have applied these legal and strategic concepts to various crowdsourcing initiatives and conclude with recommendations for managers and other practitioners….(More)”
IDS Evidence Report: “The Institute of Development Studies (IDS), in partnership with World Vision Indonesia, are exploring whether a recently implemented nutrition surveillance intervention, known as M-health, is being used to improve community-based data collection on nutrition.
The M-health mobile phone application has been integrated into the Indonesian national nutrition service delivery through the community-based health service called ‘posyandu’. Established in 1986, the posyandu is Indonesia’s main national community nutrition programme. It functions at the village level, enabling communities to access primary health care. The aim of the intervention is to reduce maternal, infant and child (under five) mortality rates. The posyandu involves five priority programmes: maternal and child health, which includes the ‘weighing post’ (growth monitoring); family planning; immunisation; nutrition, which includes nutrition counselling; and diarrhoea prevention and treatment.
The programme works by the mobile phone application (M-health) automatically sending a referral to health workers at the sub-district-level in cases where a child does not meet the required growth targets. The application also provides the health community-based cadres with reminders and steps to accurately plan follow-up visits. These data are then sent to the community health centres at the sub-district-level, known in Indonesia as the puskesmas.
In the period 2013–15, researchers at IDS worked with World Vision Indonesia to assess whether data produced through mobile phone technology might trigger faster response by nutrition stakeholders. This short report supports ongoing work and focuses on how posyandu-level data might be used by different stakeholders….(More)”
Frederika Welle Donker and Bastiaan van Loenen in the Journal of eDemocracy and Open Government: “Since 2009, Open Government Data initiatives have been launched worldwide and the concept of open data is gaining momentum. Open data are often associated with realizing ambitions, such as a more transparent and efficient government, solving societal problems and increased economic value. However, between proposing an open data policy and successful implementation are some practicable obstacles, especially for government agencies required to generate sufficient revenue to cover their operating costs, so-called self-funding agencies. With lost revenue due to open data, there is a real risk that the update frequency and the quality of data may suffer or that the open data policy may even have to be reversed. This article has researched the financial effects of open data policies for self-funding agencies on their business model. The article provides some hands-on proposals for self-funding agencies having to implement an open data policy whilst ensuring their long-term sustainability….(More)”
Book by Bagguley, Paul (et al.): “This volume examines the transformation of politics and social movements at various levels. Starting with a transformation of identity within social movements, it goes on to discuss changes in the scale of social movement mobilisation. The impact of social movements on the state is also considered, with a particular focus upon the ways in which the state is able to incorporate apparently radical political agendas. Finally, the book examines those intellectual and theoretical debates stimulated by recent political transformations….(More)”
UN Department of Economic and Social Affairs: “The UN E-Government Survey 2016 on “E-Government in Support of Sustainable Development” offers a snapshot of trends in the development of e-government in countries across the globe. According to the Survey more governments are embracing information and communication technologies (ICTs) to deliver services and to engage people in decision-making processes in all regions of the world. The 2016 UN E-Government Survey provides new evidence that e-government has the potential to help support the implementation of the 2030 Agenda and its 17 sustainable development goals (SDGs). The Survey indicates a positive global trend towards higher levels of e-government development as countries in all regions are increasingly embracing innovation and utilizing new ICTs to deliver services and engage people in decision-making processes. It underscores that one of the most important new trends is the advancement of people-driven services – services that reflect people’s needs and are driven by them. At the same time, disparities remain within and among countries. Lack of access to technology, poverty and inequality prevent people from fully taking advantage of the potential of ICTs and e-government for sustainable development….(More)”
CDDG Secretariat: “The Council of Europe is preparing guidelines to help ensure meaningful civil participation in political decision-making in its member states. Before finalising these guidelines, the European Committee on Democracy and Governance (CDDG) and the Conference of International Non-Governmental Organisations (Conference of INGOs) are organising a wide public consultation on the draft text.
This consultation seeks to involve public authorities and bodies at central, regional and local level such as ministries, government departments and bodies, regional and municipal councils, and elected officials as well as civil society, including voluntary groups, non-profit organisations, associations, foundations, charities, as well as interest-based community and advocacy groups.
The joint working group of the CDDG and Conference of INGOs will carefully consider the comments and observations received when finalising the draft guidelines before presenting these to the CDDG for transmission to the Committee of Ministers of the Council of Europe for adoption.
You are invited to submit your observations (in English or French) on the draft guidelines to the CDDG Secretariat (CDDG@coe.int) by 4 September 2016. Your contributions are much appreciated.
Download the draft guidelines for meaningful civil participation in political decision-making“
Angelina Carvalho, Chiranjit Chakraborty and Georgia Latsi at Bank Underground: “Policy makers have access to more and more detailed datasets. These can be joined together to give an unprecedentedly rich description of the economy. But the data are often noisy and individual entries are not uniquely identifiable. This leads to a trade-off: very strict matching criteria may result in a limited and biased sample; making them too loose risks inaccurate data. The problem gets worse when joining large datasets as the potential number of matches increases exponentially. Even with today’s astonishing computer power, we need efficient techniques. In this post we describe a bipartite matching algorithm on such big data to deal with these issues. Similar algorithms are often used in online dating, closely modelled as the stable marriage problem.
The home-mover problem
The housing market matters and affects almost everything that central banks care about. We want to know why, when and how people move home. And a lot do move: one in nine UK households in 2013/4 according to the Office for National Statistics (ONS). Fortunately, it is also a market that we have an increasing amount of information about. We are going to illustrate the use of the matching algorithm in the context of identifying the characteristics of these movers and the mortgages that many of them took out.
A Potential Solution
The FCA’s Product Sales Data (PSD) on owner-occupied mortgage lending contains loan level product, borrower and property characteristics for all loans originated in the UK since Q2 2005. This dataset captures the attributes of each loan at the point of origination but does not follow the borrowers afterwards. Hence, it does not meaningfully capture if a loan was transferred to another property or closed for certain reason. Also, there is no unique borrower identifier and that is why we cannot easily monitor if a borrower repaid their old mortgage and got a new one against another property.
However, the dataset identify whether a borrower is a first time buyer or a home-mover, together with other information. Even though we do not have information before 2005, we can still try to use this dataset to identify some of the owners’ moving patterns. We try to find from where a home-mover may have moved (origination point) and who moved in to his/her vacant property. If we can successfully track the movers, it will also help us to remove corresponding old mortgages to calculate the stock of mortgages from our flow data. A previous Bank Underground post showed how probabilistic record linkage techniques can be used to join related datasets that do not have unique common identifiers. We have used bipartite graph matching techniques here to extend those ideas….(More)”
Bruce Muirhead at Mindhive: “Crowdsourcing is developing into a mega-trend. It has begun an inexorable shift from the periphery to the mainstream of policy and problem solving methodology. We’ve heard countless times the virtue of crowds and the inherent advantages regarding access to knowledge, transparency, accountability and efficiency – yet all of these advantages rest on the simple assumption that the crowd is wise.
In the fast growing industry of crowdsourcing platforms and in society more generally we can see a growing acceptance by organisations and users alike that the crowds they are engaging with have some common failings. For instance, when addressing a specific problem there is need to consider and discount alternatives before a solution can be arrived at. In a crowd of one it is quite simple to assess the value of each competing solution and evaluate relative to these assessment the most appropriate response. Crowds are obviously not a homogenous grouping capable of relative comparison to the same degree an individual or small group can due to the fact they lack an objective set of priorities or objectives to evaluate them against. A diverse crowd from varied backgrounds will pull the preference of solution in many different directions, In the same way a machine with many moving parts is more likely to fail, a crowd with high levels of expertise, diversity of preference and variance of background is more likely to fail to reach consensus or compromise through logic and reasoning. This presents an interesting catch-22 as many crowdsourcing methodologies recommend involving a large number of varied opinions and backgrounds to enhance the originality and disruptiveness of a solution. However, such levels of disruption also imbalance the internal reasoning of the crowd and make it difficult to develop a nuanced, targeted solution to a challenge. Of course, organisations that seek to engage with crowds can mitigate these risks by developing clear objective standards of reference and outlining and priorities available to the crowd.
Additionally, in a year where the force of a crowd has propelled a man such as Donald Trump to a position that may feasible see him elected President of the United States – how can any argue that crowds are wise? Stephen Walt of Foreign Policy argues that such crowds act as such in a political context due a failing of trusting, in turn resulting from a failure of accountability. ….While crowds don’t always make wise choices, they are neither inherently wise nor unwise groups. There is doubtless intelligence in crowds – what we need to figure out and continue to develop is the process through which we can leverage it to develop more targeted solutions and involving the crowd more effectively….(More)”
Across Africa, however, projects are being launched that could revolutionise medical supply chains and commercial deliveries, combat poaching and provide other solutions for an overburdened, underdeveloped continent.
In Rwanda, as in many other African countries, the rainy season makes already difficult roads between smaller towns and villages all but impassable. Battered trucks struggle through the mud, and in some cases even more agile motorbikes and foot traffic are unable get through.
“Rwanda is essentially a rural country. Lots of blood products cannot be stocked at every health centre. At best it can take four to six hours to get supplies through,” says the technology minister, Jean Philbert Nsengimana.
“For mothers giving birth, postpartum haemorrhaging, or bleeding post-delivery, happens quite often. It may not be possible to prevent. Then what is needed is a quick and rapid intervention.”
“This technology has the potential to erase barriers to access for countless critical medicines and save lives on a scale not previously possible,” says Keller Rinaudo, Zipline’s chief executive, which is staffed by experienced aerospace engineers including those who have worked at SpaceX, Boeing and Nasa.
“While there are a number of potential applications for this technology, we’re keenly focused on using it to save lives.”…
Drones are being tested in other emerging economies. Matternet, another Silicon Valley startup, has run pilots moving samples from rural clinics to a laboratory inPapua New Guinea and is launching a small medical delivery network inDominican Republic.
The company is also working with Unicef in Malawi to develop a project using UAVs to carry blood samples from infants born to HIV-positive parents, underscoring the physical and geographical challenges that are present across much of the continent.
Some frontline health workers are supportive….(More)”