Will Blockchain Disrupt Government Corruption?

Curated on Posted on by Stefaan Verhulst

Carlos Santiso in Stanford Social Innovation Review: “Will blockchain technology be the next disrupting technology to revolutionize government? Probably not. Can it be a game changer in the global fight against corruption? Possibly so. New technologies are disrupting our lives and transforming government. Governments around the world are going digital, embracing digital innovations to modernize their bureaucracies and recast their relations with citizens. Technology is changing how governments are expected to meet the rising expectations of citizens in terms of quality, speed, and integrity. Digital citizens are expecting more from their governments, demanding better services and greater accountability. Governments struggle to catch up.

Technology has become the greatest ally of transparency, as it allows one to leverage the insights that can be gleaned from the exponential growth of data. Digitally savvy citizens are far less tolerant about corruption and have more means to uncover it. There are heightened and even inflated expectations about the potential of blockchain to improve the delivery of public services and strengthen integrity in government. Pilots and proofs of concept are mushrooming, driven by a myriad of technology-driven start-ups in a wide variety of industries. This enthusiasm is generating intense debate, and an “expectations bubble” is building up rapidly.

Given the hype, it is important to assess both the promises and the pitfalls of blockchain, thinking through what it can and cannot do, based on hard evidence. Initiatives such as blockchan.ge by New York University’s Governance Lab are starting to look closer at whether and how blockchain technologies can be used for social change. Blockchain has emerged first in the financial industry, building on cryptocurrencies such as Bitcoin. The requirements and implications of blockchain in the public sector, however, are yet to be fully understood. Key issues include being clearer about the problems it is expected to address, its advantages compared to alternative digital solutions, its fitness-for-purpose in different institutional contexts, and, ultimately, the value it could add to existing institutions….(More)”

Liquid democracy uses blockchain to fix politics, and now you can vote for it

Curated on Posted on by Stefaan Verhulst

Danny Crichton at TechCrunch: “…Confidence in Congress remains pitifully low, driven by perceived low ethical standards and an increasing awareness that politics is bought by the highest bidder.

Now, a group of technologists and blockchain enthusiasts are asking whether a new approach could reform the system, bringing citizens closer to their representatives and holding congressmen accountable to their voters in a public, verifiable way. And if you live in western San Francisco, you can actually vote to put this system into office.

The concept is known as liquid democracy, and it’s a solid choice for fixing a broken system. The idea is that every person should have the right to give feedback on a policy issue or a piece of new legislation, but often people don’t have the time to do so. Using a liquid democracy platform, however, that voter can select a personal representative who has the authority to be a proxy for their vote. That proxy can be changed at will as a voter’s interests change.

Here is where the magic happens. Those proxies can themselves proxy their votes to other people, creating a directed network graph, ideally connecting every voter to politicians and all publicly verified on a blockchain. While there may be 700,000 people in a congressional district, potentially only a few hundred of a few thousand “super proxies” would need to be deeply engaged in the system for better representation to take place.

David Ernst is a leader of the liquid democracy movement and now a candidate for California Assembly District 19, which centers on the western half of San Francisco. He is ardently committed to the concept, and despite its novelty, believes that this is the path forward for improving governance….

Following college (which he began at age 16) and a few startup jobs, Ernst began working as CTO of a startup called Numerai, a crypto-backed decentralized hedge fund that allows data scientists to earn money when they solve data challenges. “The idea was that we can include many more people to participate in the system who weren’t able to before,” Ernst explained. That’s when it hit him that the decentralized nature of blockchain could allow for more participation in politics, fusing his two passions.

Ernst followed the campaign of the Flux Party in Australia in 2016, which is trying to implement what it calls “issue-based direct democracy” in that country’s legislature. “That was when something clicked,” he said. A congressman for example could commit to voting the calculated liquid democracy position, and “We could elect these sort of remote-controlled politicians as a way to graft this new system onto the old system.”

He built a platform called United.vote to handle the logistics of selecting personal representatives and voting on issues. More importantly, the app then tracks how those votes compare to the votes of congressmen and provides a scorecard….(More)”.

How Blockchain can benefit migration programmes and migrants

Curated on Posted on by Stefaan Verhulst

Solon Ardittis at the Migration Data Portal: “According to a recent report published by CB Insights, there are today at least 36 major industries that are likely to benefit from the use of Blockchain technology, ranging from voting procedures, critical infrastructure security, education and healthcare, to car leasing, forecasting, real estate, energy management, government and public records, wills and inheritance, corporate governance and crowdfunding.

In the international aid sector, a number of experiments are currently being conducted to distribute aid funding through the use of Blockchain and thus to improve the tracing of the ways in which aid is disbursed. Among several other examples, the Start Network, which consists of 42 aid agencies across five continents, ranging from large international organizations to national NGOs, has launched a Blockchain-based project that enables the organization both to speed up the distribution of aid funding and to facilitate the tracing of every single payment, from the original donor to each individual assisted.

As Katherine Purvis of The Guardian noted, “Blockchain enthusiasts are hopeful it could be the next big development disruptor. In providing a transparent, instantaneous and indisputable record of transactions, its potential to remove corruption and provide transparency and accountability is one area of intrigue.”

In the field of international migration and refugee affairs, however, Blockchain technology is still in its infancy.

One of the few notable examples is the launch by the United Nations (UN) World Food Programme (WFP) in May 2017 of a project in the Azraq Refugee Camp in Jordan which, through the use of Blockchain technology, enables the creation of virtual accounts for refugees and the uploading of monthly entitlements that can be spent in the camp’s supermarket through the use of an authorization code. Reportedly, the programme has contributed to a reduction by 98% of the bank costs entailed by the use of a financial service provider.

This is a noteworthy achievement considering that organizations working in international relief can lose up to 3.5% of each aid transaction to various fees and costs and that an estimated 30% of all development funds do not reach their intended recipients because of third-party theft or mismanagement.

At least six other UN agencies including the UN Office for Project Services (UNOPS), the UN Development Programme (UNDP), the UN Children’s Fund (UNICEF), UN Women, the UN High Commissioner for Refugees (UNHCR) and the UN Development Group (UNDG), are now considering Blockchain applications that could help support international assistance, particularly supply chain management tools, self-auditing of payments, identity management and data storage.

The potential of Blockchain technology in the field of migration and asylum affairs should therefore be fully explored.

At the European Union (EU) level, while a Blockchain task force has been established by the European Parliament to assess the ways in which the technology could be used to provide digital identities to refugees, and while the European Commission has recently launched a call for project proposals to examine the potential of Blockchain in a range of sectors, little focus has been placed so far on EU assistance in the field of migration and asylum, both within the EU and in third countries with which the EU has negotiated migration partnership agreements.

This is despite the fact that the use of Blockchain in a number of major programme interventions in the field of migration and asylum could help improve not only their cost-efficiency but also, at least as importantly, their degree of transparency and accountability. This at a time when media and civil society organizations exercise increased scrutiny over the quality and ethical standards of such interventions.

In Europe, for example, Blockchain could help administer the EU Asylum, Migration and Integration Fund (AMIF), both in terms of transferring funds from the European Commission to the eligible NGOs in the Member States and in terms of project managers then reporting on spending. This would help alleviate many of the recurrent challenges faced by NGOs in managing funds in line with stringent EU regulations.

As crucially, Blockchain would have the potential to increase transparency and accountability in the channeling and spending of EU funds in third countries, particularly under the Partnership Framework and other recent schemes to prevent irregular migration to Europe.

A case in point is the administration of EU aid in response to the refugee emergency in Greece where, reportedly, there continues to be insufficient oversight of the full range of commitments and outcomes of large EU-funded investments, particularly in the housing sector. Another example is the set of recent programme interventions in Libya, where a growing number of incidents of human rights abuses and financial mismanagement are being brought to light….(More)”.

A Really Bad Blockchain Idea: Digital Identity Cards for Rohingya Refugees

Curated on Posted on by Stefaan Verhulst

Wayan Vota at ICTworks: “The Rohingya Project claims to be a grassroots initiative that will empower Rohingya refugees with a blockchain-leveraged financial ecosystem tied to digital identity cards….

What Could Possibly Go Wrong?

Concerns about Rohingya data collection are not new, so Linda Raftree‘s Facebook post about blockchain for biometrics started a spirited discussion on this escalation of techno-utopia. Several people put forth great points about the Rohingya Project’s potential failings. For me, there were four key questions originating in the discussion that we should all be debating:

1. Who Determines Ethnicity?

Ethnicity isn’t a scientific way to categorize humans. Ethnic groups are based on human constructs such as common ancestry, language, society, culture, or nationality. Who are the Rohingya Project to be the ones determining who is Rohingya or not? And what is this rigorous assessment they have that will do what science cannot?

Might it be better not to perpetuate the very divisions that cause these issues? Or at the very least, let people self-determine their own ethnicity.

2. Why Digitally Identify Refugees?

Let’s say that we could group a people based on objective metrics. Should we? Especially if that group is persecuted where it currently lives and in many of its surrounding countries? Wouldn’t making a list of who is persecuted be a handy reference for those who seek to persecute more?

Instead, shouldn’t we focus on changing the mindset of the persecutors and stop the persecution?

3. Why Blockchain for Biometrics?

How could linking a highly persecuted people’s biometric information, such as fingerprints, iris scans, and photographs, to a public, universal, and immutable distributed ledger be a good thing?

Might it be highly irresponsible to digitize all that information? Couldn’t that data be used by nefarious actors to perpetuate new and worse exploitation of Rohingya? India has already lost Aadhaar data and the Equafax lost Americans’ data. How will the small, lightly funded Rohingya Project do better?

Could it be possible that old-fashioned paper forms are a better solution than digital identity cards? Maybe laminate them for greater durability, but paper identity cards can be hidden, even destroyed if needed, to conceal information that could be used against the owner.

4. Why Experiment on the Powerless?

Rohingya refugees already suffer from massive power imbalances, and now they’ll be asked to give up their digital privacy, and use experimental technology, as part of an NGO’s experiment, in order to get needed services.

Its not like they’ll have the agency to say no. They are homeless, often penniless refugees, who will probably have no realistic way to opt-out of digital identity cards, even if they don’t want to be experimented on while they flee persecution….(More)”

Reimagining Democracy: What if votes were a currency? A crypto-currency?

Curated on Posted on by Stefaan Verhulst

Opinion piece by Praphul Chandra: “… The first key tenet of this article is that the institution of representative democracy is a severely limited realization of democratic principles. These limitations span three dimensions:

First, citizen representation is extremely limited. The number of individuals whose preference an elected representative is supposed to represent is so large as to be essentially meaningless.

The problem is exacerbated in a rapidly urbanizing world with increasing population densities but without a corresponding increase in the number of representatives. Furthermore, since urban settings often have individuals from very different cultural backgrounds, their preferences are diverse too.

Is it realistic to expect that a single individual would be able to represent the preferences of such large & diverse communities?

Second, elected representatives have limited accountability. The only opportunity that citizens have to hold elected representatives accountable is often years away — ample time for incidents to be forgotten and perceptions to be manipulated. Since human memory over-emphasizes the recent past, elected representatives manipulate perception of their performance by populist measures closer to forthcoming elections.

Third, citizen cognition is not leveraged. The current model where default participation is limited to choosing representatives every few years does not engage the intelligence of citizens in solving the societal challenges we face today. Instead, it treats citizens as consumers offering them a menu card to choose their favourite representative.

To summarize, representative democracy does not scale well. With our societies becoming denser, more interconnected and more complex, the traditional tools of democracy are no longer effective.

Design Choices of Representative Democracy: Consider the following thought experiment: what would happen if we think of votes as a currency? Let’s call such a voting currency — GovCoin. In today’s representative democracy,

(i) GovCoins are in short supply — one citizen gets one GovCoin (vote) every 4–5 years.

(ii) GovCoins (Votes) have a very high negative rate: if you do not use them on election day, they lose all value.

(iii) GovCoins (Votes) are “accepted” by very few people: you can give your GovCoins to only pre-selected “candidates”

These design choices reflect fundamental design choices of representative democracy — they were well suited for the time when they were designed:

Since governance needs continuity and since elections were a costly and time-consuming exercise, citizens elected representatives once every 4–5 years. This also meant that elections had to be coordinated — so participation was coordinated to a particular election day requiring citizens to vote simultaneously.

Since the number of people who were interested in politics as a full-time profession was limited, the choice set of representatives was limited to a few candidates.

Are these design choices valid today? Do we really need citizens physically travelling to polling booths? With today’s technology? Must the choice of citizen participation in governance be binary: either jump in full time or be limited to vote once every 4–5 years? Aren’t there other forms of participation in this spectrum? Is limiting participation the only way to ensure governance continuity?

Rethinking Democracy: What if we reconsider the design choices of democracy? Let’s say we:

(i) increase the supply of GovCoins so that every citizen gets one unit every month;

(ii) relax the negative rate so that even if you do not “use” your GovCoin, you do not lose it i.e. you can accumulate GovCoins and use them at a later time;

(iii) enable you to give your GovCoins to anyone or any public issue / project.

What would be the impact of these design choices?

By increasing the supply of GovCoins, we inject liquidity into the system so that information (about citizens’ preferences & beliefs) can flow more fluidly. This effectively increases the participation potential of citizens in governance. Rather than limiting participation to once every 4–5 years, citizens can participate as much and as often as they want. This is a fundamental change when we consider institutions as information processing systems.

By enabling citizens to transfer GovCoins to anyone, we realize a form of liquid democracy where I can delegate my influence to you — maybe because I trust your judgement and believe that your choice will be beneficial to me as well. In effect, we have changed the default option of participation from ‘opt out’ to ‘opt in’ — every citizen can receive GovCoins from every other citizen. The total GovCoins a citizen holds is a measure of how much influence she holds in democratic decisions. We evolve from a binary system (elected representative or citizen) to a continuous spectrum where your GovCoin ‘wealth’ is measure of your social capital.

By enabling citizens to transfer GovCoins directly to a policy decision, we realize a form of direct democracy where citizens can express their preferences (and the strength of their preferences) on an issue directly rather than relying on a representative to do so.

By allowing citizens to accumulate GovCoins, we allow them to participate when they want. If I feel strongly about an issue, I can spend my GovCoins and influence this decision; If I am indifferent about an issue, I hold on to my GovCoins so that I can have a larger influence in future decisions. A small negative interest rate on GovCoins may still be needed to ensure that (i) citizens do not hoard the currency and (ii) to ensure that net influence of any individual is finite and time bounded.

Realizing Democracy: Given today’s technology landscape, realizing a democracy with new design choices is no longer a pipe dream. The potential to do this is here and now. A key enabling technology is blockchains (or Distributed Ledger Technologies) which allow the creation of new currencies. Implementing votes as a currency opens the door to realizing new forms of democracy….(More)”.

Can This App That Lets You Sell Your Health Data Cut Your Health Costs?

Curated on Posted on by Stefaan Verhulst

Ben Schiller at FastCompany: “Americans could do with new ways to save on healthcare….

CoverUS, a startup, has one idea: monetizing our health-related data. Through a new blockchain-based data marketplace, it hopes to generate revenue that could effectively make insurance cheaper and perhaps even encourage us to become healthier, thus cutting the cost of the system overall.

It works like this: When you sign up, you download a digital wallet to your phone. Then you populate that wallet with data from an electronic health record (EHR), for which, starting in January 2018, system operators are legally obliged to offer an open API. At the same time, you can also allow wearables and other health trackers to automatically add data to the platform, and answer questions about your health and consumption habits.

A prototype of the app. [Screenshots: CoverUS]

Why bother? To create a richer picture of your health than is currently held by the EHR systems, health providers, and data brokerages that buy and sell data from doctors, clinics, pharmacies, and other sources. By collecting all our data in one place, CoverUS wants to give us more autonomy over who uses our personal information and who makes money from it….

CoverUS, which plans to launch in the first quarter of 2018, will pay for the data we gather in the form of a fixed-price cryptocurrency called CoverCoin. Users generate coins by signing up and then sharing their data. The startup then hopes users will be able to spend the coins on services that improve their health (like gym memberships) or deposit them in a health savings account where the coins can be exchanged for insurance plan savings. Sealey says it’s in discussions with several providers…(More)”.

Bitcoin, blockchain and the fight against poverty

Curated on Posted on by Stefaan Verhulst

Gillian Tett at the Financial Times: “…This month, Hernando de Soto, an acclaimed development economist from Peru, joined forces with Patrick Byrne, a controversial American luminary of the bitcoin and blockchain ecosystem, to launch an unusual project to fight poverty.

What they hope to do is to use decentralised digital ledgers — similar to those used for bitcoin — to record the formal and informal property holdings of dispossessed communities, with the idea of giving them more security.  This innovation might seem a million miles away from the Shining Path saga, and from our normal concept of philanthropy.

After all, at this time of year, we tend to assume that “aid” is about donating money, sponsoring schools and so on. But De Soto is convinced that the key to tackling extreme poverty — and the desperate violence that can accompany it — is to focus on property rights. After all, he argues, when conflict explodes in poor communities, this is usually because people feel insecure and dispossessed. Even if poor people hold property, their ownership is often based on informal rights rather than any official government ledger — and their homes and land can be seized by big companies or government officials.

Giving better property rights to the poor would mean more prosperity and security for everyone, De Soto believes. And he argues that one crucial reason why Shining Path was defeated was that the Peruvian government eventually did precisely that, awarding peasants land rights (partly on his advice). So he wants to repeat the trick around the world, using decentralised digital ledgers that will let poor communities record their formal and informal property rights in a permanent manner — without government interference.

“When you have property rights, you can get credit, you can advance,” De Soto says. “It’s the key to economic growth — much better than aid.” He believes that blockchain technology, which was set up as a platform for digital currencies such as bitcoin, will let the poor help themselves, as he regards cyber rights as more important than charity….(More)”.

Can the Blockchain Tame Moscow’s Wild Politics?

Curated on Posted on by Stefaan Verhulst
Sarah Holder at CityLab: “…In 2014, Moscow Mayor Sergey Sobyanin launched Active Citizen, an e-voting platform designed to allow citizens to directly weigh in on non-political city decisions—things like setting speed limits, plotting bus routes, and naming subway stations. Since then, 2,800 polls have been administered via the app and almost 2 million users across this city of 11 million residents have participated.

Active Citizen bears a family resemblance to other app-based citizen portals that cities are attempting to deploy, like the popular SeeClickFix, which originated in New Haven and is now used by many cities nationwide, and MyLA311, in L.A. They’re all aimed at boosting citizen engagement and government accountability, marketed as tools to connect residents to municipal services and help deliver swift and tangible results. But in Russia, where widespread corruption and a tendency toward authoritarianism have long been features of governance, the stakes of building that trust are higher.

That’s why this month, Moscow officials announced they would be piloting a move of Active Citizen onto “the blockchain.” A blockchain is an online database of sorts: a digitized, decentralized, and typically completely public ledger of transactions and interactions. Often used to track secure financial transactions (it underpins the crypto-currency Bitcoin, for example), the system is hosted by multiple “nodes,” all of which have a copy of the database and the information contained therein.

Lately, blockchain has also become a buzzword meant to convey accountability and security: Its workings are complex enough that the general public generally can’t fully wrap their heads around it, but sexy enough to inspire confidence. Moscow officials are using Active Citizen, with its new blockchain-assured transparency, as proof that the city is indeed heeding the will of the majority. “The city entrusts you to decide,” reads Active Citizen’s motto….(More)”.

Humanitarian group uses blockchain tech to give Rohingya digital ID cards

Curated on Posted on by Stefaan Verhulst

Techwire Asia: “A Non-Governmental Organization is using blockchain technology to provide stateless Rohingya refugees who fled Burma (Myanmar) with digital identity cards in a pilot project aimed at giving access to services like banking and education.

The first 1,000 people to benefit from the project in 2018 will be members of the diaspora in Malaysia, Bangladesh and Saudi Arabia, decades-old safe havens for the Rohingya, who are the world’s biggest stateless minority.

“They are disenfranchised,” Kyri Andreou, co-founder of The Rohingya Project, which is organising the initiative, said at its launch in Kuala Lumpur on Wednesday.

“They are shut out. One of the key aspects is because of the lack of identification.”

More than 650,000 Rohingya Muslims – who are denied citizenship in Buddhist-majority Burma – have fled to Bangladesh since August after attacks by insurgents triggered a response by Burma’s army and Buddhist vigilantes….

According to The Sun, Muhammad Noor said the project focuses on two aspects – identity and opportunity – in which the system will provide the first verified data on Rohingya census across the world.

Individual Rohingya, he said, shall have their ancestry authentically identified to link them directly to their original land of dispersion…(More)”.

Could Bitcoin technology help science?

Curated on Posted on by Stefaan Verhulst

Andy Extance at Nature: “…The much-hyped technology behind Bitcoin, known as blockchain, has intoxicated investors around the world and is now making tentative inroads into science, spurred by broad promises that it can transform key elements of the research enterprise. Supporters say that it could enhance reproducibility and the peer review process by creating incorruptible data trails and securely recording publication decisions. But some also argue that the buzz surrounding blockchain often exceeds reality and that introducing the approach into science could prove expensive and introduce ethical problems.

A few collaborations, including Scienceroot and Pluto, are already developing pilot projects for science. Scienceroot aims to raise US$20 million, which will help pay both peer reviewers and authors within its electronic journal and collaboration platform. It plans to raise the funds in early 2018 by exchanging some of the science tokens it uses for payment for another digital currency known as ether. And the Wolfram Mathematica algebra program — which is widely used by researchers — is currently working towards offering support for an open-source blockchain platform called Multichain. Scientists could use this, for example, to upload data to a shared, open workspace that isn’t controlled by any specific party, according to Multichain….

Claudia Pagliari, who researches digital health-tracking technologies at the University of Edinburgh, UK, says that she recognizes the potential of blockchain, but researchers have yet to properly explore its ethical issues. What happens if a patient withdraws consent for a trial that is immutably recorded on a blockchain? And unscrupulous researchers could still add fake data to a blockchain, even if the process is so open that everyone can see who adds it, says Pagliari. Once added, no-one can change that information, although it’s possible they could label it as retracted….(More)”.