blockchain

America is not a true democracy. But it could be with the help of technology

Curated on July 24, 2017August 3, 2018 by Stefaan Verhulst

Nicole Softness at Quartz: “Many Americans aren’t aware they don’t live in a direct democracy. But with a little digital assistance, they could be….Once completely cut off from the global community, Estonia is now considered a world leader for its efforts to integrate technology with government administration. While standing in line for coffee, you could file your tax return, confirm sensitive personal medical information, and register a new company in just a few swipes, all on Estonia’s free wifi.

What makes this possible without the risk of fraud? Digital trust. Using a technology called blockchain, which verifies online communications and transactions at every step (and essentially eliminates the possibility of online fraud), Estonian leadership has moved the majority of citizenship processes online. Startups have now created new channels for democratic participation, like Rahvaalgatus, an online crowdsourcing platform that allows users to discuss and digitally vote on policy proposals submitted to the Estonian parliament.

Brazil has also utilized this trust quite valiantly. The country’s constitution, passed in 1988, legislated that signatures from 1% of a population could force the Brazilian leadership to recognize any signed document as an official draft bill and vote. Until recently, the notion of getting sufficient signatures on paper would have been laughable: that’s just over 2 million physical signatures. However, votes can now be cast online, which makes gathering digital signatures all the more easy. As a result, Brazilians now have more control over the legislature being brought before parliament.

Blockchain technology creates an immutable record of signatures tied to the identities of voters. Again, blockchain technology is key here, as it creates an immutable record of signatures tied to the identities of voters. The government knows which voters are legitimate citizens, and citizens can be sure their votes remain accurate. When Brazilians are able to participate in this manner, their democracy shifts towards the sort of “direct” democracy that, until now, seemed logistically impossible in modern society.

Australian citizens have engaged in a slightly different experiment, dubbed “Government 2.0.” In March 2016, technology experts convened a new political party called Flux, which they describe as “democracy for the information age.” The party platform argues that bureaucracy stymies key government functions, which cannot process the requisite information required to govern.

If elected to government, members of Flux would vote on bills scheduled to appear before parliament based on the digital ballots of the supporters who voted them in. Voters could choose to participate in casting their vote for that bill themselves, or transfer their votes to trusted experts. Flux representatives in parliament would then cast their votes 100% based on the results of these member participants. (They are yet to win any seats in government, however.)

These solutions show us that bureaucratic boundaries no longer have to limit our access to a true democracy. The technology is here to make direct democracy the reality that the Greeks once imagined.

More so, increasing democratic participation will have positive ripple effects beyond participation in a direct democracy: Informed voting is the gateway to more active civic engagement and a more informed electorate, all of which raises the level of debate in a political environment desperately in need of participation….(More)”

A City Is a Data Pool: Blockchains and the Crypto-City

Curated on July 9, 2017August 3, 2018 by Stefaan Verhulst

Paper by Jason Potts, Ellie Rennie and Jake Goldenfein: “The Smart City agenda of integrating ICT and Internet of Things (IoT) informatic infrastructure to improve the efficiency and adaptability of city governance has been shaping urban development policy for more than a decade now. A smart city has more data, gathered though new and better technology, delivering higher quality city services. In this paper, we explore how blockchain technology could shift the Smart City agenda by altering transaction costs with implications for the coordination of infrastructures and resources. Like the Smart City the Crypto City utilizes data informatics, but can be coordinated through distributed rather than centralized systems. The data infrastructure of the Crypto-City can enable civil society to run local public goods, and facilitate economic and social entrepreneurship. Drawing on economic theory of transaction costs, the paper sets out an explanatory framework for understanding the kinds of new governance mechanisms that may emerge in conjunction with automated systems, including the challenges that blockchain poses for cities….(More)”.

Local Government in China Trials Blockchain for Public Services

Curated on July 6, 2017August 3, 2018 by Stefaan Verhulst

Wolfie Zhao at Coin Desk: “A city district in southern China is using blockchain to streamline government services for its one million residents.

Chan Cheng District, within Foshan City in Canton province, announced during an event on 23rd June the launch of a platform called Intelligent Multifunctional Identity (IMI) that lets registered local residents avoid filling repetitive personal information for different public services, presumably providing a more simple and secured process.

The newly revealed system is seen as an upgrade, incorporated to the current all-in-one workflow in the local administration.

Since 2014, the Chan Cheng District government has operated a central hub inside the city that serves as a physical portal for residents who need tax, pension, healthcare or utility services, among others. Despite offering a single source at which residents can access these services, repetitive work is needed for multiple processes.

According to the district’s announcement, residents who are able to register on and verified by the IMI platform will have the control of their personal information and can grant access to a government service they need. Using paired public and private keys, the system is also said to be able to verify users’ identity automatically without requiring them to be physically present at a service center….(More)”.

Blockchains, personal data and the challenge of governance

Curated on June 22, 2017August 3, 2018 by Stefaan Verhulst

Theo Bass at NESTA: “…There are a number of dominant internet platforms (Google, Facebook, Amazon, etc.) that hoard, analyse and sell information about their users in the name of a more personalised and efficient service. This has become a problem.

People feel they are losing control over how their data is used and reused on the web. 500 million adblocker downloads is a symptom of a market which isn’t working well for people. As Irene Ng mentions in a recent guest blog on the Nesta website, the secondary data market is thriving (online advertising is a major player), as companies benefit from the opacity and lack of transparency about where profit is made from personal data.

It’s said that blockchain’s key characteristics could provide a foundational protocol for a fairer digital identity system on the web. Beyond its application as digital currency, blockchain could provide a new set of technical standards for transparency, openness, and user consent, on top of which a whole new generation of services might be built.

While the aim is ambitious, a handful of projects are rising to the challenge.

Blockstack is creating a global system of digital IDs, which are written into the bitcoin blockchain. Nobody can touch them other than the owner of that ID. Blockstack are building a new generation of applications on top of this infrastructure which promises to provide “a new decentralized internet where users own their data and apps run locally”.

Sovrin attempts to provide users with “self-sovereign identity”. The argument is that “centralized” systems for storing personal data make it a “treasure chest for attackers”. Sovrin argues that users should more easily be able to have “ownership” over their data, and the exchange of data should be made possible through a decentralised, tamper-proof ledger of transactions between users.

Our own DECODE project is piloting a set of collaboratively owned, local sharing economy platforms in Barcelona and Amsterdam. The blockchain aims to provide a public record of entitlements over where people’s data is stored, who can access it and for what purpose (with some additional help from new techniques in zero-knowledge cryptography to preserve people’s privacy).

There’s no doubt this is an exciting field of innovation. But the debate is characterised by a lot of hype. The following sections therefore discuss some of the challenges thrown up when we start thinking about implementations beyond bitcoin.

Blockchains and the challenge of governance

As mentioned above, bitcoin is a “bearer asset”. This is a necessary feature of decentralisation — all users maintain sole ownership over the digital money they hold on the network. If users get hacked (digital wallets sometimes do), or if a password gets lost, the money is irretrievable.

While the example of losing a password might seem trivial, it highlights some difficult questions for proponents of blockchain’s wider uses. What happens if there’s a dispute over an online transaction, but no intermediary to settle it? What happens if a someone’s digital assets or their digital identity is breached and sensitive data falls into the wrong hands? It might be necessary to assign responsibility to a governing actor to help resolve the issue, but of course this would require the introduction of a trusted middleman.

Bitcoin doesn’t try to answer these questions; its anonymous creators deliberately tried to avoid implementing a clear model of governance over the network, probably because they knew that bitcoin would be used by people as a method for subverting the law. Bitcoin still sees a lot of use in gray economies, including for the sale of drugs and gambling.

But if blockchains are set to enter the mainstream, providing for businesses, governments and nonprofits, then they won’t be able to function irrespective of the law. They will need to find use-cases that can operate alongside legal frameworks and jurisdictional boundaries. They will need to demonstrate regulatory compliance, create systems of rules and provide accountability when things go awry. This cannot just be solved through increasingly sophisticated coding.

All of this raises a potential paradox recently elaborated in a post by Vili Lehdonvirta of the Oxford Internet Institute: is it possible to successfully govern blockchains without undermining their entire purpose?….

If blockchain advocates only work towards purely technical solutions and ignore real-world challenges of trying to implement decentralisation, then we’ll only ever see flawed implementations of the technology. This is already happening in the form of centrally administered, proprietary or ‘half-baked’ blockchains, which don’t offer much more value than traditional databases….(More)”.

Why blockchain could be your next form of ID as a world citizen

Curated on June 21, 2017August 20, 2018 by Stefaan Verhulst

Alison DeNisco at TechRepublic: “Blockchain is moving from banking to the refugee crisis, as Microsoft and Accenture on Monday announced a partnership to use the technology to provide a legal form of identification for 1.1 billion people worldwide as part of the global public-private partnership ID2020.

The two tech giants developed a prototype that taps Accenture’s blockchain capabilities and runs on Microsoft Azure. The tech tool uses a person’s biometric data, such as a fingerprint or iris scan, to unlock the record-keeping blockchain technology and create a legal ID. This will allow refugees to have a personal identity record they can access from an app on a smartphone to receive assistance at border crossings, or to access basic services such as healthcare, according to a press release.

The prototype is designed so that personally identifiable information (PII) always exists “off chain,” and is not stored in a centralized system. Citizens use their biometric data to access their information, and chose when to share it—preventing the system from being accessed by tyrannical governments that refugees are fleeing from, as ZDNet noted.

Accenture’s platform is currently used in the Biometric Identity Management System operated by the United Nations High Commissioner for Refugees, which has enrolled more than 1.3 million refugees in 29 nations across Asia, Africa, and the Caribbean. The system is predicted to support more than 7 million refugees from 75 countries by 2020, the press release noted.

“People without a documented identity suffer by being excluded from modern society,” said David Treat, a managing director in Accenture’s global blockchain business, in the press release. “Our prototype is personal, private and portable, empowering individuals to access and share appropriate information when convenient and without the worry of using or losing paper documentation.”

ID is key for accessing education, healthcare, voting, banking, housing, and other family benefits, the press release noted. ID2020’s goal is to create a secure, established digital ID system for all citizens worldwide….

Blockchain will likely play an increasing role in both identification and security moving forward, especially as it relates to the Internet of Things (IoT). For example, Telstra, an Australian telecommunications company, is currently experimenting with a combination of blockchain and biometric security for its smart home products, ZDNet reported….(More)”.

Blockchains: Moving Digital Government Forward in the States

Curated on May 17, 2017August 3, 2018 by Stefaan Verhulst

National Association of State Chief Information Officers (NASCIO): “This brief will open the discussion about blockchains and the potential impact on state government. We won’t delve into the mechanics of blockchains, nor the potential for proliferation of new “e-currencies.” We want to open the door to the world of blockchains through a variety of conversations with leaders in state government and industry in order to begin discussions regarding where blockchain technology can serve the mission of state government….(More)”

Blockchain transparency applied to newsfeeds

Curated on May 10, 2017May 29, 2019 by Stefaan Verhulst

Springwise: “With fake news an ongoing challenge for media platforms, users and the wider world, Polish startup Userfeeds is developing new algorithms to help create transparency around the sources of news. The company sees a variety of current online dilemmas, including ad-blocking and targeting as well as moderation, as information ranking problems. The most negative effect of fake news is that the cost is absorbed by the user, regardless of how much validity he or she gives to each piece of information. On the other hand, as the current systems stand, the producers of content and distributors of it receive only benefits.

Userfeeds seeks to redress that imbalance by applying the transparency and strength of online currencies such as Bitcoin and Ethereum to the provision of information. The company is developing a system that would require information providers and distributors to prove, via third party algorithms, the strength of each individual claim. Because online tokens used in such systems are visible and accessible to anyone, everyone will be able to contribute to a ranking, which is what ultimately grabs users’ attention. Having just raised seed funding, Userfeeds is at the proof-of-concept stage and is encouraging interested parties to get involved in testing.

The transparency of blockchain systems is attracting attention from industries as wide-ranging as freelance marketplaces and international shipping companies….(More)”.

Blockchain 2.0: How it could overhaul the fabric of democracy and identity

Curated on May 9, 2017August 3, 2018 by Stefaan Verhulst

Colm Gorey at SiliconRepublic: “…not all blockchain technologies need to be about making money. A recent report issued by the European Commission discussed the possible ways it could change people’s lives….
While many democratic nations still prefer a traditional paper ballot system to an electronic voting system over fears that digital votes could be tampered with, new technologies are starting to change that opinion.
One suggestion is blockchain enabled e-voting (BEV), which would take control from a central authority and put it back in the hands of the voter.
As a person’s vote would be timestamped with details of their last vote thanks to the encrypted algorithm, an illegitimate one would be spotted more easily by a digital system, or even those within digital-savvy communities.
Despite still being a fledgling technology, BEV has already begun working on the local scale of politics within Europe, such as the internal elections of political parties in Denmark.
But perhaps at this early stage, its actual use in governmental elections at a national level will remain limited, depending on “the extent to which it can reflect the values and structure of society, politics and democracy”, according to the EU….blockchain has also been offered as an answer to sustaining the public service, particularly with transparency of where people’s taxes are going.
One governmental concept could allow blockchain to form the basis for a secure method of distributing social welfare or other state payments, without the need for divisions running expensive and time-consuming fraud investigations.
Irish start-up Aid:Tech is one noticeable example that is working with Serbia to do just that, along with its efforts to use blockchain to create a transparent system for aid to be evenly distributed in countries such as Syria.
Bank of Ireland’s innovation manager, Stephen Moran, is certainly of the opinion that blockchain in the area of identity offers greater revolutionary change than BEV.
“By identity, that can cover everything from educational records, but can also cover the idea of a national identity card,” he said in conversation with Siliconrepublic.com….
But perhaps the wildest idea within blockchain – and one that is somewhat connected to governance – is that, through an amalgamation of smart contracts, it could effectively run itself as an artificially intelligent being.
Known as decentralised autonomous organisations (DAOs), these are, in effect, entities that can run a business or any operation autonomously, allocating tasks or distributing micropayments instantly to users….
An example similar to the DAO already exists, in a crowdsourced blockchain online organisation run entirely on the open source platform Ethereum.
Last year, through the sheer will of its users, it was able to crowdfund the largest sum ever – $100m – through smart contracts alone.
If it appears confusing and unyielding, then you are not alone.
However, as was simply summed up by writer Leda Glyptis, blockchain is a force to be reckoned with, but it will be so subtle that you won’t even notice….(More)”.

Solving a Global Digital Identity Crisis

Curated on May 4, 2017August 3, 2018 by Stefaan Verhulst

Seth Berkley at MIT Technology Review:” In developing countries, one in three children under age five has no record of their existence. Technology can help….Digital identities have become an integral part of modern life, but things like e-passports, digital health records, or Apple Pay really only provide faster, easier, or sometimes smarter ways of accessing services that are already available.

In developing countries it’s a different story. There, digital ID technology can have a profound impact on people’s lives by enabling them to access vital and often life-saving services for the very first time….The challenge is that in poor countries, an increasing number of people live under the radar, invisible to the often archaic, paper-based methods used to certify births, deaths, and marriages. One in three children under age five does not officially exist because their birth wasn’t registered. Even when it is, many don’t have proof in the form of birth certificates. This can have a lasting impact on children’s lives, leaving them vulnerable to neglect and abuse.

In light of this, it is difficult to see how we will meet the SDG16 deadline without a radical solution. What we need are new and affordable digital ID technologies capable of working in poorly resourced settings—for example, where there is no reliable electricity—and yet able to leapfrog current approaches to reach everyone, whether they’re living in remote villages or urban slums.

Such technologies are already emerging as part of efforts to increase global childhood vaccination coverage, with small-scale trials across Africa and Asia. With 86 percent of infants now having access to routine immunization—where they receive all three doses of a diphtheria-pertussis-tetanus vaccine—there are obvious advantages of building on an existing system with such a broad reach.

These systems were designed to help the World Health Organization, UNICEF, and my organization, Gavi, the Vaccine Alliance, close the gap on the one in seven infants still missing out. But they can also be used to help us achieve SDG16.

One, called MyChild, helps countries transition from paper to digital. At first glance it looks like a typical paper booklet on which workers can record health-record details about the child, such as vaccinations, deworming, or nutritional supplements. But each booklet contains a unique identification number and tear-out slips that are collected and scanned later. This means that even if a child’s birth hasn’t been registered, a unique digital record will follow them through childhood. Developed by Swedish startup Shifo, this system has been used to register more than 95,000 infants in Uganda, Afghanistan, and the Gambia, enabling health workers to follow up either in person or using text reminders to parents.

Another system, called Khushi Baby, is entirely paperless and involves giving each child a digital necklace that contains a unique ID number on a near-field communication chip. This can be scanned by community health workers using a cell phone, enabling them to update a child’s digital health records even in remote areas with no cell coverage. Trials in the Indian state of Rajasthan have been carried out across 100 villages to track more than 15,000 vaccination events. An organization called ID2020 is exploring the use of blockchain technology to create access to a unique identity for those who currently lack one….(More)”