Category: Blockchain
-
Smart contracts are not that smart
Smart contracts are perhaps one of the most touted features of blockchain technology. While the idea itself dates from the end of the last century, blockchains provided the platform for actual implementation in the Internet era. Undoubtedly, Ethereum was the real disruptive innovator by enhancing the original but limited Bitcoin architecture with a plethora of…
-
Waste no time waiting for e-Waste data
The town where I currently reside is planning to change its e-Waste collection policy starting next year. As it is today, town people can go downtown once a month and drop their old computers, laptops, monitors and the rest. This will now be reduced to one day per year. Missing that date will entail people…
-
ICOs: Endangered Species
As expected, ICOs are finally cooling down. There are several reasons for this. First, ICO oversight by regulators in many countries has substantially increased. Regulators are poking not so much into new ICOs. Instead, they are doing deep dives into those that have already been completed and going after those who look fraudulent. Second, the…
-
The Scale of the Blockchain Scalability Constraints
According to the latest estimates, global Internet penetration was close to 54 percent by the end of 2017. That is roughly 4 billion people. Figures for the number of unique cell phone users show that 5 billion people have access to the technology.1 BTW, this means that 1 billion people have a cell phone but…
-
Have You Ever Seen a Blockchain?
A silent but intense competition seems to be taking place when it comes to defining blockchain technology. A Google search for the question “What is blockchain” yields over 120 million possible results. This number includes thousands of guides, videos, FAQs and other “educational” material on the subject. A shining example is a video depicting a…
-
Bitcoin Inequality
In the short and medium-term, technology and inequality seemed to be positively correlated. In the long term, however, things are not as clear-cut. With the right policies and democratic institutions in place, technology could become a catalyst to reduce income and wealth inequality. Historical evidence from the last century clearly supports this claim. Will digital…
-
Blockchain Mining Costs and Revenues
In a previous post, I pushed the idea that mining is part of the blockchain economy’s real sector. Unlike financial speculation, mining requires investment in hardware, electricity, space, human resources, etc. This also applies to small miners who will undoubtedly have to defray a lower investment amount but can join a mining pool to share…
-
Checking ICOs, Again
It has already been three months since I last checked the ICO scene. At the time, I suggested ICOs were probably slowing down. New data seems to confirm this but all points to other trends not detected before. Figure 1 presents the latest data ending on 31 May. 159 ICOs were successfully completed between March…
-
The Real Sector of the Blockchain Economy
Most cryptocurrencies are now over 60% down from their December 2017 peak. While prices are still quite volatile, the trend for the last five months is decidedly downwards. While some still expect a recovery to the glorious days of last year, others see overvaluation all around accompanied by a financial bubble about to burst. Comparisons…
-
Blockchain Mining Revisited
Blockchain mining cannot catch a break when it comes to environmental sustainability. This is especially true for Bitcoin mining that seemingly has an insatiable appetite for electricity. A recent paper suggests that by 2020 Bitcoin mining will consume as much energy as Australia. While these estimates are not exempt from criticism, mining does not appear…
-
Case Study: WFP Building Blocks Jordan Refugee Pilot
[I wrote this edited draft case study for a larger blockchain research project led by The GovLab. The final project report included a shorter version of my draft.] 1. Overview Launched in January 2017, the World Food Program Building Blocks blockchain initiative targets over one hundred thousand refugees living in the Azraq camp in Jordan.…
-
Blockchain Technology is not a Monolith
Many observers seem to assume blockchain technology is an immovable monolith. While such assumption does help when trying to explain how the technology works to the general public, this is not the case when describing the actual status of the technology. Rapid and agile innovation is one of the core traits of blockchains, backed by…
-
Blockchains: The Patents Are Coming!
Open source is one of the core traits of blockchain technology propelling its rapid adoption and growth. The source code from the most popular platforms such as Bitcoin, Ethereum, and Hyperledger Fabric is freely available for download by anyone who wants to play with the technology. Granted, users wishing to deploy and use these platforms…
-
ICO Update: A Slowdown in Sight?
ICO data for last February is now available and shown in Figure 1 below. We can immediately see that both the number of ICOs and the total investment volume has decreased. The latter, which amounted to 1.2 billion USD for the month, is 20 percent less than the total for January this year. The same…
-
Blockchain Technology and Human Development revisited
I was invited to Canada to discuss my blockchain technology paper. Here are my opening remarks at the panel organized by Government Affairs and IDRC. Speaking about a seemingly complex subject such as blockchains poses a challenge not only for me but also for you, the audience. More so when the time is scarce. It…