Source: The New Aesthetic
Still, a problem remains: People don’t buy into blockchain applications unless they can make money. There is no evidence that people want to use it to “fix” journalism. There is also no evidence that anyone really understands how that would even work.
For now, Civil is essentially just another media operation with venture capital funding. The money underwriting it, from ConsenSys, remains, you know, regular money. The company uses some blockchain technology underneath the hood, including a plugin for its publishing software. But the technology remains difficult to comprehend, and, for any news consumer’s purpose, irrelevant.
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION to conduct a hearing on “Exploring the Cryptocurrency and Blockchain Ecosystem.” The witnesses will be Dr. Nouriel Roubini, Professor of Economics and International Business, New York University Stern School of Business; and Mr. Peter Van Valkenburgh, Director of Research, Coin Center.All hearings are webcast live and will not be available until the hearing starts. Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact the committee clerk at 202-224-7391 at least three business days in advance of the hearing date.
It is supposed to be like the web you know but without relying on centralised operators. In the early days of the world wide web, which came into existence in 1989, you connected directly with your friends through desktop computers that talked to each other. But from the early 2000s, with the advent of Web 2.0, we began to communicate with each other and share information through centralised services provided by big companies such as Google, Facebook, Microsoft and Amazon. It is now on Facebook’s platform, in its so called “walled garden”, that you talk to your friends. “Our laptops have become just screens. They cannot do anything useful without the cloud,” says Muneeb Ali, co-founder of Blockstack, a platform for building decentralised apps. The DWeb is about re-decentralising things – so we aren’t reliant on these intermediaries to connect us. Instead users keep control of their data and connect and interact and exchange messages directly with others in their network.
Blockchain exists for ~10 years and still there are no mainstream use cases where it replaced the incumbent tech, other than illegal activity. There is a fundamental reason for that.BCh offers a single unique feature: distributed trusted transaction (DTT). DTT competes with a centralized transaction == transaction with a trusted third party (T3P). DTT is by definition distributed and as such is *always* more expensive than a T3P all other things being equal: reaching consensus with multiple parties is harder than with a single party. In order for DTT to be competitive with the old tech T3P, the distributed nature of DTT must offer some advantage for people to be willing to pay the required premium. So far the only use case where people or willing to pay this premium is circumvention of regulation, when the trusted third party does not exist. This brings us to this list of use cases:1. Circumvention of regulation.This is the only meaningful use of DTT.China has capital flow controls which effectively bar companies and individuals from moving money out of China. To get around these regulations people buy video cards and electricity in China for CNY, mine cryptocoins, sell them in the States for USD. That’s the largest market right now, much bigger than buying drugs on the likes of Silk Road. This use case also includes ICOs and other pump and dump schemes.2. Selling picks and shovels.Derivative of (1). If 1 goes away, 2 will go away too.https://finance.yahoo.com/quot… [yahoo.com]3. Marketing & FMOAdd blockchain to the company name and see your valuation pop.”We must work on blockchain because it’s the future”.All kinds of blockchain projects in banks, etc which are going mainstream “any time now”. All of them can be done easier/cheaper/more reliably with a T3P, no exceptions.Reply to This Share
The cryptocurrency movement is the spiritual heir to previous open computing movements, including the open source software movement led most visibly by Linux, and the open information movement led most visibly by Wikipedia.1991: Linus Torvalds’ forum post announcing Linux; 2001: the first Wikipedia pageBoth of these movements were once niche and controversial. Today Linux is the dominant worldwide operating system, and Wikipedia is the most popular informational website in the world.Crypto tokens are currently niche and controversial. If present trends continue, they will soon be seen as a breakthrough in the design and development of open networks, combining the societal benefits of open protocols with the financial and architectural benefits of proprietary networks. They are also an extremely promising development for those hoping to keep the internet accessible to entrepreneurs, developers, and other independent creators.
This relationship between protocols and applications is reversed in the blockchain application stack. Value concentrates at the shared protocol layer and only a fraction of that value is distributed along at the applications layer. It’s a stack with “fat” protocols and “thin” applications.We see this very clearly in the two dominant blockchain networks, Bitcoin and Ethereum. The Bitcoin network has a $10B market cap yet the largest companies built on top are worth a few hundred million at best, and most are probably overvalued by “business fundamentals” standards. Similarly, Ethereum has a $1B market cap even before the emergence of a real breakout application on top and only a year after its public release.
The fact these lazy seeming workarounds foreshadow later popular protocols seems to tell us something about decentralization. The progression of centralized hosting → Napster → Kazaa → BitTorrent seems to represent the minimum viable decentralization required to stay alive as defined by the law at the time. These lazy workarounds match because decentralization isn’t the product, it is just a means of staying alive.Plenty of people went further with decentralization and anonymity, but it wasn’t necessary for staying alive and it only mattered to a privacy-focused minority of people. Beyond staying alive, decentralization is a weakness not a strength. In many ways, 2005’s BitTorrent was more centralized than Kazaa, but it decentralized file transfer and outsourced content discovery which made it more resilient than Kazaa which decentralized search at the protocol level.
Decentralization and other technological tricks help keep technologies online which wouldn’t last if they were centralized, but they don’t fully solve the problem. Instead, it seems like decentralized technologies depend on activists in order to fully realize the vision of the technology. Bram played this part by open sourcing his protocol, limiting his ability to profit from the system, and creating an environment where killing his client would basically do nothing to stop BitTorrent usage. The Pirate Bay is a more obvious example of activism and they go hand in hand with Piratbyrån’s anti-copyright mission. Yes, there are private torrent trackers and public options besides The Pirate Bay, but no one has provided the continuity and resilience that The Pirate Bay has in staying alive no matter the cost.
Decentralized technologies don’t take the legally impossible and make it unstoppable. Decentralization is a tactic for diffusing risk for many and lowering the risk for the activists that operate the most sensitive parts of the system. We see the same with Tor, where the risk of participating in the system is concentrated at the exit nodes which can attract undesirable legal attention. Without activism, we would have beautifully designed decentralized technologies which are impossible to use in practice.
Ironically, Bitcoin’s success depends on the same critical factor as a state-issued “fiat” currency: the collective trust of its community of users. Their confidence in the accuracy of the ledger of all Bitcoin transactions is what makes the currency viable. Law-abiding citizens want efficient, reliable payments. Bitcoin’s mysterious creator, Satoshi Nakamoto, realized this. His 2008 white paper said a great deal about cutting out banks; it said nothing about evading the rule of law.
Cloud Communities: The Dawn of Global Citizenship?, kickoff contribution by Liav Orgad
Citizenship in Cloud Cuckoo Land?, by Rainer Bauböck
Citizenship in the Era of Blockchain-Based Virtual Nations, by Primavera De Filippi
Global Citizenship for the Stay-at-Homes, by Francesca Strumia
A World Without Law; A World Without Politics, by Robert Post
Virtual Politics, Real Guns: On Cloud Community, Violence, and Human Rights, by Michael Blake
A World Wide Web of Citizenship, by Peter J. Spiro
Citizenship Forecast: Partly Cloudy with Chances of Algorithms, by Costica Dumbrava
The Separation of Territory and State: a Digital French Revolution?, by Yussef Al Tamimi
A Brave New Dawn? Digital Cakes, Cloudy Governance and Citizenship á la carte, by Jelena Dzankic
Old Divides, New Devices: Global Citizenship for Only Half of the World, by Lea Ypi
Escapist technology in the service of neo-feudalism, by Dimitry Kochenov
Cloud communities and the materiality of the digital, by Stefania Milan
Cloud Agoras: When Blockchain Technology Meets Arendt’s Virtual Public Spaces, by Dora Kostakopoulou
Global Cryptodemocracy is Possible and Desirable, by Ehud Shapiro
The Future of Citizenship: Global and Digital. A Rejoinder, by Liav Orgad