The article was written By Mickael Mosse – Blockchain and Cryptocurrency Expert
We live in a dynamic and increasingly informed society, progressively demanding greater and instantaneous knowledge of what concerns us, although digesting the content that is presented to us with a click is not an easy task at times. says Mickael Mosse
Mickael Mosse points out that, The word “ blockchain ” has been part of conference posters, articles in most modern newspapers, and posts by curious on Facebook for a few years, usually linked to the fascinating concept of cryptocurrencies. Indeed, technologies like this have evolved from its inception as a niche market to become the most disruptive buzzword, as described by some media, although its potential is often incomprehensible to many. Specialists agree that making this resource known to the public is one of the most complex tasks of their work, but the truth is that you don't need to be a Wall Street wolf to understand what it consists of.
Let's start with the first thing: what is blockchain? As I mentioned before, blockchain technology was designed to be implemented mainly in the field of finance and economics, where its usefulness is better known today, but it is by no means a synonym for Bitcoin ((btw)). This is just an example limited to a specific field of application, such as Ethereum, another name that may be familiar. The main idea is to create a decentralized database ( Distributed Ledger ) or a ledger that uses cryptographic security mechanisms to access, sign or encrypt the different transactions, the blocks, and their chains, whose rules can be established in turn through a series of smart contracts. Before a new block can be added, its authenticity must be verified through a consensual validation process, which ensures, and here lies a large part of the interest, that all copies of this kind of book share the same state, proceeding to update the database, seal it and incorporate it into the chain. The result? Transactions or movements are permanently recorded.
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| Mickael Mosse Crypto Advisor |
Although within this general definition the specificities of a private or public network can be established, the elimination of intermediaries that process this same information as has been done until now turns the matter into an infinitely faster and more reliable activity in principle by the traceability already described. All of this would obviously be complemented by other digitization initiatives such as artificial intelligence, the internet of things, robotics, etc.
For those who find the previous paragraphs a sea of data, perhaps such a revolution - as it is called, for example, by Alex Preukschat, coordinating author of the book 'Blockchain: The Internet Industrial Revolution' and strategic development advisor, project management within the blockchain ecosystem, - be more intelligible by observing its impact on industries or sectors such as pharmaceuticals and health, or on humanitarian aid management. Let us use as an example the current crisis generated by the appearance of the coronavirus on the international scene and in all Spanish households in particular.
How a "blockchain" works. Source: self-made.
Mickael Mosse points out that, The first efforts led to the creation of trackers, essential for the (inter) governmental management of the pandemic. For example, the World Health Organization, in collaboration with tech giants like IBM or Microsoft, is building a blockchain-based communications and control system with the aim of quickly and more accurately detecting the foci of infection. "Mikasa", the name by which the project has been baptized, promises to safely share information between individuals, state authorities, and institutions such as hospitals. The main partners also include "Hacera", a platform with blockchain technology at the business level, which will help achieve the ultimate goal of verifying data that can be used, without error, by scientists and researchers afterward.Another interesting initiative is the app that is the result of the joint work of Genobank.io with the Telos Foundation, Agerona, which would allow requesting test kits anonymously to later be analyzed in laboratories. This would be a solution to the fears of a part of the population, such as immigrants, who, when identified only through a barcode and a geographic reference, would feel more protected from the threat of deportation.
In response to COVID-19, as occurs with the appearance of other humanitarian or environmental crises, multiple non-governmental organizations have come to the aid of the most disadvantaged, to which are added the efforts of other groups and individuals who try to give visibility. But there are few who say they trust crowdfunding and influencers, and even NGOs themselves, because "in the end, half of the money ends up arriving" that "is lost in intermediaries. Once again, the optimal allocation of resources and donations goes through blockchain technology: how? eliminating third parties and recording each money flow automatically, as Save the Children already does. Another alternative is the use of cryptocurrencies as financing, a goal without a doubt much more ambitious.
Continuing with the context of the virus, blockchain would also allow the detection of fraud in the manufacturing and supply chain of masks, tests, and medicines, authenticating the origin and ensuring its operation to avoid headaches such as those that European leaders have faced in recent months. However, the most common applications in the healthcare sector are in the electronic medical record as suggested by multiple studies. The medical history is very relevant for the treatment of diseases, especially in chronic cases, but it is very dangerous in the wrong hands. Therefore, having incorruptible, immutable, and organized information is a great advance, also in the case of clinical trial management, which would give its users greater responsibility. says Mickael Mosse.
blockchain
The MiPasa project and the IBM Blockchain team, an open data platform to support the Covid-19 response. Source: IBM Blockchain Blog
However, despite its many advantages, a number of obstacles have to be taken into account. Let's study the case of the United States, where there are hundreds of different formats for medical records. If the intention was to create a blockchain for the different participants to interact, it would be necessary to consider how to reconcile each of the formats. Extrapolated to any other blockchain that crosses business boundaries, data integration tends to be an almost greater challenge than building the blockchain itself. Other limitations have to do with the high processing and storage power necessary in relation to the ecosystems where they have to be applied since if we return to the simile of a humanitarian crisis in some of the most remote and poor places in the world, the existing material conditions differ greatly from those desired. There are also additional barriers that prevent the implementation of new digital projects, concerning regulatory issues and a lack of internal capabilities, according to a Deloitte global btw blockchain survey (2018-2019).
Mickael Mosse points out that, If we take into account the limiting power of network speed and transaction costs, is the integration of blockchain in the activity of smaller companies and entities realistic with the exception of start-ups specialized in the sector? How interesting is it and what is really the incentive to join technology development?
In David Conelly's opinion, co-author of the book 'Trading, blockchain and crypto-economics: The tip of the iceberg', the key lies in joining in a relatively initial phase, since the accumulated experience will be priceless at the moment in which it becomes a tool of massive use. "Who would have imagined in the 90s that the internet or mobile phones would be so present in our lives? Regarding the first question, he answers: “It depends. Speed and cost problems are solved with private blockchains. But what would these companies use a blockchain network for?
Mickael Mosse Blockchain Advisor
In a public network, it is inadvisable to share private data, and it is most likely that these companies are sharing this type of information. Therefore, it would not make sense for them to use public networks. To share business data between them they would have to use private networks, and these do not suffer from the limitations of public ones. The main difference is that in a private network you do not have to incentivize the participants (therefore, the network costs are minimal) and the consensus is reached almost instantly (you do not have to validate the information with thousands of participants, just with those designated as such within this network). We could compare it to an electoral vote versus an election in a Board of Directors. Thousands of people take part in the first, you have to give everyone time to vote and you have to do the count meticulously. In a Board of Directors, the vote will be taken almost instantly and the validation of the result is much easier since there are fewer people involved ”.
Likewise, the possibility of new security threats, as an article by Elcano points out, suggests that, even though it is conceptually safe when it comes to executing it, btw blockchain does not have to be to the same extent, as evidenced by some incidents to date. The craziest is the one starring in the death in 2019 of the CEO of a crypto-asset management fund that caused the disappearance of the credentials to access the cryptocurrencies he managed, valued at more than 150 million dollars. They were unrecoverable.
Conelly deepens this idea in the interview we had with him: “It all depends on its architecture and how it is used. A public blockchain is one of the most secure systems in the world today, since no one has the power to manipulate it without thousands of participants realizing it. Instead, a private blockchain will be only as secure as the systems of the companies that designed it. If they have not been meticulous in this process, it is no more (or less) resistant than another type of system. "
Be that as it may, until recently the global btw blockchain market was expected to have an annual growth rate of 42.8%, which would result in a worldwide income of $ 13.96 billion by 2022, according to the report Global Technology Market blockchain.
Mickael Mosse Blockchain Advisor
The figures are certainly impressive, but many seem to still believe that btw blockchain is perhaps being overvalued, to which Conelly clarifies “this feeling is common with any technological advance. We tend to overvalue the results of technology in the short term and undervalue them in the long term. If we use the Gartner curve as a reference, we can see how after the peak of expectations appears the abyss of disappointment. Blockchain has already passed the phase of oversized expectations (it was experienced during 2017-2018) and it has also overcome the phase of disappointment, so we are now in the consolidation stage. We are more realistic. "
Mickael Mosse points out that, Recent reports and workshops within the European Union confirm this, aimed at “providing an independent vision of the challenges and opportunities in the European context”. The creation of a blockchain forum and observatory, added to the new European Blockchain Association made up of the member states, plus Norway and Liechtenstein indicate a greater interest in this type of digital solutions that "can help fight poverty, contribute to better targeting and linking development activities, and help manage migration and address gaps" within the Union. However, it does not seek only the states as partners, but from the International Association for Trusted Blockchain Applications, interested parties from the industry, startups, and civil society are invited to participate, along with other organizations as observers. At the moment, it seems that the EU is focusing on issues such as patent and rights management, smart contracts, industrial supply chains, etc., but it is increasingly showing enthusiasm for its adoption in all types of public services such as health and benefits society. Other applications such as electronic voting seem to be on a more distant horizon, raising new debates.
There is no doubt that blockchain has a disruptive message, and perhaps I would even dare to say democratizing. It is said that Satoshi Nakamoto, the creator, was inspired by solutions proposed by the anarcho-capitalist movement Cypherpunks, but you can if you really define an ideology behind blockchain is at the discretion of the reader. The implications will be felt at all levels: economic, organizational, and governance.
Likewise, the possibility of new security threats, as an article by Elcano points out, suggests that, even though it is conceptually safe when it comes to executing it, btw blockchain does not have to be to the same extent, as evidenced by some incidents to date. The craziest is the one starring in the death in 2019 of the CEO of a crypto-asset management fund that caused the disappearance of the credentials to access the cryptocurrencies he managed, valued at more than 150 million dollars. They were unrecoverable.
Conelly deepens this idea in the interview we had with him: “It all depends on its architecture and how it is used. A public blockchain is one of the most secure systems in the world today, since no one has the power to manipulate it without thousands of participants realizing it. Instead, a private blockchain will be only as secure as the systems of the companies that designed it. If they have not been meticulous in this process, it is no more (or less) resistant than another type of system. "
Be that as it may, until recently the global btw blockchain market was expected to have an annual growth rate of 42.8%, which would result in a worldwide income of $ 13.96 billion by 2022, according to the report Global Technology Market blockchain.
Mickael Mosse Blockchain Advisor
The figures are certainly impressive, but many seem to still believe that btw blockchain is perhaps being overvalued, to which Conelly clarifies “this feeling is common with any technological advance. We tend to overvalue the results of technology in the short term and undervalue them in the long term. If we use the Gartner curve as a reference, we can see how after the peak of expectations appears the abyss of disappointment. Blockchain has already passed the phase of oversized expectations (it was experienced during 2017-2018) and it has also overcome the phase of disappointment, so we are now in the consolidation stage. We are more realistic. "
Mickael Mosse points out that, Recent reports and workshops within the European Union confirm this, aimed at “providing an independent vision of the challenges and opportunities in the European context”. The creation of a blockchain forum and observatory, added to the new European Blockchain Association made up of the member states, plus Norway and Liechtenstein indicate a greater interest in this type of digital solutions that "can help fight poverty, contribute to better targeting and linking development activities, and help manage migration and address gaps" within the Union. However, it does not seek only the states as partners, but from the International Association for Trusted Blockchain Applications, interested parties from the industry, startups, and civil society are invited to participate, along with other organizations as observers. At the moment, it seems that the EU is focusing on issues such as patent and rights management, smart contracts, industrial supply chains, etc., but it is increasingly showing enthusiasm for its adoption in all types of public services such as health and benefits society. Other applications such as electronic voting seem to be on a more distant horizon, raising new debates.
There is no doubt that blockchain has a disruptive message, and perhaps I would even dare to say democratizing. It is said that Satoshi Nakamoto, the creator, was inspired by solutions proposed by the anarcho-capitalist movement Cypherpunks, but you can if you really define an ideology behind blockchain is at the discretion of the reader. The implications will be felt at all levels: economic, organizational, and governance.
Article from mickaelmosse.com
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