Shortly after the dawn of the internet, it became revered and known as a bit of technology that held the key to solving the problems of humanity. It was hailed as a miracle that would shine a light across every inch of the world, bringing knowledge to those that needed it and allowing the free exchange of ideas. Whilst it has achieved some of those things, it has also created many problems- fake news, surveillance, cybercrime, social media addiction, and the monopolisation of power have all reared their ugly heads to tarnish its shine. Whilst the internet has brought many positives into our lives, the negatives that have appeared are there to remind us that there is no such thing as a technology-driven utopia. Humans and good governance will always be there to shape the impact and use of any technology, and rightly so.
Blockchain and its applications
Advocates of blockchain technology and cryptocurrencies have been describing the possibility of more private, transparent, accountable, efficient, and competitive ways of doing business. We are told that blockchain has the answer to many problems that are present in the sectors of commerce, finance, and bureaucracy, and some even see blockchain overseeing democracy itself from elections to budgeting. Whilst some of these claims may seem a little far-fetched, there are already some incredibly interesting applications in the fields of inventory, supply chain, and logistics management.
Whilst these advances are nothing but positive, there are still negative reactions from opinion leaders and makers, as the apparent drawbacks of the technology come to light. For example, did you know that Bitcoin alone uses around 0.25% of the world’s electricity? Other blockchain platforms such as Ethereum use similar approaches that also require an immense amount of electrical power to help them to work. What about the number of hacks, scams, and accidents that are now possible in this new space? Or perhaps you have heard about the crime and terror networks that could be using these technologies to transfer their funds? These new technologies are most definitely exciting but they are also posing some very important questions to both their advocates and their regulators.
Blockchain and self-regulation
Industry pioneers are however alert to such concerns and some are even attempting methods of self-regulation. The Brooklyn Project launched in November 2017 and it is an industry-wide initiative that was created to provide support to investors as well as protection to consumers.
Joseph Lubin, co-founder of Ethereum stated, “By acting responsibly today, we can help make sure we are collectively able to reap the benefits of this powerful technology tomorrow.”
Blockchain, the environment, and society
Whilst these types of initiatives are welcome, no one is doing much to address such issues on how this technology impacts the environment and wider society. If this sector is really going to disrupt our incumbent institutions and organisations, then the general public need to know what the upsides really are.
We must ask ourselves, is it appropriate for those seeking economic justice and equal opportunities to use a blockchain that works by heavily invested actors receiving new tokens with a monetary value? Is it appropriate for speculators to hoard tokens? And is it appropriate for a project that is trying to low carbon emissions, to use a blockchain that emits as much CO2 as a small country? These examples are not hypothetical and we must strive to find blockchain solutions that do not juxtapose the positive uses of the technology, through the methods used to run them.
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