BadgeChain Newsletter #5 – Blockchain: can you trust it?

May 4th, 2017 | Carla Casilli

Trust: one of the primary reasons for the invention of blockchain. Or rather, lack of it. Blockchain’s revolutionary trustlessness, to coin a word, is peer-based. Interactions occur between peers without intervening persons or organizations. But trustlessness is both an awful word and only a rough approximation of the concept. Why? Because blockchain technologies actually reorient existing trust relationships into person-to-person exchanges. Most impressively, they do this at a global scale thanks to basic technical constructs that include decentralization, nodes, distributed ledgers, and immutability.

As previous BadgeChain newsletters have noted, along with financial tech (fintech), healthcare, media, credentialing, and law are fields in the throws of blockchain investigation. Some of this exploration may be driven in part by security concerns related to data breaches. This past year saw an unprecedented number of successful attacks on financial institutions, hospitals, and individuals, among others. Could blockchain be the way to secure data, finances, health records and media? Aspects of its structure can act as a repellent to network breaches: if any one block changes, the entire node structure knows. Data consensus can act a powerfully protective control mechanism.

Somewhat ironically, doubts about blockchain as an entirely trustworthy tool are also manifest. In the fintech world, the Dao disaster intensified fears about hard forks and algorithms that operate without human intervention. Bitfinex, one of the largest cryptocurrency exchanges is under suspicion of a Mt Gox debacle. And although bitcoins, the most prominent blockchain fintech, have reached an astounding $1400+ valuation, observers are unsettled about how much to trust the rules governing allegedly immutable data, particularly when the currencies can be drained unwittingly, traditional financial institutions are developing their own private chains, and ledgers appear to be at the whim of whoever technically “owns” a blockchain. These issues will need to be addressed if blockchain technologies are to continue to have a viable future.

Nevertheless, the evolution of peer-based trust is ongoing. Blockchain technology bolstered by the potentially radical ideas underpinning it are fomenting that change. According to one report, we may now be in the “third trust revolution.” An intriguing thought.

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Here are the articles that inspired and informed this newsletter. We recommend them to you as interesting data points in your consideration of education and decentralized technologies.

 

BadgeChain Newsletter #4 – Digital Provenance – Decentralizing Authenticity

April 20th, 2017 | Carla Casilli and Kerri Lemoie

What springs to mind when someone mentions the word provenance? Art, antiquities, jewelry, and possibly wine. But if your mind doesn’t immediately jump to items from “Antiques Roadshow” you may also have considered digital assets such as music, videos, photos, online art, and writing.

Provenance, as it’s typically understood, tracks origin and history of ownership. In the digital world, provenance performs a few more neat tricks: in addition to making it possible to verify an asset’s origin and life stages, e.g., beginning state, evolution, remixes, and current state, it can be used to track physical assets, to enhance supply chain management, to support information sharing for media, and to address issues affecting content attribution and licensing.

With this much development potential, provenance is becoming a bit of a blockchain cottage industry. Everledger is using it to track high value assets including diamonds and wine. IBM, as part of Hyperledger, have created Fabric, a consortium-based blockchain framework exploring supply chain management. Mediachain provides peer-to-peer information sharing for a wide range of media. And finally, the Interplanetary Database (IPDB) in conjunction with the Interplanetary File System (IPFS) and Filecoin have founded community-driven COALA IP to focus on content attribution and licensing.

But where is all of this blockchain-based interest in provenance coming from? Simple. Decentralized technologies offer affordances that are a near perfect fit for complicated issues: permanent data storage, immutability, and computational structure that can track changes down to the pixel. It’s nearly impossible for siloed cloud-based services to supply this level of trust and control. What’s more, decentralized technologies free peer-to-peer interactions from central governing authorities.

All in all, we believe that provenance and decentralized technologies are worth tracking. 🙂

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Here are the articles that inspired and informed this newsletter. We recommend them to you as interesting data points in your consideration of education and decentralized technologies.