Block Chain and the Information Economy
One of the most hyped developments of 2017 was the sharp rise of crypto-currencies; but the more interesting development actually lay in how people are embracing the underlying technology: Blockchain. On a basic level a Blockchain is a place to store information in such a way that the information cannot be tampered with. This is why it has made crypto-currencies possible: the Blockchain ensures that no one can cheat and pretend that a transaction never occurred; the "money" after all is just a bunch of binary code - so making sure someone can't just keep a copy of those ones and zeros and use it again later is critically important. Blockchain solves this problem through public key cryptography, and maintaining public ledgers where people store the information. Thus when a transaction is complete, there is a publicly available record of the change that anyone can go back and consult to see who really owns those ones and zeros - and anyone who wants to pretend it never happened is out of luck. The incorporation of cryptographic hashes means that any tampering will be immediately evident to everyone else. The only way to beat the system is to convince everyone else to go along with you - which is the equivalent of convincing everyone in the United States to start using poison oak leaves as currency instead of dollars.
But crypto-currencies are the tip of the iceberg. What a Blockchain truly represents is a way to store information, and only let certain people modify it (i.e. the owner of a Bitcoin is the only person who can change the ownership information of that Bitcoin). And as you're hopefully all now aware, information is everywhere. In the past people relied on outside entities to ensure information was correct - e.g. hospital records would ensure whether or not a patient actually had a certain condition or a local government would verify if in fact someone owns the land they claim to own. But by putting their information into a Blockchain, people no longer need outside verification - anyone can look at it and see whether or not its correct.
So, some things to think about:
1. What role do Blockchains have to play in the information economy?
2. Do Blockchains have a place in shaping international policies?
Links for further reading:
https://en.wikipedia.org/wiki/Blockchain#Structure
http://fortune.com/2018/02/09/blockchain-genetic-testing-nebula/
https://cointelegraph.com/news/blockchain-and-energy-two-peas-in-a-pod
But crypto-currencies are the tip of the iceberg. What a Blockchain truly represents is a way to store information, and only let certain people modify it (i.e. the owner of a Bitcoin is the only person who can change the ownership information of that Bitcoin). And as you're hopefully all now aware, information is everywhere. In the past people relied on outside entities to ensure information was correct - e.g. hospital records would ensure whether or not a patient actually had a certain condition or a local government would verify if in fact someone owns the land they claim to own. But by putting their information into a Blockchain, people no longer need outside verification - anyone can look at it and see whether or not its correct.
So, some things to think about:
1. What role do Blockchains have to play in the information economy?
2. Do Blockchains have a place in shaping international policies?
Links for further reading:
https://en.wikipedia.org/wiki/Blockchain#Structure
http://fortune.com/2018/02/09/blockchain-genetic-testing-nebula/
https://cointelegraph.com/news/blockchain-and-energy-two-peas-in-a-pod
Malaysia strongly believes in the privacy of the user as well as data regulation, and thus supports all types of legislation that may further this purpose, including Blockchains. Malaysia believes that while Blockchains themselves can not be the final solution for data regulation, Blockchains will still have a large role to play in the information economy. The structure of the Blockchain allows it to surprisingly work as a lawless form of regulation simply based off of the honor system. While at first this system would seem as if it would fall apart, with everyone following this system, no one attempts to go against it and corrupt the cryptocurrency, as any interference with transactions will be immediately detected and the user that attempts to access data of others will have immediate action taken against him/her. Such a system would help the information regulation as well as the information economy, and will generally be good for data security. However, while Blockchains are a good outline, they cannot be a final solution. Blockchains are a good attempt at protecting user data, but as they are solely peer-to-peer review based, the regulation given by Blockchain cannot directly be applied internationally
ReplyDeleteHowever, Malaysia believes that Blockchains do have a place in shaping international policies. As a proponent of individual data security and data regulation, Malaysia supports and endorses data protection technology such as that provided by Blockchain. In contrast, other nations exist that most likely oppose Blockchain as it does not provide full access and control to personal data. Malaysia seeks a solution that protects user data while is agreed upon by the international community, and we would thus like to propose a framework of guidelines outlining the data regulations that must be presented. The skeleton of the outline works as follows: Enterprises and industries should define the framework for data and regulations, but the data and information itself should be controlled by the user, which the government regulates and watches over, only keeping control, and in accordance with international guidelines the guideline for this framework too should be given by the UN.
The delegation of the People’s Republic of China greatly appreciates your enthusiasm about accepting and integrating these technologies. However, blockchains cannot serve on their own as regulation or as a means of storing personal data. Misuses, losses, and corruption of data will inevitably result due to this erroneous assumption - but you have the right idea. Blockchain can be most securely used for nationalized financial applications. Can't wait to see you in committee :)
DeleteThe delegation of Malaysia appreciates your statements, but it seems that you have misconstrued our response. While you were right in saying Blockchains cannot serve on their own as regulation , blockchains do prove to be quite effective in storing personal data, shown not only by bitcoin itself but with examples of countries such as Germany. Furthermore, the delegation of Malaysia did not state that Blockchains serve on their own as regulation or as the sole means of storing personal data. Rather, we pointed out how we could simply use Blockchain as an outline for legislation, and use its ideological concepts to provide as a start for legislation and regulation. We sincerely appreciate your efforts in shedding light on this issue, and look forward to resolving regulation and debating blockchain with you in committee.
DeleteAlthough we do not endorse Bitcoin and other cryptocurrencies, the People’s Republic of China has been a longtime supporter of blockchain itself. In fact, the cryptocurrency research institute from the People’s Bank of China holds 33 blockchain patents. Blockchain is a revolutionary means to increase security in transactions, bolster efficiency in every industry, and decrease corruption by cutting out the middleman, so it is undeniably critical to the development of the information economy.
ReplyDeleteIn regards to international policy, even for nations who are not concerned with the nationalization of their economies, blockchain is an efficient way to increase trust in commerce. Additionally, blockchain is being used to combat issues from climate change to child trafficking, so where a nation stands in regards to blockchain and other (relatively) newly developed technologies ultimately decides how said nation will respond to almost any given crisis.
The delegation of Malaysia supports you in your research on cryptocurrency and data security and agrees with you on the efficiency of blockchain, but would also like to point out the potential drawbacks to using Blockchain. For example, while Blockchain increases security and decreases corruption on some level, it can not serve alone to be a model of regulation, especially when it depends on essentially an “honor system”, and thus can only serve as a possible idea for security rather than regulation. Additionally, we agree that blockchain can be used to address various issues, but we do not believe that a nation's stance on blockchain should be the sole determinant in a nation’s policies and positions for data regulation. A large amount of factors, from a nation’s concern with user privacy to a nation’s emphasis in company growth, will essentially determine how nations react to regulations and legislations imposed to improve data regulation. However, your nation’s large number of patents clearly make your nation a knowledgeable one on blockchains, and thus we look forward to working together and to the amazing solutions you will present in committee!
DeleteThe Republic of Germany strongly supports the protection and ensurement of security regarding data in the information economy. Considering that Germany is one of the top three countries involved in Blockchain projects, Germany is positive that in utilizing blockchain technologies, data can be securely protected within the information economy. Blockchains are currently being used to not only record transfers of digital currencies, but also record transfers of ownership of physical assets. With that being said, users will be able to rely on a trusted system, rather than third-parties in the information economy
ReplyDeleteIn regards to shaping international policies, Germany believes that blockchains do have a place. In Germany’s parliament, blockchain government lobby group Blockchain Bundesverband was created to handle affairs related to cryptocurrency. Additionally, Germany believes that countries who are not fond of cryptocurrencies can still utilize blockchains in international policies. Countries such as India are against digital currencies like Bitcoin, however they have shown much interest in using block chains to create a land registry system that will allow citizens to track property ownership. Overall, Germany strongly supports the use of blockchains in shaping international policies, considering that it can be utilized in both data regulations and gaining the trust of users in digital currency.
Overall, Malaysia agrees with your policies. We too believe that Blockchains do have a role in international policies, and hope that they will be used as some sort of reference or outline to enforce user privacy. We are impressed with your nation’s standing in cyber issues and more specifically blockchain, and similarly recognize the potential in blockchain in protecting user data. We look forward to working with you in committee.
Delete