Tag: blockchain

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Business & Society

Crypto’s Crazy Way to Adoption

Things have always been crazy in crypto, but not this loud. Now days even my 80-year-old neighbor have heard about recent crypto crashes. How did we get here and what does the road to adoption look like?

KEY TAKEAWAYS

· Bitcoin grew up as an outcast and a joke. Until its technology disrupted the financial world. The ride to full adoption is turbulent, but crypto is here to stay.

Bitcoin was born after the global financial crisis in 2009, but without a buzz. In fact, all we heard from Bitcoin were crickets. The jaw-dropping blockchain technology of Bitcoin was ignored. The first time we heard from Bitcoin was when a guy bought 2 pizzas for 10,000 Bitcoin on May 22, 2010. It took three years before Bitcoin started to have some traction across the world.

In 2013, The city of Vancouver opened the first Bitcoin ATM and Germany considered Bitcoin as a financial instrument, but not e-money. The US Drug Enforcement Administration were busy seizing Bitcoin for the first time in 2013. Plenty of shady people used Bitcoin for transactions without understanding that every transaction is transparent and law enforcement agencies started having an eye on the blockchain. Various Bitcoin payment processors set-up business and crypto exchanges emerged, and things were picking up. Then in 2014 the world’s largest exchange Mt. Gox was hacked and filed for bankruptcy. Since Mt. Gox handled about 80 percent of the world’s Bitcoin transactions most people thought the crypto industry was dead. Bitcoin became a joke and people started to refer to Bitcoin as magic internet money.

Bitcoin is ‘probably rat poison squared’

The fight against crypto went viral as headlines in media read: The Great Bitcoin Scam, You’d be Crazy to Actually Spend Bitcoin, Warren Buffett said that Bitcoin is ‘probably rat poison squared’. Since blockchain technology eliminates the middleman in economic transactions traditional banks started spreading fear, uncertainty, and doubt about Bitcoin. Meanwhile they quietly started stacking up on Bitcoin themselves. Now days, major banks use blockchain technology to increase the speed and efficiency of transactions.

Bitcoin has had dramatic mood swings up and down in a four-year cycle. At the top in 2021 one Bitcoin cost almost 70,000 USD before falling to 16,500 in 2022. However, if we look at the Bitcoin price since its birth no traditional asset beats its increase. The price of Bitcoin will likely continue to be volatile until the traditional finance sector fully embraces it.

In 2022 the craziness continued. TerraUSD , Celsius and Three Arrows Capital crashed. Then the world’s second biggest exchange FTX kick the crypto space in the nuts and laughed when they bought real estate with customer funds. Then they filed for bankruptcy. The contagion of the FTX crash is still a major concern for other exchanges and crypto lenders who owned the FTX token FTT.

Currently the war on crypto has turned its focus on the greatest problem that really has nothing to do with the groundbreaking technology of blockchain. Lack of regulation fosters criminal activity and the biggest investors from the traditional financial sector are still on the sideline waiting for regulatory clarity before investing fully. Nation states have not been able to keep up with the fast pace of digital technology. Crypto will not be adopted by the public for years to come.

So, there we have it folks. The road to public adoption of blockchain technology is rocky to say the least. Disruptive developments in society seem to follow a path.

Gandhi said it best “First they ignore you, then they laugh at you, then they fight you, then you win.”

In the end, the good of crypto will win if we are willing to have a grown-up debate and a healthy look at the vast opportunities of crypto currencies and blockchain technology. The tech is clearly steadfast and a part of our future.

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Business & Society

Fiction is reality in retail

Vegan leather jackets, smart mirrors, drone deliveries and digital assistants will take shopping to new dimensions. The future is faster than we think in retail. What will the future look like in retail and how will it impact our lives?

“Show me how I look in a pair of white sneakers from Nike!”

“Change to my black vegan leather jacket!”

“Show me a cool cap that matches the jacket? Great, buy that one!”

These will be normal commands that we tell our smart mirror to do for us. The smart mirror will be connected to the internet and store a digital version of our clothes and be voice-activated and assisted by artificial intelligence. Voice activated commerce mean that you will ask, and you shall receive. You will be able to ask the smart mirror to show a high-resolution image of yourself in various clothing and tell your digital assistant to buy it for you. Since you will be able to do a full-body scan with your phone you can be sure that the digital assistant will order the correct size of clothing. Yes, the order will be delivered to your door by a drone.

The future of shopping is presenting a thrilling picture.

The internet of things does not only mean that things are connected to the internet but also assisted by AI via our phones and glasses. We will be able to live in two worlds at the same time. Augmented reality is a merge between reality and different digital worlds that we can chose to participate in if we like. It will be like walking in our hometown but being able to shop from all corners of the world when we participate in the augmented reality through our glasses.

There will still be shops, but they will be fully delocalized if they choose a business model that embrace augmented reality. Local shops will be able to sell a vast catalogue of online products and purchases will be automatically paid for via our digital ID when we leave the shop. You will be able to buy a vegan leather jacket as leather can be grown using stem cells. Your digital wardrobe will be updated with a digital copy of each purchase of clothing.

When we think about it, the future of online shopping is already here. The difference will be in the use of augmented reality which will offer a new dimension for digital shopping. A man will only see men’s clothing when he enters a physical shop that use an augmented reality. Whereas women will only see handbags…

The future of shopping is highly personalized using AI and blockchain technology. Everyone will have a digital ID that we can use for personal and professional services and payments in crypto currencies or central bank digital currencies. The digital ID will store personal data such as health records, passport details, banking details and ownership of land. Our digital assistance and AI will store details such as our favorite clothing brand or color or remind us about buying birthday gifts.

When we merge highly personal data with AI it is difficult to see a clear picture of all problems and possibilities of the future. Security of data will be a major issue in the future of retail as most data will be stored online. However, if this data is stored on a blockchain we will be able choose what data we want to share with relevant parties.

Some shops will decide to invest in robots that serve our food and cashiers will not be needed in the same way. Employment will move into the metaverse.

Furthermore, it is predicted that the fourth industrial revolution will mean the end of malls. Those companies that decide to stick to physical stores they are forced to provide a unique shopping experience for customers. For example, trying out sports gear in the store before buying or personalize products are examples of how shopping will transform.

Walking down the aisle will also be a different experience.

Gone will be the days of having to go through a maze of irrelevant products. Those who enjoy shopping will even have a greater experience as retail will enter a phase of what’s called hyper-personalization. Stores will display fewer physical products and aisles will present high-resolution displays that guide you through the products that you prefer. Hyper-personalization will also mean dematerialization of retail as only the most relevant products will be produced. 3d printers are already used in the design clothing industry. Dematerialization is obviously eco-friendly in comparison to mass production.

Businesses that are early in adapting to these technological shifts will blossom. Those not daring to take the leap will have to put a great deal of effort in creating a totally different experience for customers. Local shops not betting on the digital world can focus on human interactions and providing a unique local appeal.

I can’t wait for shopping to become more effective and relevant so I can spend more time doing what really matters in life. 

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Business & Society

Lessons from the grandiose Abu Dhabi Blockchain Strategy

Crypto is not an empty futuristic dream. It is happening. The Abu Dhabi Blockchain strategy is a genuine initiative to become the first crypto-powered government and city. What is happening in Abu Dhabi and what can we learn from it?

Cryptocurrencies are now being recognized by governments and accepted by organizations and businesses across the globe. Dubai has long been a frontrunner in embracing digital innovations and Abu Dhabi holds 31 percent of the global cryptocurrency exchange and has a huge financial market.

But it takes guts to be in the forefront of innovation. As early as 2015 a group of blockchain experts and policy makers decided to implement blockchain technology and disrupt the digital landscape of the nation. Dubai was to become the first crypto-powered government and city and a testing ground for crypto business experiments.

In fact, The Ministry of Artificial Intelligence wants the government to be paperless by 2026 and goes all-in on using blockchain technology. The Abu Dhabi Blockchain Strategy has the bold goal that 60% of all public transactions should be on a blockchain by 2025. This technological shift has potential to save 3 billion USD in transactions cost and 100 million paper documents and over 50 million operating hours each year. The grandiose feel of the project is highlighted with building the World Trade Center to create a high-end spot for a range of crypto services and to create a true blockchain-based world city. Currently over 300 crypto businesses have established their base in Dubai and crypto firms are being assisted with zero taxes and visa restrictions have been removed to support eager entrepreneurs. In 2022 the Emirate has doubled down on its commitment to blockchain technology.

Money laundering, inadequate customer protection and lack of accountability of crypto companies are still headaches in the crypto industry. Some governments and their agencies use weaknesses in the crypto space to increase their power and control of the people and some genuinely try to create regulation that protect the customer and accelerate innovation.

We need regulatory clarity on a global scale to support the good and to fight the bad in crypto.

We are getting clearer digital market legislation in Europe with the Markets in Crypto Assets Regulation bill which was recently passed by European lawmakers. This legislation is set to come into effect in 2024. While the USA is still trying to decide what crypto currency is a commodity and what is a security and how to properly regulate the market but not hinder innovation.

Abu Dhabi have followed a clearer path. To attract foreign direct investments, as well as venture capital, and to support the adoption of cryptocurrencies Dubai have introduced regulation by creating Dubai’s Virtual Assets Regulation Authority (VARA). These smart regulatory moves have been claimed to be the reason why the world’s biggest crypto exchanges, Binance, Crypto.com as well as Bybit are setting up regional headquarters in Dubai. Money clearly likes stability with great potential. Furthermore, VARA is the first regulatory organization in the world that have set up camp in the metaverse.

Blockchain technology, AI and the internet of things are key players in the fourth industrial revolution that we are experiencing. It is obviously not easy to be in the forefront of using new technologies that also need to converge with each other. Dubai is trying hard and will be sharing their mistakes for the benefit of the world.

Key lessons in the grandiose Adu Dhabi blockchain initiative may be the following. The sweet nectar of success will be tasted when focus is on building a crypto ecosystem that increase trust between governing bodies, investors, entrepreneurs, and customers. A true blockchain based city is transparent and safe and sound. That’s when technology has possibility to meet individual needs and improve society and potentially increase our sense of happiness.

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Business & Society

Innovative technology fighting poverty

Economic progress and technology are reshaping the world and solving social issues. Poverty is down and the fight continues. What can blockchain technology do to help people living in poverty?

Global economic and social developments in the last 20 years have been jaw-dropping. The number of people living in extreme poverty has dropped by half between 1990 and 2015 and most of this progress has been made in India and China. In fact, China has made historic contributions to the world by reversing the trend of increasing poverty. But 9 percent of the global population still live in extreme poverty and 80% of the world’s poverty-stricken people live in South Asia and sub-Sahara Africa. We still need all the help we can get to eradicate this human suffering.

Although there is no quick-fix to foster financial inclusion and provide financial opportunities for people living in poverty, blockchain represents a world-changing breakthrough. For community development to be effective it needs to impact both the individual and on societal level and blockchain technology is unique in its ability to provide innovative solutions on all levels. What tactics has potential to eradicate poverty, and how can blockchain technology be a part of that process?

Firstly, the unbanked need to be banked and people need better opportunities to fund small businesses with microloans. Secondly, social services need to be more effective in identifying individual needs. Moreover, women need to be in focus as they are more likely to experience poverty as they own less property and have less paid work and generally have lower levels of education than men. There are also clear links between land corruption and poverty.

Land corruption can involve brides during the land administration process, women being denied land rights, communities being excluded in land deals, people being evicted from their land and denied access to relevant information. Blockchain technology can solve major issues in the determination of land ownership. The process of managing records and determination of ownership is transparent and secure when conducted on a blockchain. It is also inclusive in the way information is accessible to the appropriate parties. The fact that blockchains are immutable is important to combat corruption as no one can change land ownership information on the blockchain without it following legal procedures. Blockchain technology can make the process of land ownership and the right of use quicker and cost-efficient and in turn assist in the creation of a trustworthy system that lower the risk of poverty. Suddenly ownership of a parcel of land is reliable.

There are approximately 1.7 billion unbanked people in the world and most of them are women. FinTech companies have potential to provide banking services for the unbanked and help to solve the problem with financial inequality.

Blockchain technology and cryptocurrencies have led to the development of new models for micro-lending from developed countries to entrepreneurs in developing countries. Conventional money transfers are expensive and slow and is therefore not able to meet individual needs. This leaves people with limited financial resources outside of the traditional banking system and entrepreneurial dreams are crushed by lack of funding. Blockchain technology have made it possible to send small amounts of money across borders with little or no fees.

We have all heard stories of corrupt leaders use foreign aid to fund criminal activity or to enrich themselves. In today’s aid system funds cannot be traced from end-to-end creating potential for mismanagement and decreasing accountability. One very interesting project is Disberse, who worked with United Nations Office for the Coordination of Humanitarian Affairs and other major donor organizations to track aid on the blockchain. Sadly, Disberse had to be cancelled after the pilot phase, but the idea of the project was ground-breaking. Blockchain technology open a lot of doors and allow new ways of doing business and to solve societal problems, but projects also need to function on all levels of delivery. The final report of the project sends us a message; “Remember that technology is a means to an end, not an end in itself.” The Disberse website is now a hub for learning resources and a valuable source for future projects with similar focus.

Social services can also be improved with the use of blockchain technology. Researchers have identified ways to use blockchain technology to identify the needs of vulnerable and needy populations and manage the follow up of the situation. This could be used to effectively and securely track and support people who receive social benefits or micro-loans and evaluate if the quality of life of the beneficiaries improves.

In many ways using blockchain technology to fight poverty is a way to reach the individual but also to limit human interaction in transactions and providing a trustworthy platform for services. Unfortunately, human interaction in financial processes make room for fraud and corruption and the traditional financial system is expensive and slow and not built to address financial inequality. Lessons from using blockchain technology to fight poverty tell us that technology is not the complete solution. We obviously need sound business models and the appropriate skillset. The successful social entrepreneur that uses blockchain technology and aims to fight poverty is likely to be a project that assists women living in poverty with optimized social services, targeted educational initiatives and microloans. 

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Business & Society

What is the fourth industrial revolution? — why does it matter for business and society?

In less than 300 years our society has evolved from the steam engine to smart household gadgets and robots doing our work. Each industrial era is better than the previous and develops from the need to advance businesses and society. What’s the fourth industrial revolution good for?

We have gone through three industrial revolutions; each lasting about 100 years. The first industrial revolution started in 1784 with the development of steam, water, mechanical production equipment. About 100 years later society was greatly enhanced with the use of electricity and in late 1960s electronics, IT and automated systems reshaped society.

Each industrial era comes from the necessity to advance society and the fourth industrial revolution (industry 4.0) is the most advanced and quickest of all previous industrial revolutions. In the last twenty years new disruptive digital technologies such as, artificial intelligence, big data, blockchain technology, cloud computing and fintech have transformed our existence. The speed of the fourth industrial revolution makes it difficult to see clearly what the future will look like. However, there are key themes that are important to be aware of.

Industry 4.0 is generally about optimization of production and creating a closer connection between manufacturers and customers. Researchers predict that blockchain technology will change almost all aspects of our lives, including financial markets, business operations and governance, health care, government operations and public administration. Blockchains can be effectively used for registration of births and title deeds, security trading, insurance services, health care, accounting, auditing, and supply chain networks. One major component of blockchains is that they eliminate the ‘trusted third party’ such as banks or other central authorities involved in transactions. This will affect businesses that involve the middleman.

Moreover, things need to go quicker now days and industry 4.0 is all for optimization and customization. Technological innovations in the fourth industrial revolution enhances the products and services that were developed in the third industrial revolution. The internet of things is a term to describe the link between a physical product and its connection to the internet. Information alone is not enough, and the information age is enhanced by technologies in the fourth industrial revolution. Customers demand customization, and the fourth industrial revolution is about mixing and matching technologies that increase productivity and meet customer needs.

The sky is the limit with technology. Today payments are quickly and easily made through fintech payment apps that use blockchain technology, our lawns are cut by self-driving lawn movers and automated cars can drive us to work. Robots with AI technology are used in production. Google assistants order products for us and our smart phones and watches are almost limitless in how they impact our lives. Cyber physical system that uses a combination of technologies such as sensors and data are used to enhance products. One example is the fire alarm that start to ring when a change takes place in the environment.

There are a few fears within the fourth industrial revolution that companies and societies need to tackle. Security challenges are apparent as we use big data that is commonly stored and transferred on the cloud. Companies and organizations need to consider privacy issues regarding how they use and store customer data. Decentralized blockchain technology has proven to be a more secure database than traditional databases and data can now be stored on the cloud in a decentralized fashion. This increases security as big data is not stored on one server but on a cloud that is connected to hundreds or thousands of nodes.

As society evolve in digitization, we also need to evolve. The adoption of new technologies is likely to affect the labor market as robots and technological innovations are used instead of humans to perform services and production tasks. The need to solve simpler tasks is likely to go down and demand for specialized knowledge and high-level jobs will increase.

Grandma needs to learn to use the smart phone.

It’s the same for business. It is the nimblest company that will survive in the fourth industrial revolution. Companies that are brave enough to question current ways of doing business and embrace new technologies will survive. They may even have to change their business model to meet customer needs. Here’s a business idea for you. Take accountants for example. Their way of doing business can be dramatically improved if they used blockchain technology instead of traditional accounting methods. Blockchain technology would make their business more secure, trustworthy, and efficient.

Being in tune with societal developments is crucial for delivering business practices in the absolute forefront. There are huge economic rewards for companies that are successful in adapting to the current industrial phase. But it takes guts to evolve. Daring to use and merge different technologies with services or for production is necessary to stay ahead in industry 4.0.

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Business & Society

Better coffee with blockchain technology

Coffee producers brag about high quality beans and sustainable production methods. Should we trust their word for it and simply enjoy our coffee in the morning? How can blockchain technology ensure that our coffee is sustainably farmed?

Coffee is commonly divided into two broad categories; Arabica and Robusta. Arabica is considered high quality with superior taste whereas Robusta is used for cheaper types of coffee such as powder coffee. Labeling coffee “100% Arabica” is a classic way to imply that the coffee is of high quality, but it is no guarantee that the beans have been ethically sourced or is sustainably farmed. Considering that there are hundreds of different eco labels it is impossible for the consumer to be certain that each package of coffee is following eco labeling guidelines. Contamination is also an issue in the coffee business. Researchers at Quadram Institute claim that between 5 and 20 percent of all Arabica labelled coffee may in fact contain significant levels of Robusta. Fraudulent activity in the coffee sector is big business as the global coffee market is worth USD 466 billion. Is there a way to increase consumer trust, and trace and parse coffee from the farm to the cup?

In fact, there is a growing trend in specialty coffee to include traceability information such as the name of the farm, location, and crop year on coffee packaging. However, blockchain technology takes traceability to another level. Blockchains often use new technologies, such as remote sensing technology and artificial intelligence to collect and analyze data. Customized sensor networks can be used to track time, temperature, and humidity levels which is stored on a blockchain. This data may be vital for food safety.

For example, Walmart is collaborating with IBM to utilize blockchain technology for tackling food safety in the supply chain. Food safety and blockchain initiatives are being initiated in China, South America, and Central America.

One major benefit of using blockchain technology is increased transparency. Coffee companies in Indonesia use blockchain technology to ensure that the production process is secure. Upon purchase consumers can scan the QR code on the package to learn facts about harvesting, roasting, and shipment time. Each bag is traceable and the blockchain ensures that the information is immutable.

Futhermore, blockchain technology provides verifiable trust instead of general information. Putting it simply. It is difficult for a coffee company to use fraudulent practices when each step of the production process is tracked on a immutable blockchain. Blockchains can be used to analyse the production process and to certify products. Eco certifications mean something when companies are transparent by using blockchain technology.

It’s a win-win situation. Coffee companies realize that consumers are quality and environmentally conscious and put in the work to improve customer relations. Companies can enjoy increased sales when customers can verify that the coffee is sustainable.

There are also marketing benefits of using traceable production processes. We speak highly of things we trust and coffee companies experience increased social media engagement when they focus on transparency.

In summary, coffee companies that use blockchain technology can build better relationships with customers and increase efficiency, and reduce the risk of food recalls, fraud, and product loss.

This taste like better coffee.

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Business & Society

Banks hinder innovation by blocking the FinTech industry

Banks may be considered secure, but they are failing to provide satisfactory and effective services for billions of people and hinder the development of the financial sector. Is FinTech the solution?

Crises do not only foster personal growth but also societal developments. The 2008 global financial crisis led to the growth of an innovative financial industry called fintech. FinTech is short for Financial Technology and is used to describe an industry that combine new technology and financial services. Commonly FinTech companies offer digital payments instruments, lending, crowd funding and open banking as well as cryptocurrency. The Swedish FinTech sector has grown more than fifteenfold since 2008 and is proud to offer a healthy innovative environment for about 450 FinTech companies. Stockholm is a hub for many FinTech companies such as Klarna, Avanza, Qliro and Nordnet.

However, innovation can be disruptive. FinTech is seen as a threat to traditional banks as it eliminates the middleman in economic transactions. Traditional banks are making it harder for people to interact with FinTech companies by banning the use of debit and credit cards for cryptocurrency purchases. The Swedish bank Handelsbanken have blocked the use of debit cards on the crypto exchange Binance and the credit card company Remember have blocked all crypto purchases. Since the beginning of 2022 it is not possible to buy crypto with a Swedish debit or credit card on any of the major crypto exchanges.

The official explanation for blocking crypto payments is that it protects the customers for risky investments and from fraud. Hang on! What‘s’ going on here? I am not a gambler, but I am sure that I can use my debit/credit card when I go to a casino. I know I can use it to buy a few margaritas in the nightclub… I do not need any bank to decide for me what an risky investment is.

The only reasonable explanation for blocking crypto payments is that crypto is seen as a threat to the core business model of traditional banking. It is common knowledge that traditional finance is fearful of the transformative power of the crypto industry. At first glance it may seem natural that traditional banks protect themselves, but it is a violation of freedom when they try control how we spend our money.

On a broader scale these measures by the banks pose a threat to the FinTech industry and hinders innovation. The FinTech industry is a growing part of the financial system in Sweden and have earned 0.15 percent of the nation’s GDP. Some FinTech firms use blockchain technology and crypto currency in their business model. Sweden is increasingly seen as an international player in the FinTech industry and traditional banking will go through changes in the fourth industrial revolution. It’s a fact that major global banks use blockchain technology as a way to improve their service. But blocking banking card transactions to crypto exchanges sends another very clear message.

The traditional banking sector is seen as a secure with government guarantees but it has failed to help those in most need. There are approximately 1.7 billion unbanked people in the world and most of them are women. In developing countries 94 percent of the population has a bank account but in developing countries the figure falls to 63 percent. On a global scale 72 percent of all males have a bank account and 65 percent of women do.

FinTech has potential to provide banking services for the unbanked and help to solve the problem with financial inequality. I would like to ask the traditional banking industry how one can live without having a basic checking of savings account!? How can a person live a normal life when there is no way to get a loan or difficult to pay for groceries. How are banks helping the poor?

Well, let’s not forget. Banks are not our friends. The world would be wise to consider what the FinTech industry can do to improve the current financial system. Lets create a sound financial system for the benefit of mankind. A system that do not exclude either traditional banks or the crypto industry.

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Business & Society

Can blockchain technology be used in national elections?

Digital elections can solve problems with queues and boost voter turnout. Why are we not using blockchain technology for national elections?

Sweden recently had a national election and reports suggest that some districts experienced long queues due to new voting procedures in polling stations. The ballot papers were placed in a booth to increase privacy, but this led to increased queues. The Swedish Election Government (Valmyndigheten) also claimed that the participation rate experienced a downturn.

Democracies perform better when more people vote, and we need to use technology to make the voting process more effective.

The pandemic showed the world that we need to look at different ways to organize important democratic events. For a democratic society to function properly, people need to be able to vote regardless of the situation a country is in. War or peace. We therefore need to use technology in the best possible way to decrease the risk of elections frauds world-wide and to increase voting participation. Is blockchain technology the out of the box solution?

According to research blockchain technology can be used for elections. Blockchain technology can be used to decrease the risk of fraud by decreasing human involvement in the voting process. By using an electronic voting system people will have a secure and easy way to vote without leaving home, but is blockchain technology ready to be used for a national election?

I was given the opportunity to work in the Swedish election and experienced the problems of manually handling ballots. Each ballot had to be handled according to strict guidelines to ensure a secure, anonymous, and trustworthy voting process. I was surprised to see that each ballot is still manually counted. We often had to recount the votes several times since they did not always match the voting registry. The counting process was time consuming and votes from abroad needed to arrive before national results could be presented. It was an honour to serve the Swedish democracy, but I wonder why we are still using old school ways of voting.

Research show that blockchain technology is not enough for national elections. One problem is that the blockchain stores data in such a way that a national election will be too large for the blockchain if privacy is essential in the election. Currently, blockchain technology can only be used in elections where votes are only counted without being verified. In short. Using blockchain technology gets tricky as soon as we need to know that our individual votes have been counted but without showing who we voted for. Solving this technological puzzle takes time. The blockchain expert and creator of Cardano, Charles Hoskinson has predicted that we need 3–5 years before the blockchain technology may be ready to be used in a national election.

The crypto space is eager to talk about the potential of using blockchain technology to solve major problems with election fraud in developing nations. But clearly blockchain technology needs to develop further before it can be used in national elections. Sweden will likely stick to its remarkably transparent voting system for many years to come as people have a high degree of trust in government organisations and the traditional voting system. Technology will take a bigger role if that trust is broken.

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Business & Society

Growing pains of the crypto industry

Scams, hacks and rug pulls are causing billions in losses for investors and harming crypto businesses. Exchanges and decentralized finance companies go bankrupt. Rogue states use anonymous crypto currencies to fund military spending. Governments ban certain blockchain solutions and traditional finance are in a shoot-out with the crypto industry. Is this normal for the emergence of new technologies?

The internet started its public journey in the beginning of the 1990s and today 4.4 billion people are estimated to use the internet. When internet was launched to the public a range of problems occurred for users. Spam and viruses were so common that every computer needed antivirus software. Illegal content and pornography basically took over the internet. Later major issues appeared when the old Internet Protocol called IPv4 had to be changed to IPv6 to get more internet addresses. The biggest problem is still that half of the world’s population do not have internet access. The point is that technological developments will go through problems before they are adapted to our needs. Rome was not built in a day.

It’s not easy for the crypto industry to adapt to its own rapid development. Laws and regulations in the crypto space cannot keep up. For example, recently the virtual currency mixer Tornado Cash was sanctioned and caused worries in the Ethereum ecosystem. The problem is that Tornado is an open-source software that use the Ethereum system to make it difficult to trace cryptocurrency transactions. Apparently, North Korea used Tornado Cash to launder $7 billion worth of crypto currency on the world’s second biggest blockchain Ethereum and used the money to boost their military spending. The founder of Ethereum Vitalik Buterin did not see that coming.

Clearly regulation and laws are an essential part of a healthy society but sanctioning a piece of open code is clearly problematic. Privacy is an important part of the crypto space and that does not mean that privacy is equal to illegal behaviour. We do not want others to know about our digital wallet or about our health data that will be stored on a blockchain in the future. We certainly cannot blame blockchain technology in general for creating software that can increase privacy. When Facebook used our internet data in questionable ways to profit, the US government tried to make sense of what they did and to enforce regulation. But we never blamed the internet for how it was used to profit from consumer data the way Facebook did.

The S curve is a way to measure how far a technology is being adopted by society. If we look at where the crypto industry is in terms of adoption in comparison to the dawn of the internet its only 1993 in the crypto space. Do you remember the first time you used Explorer to surf the internet? The S curve tells the story that the crypto space is somewhere in between the innovator and early adopters’ phase of development. Think of the adoption rate like a scale from 1 to 5 and the crypto industry is nearly in the second phase. The fact that there are more than 20000 crypto assets it’s obvious that innovators have centre stage and you and me (early adopters) see opportunities in the field, but the public remains sceptical. Crypto is like an energetic cocky teenager and growing pains are natural.

Have a great day!

Henrik

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Business & Society

A crypto boom despite price downturn

The price of Bitcoin has fallen 70% since all-time high in November 2021 and some altcoins have even had a 90% downturn. A newcomer in the crypto space might think that the industry is down for a 10 second count, but in fact the developments in the crypto industry have been significant in the last year.

Major banks consider blockchain technology a necessity to be competitive and to improve its services and to save billions. Santander claimed that banks could save 15–20 billion a year. Mastercard and Visa is in on making it possible for their customers to do crypto payments. Luxury brands are betting on the future of the metaverse. Meta opened its arms fully to the industry and has adopted the metaverse kid. Instagram has made it possible for users to show NFTs on the platform. Applepay have already taken a piece of the traditional payments pie and have created solutions for connecting crypto wallets to Applepay.

I agree. NFTs are a bit difficult to understand, but they are far more than just a jpeg image. NFTs have already had a boom in 2021 and is here to stay with innovative functions. The entertainment industry use NFTs to offer the NFT holder various forms of entertainment such as a concert or an art exhibition. Professional artist use NFTs to ensure payments and to lower the risk of forgery. NFTs are a big time business. In 2022, the sporting industry is set to earn $ 2 billion on digital collectibles, virtual access, and gaming.

Michael Sailor and his company MicroStrategy is relentless in its faith in Bitcoin and keeps on buying regardless of its downturn. Elon Musk needed cash and sold some Bitcoin and keeps on fiddling with Dogecoin and scaring the market with occasional tweets. Recently one of the world’s biggest investments managers Blackrock with its trillion-dollar purse showed up in the space and teamed up with the crypto exchange Coinbase. Although Blackrock is tight with the traditional banking sector the crypto industry cannot wait for a trillion-dollar injection. Boom!

Companies use blockchain technology to improve their services. Blockchain is a software solution to problems in various industries such as tracking and tracing products in the transportation industry. Or for securely storing private and sensitive health data. An entrepreneur could even start a crypto business to fund a shelter for animals. Anything can be programmed on the blockchain. A smart contract code can be seen as the computer saying, ”if x happens then y happens automaticaly”.

In the beginning of the year U.S President Joe Biden even signed an executive order on crypto to advance the U.S competitiveness and leadership in digital assets and crypto ecosystem.

Blockchains clearly has value for businesses and nations.

Investors believe that the crypto project has potential to increase their investments because the project can solve a problem. Sure, some crypto projects are useless and still increase in price, but the last stupid thing in universe is not yet created.

Let’s not forget that crypto is more than the price of an asset. The monetary value of the crypto market is not indicative of how far the crypto industry has come. CZ Head of the world biggest crypto exchange Binance, said it best “Price is just a reflection of mass psychology, not progress.”

Have a great day! / Henrik