Issue 100: Who is stressing about the blockchain?
Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about blockchain technology – Mary Ames, Director of Strategy
THE BIG TAKE
Who is stressing about the blockchain?
The global economy is on the edge of a deep and prolonged recession. The news is grim from growing inflation, skyrocketing energy prices, political instability in Eastern Europe, and uneven recovery from the Covid-19 pandemic. Cryptocurrencies, including major coins such as Bitcoin and Ethereum, have seen major sell-offs in line with falling markets. This has led to panic across the crypto community, but two markets haven’t felt the sting in the same way: the UAE and the Baltic countries.
Long-term thinking: As a result of their relative insolation from the current dips because of long-term thinking, these countries are in an enviable position to use this crisis as an opportunity. In 2016, the Dubai Government unveiled a bold blockchain strategy that called for the rapid integration of government services and blockchain technology. This manifested in initiatives such as the paperless strategy that saw various government offices move away from paper to transactions securely stored on a blockchain. The ambition and long-term thinking is clear.
Going mainstream: The underlying technology of blockchain is going mainstream as more investors and governments understand its lasting power. In smaller countries with nimble legislative environments, the ups and downs of the crypto market haven’t slowed the process of bringing blockchain to the mainstream. As crypto markets continue to cool, these small countries will enjoy the lion’s share of innovation in the blockchain world. There is an excellent opportunity in the current market downturn, and in a few years, it is unlikely many will remember this blip on the radar.
QUOTE OF THE WEEK
“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.”
– Vitalik Buterin, co-founder of Ethereum
OUR VIEWS THIS WEEK
The digital Dirham: Cryptocurrencies are in the dumps. But that shouldn’t sour talk of government-backed digital coins. In this piece form our archive, we turned our focus to government-backed digital currencies. Creating a state-backed digital currency is no easy task, but the potential return is hard to comprehend fully. With the right tools, human capital, and infrastructure, the UAE is poised to create a truly global digital currency that would entrench the country’s position as a hub of the emerging world. The time is right; it’s time to take the plunge.
Cybersecurity in the spotlight: The backbone of tomorrow’s knowledge economy is cybersecurity. With more information moved to the internet every day, the importance of sound cybersecurity defense on a national level is apparent, but it doesn’t stop there. In this piece published by Xische, we explore how cybersecurity is evolving to meet the challenges of tomorrow.
SPOTTED ELSEWHERE
Are you afraid of sharks? Fear of sharks is common but it's also irrational. In fact, the New York Times finds, that “a fear of sharks is no more rational than a fear of cars, lawnmowers or toasters, all of which outperform the animals in lethality.” A new book about our shark fears is reviewed this week in the Times and the review is well worth your time. Sometimes there is nothing to fear but fear itself.
Image AI: Google’s image AI is getting much better. The Verge reports on this hot new trend in AI where programs create images based on text. You feed the program text and the AI generates remarkably accurate images that match the description. Anything from an oil painting to a CGI render is fair game. Click through and see the images for yourself. Just imagine what else these programs are capable of.
QUICK HITS
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