Issue 105: What is the Network Effect?
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
What is the Network Effect?
It’s an ideal time to think about blockchain technology beyond cryptocurrencies. With prices of leading coins still struggling to bounce back to their previous highs, it’s essential to consider the underlying technology powering blockchain and its potential to transform society. We believe in the multifaceted power of blockchain technology to change how we live and society functions. Over the next couple of weeks, you will notice an increase in the frequency of this newsletter as we expand our focus on blockchain. We plan to unveil some new features (like charts!) and finetune our focus on exciting new sectors such as NFTs.
Network effects: As we dive deeper into the blockchain world, it’s important to think about the big ideas shaping the future of the technology. Last month, Balaji Srinivasan released his much-anticipated new book, The Network State: How to Start a New Country. As one of the leading thinkers on all things blockchain, the book grabbed our attention because his premise is so bold. Technology has enabled so much innovation, he argues, that the next logical step is the creation of entirely new models of human organization (the networked state). Blockchain technology is the infrastructure that will enable this transformation.
Not everyone agrees: It would be impossible to synthesize Srinivasan's thesis in just a few paragraphs. That being said, it is thought-provoking. The exponential rate of technological innovation is already transforming all aspects of our lives but are we on the cusp of something bigger? Perhaps – but there are some notable detractors. Most notably, Vitalik Buterin, the creator of the Ethereum blockchain. In a widely shared response, Buterin said there are some serious holes in Srinivasan's thinking. It’s worth reading his response in full. Blockchain technology is about much more than cryptocurrency. As technology continues to evolve, it’s critical to keep an eye on the various and fascinating discussions taking place in the community.
QUOTE OF THE WEEK
“If at first the idea is not absurd, then there is no hope for it.”
– Albert Einstein
Cybersecurity in the spotlight: Cybersecurity is the backbone of tomorrow’s knowledge economy. With more information on the internet daily, 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.
The digital Dirham: Cryptocurrencies are still struggling. But that shouldn’t sour talk of government-backed digital coins. In this piece from 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.
SPOTTED ELSEWHERE
A giant leap in autonomous cars: Baidu, a leading Chinese technology company, just unveiled a new vehicle that requires no human intervention to operate. The “robocar,” as the company calls it, uses machine learning to analyze passengers’ needs and respond to verbal commands. In some scenarios, the system may even anticipate demands made by people in the vehicle. This is a significant step forward for the autonomous vehicle sector, which has recently been out of mainstream media headlines. These innovations will soon be displayed in forward-thinking cities such as Dubai. Exciting times ahead!
Did a robot write that? Sticking with the theme of robots, the Wall Street Journal reported that advertising agencies use AI tools to develop creative ideas and new campaign approaches. The AI’s primary benefit is its ability to complete projects, such as brand strategy briefs, that would take days or weeks, giving staffers more time to focus on other work. The automation revolution is here.
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