Issue 112: Is Technology Broken?
Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about recent developments in technology– Mary Ames, Director of Strategy
THE BIG TAKE
Is Technology Broken?
What is happening in digital technologies? This month will go down as a pivotal month in the history of the contemporary tech sector. Twitter, the small but influential social media network, is imploding under the leadership of Elon Musk as other leading tech companies start mass layoffs. We wrote about this in the last edition of Backstory. The FTX crypto exchange, once considered a stable titan in the cryptocurrency market, has filed for bankruptcy and its eccentric founder has stepped down after failing to find $8bn to keep the exchange afloat (and maybe even avoid jail time). There is an immediate effect on investors and users of these platforms, but the most pernicious aspect of these events could be an erosion of trust in technological innovations.
The problem is trust. If eccentric billionaires can implode the core pillars of these platforms, why should the general public adopt them? Given the pace of innovation across technology sectors, where should people put their faith? These aren’t easy questions to answer. Yet, with the spectacular downfall of FTX, regulators worldwide are promising deep scrutiny of the crypto sector. This might be one of the silver linings of the developments.
Fresh start? There is going to be a big push into government-backed crypto projects, including better regulation of exchanges and the advent of central-bank digital currencies (CBDCs). The Central Bank of the United Arab Emirates just completed the world’s largest pilot of CBDC transactions at the end of last month. Having become a trusted space in the remittance market, the UAE can build on that with its own central bank digital currency. The fact that the CBDC is backed by the UAE should inspire some confidence in the technology itself. Our trust needs to be restored.
QUOTE OF THE WEEK
“Sometimes the obvious product is the right one. Other times it’s the lazy one.”
–Sam Bankman-Fried, the co-founder of FTX
CHART OF THE WEEK
In this week’s chart of the week, we are looking at the world’s largest crypto fund, GBTC. It is currently offering a 42 percent discount to the value of Bitcoin that it holds. Incredible.
OUR VIEWS THIS WEEK
Women in the 4IR: The Fourth Industrial Revolution. It’s here and it’s transforming the future of work. The coming transformation of labor could improve the position of women in the workplace. If we start a conversation about the role of gender in 4IR today, we can lay the groundwork for a more equitable future tomorrow. In this piece published by Xische, Mary Ames explores the issues at play. She argues that we must realize the invaluable perspectives women can bring to designing and regulating the future to explore the full potential of 4IR.
Everyone is looking: Facial recognition technology is controversial, and it will likely stay that way for quite some time. That doesn’t change the fact that the industry is booming and expanding, particularly in North America. So it’s about time to address the concerns about facial recognition and make the necessary changes. In this piece from the archives, we took a deep dive into the debate about this powerful technology.
SPOTTED ELSEWHERE
The most intelligent creature in the sea? The octopus might be the most fascinating creature in the world. A new study reported in the New York Times finds that the gloomy octopus — its real name — is in the small club of animals that toss things at other members of their own species. Can we really blame these hyper-intelligent creatures? The urge to hurl something at an irritating neighbor is apparently a universal feeling.
The crypto story, again. In the last edition, we wrote about Matt Levine’s major piece in Bloomberg diving deep into crypto. Given everything that has happened with FTX since then, it’s a good idea to check out this piece if you haven't already. This long and immersive story about crypto might end up being the must-read piece of the year. If you are looking for an in-depth but accessible explanation of crypto, this is it.
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