Update: Thanks to all of our guest experts and other participants for joining the chat on Thursday (July 7)! There was some great discussion and even some debate. Please scroll down to find a quick summary of our discussion.
What technology has the potential to connect everyone in the world in a new and important way that could redefine currency, democracy, and the way we do business?
If you said blockchain, then you’ve been reading up on this cryptographic algorithm that defined Bitcoin but has the potential to be so much more. Blockchain is a technology that can facilitate trusted peer-to-peer transactions without the need for a third-party authority. It’s a means to store and transfer value in a way that’s secure and maintains privacy. It’s totally distributed and decentralized, relying on the network of its users to power it.
Satoshi Nakamoto may have invented the first iteration, but others have taken note, including many here in Canada. Father and son team Don and Alex Tapscott have released The Blockchain Revolution after participating in a $4 million program at the Rotman School of Management at the University of Toronto. Matt Spoke is founding Nuco, a new blockchain startup and a spinoff from Deloitte’s blockchain team based in Toronto. Christie Christelis is an Ontario-based mobile payments analyst that has followed the rise of virtual currencies in Canada.
Here are the questions our guest experts answered during our hour-long chat:
1. What is blockchain technology and how is connected to, but separate from bitcoin?
Bitcoin is a cryptocurrency whereas blockchain is a distributed ledger of transactions in any asset- stock,bond,money,title,etc #ITWCChats
— Alex Tapscott (@alextapscott) July 7, 2016
A1 – I am also seeing #blockchain explored for identity, financial inclusion, biometric tokens #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
.@brianjjackson @MattSpoke Yes, there are many hyrbrids. But myPOV (and Nakamoto's): if you need a 3rd party then BC is a waste. #ITWCchats
— Steve Wilson (@Steve_Lockstep) July 7, 2016
2. Blockchain has been described as “the Internet of value.” Why?
#ITWCChats. #foxgroup see it as the super postal service of currency and DIRECT shipping for financial transactions https://t.co/ucg2H2rLqM
— #FOXGROUP (@robertajfox) July 7, 2016
Digital tokens on a blockchain can be issued to represent anything (stocks, deeds, bonds, etc.) #ITWCchats
— Matt Spoke (@MattSpoke) July 7, 2016
3. How is blockchain related to maintaining personal privacy in the digital age?
A3. THere's plenty of articles, but here is an #MIT study on #blockchain maintaining personal privacy. https://t.co/KbdK3I2zaq #ITWCChats
— Mat Pancha (@mpancha) July 7, 2016
A3 – #blockchain is a mix of privacy and anonymity, open but not necessarily with identity revealed – this is useful #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
The irony of the blockchain is that it is a public ledger so transparency is built in. It is not built to be private #ITWCchats
— Christie Christelis (@chrystech) July 7, 2016
4. Why could blockchain decentralize power and have an equalizing influence on society?
re Q4 but look at Bitcoins now, over 70% of transactions have to go through China. So it's an arms race vs decentralization #ITWCchats
— Kevin Lo (@kevin_lo) July 7, 2016
Nakamoto rolls in his grave. The concentration of power was expressly assumed to not occur. Woops. #ITWCchats https://t.co/tNt9FWbdC6
— Steve Wilson (@Steve_Lockstep) July 7, 2016
A4: Look at eg land titles, or diamonds. #Blockchain does not decentralise the issuance of wallet keys to authzed participants. #ITWCchats
— Steve Wilson (@Steve_Lockstep) July 7, 2016
5. What are some of the challenges to building blockchain-based systems?
I think Bitcoin's tipping point will be when it becomes one of the largest traded currencies globally (maybe top 10) #ITWCchats
— Matt Spoke (@MattSpoke) July 7, 2016
re A5 – private #blockchain networks need counterparties and this still requires alignment and trust; and takes time #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
A5. I feel like the biggest challenge is helping the public understand why they want it. No demand=no adoption. #ITWCchats
— Dave Yin 殷大伟 (@yindavid) July 7, 2016
6. How can organizations prepare for a blockchain-driven world?
A6: Understand that #blockchain does not get rid of agents and third parties. It only decentralises cryptocurrency. #ITWCchats
— Steve Wilson (@Steve_Lockstep) July 7, 2016
A6. Read, experiment with dev teams, take part in Twitter chats. Ask: where could a decentralized network help us? #ITWCchats
— Brian Jackson (@brianjjackson) July 7, 2016
A6. revisit their value propositions to make sure their model is not purely based on being a redundant middle man #ITWCchats
— Matt Spoke (@MattSpoke) July 7, 2016
7. Ethereum is a blockchain platform offering up tools to developers. What role does it have to play in progressing this technology?
A7. Ethereum has introduced a game-changing way of approaching computing #ITWCchats
— Matt Spoke (@MattSpoke) July 7, 2016
A7, Ethereum is one of many platforms that are emerging to provide a basis for extended blockchain applications #ITWCchats
— Christie Christelis (@chrystech) July 7, 2016
A7: The newer distributed ledger technology #DLT platforms are very promising. Like the @Microsoft @ethereumproject #BCaaS #ITWCchats
— Steve Wilson (@Steve_Lockstep) July 7, 2016
8. What does the hack and theft of $500 million from blockchain VC fund The DAO mean for the technology?
A8: I see the #DAO hack as extremely serious. They promised to change the world, rushed it out, with a brand new language. #ITWCchats
— Steve Wilson (@Steve_Lockstep) July 7, 2016
The DAO hack was proof that humans can't be trusted and that smart contracts need to be smarter – great concept, bad humans #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
My take on the DAO https://t.co/dqIozuQkq2 #ITWCchats
— Matt Spoke (@MattSpoke) July 7, 2016
9. What are some of the exciting Canadian projects based around blockchain?
A9. The Bank of Canada's experiments are worth looking at https://t.co/2uJxJXFju3 #ITWCchats
— Christie Christelis (@chrystech) July 7, 2016
A9 @decentralca accelerator doing lots of interesting #blockchain projects #ITWCchats
— Brian Jackson (@brianjjackson) July 7, 2016
A9 – as a recent example @atbfinancial sent a real value payment on the blockchain in a live demo at the @PaymentsCanada conf #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
10. What are the potential dangers of blockchain tech being used for evil?
A10 – DAO abuse is a great example, new technologies are new potential opportunities for abuse – dark forces often move quickly #ITWCchats
— Kris Hansen (@KHBanking) July 7, 2016
A10. I should also mention those pump and dump coin schemes… people out to make a buck on the back of new virtual currencies #ITWCchats
— Christie Christelis (@chrystech) July 7, 2016
Alexander Tapscott, CEO of Northwest Passage Ventures
Alex is the founder of this consultancy focused on early-stage high growth companies involved with blockchain technologies. With his father Don Tapscott, he’s the co-author of the new book The Blockchain Revolution, which describes how Blockchain is a revolutionary protocol that could record everything of value to humankind. Previously, Alex was a senior executive at Canaccord Genuity, Canada’s largest independent investment bank, where he became the firm’s youngest-ever vice-president at age 25.
Mattew Spoke, CEO of Nuco
Formerly a member of Deloitte’s Rubix blockchain team, Spoke and two of his colleagues departed the consultancy to form Nuco so they could raise capital faster. He’s worked in the blockchain space for the past two years and says he’s committed his professional career to seeing the technology succeed within enterprise markets. He’s written articles about why blockchain is the future of accounting because of its potential to change the auditing process. He believes blockchains are the future of enterprise infrastructure. Previously, Matt was the president of CASCO, a student-run organization that raises money for Children’s Hospital of Eastern Ontario.
Christie Christelis, mobile and payments industry analyst, Technology Strategies International
Christie is also the president of InPayCo, a conference that brings together major providers, users, and developers in the mobile payment tech space. He’s tracked developments in the Canadian Payments Industry for the past 18 years and has been an advisor to payment companies in 20 countries. He authors the annual Canadian Payments Forecast Report.