Top Reasons Why Enterprise Blockchain Projects Fail And How To Circumvent Them

Top Reasons Why Enterprise Blockchain Projects Fail And How To Circumvent Them

Blockchain is a distributed ledger technology that features data immutability, decentralization, and peer-to-peer communication. It helps to build trust-less networks for businesses to transact with other organizations. In the enterprise domain where trust is expensive, Blockchain helps organizations weed out inefficiencies both within the enterprise as well as industry-wide.

During 2017–2019, businesses mostly spent on trying out the technology with Proofs-of-Concept and Pilots. Today, Blockchain is getting into the mainstream with the launch of large Blockchain networks and consortia like IBM Food Trust, TradeReboot, Zuron, etc. The question among the enterprise leadership is no more about whether the Blockchain technology will work? It is about how can we make it work for us?

While many folks have invested in enterprise Blockchain projects, the reality is that many of these projects do not make it beyond proof-of-concept. As per a report published by Gartner, only 5% make it to production, and 90% of them will need replacement within two years to stay abreast in the competition. Most of them have either ignored or are no longer interested in making any significant change on the spot. So, what has failed for them? There are some common mistakes as to why these enterprise Blockchain systems failed. However, the most common one is a misunderstanding of the Blockchain applications in the real world.

Trying to Apply Blockchain to Everything

 

While Blockchain technology can disrupt most industries, it is not a solution to every problem. Besides, the technology is still maturing, so it is unsurprising that not everyone understands it or knows its use cases. Businesses should first figure out if their business needs Blockchain instead of implementing it straight away. There are two ways to find that out:

  1. Is the legacy solution ineffective, insecure, or expensive? — Developing and deploying a Blockchain-based solution only makes sense when the legacy system is proven to be inadequate.
  2. Do you have trusted sources to fetch high-quality digital data? — As Blockchains stores data immutably, it is essential to have trustworthy sources that can feed correct data to the Blockchain ledger.

If the answer to these two is yes, a business can certainly benefit from Blockchain technology. However, it is equally important to consider three interconnected areas, including scalability, costs, and complexity.

  • Scalability is imperative to evaluate the volume of on-chain transactions required by the proposed use cases. If an existing protocol cannot process the required volume, there’s a good chance that a business is not ready for Blockchain technology.
  • Blockchain is a complex technology that not only requires expertise but also needs businesses to integrate data from trusted sources. Smart contracts implementation is another head-scratching task.
  • The cost incurred in developing and deploying Blockchain technology into a business can be huge. It does not apply to only the manpower but also the hardware and technical resources. If adding new nodes is too expensive, a business is possibly not ready for Blockchain implementation.

Lack of Incentives

 

People work when they can gain something. Most of the firms get this wrong, and they put technical design ahead of economic design. Digital heads accord less priority to users’ incentives and product value. Instead, businesses prioritize hiring top-class technical talent. It is crucial to understand that Blockchain systems are economic systems and they are as valuable as technical systems. Another reason for the failure of most enterprise Blockchain systems is the fundamental misunderstanding of the Blockchain’s economics and the means to creating long-term monetization. Like social media platforms, Blockchain systems derive most of their value from their users. Therefore, firms should understand the network effects of initial use cases and then line them up with the early user base.

Lack of Governance

 

The governance mechanism of an Enterprise Blockchain system is perhaps the greatest predictor of a business’s success. While many institutions know what Blockchain governance is and how to best implement it, achieving this goal in the real-world is, at times, more challenging than estimated. Blockchain governance requires consensus achieved between users on the network in addition to the consensus accomplished by validators. Projects like MakerDAO and DASH were the two of the first few projects that aim to harness a “governance model” to diversify trust in trust-less ecosystems. While some might argue that Bitcoin doesn’t have any governance but is still a successful project, others suggest that if Bitcoin had a healthy governance system, it would have been more successful than it has been.

If you are getting into a Blockchain consortium, the governance structure becomes very important. Typically, in the Blockchain consortia, the competitors of an industry come together and takes collaborative approach. So, having a proper governance structure becomes all the more important. Various early consortia could not sustain themselves because of the lack of proper governance structure and incentive mechanisms.

Lack of Regulatory Clarity

 

As with other innovative technologies, Blockchains also struggle with regulatory challenges as the proper regulatory framework is not in place. Besides, regulations have always struggled to keep with the emerging tech space. “It is a revolution because Blockchains can record identities, financial transactions and all kinds of legal operations”, says tech guru Chris Skinner. Whether it be legal validity about identities stored on the Blockchain or transactions executed by smart contracts, a legal and regulatory framework is required.

One interesting use case is the use of Blockchain as a valid regulatory registry for the Internet of Things. In IoT, all connected devices have an identity, and Blockchain can act as a shared registry of such identities and enable secure device-to-device transactions. Now, this would necessitate a legal framework recognizing distributed ledgers as valid regulatory registries.

Blockchain is “Database” Mentality

 

The advent of Blockchain technology has led to the creation of the Distributed Ledger Technology or Web 3.0 world. Even so, most enterprises who adopt DLT do so thinking they’re deploying traditional databases. As for now, Blockchains can store only limited amounts of data on-chain, which include transactions that are recorded on the ledger. In no way, these ledgers should be considered a database to store data. It simply won’t work. So, a sound architecture needs to be designed for a decentralized application. There should be an ideal combination of on-chain and off-chain data design. This helps in achieving desired performance without compromising on security, privacy, or large data-sets.

Lack of Blockchain Expertise in Enterprises

 

As mentioned earlier, Blockchain systems enable value exchange and require sound architecture. This entails knowledge about programming languages (specialized in some cases like Ethereum), incentive mechanisms, cryptography, smart contracts, governance, and tokenomics. This unique skill-set is quite different from the traditional application requirements. A poorly designed Blockchain application will fail to deliver the expected value.

Legacy System Challenges

 

The enterprise Blockchain applications do not work single-handedly. Rather, the legacy systems, applications, and data-sets need to integrate seamlessly. It is a complex exercise as the demands for traditional and distributed systems are different. Besides, while working with some organizations like banks or hospitals, they must adhere to compliance. If the integration is not seamless, it will lead to issues, such as data inconsistency, poor user experience, cost overheads, and poor performance.

Poorly defined KPIs

 

The Blockchain applications operate on a decentralized network with stakeholders from within and outside the organization. Thus, the success parameters need to be properly defined for a Blockchain system. Some of the Key Performance Indicators (KPIs) could be transaction cost, throughput, growth in the no of stakeholders leading to the network effect, user experience, etc. The KPIs should also align with the business objectives. For example, while working on a trade finance use case, the parameters like time reduced to complete a transaction, the number of documents reduced, and several disputes reduced become important.

Enterprise Blockchain Adoption — Way Forward

 

While many enterprise Blockchain systems have failed in the past, some have revolutionized the industry through the ideal use of Blockchain technology. Indubitably, the technology holds the potential to disrupt every space, from banking to supply chain and healthcare to voting systems. As per Deloitte’s 2020 Global Blockchain Survey, 55% of the surveyed businesses said Blockchain is a top-five strategic priority, 39% already have Blockchain application in production, and 82% are either hiring staff with Blockchain expertise or plan to within the next 12 months. 85% of the respondents believe their suppliers, customers, and/or competitors are working on Blockchain solutions to address current challenges in the value chain.

To unlock the value and promise of Web 3.0, the adoption of Blockchain in enterprises needs to be accelerated. To circumvent the challenges mentioned above, the organizations need to articulate a sound adoption strategy that includes implementing the right tools and partnering with the right partners. Zeeve has been at the forefront of the enterprise Blockchain adoption, and we have helped many organizations conceptualize and implement Blockchain Technology. Zeeve’s Blockchain as a Service platform supports faster development of decentralized applications through a rich set of ready-to-deploy services and APIs, manages CI/CD pipelines, provides automated deployments of Blockchain nodes and networks, and monitors the Blockchain infrastructure. Zeeve helps save more than 60% in costs and time to market.

A Simple and Comprehensive Guide on Non-Fungible Tokens

A Simple and Comprehensive Guide on Non-Fungible Tokens

Whether it is the rise of fintech or e-commerce, digitalization has played its part in improving accessibility for assets and enabling the frictionless transfer of value over the Internet. However, the current system still lacks credibility.

Any user buying a branded item, on the Internet or offline, is always concerned about its origin. For instance, buying a diamond from a nearby shop, a large retail store, or even from the Internet; the end customer can never be sure about its authenticity. More importantly, it is extremely difficult to establish the quality of the diamonds and then justify the cost by considering the factors such as the origin of the diamonds. When the diamond turns into jewelry and gets historic value, the need for credibility or origin increases exponentially.

Connecting this with other real-world assets such as art or collectibles makes it even more worthwhile to pursue the need for authenticity.

Enter NFTs

If you wanted to buy Mona Lisa, you can never be sure if it is the same Mona Lisa as painted by Leonardo da Vinci. There is a high probability of the original Mona Lisa being replaced with a fake. Even if it goes through extensive verifications, no one except Leonardo da Vinci can provide the much-needed credibility for the painting being original.

A major reason behind this is the fact that the painting has been bought and sold numerous times and it has been impossible to track the original one. Even certain attributes of the painting have changed with time and there is no way of establishing the authenticity of the original painting.

What if, there existed a digital record where Leonardo da Vinci himself provided the necessary description or characteristics to identify the original painting?

A digital record, where the ownership of the painting can be traced back to its origin, establishing trust among the buyers and creating a transparent environment for the valuation of the painting. Moreover, this digital record could be referred by any of the buyers to establish the authenticity of the painting by verifying the defined characteristics.

This is what Non-fungible tokens do.

The first step for understanding NFTs is realizing the fact that NFT is a token, representing an asset that is Non-Fungible. There are two concepts here — the first is tokenization on Blockchain and the second is an asset with the property of non-fungibility.

Fungible VS Non-Fungible Tokens

At a broad level, assets are of two types; fungible and non-fungible.

Fungible assets are those that can be interchanged because they possess similar properties. For example, if you own one bitcoin, it hardly matters which bitcoin it is because every bitcoin has the same value. Similarly, if you consider a real-world asset like the tire of your car, all 4 tires are the same. If you change the position of those tires or replace one of them with a new tire, it will make no difference.

Another thing to consider here is that every tire, of a particular size and company, is going to have the same value which simplifies the process of exchanging the tire. Trading such assets has been further simplified with the advent of digitalization.

At the same time, trading unique assets has become extremely difficult.

Sending or receiving money or cryptocurrency on the Internet is not that difficult but what if you want to send or receive the ownership to maybe an MP3 file that you created. Such an asset is non-fungible.

Non-fungible assets, on the other hand, can not be interchanged.

Another suitable example of a Non-fungible asset is diamonds. Each diamond has unique properties in terms of size, shape, color, cuts, and shine. Therefore, each diamond carries a different value based on such properties.

When it comes to representing non-fungible assets on the Internet, it is not as straightforward as representing a fungible asset. For instance, the origin of a non-fungible asset plays a huge role in defining its authenticity and value whereas the origin of a fungible asset is not that important as they carry the same value. Another aspect is the credibility of a non-fungible asset being original.

This is where Non-Fungible Tokens revolutionise asset digitalization.

What are NFTs

Using NFTs, a unique asset can be represented on top of a Blockchain network carrying some unique properties and a defined value. Tokens on Blockchain are used to represent the ownership of an asset which can be physical or digital. Transferring these tokens represents the transfer of ownership of the asset rather than the asset itself.

Considering the diamond example again, each diamond can be represented on the Blockchain network using NFTs. When an NFT is sold, the ownership of the diamond in the physical world is transferred to the buyer. In essence, the diamond can be in the mines and still be tradable in an authentic way.

These NFTs are stored on the immutable ledger of Blockchain. Therefore, the data belonging to the NFTs stays on the Blockchain forever and can be referenced any time for audits or any other purpose.

Characteristics of NFTs

Indivisible

NFTs can not be divided into smaller parts unlike the fungible assets such as a 20 dollar note that can be divided into smaller units. There is a concept of partial ownership that is often confused with subdividing the NFTs but in essence, partial ownership is owning a particular part of the NFTs.

Indestructible

The actual asset may be destroyed but the corresponding data of that asset that exists in Blockchain’s immutable ledger is indestructible. Therefore, the asset itself stays in the Blockchain’s record for as long as the Blockchain is there. A suitable example to understand this would be buying a ticket to a movie. The ticket is destroyed after the event is over but the record of who bought the ticket will always be there in the ledger.

Proof of ownership

During the creation of an NFT, the origin of the asset gets embedded into the Blockchain ledger which provides proof of ownership. Therefore, even if a ticket is bought and sold a hundred times, the latest owner can always verify the origin of the ticket and be sure about its authenticity.

Platform-specific

Currently, there are multiple Blockchain platforms that allow the creation of NFTs which is why NFTs have become platform-specific. More details on this are provided in the next section.

Different platforms for creating NFTs

As mentioned before, NFTs are created on top of a Blockchain platform. Therefore, there are different Blockchain platforms that can be used to create NFTs. These NFTs are specific to the platform used and hence non-interchangeable meaning that an NFT on Blockchain platform A can not be transferred to Blockchain platform B.

Mentioned below are the most popular Blockchain platforms currently being used for NFT creation:

Ethereum

Ethereum is the most popular Blockchain platform for the creation of NFTs. The first NFT in the world, CryptoPunks, was created on Ethereum. Since then, there has been an exponential growth in the Ethereum NFT space. Therefore, Ethereum has the biggest marketplace for NFTs. Projects such as Opensea and Rarible are part of the Ethereum NFT ecosystem.

NFTs created on the Ethereum Blockchain can belong to the smart contract standards ERC721 and ERC1155.

There are certain drawbacks too in the Ethereum ecosystem which include a high gas fee for transactions and network congestion leading to low scalability. There is a possibility of these drawbacks being eradicated with the advent of Ethereum 2.0 but that is not expected anytime soon. Another possible solution is developing NFTs on layer 2 solutions such as Matic.

Flow Blockchain

Flow is one of the most prominent Blockchain platforms for NFTs. Developed by Dappers lab, Flow Blockchain provides a more suitable atmosphere for NFTs free from network congestion and high transaction fees. Flow also provides NFT specific features which make the NFT creation process more streamlined.

The smart contract language for creating NFTs on the Flow Blockchain is Cadence. One of the most popular projects on Flow is NBATopShots which has gained immense popularity in the NFT domain.

WAX Blockchain

WAX has been built specifically for accommodating NFTs, providing a sustainable ecosystem. WAX has introduced vIRLsTM which allows consumer product companies to bridge the gap between the real and digital world by linking the NFTs with physical goods.

The smart contract language used for creating NFTs on WAX Blockchain is C++. Being one of the popular and most used programming languages, C++ has allowed a considerable community growth of WAX.

Algorand

Another upcoming Blockchain platform gaining immense popularity in the public domain, Algorand, also provides the facility of creating NFTs.

Algorand uses a pure Proo-of-Stake consensus algorithm which allows it to combat the Blockchain trilemma of Security, Scalability, and Decentralization. Therefore, it offers an advanced platform for the creation of NFTs. Languages supported by Algorand are TEAL and PyTEAL.

Other Blockchain platforms for NFT creation are Tron Blockchain, Binance Smart Chain, Polkadot, Tezos, and Cosmos.

Zeeve Tokenization Service

Zeeve is the leading Blockchain as a Service platform helping enterprises and Blockchain startups build, deploy and manage reliable decentralized apps and Blockchain networks. Zeeve is a low code automation platform that is cloud agnostic and supports multiple Blockchain protocols with advance analytics and monitoring of nodes and networks. Zeeve features a powerful set of APIs to build DApps for plethora of use cases across industries. One of the most popular Zeeve service is Zeeve Tokenization Service that helps build and deploy fungible and non-fungible tokens on cross chain protocols. The service has been used by 10+ customers to tokenize assets worth billions of dollars. From tokenization to building full fledged NFT Marketplace, Zeeve Tokenization service helps you build robust and scalable application with faster time to market. For more details, schedule a free call with our Tokenization specialist.

Decentralized Identity and the Economics of Reputation

Decentralized Identity and the Economics of Reputation

As the concepts of the “Metaverse” and “Decentralized Society” continues to take shape and evolve day by day, it becomes ever so important to try to tackle long-term problems in the now rather than see them manifest later. Tokens and various currencies have provided the community at large with a store of value and a medium of exchange. DAOs have been able to give a shape to communities and provide decentralized rules to ensure the productivity and longevity of a community.

However, the medium of identity in all these “transactions, especially ones related to cryptocurrency, takes place in the form of alphanumeric “keys” and “addresses”. However, the identity of the holder beyond his financial worth is not reflected in any of these concepts. While the anonymity aspect of all decentralized frameworks for finance and otherwise remains paramount, for the virtual decentralized world to truly decentralize all forms of interaction, formulating and manifesting an identity for a person to perceive, becomes an essential issue to be resolved.

Why is the concept of a Decentralized Identity important in the long run?

The primary function of identity in a general sense is to formulate a unique distinction between “one” and “others”. It is inherently interlinked to the concept of a “reputation”. A theoretical “You”, John Doe, or Jane Doe, stands today in the global collective consciousness as a function of your education, experiences, and actions throughout your life. These can manifest themselves in a myriad of forms.

These forms may be in a physical and discrete form, that is effortlessly perceived such as a degree, or a diploma. They may also manifest themselves in non-fungible forms like one’s networks and relationships with people. These human elements manifest because of where you live, where you studied, and as a result, you “run into people” and form relationships. It could even be an event like a conference or a seminar, where like-minded people meet, form relationships, and help each other out later at work or so on.

 “Your Reputation Precedes you”

On a macro scale, trust and reputation are the core tenets of the functioning of any economy.

Reputation is a situation where “when agents believe a particular agent to be something.” A typical model features the conundrum of Adverse Selection; the notion that one is dealing with an unscrupulous party. The mechanism of reputation revolves around “signaling”. Small markers that show one is a trustable and competent party. This manifests in an individual’s skills and standing in “society”

In today’s world, getting hired often manifests in the shape of your qualifications syncing up with what your employer wants. This could be your degree from a university that the company may like or a credential related to a certain skill that the company desires. In a similar sense, having an identity in Web 3.0 may manifest in tokens or other entities “Backing your skills up” that are authenticated by the blockchain, as a degree would be issued by a proper university.

Every interaction and facet of one’s identity such as work, or qualifications is a bilateral affair for the most part. Unless you share it with a party with whom you are, exchanging a token, engaging in a smart contract, or interacting in the blockchain in some shape or form, there is no way for a third party to know your standing in this theoretical “society”. The primary issue becomes that of social “backing”. As the size of a community expands, so do the members of the community who choose to act in bad faith, and engage in unscrupulous behavior.

With the help of technology, it is easy to cut down such behavior in aspects like, say, bilateral financial transactions, where the “activity” is instant and simultaneous. However, as Blockchain tech continuously pushes the boundaries of what’s possible with concepts like Decentralized Autonomous Organizations (DAOs) and NFTs, it becomes even more important to ascertain the standing of community members who one interacts with to some degree.

Conceptually, an “identity” wallet acts as a “repository” of an entity’s identity. This wallet would generate the requisite public and private keys that may be required. Now, to defer “standing” and “qualification” to this wallet, issuers, that may be public or private, would upon verification of participation or qualification, add a hypothetical identifier to this digital identity data repository that confers the wallet a certain qualification or affiliation.

Sounds Good. How do we do this?

It may be nice to know that the technology for manifesting such concepts into a workable form is being realized, and constantly being worked upon. The Core Architecture of a Decentralized Identifier (DID) does exist. As the World Wide Web proposed recommendation regarding DID states, “It can refer to any subject such as a person, organization, thing, data model, abstract entity, etc.”. This potential of this technology can be realised with the help of the blockchain as it would be composed of a public key, verification information and service endpoints

A concept similar to this in spirit is that of Soul Bound Tokens, proposed by Vitalik Buterin in a recent whitepaper, that envisions non-transferable tokens that act as proof of your “reputation” on the blockchain. Conceptually, this could manifest as proof of one’s education, affiliation with a group, or even something as simple as having attended a seminar or a class.

Unlike DID, which is more of an identifier, capable of interoperability with other existing systems such as distributed ledgers, decentralized file systems, distributed databases, and peer-to-peer networks, SBTs are centered around a “wallet”, or a “Soul” that exists on the blockchain. The fundamental idea is that tokens accrued by a soul reflect their qualifications, skills, and affiliations.

Technologies such as these may very well be the gateway with which we may establish mechanisms that foster trust and manifest reputations, core concepts for the smooth functioning of any economic framework.

The endgame of Decentralized Society (DeSoc) is to create trust and community, on the blockchain, and the metaverse at large. As is with any close-knit community, trust creation and reputation fostering is of the utmost essence to ensure the minimization of bad actors. Reputations would permit interactions to occur where there may be none because of the general anonymity in the sphere of metaverse-related concepts.

The pursuit of maintaining or pursuing a reputation would compel players to increase their activity and stay in good standing, ensuring the long-term health and character of the community.

SoulBouned Tokens – Can it be the Bedrock for a Decentralized Society?

SoulBouned Tokens – Can it be the Bedrock for a Decentralized Society?

What are SoulBound Tokens (SBTs)?

 

In recent times, Non-Fungible Tokens (NFTs) seem to have captured the cultural zeitgeist. Interest in the concept has skyrocketed, evidenced by the public coverage about it, as well as a huge explosion in the volume of transactions of the same.

However, elements like NFTs and cryptocurrencies are ultimately part of a financial system — a Decentralized Financial System for sure, but still, a store of value, a medium of exchange, and consequently, a financial instrument.

Vitalik Buterin told Time in March 2022 that, ultimately, the goal of crypto is to accomplish meaningful change in the world. The world does not consist of just financial instruments and concepts. Even though they are critical to its functioning, it is not where the world ends and begins.

This is where Soul Bound Tokens (SBTs) come into the picture. The root of this concept is a paper authored by economist & social technologist E. Glen Weyl, lawyer Puja Ohlhaver, and Ethereum creator Vitalik Buterin that outlines his concept for a “DeSoc” — A Decentralized Society. Any societal framework in the field of anthropology has an element of individual expression. This is attributed in the form of relationships, affiliations, and credentials. In modern society, this is manifested in the forms of degrees, licenses, titles, and so on.

SBTs are NFTs that can not be transferred after they are received. The paper envisions that SBTs would be non-tradable tokens, awarded to a “Soul” unilaterally. The token would provide the said soul with an attribute. This is completely non-tradable and aims to act as an intrinsic “label”, instead of a token that aims to act as a financial instrument in any shape or form. Once you receive an SBT, you hold it in a Soul-wallet forever.

 

How will SBTs change the concept of our Identity and other aspects of our society?

 

As mentioned before, the underlying concept relies on “Souls”, which are entities to which SBTs are accrued. The ideal scenario is that the SBTs accrued by a soul manifest qualifications, connections, and memberships.

For example, SBTs could be issued for attending a developer conference, or any other group activity. In a theoretical sense, an SBT could exist for a family name, with membership implying being a part of an actual family.

SBTs have the potential to act as very efficient social or commercial credit systems, with SBTs displaying educational credentials such as degrees, work history, and rental contracts.

The core distribution of NFTs is random at best, being algorithmically airdropped into wallets. However, in the case of SBTs, “Souldrops” is envisioned as a way to create a genuine sense of community and form meaningful groups. While an NFT Drop may be executed mathematically, SBTs enable an entity like, say, a DAO, to drop tokens to Souls that may hold a certain intersection of SBTs. As Vitalik states in his paper, “a non-profit whose mission is to plant trees would drop governance tokens to Souls who hold a mix of environmental action SBTs, gardening SBTs, and carbon sequestration tokens.”

The end goal of these concepts is to create a Decentralised society where Souls and the communities formed at the intersection of all the Souls based on their SBT holdings can create “plural network groups”.

The concept of “plural network groups”, as stated in the paper, envisions that networks, i.e., interactions and communication, are the most critical aspects of economic growth. Trade-in Goods and services will occur through communications. A theoretical severing of the lines of communication across the world would instantly stifle all world trade, and create chaos in society. This problem becomes even more likely when these channels are highly centralized and exist in an oligopoly-like market structure.

“Imagine a world where most participants have Souls [digital wallets] that store SBTs corresponding to a series of affiliations, memberships, and credentials,” the paper mentions.

 

Some of the use cases for SBTs include:

 

  • By connecting Soulbound tokens to their NFT collections, artists may rid the NFT industry of unscrupulous actors that sell arbitrary NFT collections in the name of great artists. Artists may also, thus, testify to any scarcity constraints that they intend to impose. SBTs may thus assist NFT artists in establishing their reputations within the digital art communities.
  • Soulbound tokens may be used to purchase event tickets. After all, event tickets are often non-transferable, making it an ideal use case for SBTs. SBTs might be utilized in conjunction with events to generate special airdrops, which Buterin refers to as ‘Souldrops.’
  • SBTs may also serve as a representation of our credit reports. This provides lenders with a complete credit profile of a borrower. Even the loan itself might be accompanied by a revocable but non-transferable SBT. When the loan is paid off, the SBT may be destroyed or replaced with evidence of payment. As a result, individuals would be less likely to conceal their ongoing debts.
  • SBTs can have a significant impact on the future of documentation and certification. Because a Soul can create a limitless number of Soulbound tokens, it has the ability to transform documentation from paper to paperless by introducing it to the digital network. SBTs may, thus, find utility among educational institutions in offering degree certificates. It can act as a repository of one’s credentials. Once added to your Soul, SBTs may also reflect your skill set and abilities. Soulbound tokens may be used to represent a wide range of personal information, including academic degrees, personal data, and even professional certifications and job experience. As a result, SBTs may one day emerge as a CV for Web3 users.

 

What could be DeSoc’s end game and how is it building on the existing Decentralized financial and information exchange infrastructure?

 

Vitalik has stated in recent media interactions that he is highly concerned about increasing inequality and the overarching image of crypto assets as an engine for pure profits. He is not entirely wrong.

DeFi assets are overwhelmingly turning into gambits for acquiring “private property” aka aforementioned assets, and instantly tapping into markets with the sole goal of generating quick wealth. Similar examples of rent extraction exist in the contemporary real estate market, where quick gambits from entities with high amounts of the capital corner the market, create overwhelming, unilateral spheres of influence, and drive out a majority of rent-seekers.

However, DeSoc is aiming to enable efficient governance and decision-making mechanisms by creating a framework to enable trust and cooperation. Critics point out that such “credit systems” may theoretically result in dystopian ecosystems like China’s social credit system, where certain social groups are automatically filtered out due to the presence of certain SBTs.

While the overarching technology and concept are likely not ready for a large-scale undertaking of planning and implementation in modern contemporary society, the concept and its anthropological implications have a huge potential in the digital communities of today to foster trust, keep bad elements out, and, as Vitalik says, create “plural network goods”.

Healthcare Working Group Current Events – Screaming 20’s update

I vote that we call the second decade of the 21st century, The Screaming 20’s.

Whatever we call it, it has certainly gotten off to a cacophonous start. First COVID, then….well, you can all fill in the blanks with what has happened since.

Now that the first quarter of 2022 is in the rearview mirror, I feel confident in saying, in these raucous times we live, I personally get no greater satisfaction than in working with others to build something greater than ourselves. 

Community is everything, in my book…some of the best action happens when a diverse and engaged community rolls up its sleeves to collectively solve a problem. 

I’m happy to say, a strong and diverse community is what we have cultivated with the GBA Healthcare Working Group. I’ve been working with the HWG since 2019 and I’ve had the good fortune of meeting and collaborating with some truly great thinkers and doers from healthcare, technology and innovation. I continue to be encouraged that the knowledge we are sharing will lead to creating solutions that will serve humanity.

So, what is the HWG up to lately? Glad you asked. 

Following the publication of our white paper in 2020, “Blockchain Ethical Design Framework for Healthcare”, we have been working together to create assets for the framework to share with the healthcare community. These assets are meant to provide guidance from an ethical perspective to organizations that are thinking about applying the efficiencies of blockchain to their health-centric use cases and workflows. We are very fortunate to have input and participation from members of ACT-IAC and HIMSS in building tools for the BED Framework for Healthcare and are looking forward to continued progress in bringing this guidance to the public.

In addition, The Blockchain in Healthcare Roundtable discussions that are scheduled for the third Thursday of each month have been gaining participants and popularity. Conversations are always informative and, well, community-building. If you want to learn more about the intersection of blockchain technology and healthcare or hear from industry participants on the subject, this is a good forum to check out. Bring your thoughts and questions and be ready to engage with us.

So, I am happy to report that community building is alive and well, and we are making continual gains in the healthcare innovation niche. And thank goodness because collaboration is the way I foresee we will get things done in The Screaming 20s.