It’s been a staggering week for corporate “misbehaviour” – the fallout from the Theranos hubris, and the revelation that Cambridge Analytica knowingly used our social media information to manipulate us. The latter one is particularly terrifying, and will probably trigger a wave of calls for tighter regulation of the data collectors.
It could also trigger a further push (already underway in Europe with GDPR and PSD2) for data handling to be more transparent and, if possible, decentralized. Obviously blockchain technology has a potential role to play in that. But the more interesting aspect is the broader conversation about who should own our data. This is going to trigger a much bigger change in how business is run than most of us realise.
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Google’s decision to ban ads for cryptocurrencies and token sales, taken on the heels of Facebook’s similar move, is harsh, but good news for the sector. While the decent ads get unjustly washed away with the scammy ones, the necessary cleansing of the garbage that bombarded anyone interested in the space will hopefully “reset” the sector’s reputation for innovation rather than fraud.
True, it may lower the income of sector media that showed programmatic ads on their sites. But at least they will no longer find themselves inadvertently showing bad ads. That will give the sector another cleansing boost.
So, Twitter next?
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I was in Stockholm this week for a post-trade conference, talking about the potential impact of cryptocurrencies on hedge funds. (More on that to follow). Since I had some time before my flight back home on Friday, I took myself off to the Photography Museum, where they had an exhibition of Christian Tagliavini’s surreal and nostalgic work. The work that went into composition and the technique produce works of whimsy and nostalgia, almost like rennaissance paintings.
If you find yourself in Stockholm, I wholeheartedly recommend a visit. Charming and hypnotic. And, the café on the top floor has breathtaking views.
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Did you see John Oliver’s bitcoin episode? Clever and incongruously deep, as usual. As CoinDesk points out, however, his attempt to draw a parallel between bitcoin and Beanie Babies shows that he still has some way to go in understanding the economics behind the largest cryptocurrency.
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TechCrunch published an excellent essay by Jon Evans on why social media seems like such a toxic environment.
“Of course the Internet was always full of awful. Assholes have been trolling since at least 1993…. The Intransigent Asshole Theory holds that the only thing that’s changed is that more assholes are online and they’ve had more time to find each other and agglomerate into a kind of noxious movement.”
This point seems, in retrospect, startlingly obvious:
“Adopting [Taleb’s] argument slightly, if only 3% of the online population really wants the online world to be horrible, ultimately they can force it to be, because the other 97% can — as empirical evidence shows — live with a world in which the Internet is often basically a cesspool, whereas those 3% apparently cannot live with a world in which it is not.”
In other words, we tolerate the trolls, so they end up winning.
“Only ~3% of people are truly terrible, but if we are sufficiently compliant with their awfulness, that’s enough to ruin the world for the rest of us. History shows that we have been more than sufficiently compliant.”
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They excitement around the blockchain-based tally of votes in the Sierra Leone election is bewildering. Sure, it shows that votes can be registered on a blockchain network. But we already knew that.
If I understand correctly, the votes have to be manually registered. In other words, someone from the company handling the software – Agora – takes the vote and inputs it into the platform. How is that not centralized? How is that not vulnerable to manipulation? What, seriously, is the point?
Ah, I hear you say, this platform is transparent – anyone can see the votes. This will go a long way towards restoring trust. Why? Suspicion is a hard thing to get rid of – and openly revealing potential points of failure (those inputting the data) isn’t going to do it.
Apart from the question of how do we guarantee the integrity of the data handlers, how is manipulation through identity fraud avoided?
What’s more, it’s a permissioned blockchain. A centralized, permissioned blockchain. Why not just use a distributed database?
Another question, how will electronic voting platforms – of any sort – overcome the notoriously poor connectivity in the region?
True, it’s a start – and if, as they say they intend to, the developers work on removing middlemen by allowing citizens to vote directly on the platform, with biometric data, then that will be a potentially more worthwhile system. But to get everyone biometrically identified will be a massive undertaking, and there doesn’t seem to be the political appetite.