beyond bitcoin - enabling smart government using the bitcoin blockchain
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Beyond Bitcoin
- Enabling Smart Government Using theBitcoin Blockchain
Svein Ølnes, Western Norway Research Institute
eGov 2016, 7. Sept. 2016
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Content
Research objectives and framework
Method
What is Bitcoin?
Bitcoin as an information infrastructure
Use case: Academic certificates stored on the blockchain
Conclusions and further research
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Research objectives
1. To give an overview of the Bitcoin literature Bitcoin/blockchain literature in general Bitcoin/blockchain literature in e-Government in particular
2. To study the potential for using Bitcoin technology in public sector services By comparing it to the characteristics of an information infrastructure By studying a specific use case
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Research framework
Information infrastructure theory Comparing Bitcoin to specific characteristics of an II
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Method
1. Comprehensive literature study
2. Case study
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Literature overview – Bitcoin publications in general
Year No. of publications2008 1*2009 02010 12011 82012 212013 632014 2082015 325
*Satoshi Nakamoto’s original white paper
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Literature overview – Bitcoin publications in the eGov field
Category EGRL 11.5 Google Scholar Web ofScience
Bitcoin AcademicPubl.
Searchphrase
«bitcoin» or «blockchain»
«bitcoin/blockchain e-Government»
Same as Google Scholar
No search criteriaAll publications
Economy 0 0 0 244
Technology 0 0 0 241
Regulation 0 0 0 107
Other 0 0 0 35
Irrelevant - - - -
Total 0 0 0 627
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What is Bitcoin?
1. A crypto currency A peer-to-peer electronic cash system
2. An infrastructure An open, distributed ledger on the Internet (the blockchain)
Bitcoin is proof of ownership of an asset, physical or digital, without the need of a third-party
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Bitcoin development
Proposed in a white paper by Satoshi Nakamoto in Oct. 2008
The Bitcoin system was started 3rd of Jan. 2009
Has been running for more than seven years without any serious errors
A platform for permissionless innovation, above all in financial services, but also for use in other sectors
Based on open source and open standards Bitcoin code published on GitHub
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Bitcoin key characteristics Distributed system (peer-to-peer)
No central authorities (no central bank)
Consensus-driven
Secure transactions without third-parties
Immutable
Deterministic money supply 21 million bitcoin in total 12,5 new bitcoin mined every 10 minutes Halving of new bitcoin mined every four years (the last one in July 2016)
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Bitcoin key contributions
A practical solution to the Byzantine Generals’ problem first formulated by Lamport et al. (1982) computer systems’ ability to handle conflicting information how to establish trust in a distributed system (without a third-party)
An open platform for financial innovation But also an open platform for innovation in «trustless» systems
A fully functional digital cash system
Today perhaps the main driving force in cryptograhic research
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Bitcoin building blocks
Open source software
Digital signatures Public key cryptography (but not a PKI! There are no certificates) Hash functions
Consensus based trust Network of nodes reach consensus based on rules laid out in the software
Secured through Proof of work Massive resources needed to add new blocks to the chain But everybody can read the content on the blockchain
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Bitcoin as an information infrastructure*
Property Information Infrastructure Bitcoin as an II
Shared Universally across multiple IT capabil. Yes
Open Yes, allowing unlimited connections to user communities and new capabil.
Yes
Heterogenous Increasingly, both techn. and socially Yes (althoug early)
Evolving Yes, unlimited by time or user commun. Bears the signs of unltd. evolvement
Organizing principles Recursive composition Yes/No – only one referenceBitcoin impl.
Control Distributed and dynamically negotiated Distr. and dynamically neg. (by consensus and «voting»)
Information infrastructure (II): «A shared, open and unbounded, heterogeneous, and evolving socio-technical system consisting of a set of IT capabilities and their user, operations, and design communities” (Hanseth & Lyytinen, 2010)
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Case study: Certificates on the Bitcoin blockchain
Certificate from university courses (or degrees) put on the Bitcoinblockchain
Simple and cost effective solution
Ubiquitous access to verification of certificates
(MIT Media Lab have expanded on the idea and provided a set of toolsto ease the management of certificates on the blockchain)
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Case study: University of Nicosia’s use ofBitcoin blockchain for storing certificates1. Prerequisites:
No other services or products than the Bitcoin blockchain Authntication of certificates without contacting Univ. of Nicosia Should be possible to perform the authentication even if Univ. of Nicosia
ceases to exist in today’s form (merger, shut down etc.)
2. Storing the index document on the blockchain
3. Verification process Verification of the index document itself (retrieved from the web) Verification of the certificate(s)
MIT Media Lab has also done work on this Open badge + Bitcoin blockchain tools for storing and verifying certificates
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Case study: certifiates on the blockchain
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Case study: certifiates on the blockchain
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Case study: certifiates on the blockchain
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eGovernment blockchain initiatives
Sweden: Planning to place real estate transactions on the blockchain
Georgia: Blockchain project for land registries; through the National Agency of Public Registry
UK: Exploring the use of blockchain technology to manage distribution of grants.
Ghana: Blockchain to record property ownership.
Singapore: Prevent traders from defrauding banks (hashed invoices stored on blockchain and shared among banks)
Delaware: Moving state archival records to an open ledgerOpen ledger for private shareholders to keep track of their rights
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Conclusions
The Bitcoin technology is absent from eGov literature
Bitcoin as an information infrastructure has a great potential for innovative use also in public sector, as the use case indicates
Important research questions: how can Bitcoin help innovation in public sector? how should the currency bitcoin and the infrastructure Bitcoin be handled? Bitcoin in public sector on the blockchain, sidechain or altchain? Important factors determining adoption of this new technology? Installed base as a barrier to adoption of the technology
Many similarities with the development of the Internet and web 25 years ago Can Bitcoin/blockchain help re-establish the decentralized Internet?
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Thank you for your attention!
E-mail: sol@vestforsk.noThis presentation: http://bit.ly/beyond_bitcoin
Bitcoin address:
1sveinoFzUtMQ5wnnxMoHX9vb42mvPsWN
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