Why Mark Zuckerberg and Jack Dorsey Are Warming to Blockchain


Michael J. Casey is the chairman of Bit-coinTalk’s advisory board and a senior advisor for blockchain investigation at MIT’s Digital Forex Initiative.

The pursuing write-up originally appeared in Bit-coinTalk Weekly, a tailor made-curated publication shipped each Sunday solely to our subscribers.


“Left to their personal units, computer researchers would recreate the Soviet Union.”

That line belongs to Preston McAfee, an economist whose occupation background features senior positions at tech giants this kind of as Microsoft, Google and Yahoo. As he stated to an viewers at the SXSW conference in Austin, Texas, not too long ago, it refers to software package engineers’ inclination to favor centralization as the most economical style principle for any computing program.

The stage, he stated, is that decentralized networks, this kind of as people based on blockchain styles, can normally allow far more optimistic overall social results irrespective of the relative inefficiency of their command-and-manage architecture. It’s handy to ponder this thought, and McAfee’s colorful metaphor, in relation to the recent condition of play on the Web.

For the 1st time considering that they emerged as the victors of the post-dot-com bubble shakeout at the change of the century, the platforms that dominate our on the internet lives are managing up from the social limitations of their centralized styles.

A backlash is rising from “surveillance capitalism” and from the broad system of mining users’ information to seize viewers for advertisers and to form shopper behavior. Manifest as both equally political tension and person riot, it is forcing a style rethink at these providers.

Perhaps the Web is facing its Berlin Wall second.

This is in the long run why some of the rules underlying blockchains and cryptocurrency technologies are getting favor in the organization progress approaches – or at least in the PR signaling – of social media providers.

Warming to Decentralized Versions

Facebook specially has captivated a great deal notice in this place.

CEO Mark Zuckerberg not too long ago produced a bombshell post outlining a “privacy-concentrated vision for social networking” that recommended a transfer to embrace conclusion-to-conclusion encryption of users’ information on Facebook, Instagram and WhatsApp.

In a separate post of a video clip job interview with Harvard Law professor Jonathan Zittrain, Zuckerberg speculated on the prospect of Facebook employing a blockchain product to allow decentralized logins with out its servers performing as authenticators. All this arrived all over the time The New York Periods noted that Facebook is producing a digital currency that its users can trade between every single other and exchange on cryptocurrency exchanges.

In the meantime, Twitter CEO Jack Dorsey seems to have gotten faith when it comes to cryptocurrencies. He has declared that bitcoin will be the “indigenous currency of the Web,” has invested in Lightning Labs, which is producing payment channels for bitcoin based on the lightning network, and not too long ago declared that Square, the separate payments organization that he heads, will use crypto engineers and most likely fork out them in bitcoin.

It’s fair to say there is a considerable degree of skepticism that social media providers, acquiring produced fortunes out of a centralized product that accumulates person information, will modify their stripes.

Facebook, in distinct, has come beneath criticism from pundits who argue that it won’t be able to shift its organization product. Provided information abuse scandals this kind of as the Cambridge Analytica affair, skeptics this kind of as cryptocurrency pioneer David Chaum argue that Zuckerberg’s decentralization and privacy mantra is almost nothing far more than a PR message.

But the departure of selected senior executives, which includes people who oversaw the progress of the centralized information-gathering product and the algorithms that mine that information to produce audiences to advertisers, has led many others to conclude that Zuckerberg is in truth really serious.

Winds of Alter

1 thing’s very clear: there is tension for modify, whether it comes in compound or merely in message.

A lot like citizens who arrive at a breaking stage and rebel from political leaders who act in their personal interests fairly than people of the general public, users of these social media platforms are commencing to signal that they won’t stand for information abuses.

Of course, with out users, these enterprises fail. So, these providers are now contemplating a revised product in which, to paraphrase Bruce Schneier, users are no for a longer period the merchandise but the consumer.

It’s an open up question whether this kind of providers can make money on a product in which the nodes in the network are absolutely free from manage by the centre. But let’s continue on with the McAfee-influenced metaphor and ponder how governments in capitalist economies accrue ability and influence when their citizens are empowered to transact with every single other. Equally, we can think about how a Facebook or a Twitter that will help its wide variety of users conduct peer-to-peer exchanges can extract great price from the enlargement of this kind of networks.

Both way, the winds of modify are coming to the centralized methods of the Web. Regardless of whether the incumbents endure people modifications, or whether they go the way of, say, MySpace is not very clear. Much more vital, let’s take into consideration what could occur in their position and how effortlessly we changeover to the new era.

These are queries for developers of decentralized solutions this kind of as people enabled by blockchain technological innovation. What sort of governance styles will be in position so that users are truly able to maintain a healthful degree of autonomy even as new centralizing forces emerge to extract price inside of the new paradigm?

Recall, the Soviet Union collapsed, but it was rarely changed by a utopia.

Graphic by using Bit-coinTalk archives 

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