A blockchain future
ASSOCIATE PROFESSOR Alex Sims from the University of Auckland is an advocate for blockchain adoption in New Zealand. She co-authored the September 2018 report Regulation of Crytocurrencies
in New Zealand for the Law Foundation which recommends a regulatory framework for blockchain in this country and government support for a blockchain and fintech hub – along with a central bank-issued digital currency, exchanges and the ability for businesses to trade in GST-free cryptocurrency.
Sims was a popular speaker at Blockworks, largely for her ability to put the blockchain story into perspective in layman's terms, break down some myths, and explain blockchain's practical applications. She cited examples of various technologies that, when launched, were greeted with derision and scepticism – but went on to become pivotal in the advancement of mankind. The Internet before the World Wide Web is just one obvious example.
Another example was Qualcomm that invented digital wireless technology in the early 1990s. “The experts, were convinced analog was better than digital, and that Qualcomm's system would never work because it ‘violated the laws of physics'.”
(See https://www.semiwiki.com/forum/ content/7353-detailed-history-qualcomm. html)
“Qualcomm's invention is the reason we are able to use our smartphones today and Qualcomm's annual revenue is US$ 20 billion,” says Sims.
“As Kevin Kelly says in his book The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future, the bigger the promise of a new technology, the more people will attack it.” Sims' advice for business owners who want to dip their toe into blockchain is to allow customers to use the new digital identity management tools that use blockchain.
“There are New Zealand businesses offering, or about to offer, such services, such as Single Source and Sphere Identity.”
Digital ID is where blockchain platforms will excel, particularly when it comes to putting a stop to fraud – and it means businesses will not need to store so much personal information about their customers.
“Verifying people and storing personal information are tangible pain-points for businesses. Blockchain-enabled digital ID could almost eliminate the use of stolen identities.”
Sims reminds businesses that blockchain is not theoretical; just like IoT, Big Data and AI, it's here and it simply can't be ignored. “Governments and businesses that embrace it early will have a massive advantage.”
And she cautions that a lot of what is written on blockchain is already out of date because the technology is moving so fast.
Her advice to business owners is to school up quickly. There are excellent – and free – online courses available. Learn how the technology will bring value to your particular industry and how you can get on board.
“It may not be perfect to begin with,” says Sims, “but you need to ask is it better than what we have now? Because the day will come when your customers or suppliers will want to be on board with blockchain”.
She uses the analogy of the automobile replacing the horse and cart. “If you want to steadfastly stick to the old system, that's being incredibly short- short-sighted.” sighted.”