Abstract

The evolution of crypto can be analyzed from the essential components of design, development, and deployment. For modern systems to function, they require a combination of people, process and technology. These elements also set the foundations of innovation. The crypto sphere has created a radical redistribution of the social-economic power hierarchy. This power hierarchy is seemingly upside-down when compared to the “real-world”. Process and technology have evolved to code-based governance, and people can be represented as virtual entities. What does this mean to blockchain innovation, and how will crypto evolve with a continued redistribution of power and wealth?

In this third and final part of this series, we explore the creation of the Virtual State™ fueled by crypto ideologies, and its underlying cryptoversification of Internet services.

MultiStakeholders in Cyber

UNESCO continues to advocate a multistakeholder governance approach to the internet. This principle is based on the inclusion of several bodies cooperating to maintain a net neutrality approach to the Internet and cyberspace.

In contrast, the crypto community does not share this mindset and rather focuses on a tribal approach to governance. But the crypto community cannot evade the governance discussion for much longer. In these embryonic markets, the absence of standards leads to market fragmentation, a lack of consensus, and even chaos. In this scenario, all players of the power hierarchy suffer.

Evolving crypto to mainstream audiences will require a similar approach advocated by UNESCO, namely a multistakeholder governance. This will involve the participation of several private and public-sector stakeholders. Governance will be important in the standardization of technology and processes. Actors will have the freedom to follow or oppose governance. In any event, by establishing a consensus, the market has the potential to scale and mature. Standardizing technology requires convincing microbodies to follow an approach that is beneficial to all parties involved, as well as the markets they are trying to penetrate.

Initiatives will need to be built to invite appropriate parties to the table and establish a consensus. To crypto’s benefit, an established mandate exists in cyberspace and may be an effective model for crypto as well. The challenge is to bring disparate parties representing the public sphere, to the same table as those representing private advocacy groups[i].

MultiStakeholders of Crypto

Thousands of computers hold copies of the bitcoin blockchain, making the infrastructure resilient and persistent. Blockchain technology is designed to be immune to shut down, even to those who created it. As previously discussed, this is the essence of Pandemic Protocols, and this technology is at the center of modern decentralized infrastructures. Another aspect playing out in the decentralized movement is more focused on the role that people play.

Components of the internet are owned and governed by different parties. In the same manner, nodes in a blockchain are globally owned and distributed. Collectively they represent the blockchain, but no single party owns the infrastructure. Distributed ownership is manageable within a single blockchain since code governance is the presiding medium of its rules. But scaling crypto to mainstream users requires a balanced engine of People, Process, and Technology, and this will require a dynamic shift in governance.

The central issue is that blockchain rules are established by “tribes”. Meaning that they each have their own community and their own micro-governance, but other blockchains are considered rivals. This tribal nature may be a reflection of market immaturity, but this is no excuse. Tribal societies lack the unity needed for mass adoption. Even real-world competitors work to agree on standards to expand their market potential. With no consensus, the crypto community will not attract a mainstream audience and risks becoming a niche player, relegated to the depths of the darknet[ii]. For this reason, the crypto sphere is at the right market maturity to support Multistakeholder governance.

Globalization required consensus, and crypto is not immune to the prerequisite of standardization. Mature industries over the centuries have evolved globally because they accepted industry standards. The ITU is a testament to that success. We would be a different word if utilities such as electricity used a variant of voltages and frequencies in each city. The automotive industry would be very different if cars had fifty variants for petrol. A proven sales tactic states, “Give customers ten choices and they won’t know which one to choose, but give them two, and they will choose one”. When industry leaders agree on standards, then consumers have easier decisions. Industry leaders have a responsibility to harmonize the market and create the foundations for innovation and scalability. Competition still plays a role, but society typically embraces the simplicity and elegance of standards. For this reason, it is the responsibility of the infrastructure players to work towards the same goal.

The next evolution in crypto is standards and consensus through multistakeholder governance.

About the Author

Gabriel is the co-Founder and General Manager at Adel Ecosystem Ltd. He is a seasoned sales and marketing expert with over 25 years in senior positions at Motorola, VeriSign (acquired by Symantec in 2010), and SecureWorks (acquired by Dell in 2011), and Cognitive Security (acquired by Cisco in 2013). He is a blockchain entrepreneur, with strengths in international business strategy. Gabriel has a bachelor’s degree in Engineering Physics from McMaster University in Canada and expert knowledge in blockchain incubation, cloud computing, IT security, and video streaming, and Over the Top Content (OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o, creator of MyKoddi, and manages a professional blog.