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| | = Overview = | | = Overview = |
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| − | Blockchain is changing the financial sector but it is also creating new opportunities to generate social impacts in the energy sector. In June 2017, Accelerator Frankfurt brought together start-ups and academics to discuss and learn more about new applications of this exciting technology. | + | Blockchain is changing the financial sector but it is also creating new opportunities to generate social impacts, e.g. in the energy sector. In June 2017, Accelerator Frankfurt brought together start-ups and academics to discuss and learn more about new applications of this exciting technology. |
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| − | Prof. Dr. Philipp Sandner, Frankfurt School Blockchain Center, introduced the blockchain technology briefly. His university is a front-runner on this topic as they have created a think tank and a research center which investigates the implications of the blockchain technology for companies and their business models. Luis Bezzenberger from Brainbot Technologies presented a list of organisations and companies working on applications including blockchain technologies. Björn Fischer, the final speaker presented an example of how block chain technology could possibly change the energy access sector. | + | Prof. Dr. Philipp Sandner, Frankfurt School Blockchain Center, introduced the blockchain technology briefly. His university is a front-runner on this topic as they have created a think tank and a research center which investigates the implications of the blockchain technology for companies and their business models. Luis Bezzenberger from Brainbot Technologies presented a list of organisations and companies working on applications including blockchain technologies. Björn Fischer, the final speaker presented an example of how blockchain technology could possibly change the energy access sector. |
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| | = Definition: Blockchain = | | = Definition: Blockchain = |
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| | *It allows sending values directly from one client to another. This is as easy as sending an email. Even without the central provider that you might not trust. | | *It allows sending values directly from one client to another. This is as easy as sending an email. Even without the central provider that you might not trust. |
| − | *It takes less than 10 minutes and the transaction costs are close to zero. | + | *For example in Bitcoin, it takes less than 10 minutes and the transaction costs are close to zero. |
| | *Furthermore, blockchain allows for payments between devices (as they can have their own accounts). | | *Furthermore, blockchain allows for payments between devices (as they can have their own accounts). |
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| | Theoretically, using blockchain technology the car could pay for the parking ticket by itself. This option is also true for international transfers: development cooperation could send money worldwide and guarantee that it will get where it is supposed to go. Blockchain technology is a very young discipline: it was introduced in 2009, with the establishment of BitCoin. Today, the companies and organisations involved in blockchain technology are researching its huge potentials including the social impact it could have in developing countries. First applications to be used in developing countries are expected to come out in the year 2017. Especially Asia is very active in this field and Sander expects many innovations to come from China and South Korea. | | Theoretically, using blockchain technology the car could pay for the parking ticket by itself. This option is also true for international transfers: development cooperation could send money worldwide and guarantee that it will get where it is supposed to go. Blockchain technology is a very young discipline: it was introduced in 2009, with the establishment of BitCoin. Today, the companies and organisations involved in blockchain technology are researching its huge potentials including the social impact it could have in developing countries. First applications to be used in developing countries are expected to come out in the year 2017. Especially Asia is very active in this field and Sander expects many innovations to come from China and South Korea. |
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| − | How it works? After the set-up of a jointly created database, there is a register of all assets in a table for everyone to check in. Therefore, we are able to transfer money (or identities, or energy, or reputation) because all transactions are recorded and the ownership shifts from one account to another. Furthermore, this is possible directly from customer to customer without an intermediate bank or otherwise trusted entity.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> | + | How does it work? After the set-up of a jointly created database, there is a register of all assets in a table for everyone to check in. Therefore, we are able to transfer money (or identities, or energy, or reputation) because all transactions are recorded and the ownership shifts from one account to another. Furthermore, this is possible directly from customer to customer without an intermediate bank or otherwise trusted entity.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> |
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| − | In addition, block chain offer redundant storage. <span style="color:#FF0000">[Why is this relevant/important?]</span> | + | In addition, blockchain offer redundant storage. This allows a blockchain system to be robust against potential errors. Similar to the internet for information transmission, a blockchain will still operate even if several nodes drop out of the network. |
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| − | Weak institutions: Usually, people trust institutions like big banks and national Governments: blockchain allows us to trust solely in the technology. Upcoming publication by the Frankfurt School Blockchain Center.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> <span style="color:#FF0000">[Link to the publication site?]</span> | + | Weak institutions: Usually, people trust institutions like big banks and national Governments: blockchain allows us to trust solely in the technology.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> Upcoming publication by the Frankfurt School Blockchain Center.<ref name="Sandner, Philipp. ‘Solving Challenges in Developing Countries with Blockchain Technology’. Medium, 9 July 2017. https://medium.com/@philippsandner/solving-challenges-in-developing-countries-with-blockchain-technology-78ec9b01bae3.">Sandner, Philipp. ‘Solving Challenges in Developing Countries with Blockchain Technology’. Medium, 9 July 2017. https://medium.com/@philippsandner/solving-challenges-in-developing-countries-with-blockchain-technology-78ec9b01bae3. |
| | + | </ref> <span style="color:#FF0000"></span> |
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| | + | *<span style="color:#FF0000">[https://medium.com/@philippsandner/solving-challenges-in-developing-countries-with-blockchain-technology-78ec9b01bae3 Solving Challenges in developing countries with blockchain technology by K. Schmidt and P. Sandner]</span> |
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| | = Example of Companies Using Blockchain Technology = | | = Example of Companies Using Blockchain Technology = |
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| | *[https://www.bitpesa.co/ BitPesa] gives people the chance to exchange their bitCoins into local currency. This is really important as for people without a bank account (most of the population in developing countries) it is so far not possible to buy bitCoins.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> | | *[https://www.bitpesa.co/ BitPesa] gives people the chance to exchange their bitCoins into local currency. This is really important as for people without a bank account (most of the population in developing countries) it is so far not possible to buy bitCoins.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> |
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| − | == Companies using Blockchain technology to develop Decentralized Apps (DAPPs) == | + | == Companies using Blockchain technology to develop Decentralized Apps (DApps) == |
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| | Luis Bezzenberger from Brainbot Technologies, engages in partnerships with enterprises as well as with start-ups which seek to leverage blockchain technology to innovate. His firm creates core building blocks to scale the technology towards broad adoption of public blockchain systems. Although many applications are still something to “dream about” – a few applications have already started to engage in the real world, like payment solutions.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> | | Luis Bezzenberger from Brainbot Technologies, engages in partnerships with enterprises as well as with start-ups which seek to leverage blockchain technology to innovate. His firm creates core building blocks to scale the technology towards broad adoption of public blockchain systems. Although many applications are still something to “dream about” – a few applications have already started to engage in the real world, like payment solutions.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> |
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| − | Decentralised Apps (DAPP) combine smart contracts stored in a blockchain and a user interface. They offer a decentralised storage place (similar to a cloud) and allow exchanges between users. This happens without operators, in a decentralised way.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> | + | Decentralised Apps (DApp) combine smart contracts stored in a blockchain and a user interface. They offer a decentralised storage place (similar to a cloud) and allow exchanges between users. This happens without operators, in a decentralised way.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> |
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| | *[https://www.uport.me/ Uport] self-sovereign identity: an open source project about creating identities started its Alpha phase in April 2017. | | *[https://www.uport.me/ Uport] self-sovereign identity: an open source project about creating identities started its Alpha phase in April 2017. |
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| | *Blockchain technology helps to (re) build trust among the society (even in a reality of weak governmental institutions) | | *Blockchain technology helps to (re) build trust among the society (even in a reality of weak governmental institutions) |
| − | *While many developed countries face the difficulty to integrate blockchain technology into the legacy infrastructure, this is not the case in many developing countries (without an established infrastructure). | + | *While many developed countries face the difficulty to integrate blockchain technology into the legacy infrastructure, this is not the case in many developing countries (without an established infrastructure). Therefore, it is much easier to integrate blockchain technology. |
| | *Leap frogging the banking sector: not having a bank account at a traditional, physical bank but having access to mobile financing options | | *Leap frogging the banking sector: not having a bank account at a traditional, physical bank but having access to mobile financing options |
| | *Public owned and shared infrastructure (not to be influenced by corrupt politicians etc.) | | *Public owned and shared infrastructure (not to be influenced by corrupt politicians etc.) |
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| | == Experiences: Payment by Blockchain in Development Countries (Indonesia) == | | == Experiences: Payment by Blockchain in Development Countries (Indonesia) == |
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| − | In Indonesia, the Frankfurt School has launched a project in cooperation with the UNTAR Tarumanagara University. The project is still at an early stage. However, they want to establish an intra-university coin system to have a showcase that demonstrably works! If the students can proof that a blockchain technology based currency works, they might identify the need for implementation throughout Indonesia.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> <span style="color:#FF0000">[Link to a webpage? Some more details? What is the plan? to install a digital payment systems on the islands?]</span> | + | In Indonesia, the Frankfurt School is about to launch a project in cooperation with the UNTAR Tarumanagara University. The project is still at an early stage. However, they want to establish an intra-university coin system to have a showcase that demonstrably works! If the students can proof that a blockchain technology based currency works, they might identify the need for implementation throughout Indonesia.<ref name="Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)">Philipp Sandner, Frankfurt School Blockchain Center at the Accelerator Frankfurt event (5.07.2017)</ref> <span style="color:#FF0000">[updates coming soon]</span> |
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| | For the state with many islands, a central system like a bank with many ATMs is not a suitable money system. | | For the state with many islands, a central system like a bank with many ATMs is not a suitable money system. |
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| | Lack of transparency, corruption, and misuse of funds are among the challenges that international organisation face when providing cash assistance. | | Lack of transparency, corruption, and misuse of funds are among the challenges that international organisation face when providing cash assistance. |
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| − | Blockchain platforms offer transparency and immutability. The WFP tested this technology in a project called ‘Building Blocks’, in Sindh province, Pakistan, in January 2017. Vulnerable families received food and cash assistance from WFP which was authenticated and recorded on a public blockchain through a smartphone interface. This way, disbursements are accountable and can be matched with the entitlements. This makes the process faster and more accurate.<ref name="Programme, W. F. (2017, March 6). What is ‘Blockchain’ and How is it Connected to Fighting Hunger? Retrieved 10 July 2017, from https://insight.wfp.org/what-is-blockchain-and-how-is-it-connected-to-fighting-hunger-7f1b42da9fe#.xrj4jv3sb.">Programme, W. F. (2017, March 6). What is ‘Blockchain’ and How is it Connected to Fighting Hunger? Retrieved 10 July 2017, from https://insight.wfp.org/what-is-blockchain-and-how-is-it-connected-to-fighting-hunger-7f1b42da9fe#.xrj4jv3sb.</ref> <ref name="Gautham, A. (2017, March 26). World Food Programme Uses Blockchain Technology to Alleviate Hunger. Retrieved 10 July 2017, from http://www.newsbtc.com/2017/03/26/world-food-programme-uses-blockchain-technology-alleviate-hunger/.">Gautham, A. (2017, March 26). World Food Programme Uses Blockchain Technology to Alleviate Hunger. Retrieved 10 July 2017, from http://www.newsbtc.com/2017/03/26/world-food-programme-uses-blockchain-technology-alleviate-hunger/.</ref> | + | Blockchain platforms offer transparency and immutability. The WFP tested this technology in a project called ‘Building Blocks’, in Sindh province, Pakistan, in January 2017 and as well in Jordan. Vulnerable families received food and cash assistance from WFP which was authenticated and recorded on a public blockchain through a smartphone interface. This way, disbursements are accountable and can be matched with the entitlements. This makes the process faster and more accurate.<ref name="Programme, W. F. (2017, March 6). What is ‘Blockchain’ and How is it Connected to Fighting Hunger? Retrieved 10 July 2017, from https://insight.wfp.org/what-is-blockchain-and-how-is-it-connected-to-fighting-hunger-7f1b42da9fe#.xrj4jv3sb.">Programme, W. F. (2017, March 6). What is ‘Blockchain’ and How is it Connected to Fighting Hunger? Retrieved 10 July 2017, from https://insight.wfp.org/what-is-blockchain-and-how-is-it-connected-to-fighting-hunger-7f1b42da9fe#.xrj4jv3sb.</ref> <ref name="Gautham, A. (2017, March 26). World Food Programme Uses Blockchain Technology to Alleviate Hunger. Retrieved 10 July 2017, from http://www.newsbtc.com/2017/03/26/world-food-programme-uses-blockchain-technology-alleviate-hunger/.">Gautham, A. (2017, March 26). World Food Programme Uses Blockchain Technology to Alleviate Hunger. Retrieved 10 July 2017, from http://www.newsbtc.com/2017/03/26/world-food-programme-uses-blockchain-technology-alleviate-hunger/.</ref> |
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| | A full-scale pilot project is planned next involving up to 100,000 persons.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> | | A full-scale pilot project is planned next involving up to 100,000 persons.<ref name="Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)">Luis Bezzenberger from Brainbot Technologies at the Accelerator Frankfurt event (5.07.2017)</ref> |
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| | <br/> | | <br/> |
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| − | = Block chain technology and energy access = | + | = Blockchain technology and energy access = |
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| − | Blockchain technology reduces transaction costs. Therefore, also in the energy sector, blockchain technology has the potential to play a significant and potentially game-changing role: | + | Blockchain technology reduces transaction costs. Therefore, also in the energy sector, blockchain technology has the potential to play a significant and potentially game-changing role: |
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| | *Read [[Blockchain Techologies For the Energy Access Sector|Blockchain Techologies For the Energy Access Sector]] | | *Read [[Blockchain Techologies For the Energy Access Sector|Blockchain Techologies For the Energy Access Sector]] |
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| | <references /> | | <references /> |
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| − | [[Category:Rural_Development]]
| |
| − | [[Category:Impacts_Social]]
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| − | [[Category:Impacts]]
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| | [[Category:Financing_and_Funding]] | | [[Category:Financing_and_Funding]] |
| | + | [[Category:Impacts]] |
| | + | [[Category:Impacts_Social]] |
| | + | [[Category:Rural_Development]] |
Blockchain is changing the financial sector but it is also creating new opportunities to generate social impacts, e.g. in the energy sector. In June 2017, Accelerator Frankfurt brought together start-ups and academics to discuss and learn more about new applications of this exciting technology.
Prof. Dr. Philipp Sandner, Frankfurt School Blockchain Center, introduced the blockchain technology briefly. His university is a front-runner on this topic as they have created a think tank and a research center which investigates the implications of the blockchain technology for companies and their business models. Luis Bezzenberger from Brainbot Technologies presented a list of organisations and companies working on applications including blockchain technologies. Björn Fischer, the final speaker presented an example of how blockchain technology could possibly change the energy access sector.
“In essence, blockchain technology constitutes a fascinating new approach to keeping track of, for example, asset ownership, without requiring a central authority and with minimal transaction costs. This in turn supports business models with the potential to trigger radical changes in society and the economy.” Philipp Sandner, Frankfurt School Blockchain Center[1]
Distributed Ledger Technology: Blockchain is a ledger of transactions maintained by a network of computers.
Blockchain technology allows us to transfer values (e.g. money or energy) in the future. For money transfer (the most common use of blockchains), blockchain system is the central system that everybody trusts to send electronic money instead of a central system like a bank.
Theoretically, using blockchain technology the car could pay for the parking ticket by itself. This option is also true for international transfers: development cooperation could send money worldwide and guarantee that it will get where it is supposed to go. Blockchain technology is a very young discipline: it was introduced in 2009, with the establishment of BitCoin. Today, the companies and organisations involved in blockchain technology are researching its huge potentials including the social impact it could have in developing countries. First applications to be used in developing countries are expected to come out in the year 2017. Especially Asia is very active in this field and Sander expects many innovations to come from China and South Korea.
How does it work? After the set-up of a jointly created database, there is a register of all assets in a table for everyone to check in. Therefore, we are able to transfer money (or identities, or energy, or reputation) because all transactions are recorded and the ownership shifts from one account to another. Furthermore, this is possible directly from customer to customer without an intermediate bank or otherwise trusted entity.[2]
In addition, blockchain offer redundant storage. This allows a blockchain system to be robust against potential errors. Similar to the internet for information transmission, a blockchain will still operate even if several nodes drop out of the network.
Weak institutions: Usually, people trust institutions like big banks and national Governments: blockchain allows us to trust solely in the technology.[2] Upcoming publication by the Frankfurt School Blockchain Center.[3]
Luis Bezzenberger from Brainbot Technologies, engages in partnerships with enterprises as well as with start-ups which seek to leverage blockchain technology to innovate. His firm creates core building blocks to scale the technology towards broad adoption of public blockchain systems. Although many applications are still something to “dream about” – a few applications have already started to engage in the real world, like payment solutions.[4]
Decentralised Apps (DApp) combine smart contracts stored in a blockchain and a user interface. They offer a decentralised storage place (similar to a cloud) and allow exchanges between users. This happens without operators, in a decentralised way.[4]
Blockchain technology could reinvent the democratic voting process, with a trustworthy system.[4]
Compared to developed countries, developing countries are far more likely to be impacted by blockchain technologies. Some of the advantages are listed below:
In Indonesia, the Frankfurt School is about to launch a project in cooperation with the UNTAR Tarumanagara University. The project is still at an early stage. However, they want to establish an intra-university coin system to have a showcase that demonstrably works! If the students can proof that a blockchain technology based currency works, they might identify the need for implementation throughout Indonesia.[2] [updates coming soon]
For the state with many islands, a central system like a bank with many ATMs is not a suitable money system.
Lack of transparency, corruption, and misuse of funds are among the challenges that international organisation face when providing cash assistance.
Blockchain platforms offer transparency and immutability. The WFP tested this technology in a project called ‘Building Blocks’, in Sindh province, Pakistan, in January 2017 and as well in Jordan. Vulnerable families received food and cash assistance from WFP which was authenticated and recorded on a public blockchain through a smartphone interface. This way, disbursements are accountable and can be matched with the entitlements. This makes the process faster and more accurate.[7] [8]
Blockchain technology reduces transaction costs. Therefore, also in the energy sector, blockchain technology has the potential to play a significant and potentially game-changing role:
White paper of the World Economic Forum: Realizing the Potential of Blockchain. A Multistakeholder Approach to the Stewardship of Blockchain and Cryptocurrencies. Blockchain, or distributed ledger technology, could soon give rise to a new era of the Internet even more disruptive and transformative than the current one. Blockchain's ability to generate unprecedented opportunities to create and trade value in society will lead to a generational shift in the Internet's evolution, from an Internet of Information to a new generation Internet of Value. The key to enabling this transition is the formation of a multistakeholder consensus around how the technology functions, its current and potential applications and how to create the regulatory, cultural and organizational conditions for it to succeed.
This article argues that blockchain technology “could eliminate a lot of the complexities around managing distributed energy resources” and stresses the fact that blockchain technology “literally put more power in the hands of the people”.
