Speed of change and innovation in blockchain space You may lose your sense of direction.New cryptocurrency, new Asset typeEven the idea of a whole new organization Like DAO It’s constantly emerging around the world — and it’s constantly burning.
It’s a culture that’s not only content with change and turmoil, but obsessed with it.
This is part of what we will cover in this newsletter. The other part is the rulemakers in Washington and Brussels, who have to worry about this, constantly frustrating the much slower government blockchain business.
Innovators in the world of cryptocurrencies want to be clearer about regulations, such as what types of digital assets are counted as securities. Big theme At the DC Blockchain Summit last week. They want an answer right away, or they want the old institutions out of the way.
These two cultures may seem almost completely incompatible – challengers and old guards. The future and the past.
But for those on either side of this division, there are useful theories to keep in mind. According to theory, this tension is not only a problem, but also a virtue. Assumption It moves at various speeds. This indicates that the larger system is working overall.
Theory is a pace layer, the idea of Stewart Brand, the author and thinker best known as the publisher of the Whole Earth Catalog, where he spends much of his life, how big or growing a large and complex system. I’ve been devoted to thinking about what to do.
The brand is fascinated by cryptocurrencies, but his theory is not about the blockchain itself-he explored it. One book And again paper It was published a few years ago. He said that durable civilizations are at their own pace, from the most dynamic and fleeting layers (which he calls “fashion / art”) to the slowest and most durable (nature). It suggests that it changes due to the interaction of six different moving layers.
It is reasonable to consider Bitcoin to live primarily in the upper layers Part of the brand’s scheme — somewhere between fashion and the next fastest layer, “commerce” —on the other hand, regulators live down two layers in the area of slow-moving “governance”.
Brands claim that change happens quickly in the upper layers, but much of the power and strength of the system lies in the slower layers below. “In a durable society, each level is allowed to operate at its own pace,” he writes.
All six layers can be considered very relevant to cryptographic conversations. There is art / fashion (think NFT enthusiasts), commerce, and infrastructure. In this case, both the telecommunications network and the entire financial system, where the blockchain can be seriously disrupted or not disrupted, are included.
Their living governance, then culture, and finally under nature-which may seem free from these light human concerns, but influenced by the blockchain’s desire for energy, Eventually it may respond with its own confusion.
So all our readers should learn to enjoy living with each other, no matter what layer they live in. Despite the fast pace of blockchain news, it will be a long, slightly slow ride.
Fortunately, the brand itself is not lacking in ideas on how to solve the big blockchain dilemma poses at different layers.Last month he suggested this remedy-all By tweet:
Apparently, with the right mental framework, managing changes in complex civilizations can be done in less than 280 characters.
One of the main discussions of crypto promoters The amount of energy used for mining is actually help Fighting climate changeBy promoting the industry to add renewable energy capacity.
In New York, it’s time for them to put money where they have their mouth.
Early this morning, the New York State Legislature Moratorium for 2 years It is the first state in the country to impose formal restrictions on the energy use of crypto for the new proof of work crypto mining powered by fossil fuel plants. It’s a blow to the early crypto lobby that spent a lot of cash to fight the bill, against the spread of technology they see as providing little social benefit to justify their thirst for electricity. It’s a big win for environmentalists who are lobbying.
They share their views with someone who will be a key player in the upcoming cryptocurrency: Rostin BehnamThe Chairman of the Commodity Futures Trading Committee, POLITICO Sustainability Summit Last month, there was “the clear turmoil between the usage and generations needed to mine these coins, and the kind of economic outcomes seen from the digital assets themselves.”
Of course, the crypto world disagrees: in a statement after the Moratorium has passed, Christine Smith“It has a chilling effect on crypto mining in the state and threatens to send hundreds of high-paying jobs to neighboring states,” said the executive director of the Blockchain Association, a leading procrypt policy group.The claim is not without merit: cryptocurrency mining has revived the energy job From MontanaTo Kentucky.. In New York’s Moratorium, plants don’t need to be closed, but their seedlings are, on the surface, exactly the same as the remodeling of the tech industry in a post-industrial, unlucky town. By champion A government from Buffalo, New York. Kathy Hochul..
This creates another tension caused by the moratorium: widening the gap between parties on crypto policy.Far from banning new crypto mining, Kentucky offers majors Tax cuts and energy credits To miners; Wyoming Many crypto-friendly regulations To promote the industry.
Seeing the growing partisan division as one, not about cryptography As suchBut the energy that drives it, its division makes a lot of sense.
But when it comes to new technologies and all the economic and social concerns that come with them, it’s not that simple.Some Democrats use technology Traditionally bankless minority communityAnd even Sen of New York’s own Democratic Party. Kirsten Gillibrand Appeared in March POLITICO panel To promote the bill Will come next weekClarify the cryptographic environment — co-sponsored by Sen of Wyoming. Cynthia Lummis.. — — Derek Robertson
Who says Congress can’t do anything? A bipartisan privacy bill is finally imminent, POLITICO’s Rebecca Kern I have a report:
Congress has failed for decades trying to pass a law to protect the data privacy of Americans. A bipartisan bill released today by major parliamentary leaders suggests that lawmakers are finally approaching its realization.
Once the bill is passed, the “American Data Privacy Act,” called the bill, will provide a national standard for data that businesses can collect from individuals and how they are used.
The bill, announced on Friday, includes an agreement between the Republicans and Democrats on two areas that have hampered previous efforts. Get the data or use it in a way prohibited by law.
Expect specific details on the “necessary and proportional” restrictions on how US national security agencies have access to both European and American data … Systematize practices that limit intelligence data collection. It’s easier to agree with the principles than to.
The end result isn’t the victory many privacy campaigners want, but it’s admitted that Edward Snowden has revealed the over-collection of data that plagues many of these agencies.
Importantly, the result will be the introduction of the kind of concrete language that the EU needs to defend its protection in court. As Scott writes, “It will be difficult for the European Supreme Court to conclude that the new agreement violates the fundamental right to privacy of blocks in 27 countries.” — US regulators call themselves. Create yet another example of an ongoing European precedent on how to handle technology that will change the new world. — — Derek Robertson
Ben Schreckinger is responsible for POLITICO’s technology, finance and politics. He is an investor in cryptocurrencies.