C-Suite Execs, Government Advisors, School U.S. Lawmakers About Blockchain

Published on 15 February 2018 by Cryptovest Staff

While listening to top executives from leading corporations talk to members of Congress about Blockchain, I was reminded of this cartoon.

This illustration is spot on and applicable to a U.S. Congressional hearing in which lawmakers were filled in on the nuances of Blockchain.

Held Wednesday, the hearing, “Beyond Bitcoin: Emerging Applications for Blockchain Technology,” allowed members of the House of Representatives to hear from top corporate executives who have keen knowledge about how Blockchain can help shape policy.

Here, we’ll go over some of their recommendations for how the government can benefit from Blockchain, as well as other highlights from the hearing.

C-Suite on the Hill

Lawmakers were schooled about Blockchain from the crème of the crop. On hand to discuss Blockchain with them were:

  • Jerry Cuomo: vice president of IBM’s Blockchain technology division
  • Chris Jaikaran: a cybersecurity analyst from the Congressional Research Office
  • Frank Yiannas: vice president of food safety for Walmart
  • Charles Romine: director of the Information Technology Lab at the National Institute of Standards and Technology (NIST)
  • Aaron Wright: an associate clinical professor at the Benjamin N. Cardozo School of Law and co-director of its Blockchain Project

Don’t confuse Bitcoin with Blockchain

One of the key things stressed by all those who spoke before the members of the House was the difference between Bitcoin and Blockchain. Unfortunately, those unfamiliar with the nuances of the crypto space often shy away from Blockchain because they associate the many complaints over Bitcoin with the technology.

All the gentlemen agreed that Blockchain is a transformative technology, and that its uses can benefit not only the private sector, but also governments.

IBM’s Cuomo noted that while the use cases for Blockchain are extensive, it’s not a silver bullet. To that end, he said that the government should make the most use out of the technology by encouraging projects that can directly impact the U.S.

“Blockchain is not a panacea technology. There are pitfalls that could inhibit Blockchain’s usage.”

These include data portability, user collusion and user safety, Jaikaran pointed out.

From farm to table

One area where Blockchain has improved company results relates to the supply chain. Walmart’s Yiannas told lawmakers that Blockchain has helped the world’s largest retailer in several ways.

“Farm to table is difficult to track; some records are still recorded on paper. Walmart is testing Blockchain on dozens of selected food items.”

In addition to enhancing food traceability, Yiannas said Blockchain helps to reduce food waste. Walmart partnered with IBM last year to test using Blockchain to track mangos from source to store, Yiannas said.

“At the end of the trial, we proved we could cut down the time to trace food from seven days to 2.2 seconds. That’s food traceability at the speed of thought.”

Digital identities

We told you at the beginning of the week about Microsoft weighing solutions to help millions of people who don’t have IDs attain digital IDs. Its solution entails Blockchain due to its security strengths.

For example, IBM is collaborating with companies like SecureKey and the Sovrin Foundation on Blockchain-based digital identity, Cuomo said.

Cuomo went on to address one of the key things the panel of lawmakers kept bringing up – how to keep bad actors from capitalizing on the crypto space. He said that with Blockchain, identity theft and fraud can be significantly reduced while at the same time increasing the effectiveness of Know-Your-Customer and Anti-Money Laundering efforts.

“We can not only make it harder for criminals to impersonate someone, but in the event of a data breach, we can recover quickly. Unlike a social security number, Blockchain-backed decentralized identifiers can easily be revoked and reissued if ever stolen or compromised.”

Policies

Lawmakers were advised to focus their efforts on projects that can positively impact U.S. citizens and improve economic competitiveness. It was noted that lawmakers should hone in on the work already done by the Congressional Blockchain Caucus. It’s begun critical work on ID payments and supply chains as they relate to Blockchain.

“Their work should be used as the base to explore Blockchain adoption, and then use the knowledge gained to inform policy,” Cuomo said.

Lawmakers should also insert Blockchain into projects that are already funded.

“Look for opportunities to fuel innovation in the broad ecosystem of U.S. businesses by encouraging projects that are part of initiatives like the Small Business Research program,” Cuomo said.

Above all, remember Blockchain is not Bitcoin!