Our Blockchain Basics book (Blockchain Basisboek in Dutch) has just been published on January 17th. You can download it here for free. The book will be used in classrooms across more than 8 local universities in the Netherlands. Hopefully, other universities will follow soon.
In this post, I’d like to discuss why I started the initiative to write the ±550 pages book, and what other project I have in mind to further improve blockchain education in the Netherlands.
The current state of blockchain education in the Netherlands
After two months of teaching blockchain at a local Dutch university, October 2018, I realized that blockchain education in the Netherlands (probably in most parts of the world) is still lacking.
I have identified the following 7 issues with our blockchain education in the Netherlands.
Few Dutch class material. Good blockchain content is mostly written in the English language. My required reading list therefore consists mainly of English material, which proves to be a high barrier for Dutch-speaking students that are not at all familiar with (a) the technology and (b) the technical jargon used in the blockchain space.
Dutch content is dispersed. Good content in Dutch is very dispersed among many different websites.
Current Dutch books are not very useful for educational purposes. The books available on the Dutch market are not comprehensive enough and are not suitable for students.
There is no standard for good blockchain education. Most universities are developing curricula on their own and there’s no standard on what good blockchain education consists of.
Few sparring partners. Most universities don’t share their class materials or experiences teaching blockchain. Fortunately, the Dutch Blockchain Coalition is trying to change this, but we need to put much more effort to do cross-institutional sharing. Many universities also want to develop blockchain education, but lack the expertise. It would be good if these universities jointly develop their blockchain curriculum with other universities and share teachers.
Knowledge is dispersed. Different faculties within a university are developing blockchain education in isolation and have their own blockchain experts who don’t know that some of their colleagues are also working on blockchain. Someone who’s working on the legal side of blockchain may not know that there’s someone at another faculty who is working on the technical or ethical side of blockchain. Bringing knowledge from different people together can lead to interesting and surprising new perspectives.
Not enough diversity in perspectives. Blockchain can be approached from many different perspectives. Most classes only focus on a limited number of perspectives. A business department may heavily focus on blockchain applications and little on the technical side. Not knowing the technical side of blockchain, a business teacher may talk about potential blockchain applications and develop business models that are technically unfeasible.
I wrote the Blockchain Basics book, together with my colleague Arthur Janse, to tackle the first 3 issues (in green).
Main topics of the book
The book comprises three parts:
Part I contains the technical side of blockchain and relevant innovations. Topics that we discuss are Bitcoin, current payment systems, consensus protocols, mining, nodes, forks, cryptography, smart contracts, governance, cryptoeconomics, and self-sovereign identities.
Part II contains the economic and philosophical background of the Bitcoin blockchain. It discusses the different economic schools and in particular how the Austrian School of Economics and libertarianism, crypto-anarchism and cypherpunk have influenced Bitcoin.
Part III contains topics revolving around enterprise blockchain. It discusses decentralized business models and enterprise applications.
While writing the book, I came up with the idea to create an organic community based open access digital knowledge platform that anyone can join for free. I pitched the idea in September 2019 at a Dutch Blockchain Coalition (DBC) event for all universities in the Netherlands. The DBC and other universities responded enthusiastically. Four months later, we have a proposal ready to develop the platform with 6 universities and the DBC.
We would like to use the Blockchain Basics book as the foundation of the platform, and – acknowledging that knowledge is decentralized – give all users the right to add new or revise already existing content. A public reviewing feature and a reputation system will be put in place to make sure that wrong content becomes corrected and to incentivize users to add good content. Students can also submit their Bachelor, Master and PhD dissertations and researchers can submit their papers on the platform.
I think that the multidisciplinary and cross-institutional cooperation will structurally improve blockchain education in the Netherlands. Doing so, I think we can tackle all the other issues (issues number 4 – 7).
After many years on the sidelines, a consortium of large corporations and social impact organizations led by Facebook will soon enter the blockchain space. In the past week, Facebook has given more details regarding their future cryptocurrency, the Libra. It is supposed to be released by the consortium in the first half of 2020.
This article is my first reaction to the Libra White Paper, which describes Libra as a cryptocurrency with low volatility that will make use of its native Libra blockchain. What follows is a description of Libra as described in the White Paper, and 11 predictions about its consequences for the blockchain and financial world.
Goal of Libra The goal of the Libra Association is to create a stable currency that makes use of a secure and stable open-source blockchain. Open-source means that the source code is public for anyone to see. In order to keep the currency stable, it will be backed by Libra Reserves – a basket of low-volatility assets, such as bank deposits and short term government securities in currencies from stable and reputable central banks such as the USD, EUR, CNY, and GBP. These assets will be managed by a global network of custodians. The Libra will thus enjoy the benefits of stable traditional government money and the benefits of blockchain-based cryptocurrencies. Users of Libra should theoretically be able to make transactions with Libra coins with low costs, and within immediate speeds to anyone anywhere in the world.
The Libra Association is hopeful that it will give a boost to better and cheaper financial services, therefore, making financial services accessible for everyone.
Considerations for building the Libra blockchain The Libra blockchain has been developed, while taking the following three requirements into consideration:
It must be scalable to accommodate billions of accounts, meaning that it can process a high transaction throughput with low latency.
Funds and financial data must be secure.
It must be flexible enough to power the ecosystem’s governance and future implementations of innovative financial services and upgrades to the network are possible.
In order to make the above possible, the association has chosen to:
Develop a new programming language, called Move. The goal of Move is to make the development of “smart contracts” and transaction logic more secure. Hence, with fewer risks that a software developer writes mistakes into his code that lead to unforeseen bugs and unpredictable behavior of the software.
In addition, a Byzantine Fault Tolerance consensus protocol suitable for processing a great number of transactions will be used. This protocol will also be more energy efficient, than for example Bitcoin’s “Proof of Work” consensus protocol, and have less network latency. The protocol is a set of rules determining how consensus about the correct state of the blockchain within a blockchain network can be reached and what the requirements are for approving transactions.
Finally, according to the White Paper, the blockchain will be pseudonymous and will offer users the option to create multiple addresses that cannot be linked to their real-world identities.
The Libra Association The Libra Association will consist of a consortium of around 100 founding members. It has approximately 30 members so far. Among these members are PayPal, Mastercard, Visa, Spotify, Über and Ebay. In order to become a founding member, they had to put in $10 million for the Libra Rerserve. In addition to commercial corporations, there are also social impact organizations such as Women’s World Banking and Kiva. The members of the consortium will receive Libra Investment Token (LIT) with which they can participate in the governance of the Libra Association. It is also possible that they will be rewarded with LIT for maintaining the blockchain and approving the transactions.
The Libra Association will manage the Libra Reserve for the stability and growth of the Libra economy. The interest earned from the reserves will be used to cover their costs. The Libra Association will be the only party that can issue and burn (destroy) Libra tokens. When authorized resellers have bought Libra from the Association with fiat money, new Libra will be issued. Libra will only be burned when authorized resellers sell their Libra to the Libra Association in exchange for their underlying assets. The Libra Reserve thus acts as the “buyer of last resort”. The policy of the Libra Association can only be changed through majority consensus of the members. It’s still unclear how much consensus is needed to change the Association’s policies. It’s also unclear how much consensus is needed to approve a transaction. It’s expected that this will be similar to other Byzantine Fault Tolerance protocols and that 67% consensus is needed.
Another goal of the Libra Association is to develop a standard for open digital identities. Such identities are, according to the Association, a prerequisite for financial inclusion.
Permissioned blockchain According to the White Paper, the blockchain is permissioned. This means that not everyone is able to run the blockchain on their own computer – only the members of the Association are allowed to do so. They are nonetheless planning to make the transition towards a permissionless environment in which everyone can run his or her blockchain node within 5 years.
Is the Libra blockchain really a blockchain? Although the Libra Association asserts that Libra is blockchain-based, one could argue that it’s actually not. Blockchains normally make use of data blocks that are chained to each other. Libra, on the other hand, is a single database and does not make use of such blocks. It acts more like a payment scheme.
For more details regarding this topic, see the following article of Simon Lelieveldt.
If Libra does not make use of a blockchain, is it a cryptocurrency? Some may believe that Libra is not a real cryptocurrency if it does not make use of blockchain. However, in order to be consistent, they should then also maintain that B-money – a precursor to Bitcoin with many similar properties as Bitcoin, but without the use of blockchain – is not a cryptocurrency.
I will not get deeper into the discussion whether Libra is a blockchain or a cryptocurrency.
Calibra wallet Libra will be implemented into the ecosystem of Facebook and will also be available in other applications owned by Facebook, such as Messenger, Whatsapp, and Instagram. The wallet in which Libra will be stored is called the Calibra wallet.
What will be Libra’s consequences for the blockchain and financial world? It’s difficult to make correct predictions about Libra, especially since many details about Libra are still missing. Nonetheless, there some predictions I already dare to make.
The Libra blockchain will not be entirely neutral and borderless. The Libra Association will conform to governmental rules and regulations. It will hence be unlikely that transactions to sanctioned countries, such as Iran, will be approved.
The Libra blockchain will compete with banks and fintech companies. It will introduce innovative financial products that will directly compete with financial products offered by banks and fintech companies. Also, Libra transactions will not require payment service providers and intermediary banks and schemes to facilitate the transactions. People could, for example, be able to send money abroad with low transaction costs, and pay with Libra for Über rides and Spotify without traditional payment facilitating intermediaries.
Libra will compete with central banks. Libra could undermine the demand for national currencies – something that central banks and national governments will not accept. Shortly after the announcement of Libra, French and Russian politicians have already expressed their worries that Libra will undermine their national financial system. In addition, it will also be more difficult for central banks to prevent capital flight. Recently, voices have been raised in the United States to (temporarily) stop the development of Libra in order to make sure it will not compete with the USD. Thus, it’s still unsure whether the Association will be able to release Libra in the first half of 2020.
Libra will lead to tension with rules and regulations, and show that current financial rules and regulations are outdated. The call for clearer regulations with respect to cryptocurrencies will grow.
Libra will show that those who say “cryptocurrencies are not interesting, it’s all about blockchain” are dead wrong. Cryptocurrencies will be a tremendous force for mainstream adoption of blockchain, just like e-mail was for the internet.
Libra will compete with stablecoins. Stablecoins are cryptocurrencies that are pegged to assets with stable value. Think for example about the USD, the EUR and precious metals. Stablecoins that already exist are Tether (USDT), Gemini Dollar (GUSD), bit.USD, and Coinbase Dollar (USDC).
It’s unclear how the Libra Association will handle their users’ privacy. I expect that users will be required to provide private information if they would like to make use of the Calibra wallet. The White Paper mentions that having a digital identity is a prerequisite to make use of Libra. However, it also mentions that users will be able to create wallets that cannot be linked to their real-world identities. In addition, it’s also unclear how the Association will deal with users’ transaction data. The Association members will be able to view all transaction data as they are allowed to run a Libra node on the network.
The people that will benefit most from Libra are those who are still facing big barriers to participate in the financial world. If Libra is able to lower the barriers of entree, it will greatly improve the financial opportunities of the unbanked.
Libra will lead to more intensified discussions about what money is. People will become more skeptical about national currencies, and more will become convinced of the benefits of privately issued currencies like cryptocurrencies.
Libra will make people more familiar with cryptocurrencies and better educated about the benefits of blockchain.
In the long run, people will look for alternative currencies that cannot be controlled by governments and central banks. They will hence make more use of cryptocurrencies that are open, public, borderless, neutral and censorship resistant like Bitcoin. These currencies will eventually benefit from Libra.
Conclusion Libra is an interesting development that will benefit the blockchain space, as well as the financial world. The members of the Libra Association already have a combined reach of more than 2.5 billion people, so they can accelerate mainstream adoption of blockchain. Users will be able to perform transactions against lower costs and with immediate speed. Those that will benefit most from Libra will be mainly people from developing countries.
Eventually, though, Libra will lead to greater adoption of cryptocurrencies that are truly open, public, borderless, neutral and censorship resistant like Bitcoin.
Over the last two decades online services have transformed from a product of a multitude of enterprises to being dominated by a handful of corporate-owned platforms such as Apple, Microsoft, Facebook, Google and Amazon. They specialize in connecting media producers to users. These are often mutual interactions with users both producing and consuming content. These platforms play an increasing role governing commercial exchange, as well as civil discussion, with plausibly pernicious implications for liberal democracy. As I propose in a recent paper ‘Markets for Rules’, blockchains offer a promising solution to this danger by helping to displace corporate ownership in favor of common platforms sustained by users themselves.
Corporate concentration has produced enormous efficiencies and innovations, improving user experiences and boosting investment in hardware and infrastructure. But it has also had several bad consequences. These enterprises face extremely low marginal costs and network effects whereby additional users add value to an existing user-base. Some of these effects are explained by these platforms’ business models of collecting personal data to target advertising more effectively at customers. The more interactions on a single platform users have with each other, the more useful the data for advertisers. The result is overwhelming returns to scale and a winner-takes-all competition for profits.
This has troubling implications for economic inequality, especially if we end up with a handful of corporations taking a bite out of every conceivable transaction. Of greater concern is the way owners exert control over who can join and what people are allowed to do on their platforms. Content producers can be demonetized or banned, effectively denying them access to a user-base or revenue. Online sellers can find themselves frozen out of a platform payment system without legal remedies. Controversial or unpopular producers survive at the whim of executives or, at best, a patchily enforced official policy.
This reliance on private governance is a problem for consumers, producers and ultimately citizens. But it is also a challenge for executives who find themselves mediating acrimonious personal disputes and political debate. With all the data in the world, they struggle to judge consistently what belongs on their platforms. The fact that these corporations have ended up functioning as unofficial censors and wielders of sanctions has led some commentators to propose regulating these platforms as public utilities or, more radically, nationalizing them so that access to them is decided democratically. These solutions have their own perils because any centralized system of monopoly control, whatever the underlying democratic credentials, can produce authoritarian outcomes. Liberal democracies up until now have been sustained by an independent civil society constituted by overlapping and competing spheres of governance, not the monopoly of either democratic or corporate government.
The prosecution of the CEO and founders of Backpage, who failed to exclude sex workers from their platform, illustrates the reliance of these private enterprises on government support on controversial policy issues even in relatively free societies. The combination of privately-developed data-collecting networks with over-arching state control is arguably reaching a nadir in China which is rolling out an unaccountable surveillance system of ‘social credit’ that can identify political dissidents and automatically exclude them from significant spheres of civil society.
Is there a way that blockchains can help navigate around the centralising and authoritarian impetus of technology-facilitated governance? Blockchains emerged from two pre-existing technologies – public ledgers and asymmetric cryptography – to produce a way of sharing data across a network that is resistant to manipulation by unauthorized actors. Initially conceived as offering alternatives to state-backed currencies, blockchains are now used to build decentralized autonomous organizations (DAOs) and dapps (decentralized apps). They can supply similar functions as corporate platforms but without an overall owner.
These systems are sustained by rewarding network participants with tokens (through completing intensive computing processes called mining). Tokens are convertible into ordinary currency, albeit currently at volatile rates. The entrepreneurs that build these platforms typically reward themselves and investors a large stake in those tokens but once the network is launched, they do not have control over how it is utilized. The rules of each network are self-enforcing. These rules can be changed, either through the original (or new) developers launching a rule-set that others may choose to switch over to (a fork). Alternatively, the rule-sets might contain provision for amendment. Such amendment schemes are, of course, open to manipulation as is the case for all political processes. Nevertheless, what these schemes offer is a way of interacting and exchanging at large distances without an overarching ruler. Instead, conduct is permitted on the basis of fixed rules enforced mechanically by people’s decisions to participate in the system. One way of looking at these schemes is that they have decentralized properties of communal norms, combined with the possibility of more deliberate design and experimentation of more formal rules and institutions. I call this common government.
The implications of this new technology and kind of governance might turn out to be very far-reaching, approaching that of the development of the Internet itself or even the printing press. But what could it mean for familiar Internet platforms in the medium-term? First, participating in mutual platforms might better align the incentives of users and platform designers. Right now, platform owners rely on squeezing as much data out of users as possible in order to sell it on to advertisers and to sell additional services. Mutual platforms, without responsibilities to shareholders, can experiment with different funding models. Individual users might elect to sell access to their profile to advertisers but the data itself can be made more secure as it will be a property of an encrypted network rather than a profile stored in a central private database. Privacy can be better assured than private management with public regulation.
Second, the networks can be more robust both to natural and political perturbations. Under decentralized protocols, ordinary users help store and serve content to each other. With the addition of blockchains, these users can be compensated for making their idle computer resources available for network use. This means that data doesn’t have to travel so far as is currently the case from host to user and the network as a whole can better cope with outages from particular nodes without data loss. Without a central controller, there is no particular agent that a government can coerce or punish for allowing specific interactions over a platform. Governments would then face the more difficult choice of permitting or prohibiting Internet communications altogether. It is thus more robust against arbitrary government censorship and manipulation of trade.
The relationship between users on a platform is mutual. The relationship between users and platform owners, however, is presently hierarchical – a private dynamic that government agencies can exploit. What blockchains may eventually permit is the provision of relatively efficient networks reliant neither on a single public agency nor private owner.
We are nearing the end of my first semester as a Blockchain lecturer at a local university. We have discussed many topics, such as cryptography, consensus protocols, tokenization, smart contracts, how to build your own crypto-token…
During the final examination, I have asked what their biggest takeaways are from my classes. Do you know what the biggest takeaway is among most students?
It’s that they will never look at government and money the same way again. None of them had heard of the word Libertarian before, but now they leave the classes a little more sceptical of government and hopefully a little more libertarian.
News has arrived that Timothy May, the founder of the crypto-anarchist movement has died on December 15th, 2018. He has been a hero and inspiration for many in the crypto-anarchist/anarcho-capitalist community for his ideas to spread freedom and privacy through the use of cryptography.
Once an Intel senior engineer, he has written extensively about privacy, cryptography, and internet freedom. Without a doubt, he has been a great influence on the likes of John Perry Barlow (declaration of independence for cyberspace), Nick Szabo (smart contracts and Bitgold), Wei Dai (B-money), and Satoshi Nakamoto – the inventor of Bitcoin and blockchain. He has also contributed extensively to the Cypherpunks electronic mailing list, the same list that Satoshi initially used to spread his Bitcoin whitepaper and to invite cryptographers to join further developments of Bitcoin.
In his Crypto Anarchy and Virtual Communities (1994) paper, May describes Crypto anarchy as
the cyberspatial realization of anarcho-capitalism, transcending national boundaries and freeing individuals to make the economic arrangements they wish to make consensually.
He furthermore writes that
Digital cash, untraceable and anonymous (like real cash), is also coming, though various technical and practical hurdles remain. “Swiss banks in cyberspace” will make economic transactions much more liquid and much less subject to local rules and regulations.
Acknowledging the possible negative sides of crypto anarchism, May sees the development of crypto anarchism as mostly good. He believes that criminal activity within a crypto anarchist community are mostly exceptions and not the rule. He writes,
Is this a Good Thing? Mostly yes. Crypto anarchy has some messy aspects, of this there can be little doubt. From relatively unimportant things like price-fixing and insider trading to more serious things like economic espionage, the undermining of corporate knowledge ownership, to extremely dark things like anonymous markets for killings.
But let’s not forget that nation-states have, under the guise of protecting us from others, killed more than 100 million people in this century alone. Mao, Stalin, Hitler, and Pol Pot, just to name the most extreme examples. It is hard to imagine any level of digital contract killings ever coming close to nationstate barbarism.
Few mainstream news outlets today will write about Timothy May’s death and impact on our world, but for us who aspire to uphold Bitcoin’s initial principle to make (financial) freedom and privacy absolute, he will always be remembered for his inspiring contributions to secure our rights to life, liberty, and property.
Mankind made a huge leap forward regarding human organization when it implemented the Constitution. Man was no longer to be ruled by kings and despots, but by a document that stipulated the rule of law. Still, we had the issue of who was going to interpret these laws and who was allowed to add new rules.
Now, we have made another revolutionary leap forward in human organization. We don’t need a third party – kings, governments, courts – to interpret the laws anymore if we have self-executing smart contracts that eliminate the need to trust these third parties. Trust is established through mass collaboration and clever code. On top of that, everyone is free to opt-in, to submit new rules, and to participate in a set of rules. No one is forced to participate. You can always secede. We have had many secessions in the blockchain space. Bitcoin Cash seceded from Bitcoin Core, Ethereum seceded from Ethereum Classic etc. It is therefore a peaceful means to organize human beings.
This is, in my opinion, the fundamental revolution of blockchain: a peaceful trust machine for social agreements and human organization.
On September 22nd, I presented my Serey project – a blockchain based social media platform in Cambodia – at BitFest 2018 in Amsterdam. It was organized by the BitShares Foundation and mainly attended by enthusiasts of BitShares and Graphene technology. Being part of the Bitshares/Graphene family, I was invited to speak at the conference.
We shared the stage with other graphene projects as BitSpark, DasCoin, PayGer, BitCrab, RuDEX and many others. I look forward to work together with anyone that seeks to decentralize our future, that has a vision in which every human being is free, and where blockchain technology provides the tools to secure our rights to life, liberty, and property.
Stan Larimer was there as well, and he had something interesting to say about how BitShares will import EOS technology through a middle-layer. This will greatly benefit the whole BitShares/Graphene community, including Serey.
Regarding my own presentation, I have made the case that Blockchain is not only a technological revolution, but essentially a social, political and economic revolution. I believe it’s a tool that will move us into a more decentralized world that was envisioned by the earliest internet adopters. As more internet applications were built, it became clear that it would not become as decentralized as these adopters hoped. These applications suffered from a centralized system in which data was stored and controlled on a single or a small number of servers. Those who controlled these servers, the men-in-the-middle, dictated the rules of the platform. They could look into your data, modify your data, prevent you from accessing your data etc.
Blockchain eliminates these so-called “men-in-the-middle”. Its censorship-resistant property provides many great opportunities for developing countries where the rule of law are often weak or underdeveloped. One opportunity that I have been trying to seize in Cambodia is the creation of a social media platform that could not be controlled or censored by a single party. As Cambodians are becoming more tech savvy, and more connected to the outside world through internet access, it’s a great time to roll out a Blockchain-based social media platform where people can express themselves freely. The advantage of a social media is that it’s easier to build the network effect that can reach critical mass in a relatively short period of time. Once we gain enough momentum, I would like to tokenize the national currency, the Riel, develop a Serey Wallet, and provide anyone who has access to the internet the opportunity to open a wallet (bank account) for free and use our tokenized Riel for e-commerce, remittances, savings, loans etc. Although Cambodia has experienced tremendous economic growth in the past two decades and the World Bank has moved Cambodia’s status from a lower-income bracket to a lower-middle-income bracket, 83% of Cambodians still remain unbanked.
Doing so, I hope we will promote freedom of expression and an intellectual society in Cambodia, as well as help banking the unbanked.
Below, you can find my slides for the presentation.
I was very fortunate to learn that my essay ‘Markets for rules‘ has won the Mont Pelerin Society’s 2018 Hayek essay competition for young scholars (one of the perks of academia is being defined as young well until your 30s). I am now looking forward to presenting at MPS’s famous conference, originally organised by F.A. Hayek to build the post-war intellectual case for liberalism.
The essay is an attempt to explain the governance possibilities of blockchain technology through the lens of new institutional economics and more specifically private governance. Blockchains allow people to develop rules that can then be enforced autonomously by the participants that use them without further central direction. This could allow communities to rely more on common rules and less on formal coercive authorities to achieve widespread social cooperation. I am cautiously optimistic about the technology (it could also turn into a dystopian nightmare) though not any particular currently existing blockchain.
Here is the abstract: Classical liberals seek the paradoxical: government powerful enough to protect individuals from preying off each other, but limited enough to prevent it becoming a fierce predator itself. The emergence of blockchain technology heralds a potential revolution in our collective capacity to implement limited government. Blockchains offer a more secure and transparent way of implementing rules while permitting individual choice between rulesets that can co-exist at the same time and place. What this could ultimately mean is that a great deal of what we have traditionally conceived to be governance might be disintermediated from the territorially defined monopolistic coercive authorities that classically define states.
Serey is a new Social Media platform that specifically targets the Cambodian market. The country that saw nearly a quarter of the population decimated during the civil war of the 60’s and 70’s, the Khmer rouge regime, and the subsequent famine, has gone through rapid economic developments in the past two decades due to its friendliness to free markets. Accompanying this development is the adoption of new information technologies. One such technology is blockchain.
The team behind Serey has now created a blockchain-based social media platform called Serey. It rewards content creators, such as writers, for their creativity. The platform now has 400-500 users who all contribute by writing content ranging from short fictional stories to history, philosophy, and technology. Users can post any content they want. There is no central authority that can censor the posts in any way. The system is based on a democratic voting system in which every user can vote on articles. Dependent on the votes, the content creators are rewarded with the platform’s native cryptocurrency called Serey coin (SRY).
What does Serey stand for?
The name of the platform, Serey (សេរី in Khmer), is derived from the Khmer word seripheap (សេរីភាព) which stands for liberty or freedom. The platform is built on the philosophy of liberty and is inspired by Friedrich Hayek’s theory of dispersed knowledge. Realizing that every individual knows just a fraction of what is collectively known and that our collective knowledge is therefore decentralized, Serey is looking to encourage the sharing of the unique information that individuals possess through the Serey platform. It wants to create an open platform where everyone is free to enter, to exercise their creativity without fear of being coerced into silence or conformity, and to engage in thoughtful, civilized discussions.
There was no such online platform in Cambodia yet. Cambodia, at this moment, also doesn’t have a culture of reading and writing. Serey is aiming to transform this so there is also an educational component to it.
The mission statement of Serey is as follows:
“Rewarding self-expression and creativity.”
Why is Serey run on a blockchain?
The Serey blockchain allows the storage of content – actually only the actual text of the article and no pictures or videos to keep block sizes minimal – in a distributed manner. Anything written on Serey is stored on a blockchain that is shared among many other servers, called witnesses, that run an exact copy of the blockchain. This makes all content tamper-proof and censorship nearly impossible. This is in line with Serey’s belief that everyone should have the right to free expression.
In addition, a blockchain serves the people’s right to keep the fruits of their labour. Serey cannot take away any of its users Serey coins. All earnings are rightfully theirs and they can spend it in any way they want.
What are the features of Serey?
Serey is principally a fork of Steemit – another social media platform on the blockchain – and therefore essentially makes use of the Graphene technology that also powers Steemit and Bitshares. However, whereas Steemit is trying to create a one-size-fit-all approach with their platform, Serey is entirely dedicated to the people of Cambodia. They believe that regional differences require different user interfaces and functionalities that match the people’s cultural makeup and level of sophistication with blockchain technology.
Compared to Steemit, Serey has a different layout, a market place section, a Khmer language option, an free advertisement section, and a simplified reward system.
In addition, the Serey Decentralized Exchange is currently being built in cooperation with developers close to Steemit and Bitshares. It will be a full-fledged decentralized exchange that is accessible by anyone, anywhere in the world. Users will then be able to trade Serey coins (SRY) among 15-20 other cryptocurrencies such as Bitcoin, Ethereum, Dash, Bitshares etc.
Other features that Serey users can look forward to in the next six months are an online betting system, improvements of the market place section, an integrated chat feature similar to that of Messenger, and a mobile app.
If you are interested in Serey, please feel free to visit the website and to register for free. Most articles are written in Khmer, but English articles are welcome as well.
As some might already suspect from some of my previous posts, I am a cryptocurrency enthusiast. As of now, there is another crypto-project founded by two libertarian anarchists that I find extremely interesting and that I would like to share with you.
In this post, I’d like to introduce this project called Steemit, a new social media platform where content creators (bloggers) can earn money with every ‘upvote’ (comparable to ‘likes’ on Facebook) they receive from the community. I am not encouraging my fellow note writers to quit posting articles on Notes on Liberty, but I would recommend them to share their articles both here and on the Steemit platform.
So what is Steemit?
“Collectively, user-generated content has created billions of dollars worth of value for the shareholders of social media companies, such as Reddit, Facebook, and Twitter. Steem supports social media and online communities by returning much of its value to the people who provide contributions by rewarding them with virtual currency.”
Steemit is most similar to Reddit, but with the important difference that you can monetize your blog. You can take a look at my first two ‘hits’ on Steemit for proof that you can monetize your blogging skills:
Steemit was founded half a year ago by entrepreneurs Ned Scott and Daniel Larimer. Daniel Larimer has been a familiar face in the cryptocurrency scene as the founder of Bitshares, which currently ranks as the 19th largest cryptocurrency in market cap on www.marketcap.com. Steem itself, the currency that drives steemit, has risen in prominence among other cryptocurrencies. According to www.marketcap.com, Steem is now the 4th largest behind Bitcoin, Ethereum and Ripple.
The concept behind Steemit is very simple, and you don’t need in-depth knowledge of the workings of cryptocurrencies to start writing (and curating posts) and earning some money. If you have a facebook account or a reddit account, you can sign up at www.steemit.com. At first sign up, you will receive $10 worth of Steem Power – I will later get to Steem Power to explain what it is. Once you sign up you can immediately start submitting posts or comments on other people’s submissions. You can earn money through both ways.
The website is still in beta, and you may argue that it is not as user friendly as Reddit or other social media networks, but the pace in which applications have been rolled out on the platform in the one month that I have been using it is impressive!
A chat functionality with private messaging, a functionality to follow other writers, and weekly insights in your earnings have for example all been added in the past four weeks.
This, however, is just the beginning. The founders of Steemit have far larger plans than just creating a blockchain based social network. The social network is the means to attract enough users of its currency (Steem and Steem Dollars) that a full-fledged market place based on these currencies can emerge. The first step is to increase the user base, but next steps are to create a market place in which people can trade goods with Steem and Steem Dollars and where Steem will grow in such prominence that it will compete with already existing fiat currencies like the USD, Euro, GBP, Yen, and RMB. We are still far off from this actually happening, but it’s great to see these kinds of experiments with the free market.
Is Steemit a scam? I have read about people who have called it a scam, but the funny thing is that you don’t need to put any monetary investments in the platform to submit an article and earn some money. Normally in scams, you are encouraged to give away your money for little or nothing in return. With Steemit, all you need is to create content that the community values and in return you will receive some money.
Steem, Steem Power and Steem Dollars Lastly, I’d like to say some words about the three tokens you can hold when using Steemit: liquid Steem, Steem Power and Steem Dollars (SBD).
Liquid Steem, or simply Steem by name, is immediately convertible to bitcoin and fiat currencies as USD. People who would like to speculate on the price of Steem can hold it to sell at a higher price.
You can also convert your Steem into Steem Power. Steem Power gives you, if I am not mistaken, interest of approximately 0.7% in Steem Power per day. Holding Steem Power is like holding a stake in the long-term development of Steemit as you can only convert 1% per week of your Steem Power in Steem and exchange it for bitcoins and fiat currencies.
Steem Dollars are tokens pegged to the USD at an exchange rate of around 1 : 1. People who don’t like the volatility of cryptocurrencies can hold Steem Dollars.
For more information about Steemit, you can read the Steem White Paper or watch this excellent interview of its founders:
I hope that I have triggered your curiosity about Steemit, and I hope that you will take this invitation to post your content not only on Notes on Liberty, but also on www.steemit.com. Please don’t forget to follow me once you are on Steemit. You can find me at www.steemit.com/@chhaylin.