Categories
blog

Blocktrend Today’s Q&A With Bitmark CEO Sean

Blocktrend Today’s Q&A With Bitmark CEO Sean

A few months ago, our CEO Sean did an interview with Astro Hsu for Astro’s publication Blocktrend Today. Astro is Taiwan’s top blockchain writer and influencer who has thousands of paid subscribers for his blockchain Chinese newsletters. Below is the English translation of that interview:

Bitmark is an independent public blockchain. Its biggest difference with other blockchains is that Bitmark has not issued its own cryptocurrency, however, it does use bitcoin to reward miners. Users can also use it to issue music, business cards, and other digital files. In 2017 Bitmark received support from Alibaba’s Taiwan Entrepreneur Fund.

In this interview, we’ll be talking with Bitmark CEO Sean Moss-Pultz. He is also responsible for guiding HTC Blockchain Phone Exodus 1’s technology and data R&D.

Sean is an American, and is married to a Taiwanese woman, with whom he speaks Chinese and English. This interview was conducted in both Chinese and English.

Astro: We’ll start with the simplest, yet most difficult question to answer, okay? In terms of everyday life, what are Blockchain’s biggest use cases?

Sean: As many physical things are being digitized, people to people interactions are becoming “less warm”. Blockchain can bring back this warmth.

Half a year ago Pochang Wu gave me one of his CDs. I then went and bought a new CD player for the occasion, and listened with my son. Physical CDs are special. If you don’t use physical CDs, it’s really hard for us to wrap music and gift it to friends. Of course in the era of streaming, we can gift KKBOX gift cards, but it’s just not the same. With CDs, people can feel like they’re getting a special gift. But with gift cards it just doesn’t have that special significance, it’s not something you can really collect.

Blockchain allows us to create a sense of gift giving in the era of digital music, so that music can be collected again.

Astro: Bringing about the feeling of giving gifts by hand, but in the digital world, that sounds very abstract. How can blockchain do this?

Sean: With blockchain, you can really easily trace back something’s origin. People who obtain music not only know who originally published the files, but also know who has transferred the files. If your music was given to you directly by the producer and without any middleman, then this is just like getting an autograph, it’s very meaningful.

Astro: Perhaps later when getting an important person’s business card, people might screenshot its blockchain transfer record and share it on social media to show off. This could be the feeling of “gift delivery by hand” in the digital world. In that way, what does Bitmark use blockchain to do?

Sean: Bitmark built its own blockchain, and uses it to register people’s digital property rights. It’s slightly similar to an intellectual property office. Before, we could only duplicate or share digital assets. Now we can finally allow people to formally authorize the use of their digital property if they have a clear record of digital data’s provenance and transfer history.

Bitmark and KKBOX’s subsidiary (KKFARM) digital publication platform are collaborating to bring digital property registration to music publishing software. As paperwork digitizes, efficiency will improve and producers will also receive compensation more quickly.

Now, Bitmark is also collaborating with HTC to allow consumers to register their data under their names.

Astro: Producers often want to authorize music, using blockchain to digitize the process, that’s easy to understand. However, what’s the use of Bitmark allowing consumers to register their data under their names? Is it also to authorize information?

Sean: The Cambridge Analytica scandal happened in 2018, Facebook apologized and was fined. But consumers didn’t receive any of Facebook’s reparations because the consumer data was certainly not their own to begin with.

Consumers provide their data in exchange for Facebook’s services, and Facebook ought to satisfactorily fulfill their data management responsibility. However, just who really owns the data has no clear boundary. Consumers and Facebook both say they own the data.

The same situation happens in hospitals. Do medical records actually belong to hospitals or patients? I think people should confront this problem, and blockchain is what we can use to solve it.

In the future, consumers just have to take one more measure — registering their data under their own name — and things can become very different. Accordingly, data property rights will have no room for uncertainty, and will be convenient to authorize.

Now that data property rights belong to consumers, only authorizing enterprises can use it, one can assume some enterprises who experience data breaches will necessarily have to pay consumers reparations. It’s just like if a bank gets hacked and sustains losses, they must necessarily repay depositors the same.

Astro: Do you think companies will have to buy or rent data from consumers, and won’t be like how currently they directly take and use it? Likewise, how can consumers register data under their own name?

Sean: Data is an important digital asset, and now everybody knows that data can be used to make money. So data has to be similar to copyrights or land in that property rights and ways to authorize should all be clearly defined.

In the past nobody did this, because at the time there wasn’t any blockchain technology. People had no way to register their data bit by bit, and because of this data property rights are entirely controversial, every party thinks data should be theirs, and in the end companies like Facebook and Google have the advantage.

Bitmark blockchain helps register all kinds of digital property rights. We are going to embed our services into an HTC phone, and all data output will be immediately registered to consumers. Consumers won’t think there’s any change, but these data property rights will register themselves.

In the future, there will be more and more research institutions and enterprises that want to purchase data from consumers. Besides HTC’s phone, Bitmark is also collaborating with KKBOX to allow producers to authorize music. In the healthcare sphere, we are going to directly embed into health apps or hospitals’ systems. If institutions have research demands, they just have to get paid or unpaid authorization from consumers.

Astro: I originally wanted to ask: if the market has more than 1000 different kinds of blockchains, how are people supposed to choose the best one or the best suitable blockchain for them? Now it seems like this question is just asked as a counter. People certainly aren’t taking the initiative to go choose which blockchain to use, but people might have no idea what blockchain they are using, because blockchain is quietly sneaking into everybody’s devices and apps, right?

Sean: Right. Blockchain is an underlying technology, people won’t know which blockchain their underlying technology uses, just like people usually don’t know whether the chips in their own phones are actually manufactured by TSMC or Samsung.

Even though we’re collaborating with HTC, KKBOX, or other health apps, blockchain will slowly make its way into people’s daily lives through these companies.

Astro: When consumers first register a lot of data on the Bitmark blockchain, will there be any privacy issues?

Sean: This is a common misperception. Consumers aren’t giving their data to Bitmark, instead, they’re just registering their data’s property rights on the Bitmark blockchain. Consider that it’s like a random hash appearing as data, there are no privacy issues. It’s just like land management bureau registering land property rights, you’re just giving them your property rights information, and the bureau doesn’t own your land.

In the future, data will exist on consumers’ phones, or in companies’ data centers, however, it won’t be on Bitmark blockchain in that way. Protecting the genuine security of this data is extremely important, but this is already beyond the scope of Bitmark’s control.

Astro: Everybody is looking for suitable situations to use blockchain. Currently, do the companies Bitmark is collaborating with have anything in common with each other?

Sean: They’ve all encountered problems due to the lack of clarity surrounding digital property rights. Corporations will do whatever they can to own data for themselves, but data is generated by consumers. Bitmark helps consumers register data’s digital property rights, and creates a platform for exchanging data, allowing consumers to authorize its use, thus establishing a completely new data trade standard.

Astro: This is the last question. When do you think blockchain will be universally used?

Sean: Even I don’t know. This is just like asking a newly hatched chick “when did you think you were going to hatch?” The chick just knows that it always wants to hatch, but it doesn’t know when it will.

This interview essentially did not discuss cryptocurrency. However, it is still very worthwhile to solely discuss pure use cases of blockchain.

Bitmark blockchain helps people establish property rights over their digital assets, coinciding with HTC’s blockchain phone to “let go of data.” After consumers own their data property rights, the next immediate question will be one of authorizing data.

This is an important milestone. In the future when companies want to use users’ data they will need permission and will have to pay compensation. Because of this, Sean also predicts that in the future there will exist data commercial agents, who are responsible for matching companies and consumers. On one hand, this will help enterprises obtain authorization and conduct payments as well as help consumers find the buyers who are most in accordance with their needs, for example finding the highest prices and values.

Furthermore, this also can produce impact against today’s tech giants. Whether it’s for Facebook or Google, to them data is a golden hen, and they won’t want to give it up overnight. This is the inventor’s dilemma. Because of this, tech giants might not go with the new generation’s flow. On the contrary, the governments that currently do not rely on consumers’ data to make money or the startups that don’t have data can extend both arms and embrace the new trends.

The beginning of the revolution, perhaps might be the moment of blockchain phone’s emergence and that small group of users. Phones are what people spend most of their time on, and the influence that blockchain’s entering the realm of phones will not be limited to managing cryptocurrencies, but can also allow people to more conveniently manage their own data rights.

Subtly applying Bitmark’s technology to devices and applications is the next key step towards giving power back to the people.

Here is a link for the original publication (in Chinese): https://blocktrend.today/03-12-2019-interview-bitmark-ceo-sean-moss-pultz

Subscribe to BlockTrend Today Newsletter (in Chinese): https://blocktrend.today/member-plan

Page composed with the free online HTML editor. Please subscribe for a license to remove these messages from the edited documents.

By Simon Imbot on May 03, 2019.
Categories
blog

Blockchain Startups With Real World Applications

Blockchain Startups With Real World Applications

You might have already heard, but Bitmark has been selected as one of twelve startups to participate in the 2019 UC Berkeley Blockchain Xcelerator! We’re very excited, and would like to thank Blockchain at Berkeley, The Sutardja Center for Entrepreneurship and Technology, and the Haas School of Business for this opportunity to connect with the extensive resources that the Berkeley and Silicon Valley communities can provide.

Over the course of the next few weeks we’ll be meeting with advisors, mentors, and industry experts, attending weekly pitch sessions and speaker sessions. The accelerator offers the opportunity to receive an investment of up to $200k USD from the X-Fund, a VC focused on investing in UC Berkeley’s Blockchain ecosystem and emerging technologies. We’ll also have the potential to win additional investments from partner funds.

What makes this accelerator so unique is that its leadership seeks to push blockchain technology beyond the hype of cryptocurrency and further its adoption practical tool. This first batch of teams consists of startups that are more than just ICOs and quick ways to make some cash. We have all demonstrated the ability to offer concrete new ways to use blockchain to solve real problems and create new value.

Bitmark is certain that data is the world’s next major asset class. We use blockchain to defend the evolution of property rights; from physical and intellectual property to data and digital property. To read more about us and our fellow teams, check out:

Meet the teams: Berkeley Blockchain Xcelerator kicks off with first batch – Berkeley Blockchain…
On March 19, the Berkeley Blockchain Xcelerator welcomed its first batch of teams to the recently launched accelerator…

xcelerator.berkeley.edu

By Simon Imbot on April 26, 2019.
Categories
blog

How To Use Blockchain To Make Your Data Less Tragic

Photo by Curtis MacNewton on Unsplash

How To Use Blockchain To Make Your Data Less Tragic

Written By Shannon Appelcline

The problem begins two hundred years and at least two technological revolutions before the blockchain. Because grazing lands were held in common, individuals had no incentive to use those fields appropriately. Farmers allowed their animals to overgraze, eventually ruining the land because each individual sought to maximize their own benefit.

This is the Tragedy of the Commons, as first detailed by William Forster Lloyd in 1833. The Tragedy describes the problem of using an openly accessible resource, where any individual can benefit from using the resource but the costs of that use are borne by the entire group. The selfish and destructive usage that naturally results is the Tragedy of the Commons.

“The vast innovations and expansions of the modern age have now brought the Tragedy to new fields.”

Most classic examples of the Tragedy of the Commons are ecologically based, focused on topics like overgrazing, overfishing, and overpopulation. However, the vast innovations and expansions of the modern age have now brought the Tragedy to new fields. Much of our society now operates on interconnected computer technologies that are full of common resources. It flows through shared fiber and routers; it operates on shared software; and is transmits and uses data that has been shared, whether we intend it or not. The Tragedy of the Commons tells us that all of these openly accessible resources are likely to be abused to the point of destruction; the whole internet might be one problem away from a complete breakdown.

The Heartbleed bug of 2014 offers one of the clearest examples to date of how the Tragedy of the Commons impacts our shared online commons. Heartbleed was a critical security bug accidentally introduced into OpenSSL, the open-source software used to secure most communications on the internet, as part of a “heartbeat” extension released in 2012. Though the heartbeat code was reviewed when it was incorporated into OpenSSL, the process was much less rigorous than the extensive security reviews that had been required of SSL implementations in its earliest days. That’s because in the 2010s, OpenSSL was being maintained by just a single full-time developer and a small group of volunteers. Thus, a problem like Heartbleed, where a mistake compromised half-a-million certs and uncountable “secure” connections, was almost inevitable. The entire internet was using the shared resource of the OpenSSL code, but no was one supporting it properly: this is the definition of the Tragedy of the Commons.

Open source software is just one of the twenty-first century’s tragic commons. Many of the shared resources that comprise the internet have already proven vulnerable. Asymmetric DSL lines can get clogged by uploads, while entire neighborhoods see their internet slow down every Saturday and Sunday night. Forums created for communities can be destroyed by spammers trying to make a buck.

And then there’s a digital resource that many people don’t think about: data.

The Data Commons & Digital Property

Most internet users don’t realize that their data is quickly becoming a commons too. Unfortunately, when we upload data to the internet we usually forfeit our exclusive ownership. Obviously, when we write blogs, post images, or tweet messages, they might get copied of reused by others. Some of this replication is supported by the law, some by terms of service, and some not at all, but it happens nonetheless.

“Most internet users don’t even realize that their data is quickly becoming a commons too.”

However, the data joining this new commons goes far beyond the material that we explicitly post. Exercise trackers record where we are; internet searches reveal our interests; and voice assistants do both. Using this data, aggregators can create models of who we are, what we want, and what we might do — without our permission, and beyond our control.

Our health information is becoming part of the data commons too. That includes our DNA information, which is some of the most intimate and personally identifiable data out there. Despite that, people are now sending their DNA off to companies and uploading it to publicly searchable websites. These genomic data commons have already led to uses beyond the dreams of submitters, such as when the Sacramento County Sheriff’s department searched the GEDMatch database for the identity of the Golden State Killer — a burglar and serial killer who terrorized California in the 1970s. They were able to match records of 10 to 20 distant relatives and eventually built a family tree that revealed the killer. Obviously, tracking down a serial killer is a societal good, but it shows how data placed in a commons can be used for far different purposes than was intended.

In other words, the classic Tragedy of the Commons applies to this data commons. Our data gets used and reused, diminishing its value while the commons get abused, likely leading to their ultimate destruction. There’s no transparency, and we have no control.

This Tragedy of the Commons is just one example of a negative externality, where we as individuals are impacted by transactions between other people. The lack of concern for the data commons also generates other externalities, such as the loss of privacy and the possibility of financial losses when our data is breached — and huge data breaches impacting millions of people have been happening regularly, with some of the largest occurring at Equifax, Marriott, and Target. This adds insult to injury; even once your data has become valueless, you can still be harmed by malicious actors stealing and selling your personal data.

So how do we solve the tragedy of the data commons? How do we take back our control of our data? We can do so by reaching back to classic property law, newly updated for the digital age, which permits us to register our data as digital property. Doing so allows us to prove that we’re the owners of that data. We can prove whether specific uses were licensed (or not!), and we can demand that our data be returned to us if it’s being used in some unlawful way.

Even better, the Coase Theorem tells us that registering property can also help to resolve other externalities as long as all parties are able to freely negotiate. If our data is registered as digital property, then we will have recourse when a company loses our data to a breach, because they will have done us definable harm. Not only can we take back what is ours, but we can enforce better use of the commons itself.

Property rights are crucial to our modern society, and the example of the data commons shows us why: they allow us to exert property rights when our data is used, sold, compiled, or even lost without our permission.

The Data Commons & The Blockchain

Turning data into registered digital property solves the basic tragedy of the data commons, but it creates a new problem as well, because that data has to be recorded somewhere by someone. This suggests the need for a centralized authority, but that goes against one of the core advantages of the internet: the openness that led to most of its innovative growth.

“When you add regulation, you typically have to add centralized management as well.”

As it happens, centralization is an almost inevitable byproduct of any traditional solution to the Tragedy of the Commons. When Lloyd originally wrote about the Tragedy, he stated that it largely resulted from lack of regulation, and when you add regulation, you typically have to add centralized management as well. So how do we regulate property rights in the data commons without turning to a centralized authority?

The answer is one of the newest technologies of the last ten years: the blockchain.

The blockchain originated with Bitcoin, but is now the heart of a variety of use cases from smart contracts to decentralized identities to name services. A blockchain is essentially a permanent, distributed ledger. In other words, it’s a big database that everyone can write to, but that no one can erase. From the viewpoint of the Tragedy of the Commons, the crucial innovation of the blockchain is that it’s built upon consensus rules. The way in which data is added to the blockchain is defined by clear rules that everyone knows. These rules can be changed, but that takes consensus too.

The blockchain thus offers a solution to the tragedy of the data commons while still maintaining the innovative open nature of the internet. Its consensus rules are regulations, but they’re regulations that are executed by the distributed network itself, rather than a central entity.

Obviously, blockchains can’t solve every Tragedy of the Commons, but they are a solution for things that can be put on a blockchain, including those smart contracts, those decentralized identities, those name services, and more generally … all of our data.

The Data Commons & Bitmark

This discussion isn’t just theoretical. The use of a blockchain to record digital property rights is the heart of the Bitmark Property System: it’s already managing numerous sorts of data, from health information to music royalties. There were many reasons to adopt this particular solution and foiling the Tragedy of the Commons is definitely one.

However, Bitmark’s work on digital property rights is just the first step in solving the tragedy of the data commons. To reach its fullest success requires buy-in from companies, governments, and individuals. Fortunately, the tides have been shifting in recent years: a variety of groups are now looking at self-sovereign solutions of this type, where control is granted to people, not companies, governments, or organizations.

The EU’s 2018 GDPR has gone the furthest in giving people control over their data. It empowers people in Europe to know how their personally identifiable data is being used and gives them the power to retrieve it if necessary. The GDPR defines personally identifiable data more as a human right than a property right, but it’s a clear step in the same direction: once we’ve recognized peoples’ personally identifiable data as their own, recognizing their registered data is an obvious next step, and one that Bitmark is ready for.

We’ll see plenty of other Tragedies of the Commons on the internet as the online world continues to mature, and it seems likely that the blockchain will be a good solution for many of them.

How might blockchains, or the approach of consensus rules, apply to other shared resources like open software, shared bandwidth, and community forums? That’s exactly the sort of question we should be asking to ensure the future of the internet.

Further Reading

Armerding, Taylor (2018). “The 18 Biggest Data Breaches of the 21st Century”. CSO Online. Retrieved from https://www.csoonline.com/article/2130877/the-biggest-data-breaches-of-the-21st-century.html.

Davidow, Bill (2012). “The Tragedy of the Internet Commons”. The Atlantic. Retrieved from https://www.theatlantic.com/technology/archive/2012/05/the-tragedy-of-the-internet-commons/257290/.

Hsiang-Yun L. (2019). “Coase Theorem in the World of Data Breaches”. Human Rights at the Digital Age. Retrieved from https://techandrights.tech.blog/2019/02/22/coase-theorem-in-the-world-of-data-breaches/.

Lloyd, William Forster (1833). Two Lectures on the Checks to Population. Retrieved from https://en.wikisource.org/wiki/Two_Lectures_on_the_Checks_to_Population.

Synopsys (2017). “The Heartbleed Bug”. Retrieved from http://heartbleed.com/.

Zhang, Sarah (2018). “How a Genealogy Website Led to the Alleged Golden State Killer”. The Atlantic. Retrieved from https://www.theatlantic.com/science/archive/2018/04/golden-state-killer-east-area-rapist-dna-genealogy/559070/.

By Simon Imbot on April 20, 2019.