In this episode of Get Tech Smart, Flo Nicolas talks with Joshua Cyr, interim director of the Peter T. Paul Entrepreneurship Center (UNH), about blockchain technology, cryptocurrencies, digital wallets, and more. They take a closer look at what is changing, the safety measures and how it is impacting global currency exchange/remittances.
This article has been edited for length and clarity.
Flo Nicholas:
First of all, before we dig deeper, we need to get to know you. We need to know why you’re such a “geek” about all the different emerging technologies going on right now.
Joshua Seale:
Yes, I’m a super nerd. Are you okay. I mean, I like technology in general, but I also really like following new technology. So, I got interested in cryptocurrencies, specifically Bitcoin, many years ago. Back then, you could still mine cryptocurrencies and do all sorts of fun things with regular computers. So about 10 years ago, I quit my job in software development and opened a coworking space here in New Hampshire when coworking was a new concept. And I was trying to cultivate a community in Portsmouth to just hang out and talk about interesting things. So I really loved digging into different topics and hosting conversations. So I discovered cryptocurrencies and blockchain and all that stuff back then, and I’ve been following it ever since.
Flo Nicholas:
So let’s start with blockchain technology. This is a phrase we often hear. And we keep hearing about companies like Walmart, for example, using blockchain technology in their supply chains and monitoring orders. So what exactly does that mean? Let’s start with a basic and simple definition.
Joshua Seale:
Luckily, there’s a two-hour program that talks about blockchain and supply chains. right. Supply chain is actually a good example. Because you get away from the financial incentive of making a lot of money with Bitcoin. I hear a lot of people think of blockchain as just blockchain. database. It’s definitely a different and special kind of database. But what makes it really important and different? Regarding the different types of databases and technologies we have, this is a database that is globally accessible to everyone with an internet connection on the planet. And it does so without permission. And it’s something everyone can trust. So all of these things are actually very unique and very special. But when you add components to digital IDs and wallets and have a public database that everyone can verify and trust, it opens up opportunities previously thought impossible.
One example is the supply chain. We’ve all seen outbreaks of diseases like listeria, right? There was a terrible infection in our lettuce, right? And then this recall occurred. And it’s really hard to trace, where did this lettuce come from? Well, when did it come on that train, which cargo was bad? When and what became contaminated? That’s because between the time the product arrives at the store and the time it reaches us, multiple different people or entities have touched and interacted with the product. That means your old computer that hasn’t been backed up probably has a bunch of different spreadsheets stashed away, databases that Walmart owns and requires its suppliers to use, and all sorts of other highly fragile parts and components. That means it’s hidden. Not sharing data. And even if it shows that the data is inaccessible, yes, we have no insight into it. And in fact, perhaps only the biggest companies can force that to happen.
So when you think about most retailers, when you think about the federal government trying to track everything that they care about, there’s no transparency at all. And then we have a globally shared database where we can store the information and actually mark a record through the blockchain, which is essentially a ledger, that this came from this entity, this wallet address. It was sent to this entity at this exact date and time, and then moved from this entity to this entity. And then we’ll go from here to here, and then we’ll split it in half, and it’ll go to these two, and we’ll be able to track every transaction that’s ever happened. We can trace every transaction that has ever occurred throughout Bitcoin’s history. Just by looking at this ledger and reading it back in time, the database essentially becomes an expert on Bitcoin because it’s no different than an accounting ledger, moving money around. From here to here, yes. Therefore, it is not a database where you edit and delete records like a normal database, so you are used to adding records one after another. So I went back and found, okay, that wallet address sent this. So you can go back to that address, go back to that address, and find that chain over time. It’s really powerful for the supply chain, right? If you incorporate it with other modern technologies, or incorporate things like ID and tracking tags, no one uses scanner codes or anything like that. You can then start scanning individual lots and boxes and track things that were previously thought impossible. Exactly 10 years ago.
Flo Nicholas:
How secure is blockchain technology compared to other popular delivery tracking systems?
Joshua Seale:
So I think because these companies are probably using something semi-private, we probably won’t be able to get a lot of insight into their tracking systems individually. But in theory, it is on this blockchain that is shared, as opposed to other, more public blockchain information that we may share. For example, I paid for his brother’s beer last night and sent him a little money. By the way, Venmo is very public. There is already a lot of public information. But we could also do it via blockchain, right? So in that particular case, our privacy is a matter of whether we can get it right or whether we care about it. Just as protected. And unfortunately, the general public is not interested at all. We say we care. I think we care. But we will make all that information public. always. And everyone will say I wouldn’t do that, but everyone’s watching the show and a website pops up and says something about cookies and you don’t care and just I guarantee you just clicked OK.
So when it comes to cryptocurrencies and blockchain and other things, any data that we put out there is accessible to everyone else. What is separate and potentially different is that a person’s identity or information does not need to be associated with the records that are on the blockchain. In other words, the wallet, the one controlling its transactions, is a long string of numbers and letters, and yes, that’s the wallet address. This is a unique address that is only associated with us if we make that association available, and does not necessarily have to be something we disclose. And actually, we can have a little more control over our identity in certain aspects that way. My account is simply my wallet address, my login to my wallet address, and my private key and its authentication. And you can log into any of them. And they instantly have the access that I gave them to do something with what’s in my wallet. So I manage that identity in a potentially more rigorous and granular way, much more strictly than when I’m using an email address in general, and it’s probably used for everything else. I’m using the same password.
Flo Nicholas:
So what exactly is a digital wallet? Lately, we’ve been hearing a lot internationally: this could be the new currency, we should stop using banknotes, where are we? So let’s start with, what is a digital wallet?
Joshua Seale:
Let’s take a step back and understand that our modern version of money and the way we understand it is not what has existed for thousands of years. It hasn’t been 100 years, right? “Modern money” is a relatively new concept from a chronological perspective. And it’s still evolving, right? So the way we used to have checks and be able to insure checks, for a while, transitioned to credit cards and different types of credit cards, and then all of a sudden everyone was just credit cards and cash. It’s actually not that important to most people anymore. When I tap my card to pay, it’s probably going through many different companies and they all get cut into small pieces, and then the merchant has to make the transaction and calculate a batch balance at the end of the day. It won’t. There’s friction, fees, and all sorts of other things going on on the backend. So it’s not 1:1, and it’s not the same way I would give my favorite local barista $20 in cash and have him deposit it in the bank. It’s very simple. That’s not the case when we use credit cards. Also, doing things like donating $50,000 to families in need in Ukraine is an even bigger friction for me. That’s a lot of money and there are a lot of red flags, but how do you get it to them? How do they transfer it? The fees that so many immigrants here in America have to pay to send money for the right to support their families are extremely high.
So fast forward and now we hear that the right cryptocurrencies are crazy. It’s not stable. It’s not safe or it will crash. At the same time as many countries, most countries are now considering their own, essentially digital currencies, their own digital dollars. So China and the United States are having a lot of dialogue that will function similarly to what we do. It would obviously lose some of the benefits of having a public blockchain. But it works in a similar way when it comes to financial, banking and remittance information, and also records a lot of information about our transactions. There are many concerns about privacy. We talked about privacy earlier.
Consider that China has access to every transaction for every dollar spent in its currency. Once you have this type of information, it’s not uncommon for vendors to know more about you than you do based on your changing behavior. There were cases where women received direct marketing advertising their pregnancy even though they did not know they were pregnant yet. It’s our vendor’s fault, it’s like everyone is tracking us, so it’s their job to make sure they can target us with ads, target us with the material we want. It makes sense to target , because we’re much more likely to just randomly buy what they’re trying to send us. So they’re trying to understand these things. If you’re buying a pattern change because you’re undergoing chemotherapy, it’s all public information, like any sensitive information that involves privacy, so you just have to be careful what you buy, right? Everyone in my house knows how healthy I am because I see what’s going on, but so does everyone else, they’re watching me and what I buy, and the facial recognition that happens at Walmart. Because you’re looking at it, right? This privacy-related information is already out there, and it’s already alarming. Therefore, having this digital currency controlled and tracked directly by the government has raised a number of legitimate concerns.
Flo Nicholas:
This was great. I hope it’s not confusing. But there’s a lot going on that you need to be aware of with all these technologies that are happening. And Joshua Seal, thank you so much for taking the time to be here and give us a quick overview.
Flo Nicolas is an engineer, lawyer, speaker, mentor, author, tech startup, and Founder, CEO, and Director of CheapCheep. Get smart with technology. She is a dedicated professional with a passion for technology and creative innovation, and is passionate about helping the community become more tech-savvy and forward-thinking.
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