A bitcoin for your thoughts? Approximately eight years ago Satoshi Nakamoto published a white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” CoinDesk, a company dedicated to reporting on bitcoin, defines bitcoin thus: “Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. It’s the first example of a growing category of money known as cryptocurrency.” Bitcoin attained some mainstream media infamy when the FBI shut down the website named Silk Road which was accepting it as payment for the sale of illegal drugs. Silk Road and the man who founded Silk Road, Ross Ulbricht, had bitcoins worth approximately $100 million at the time of his arrest. Over the next two years the U.S. Marshal’s Services auctioned off the seized bitcoins for about $80 million. As it turned out Mr. Ulbricht would have no use for those bitcoins since he was convicted on a host of charges and sentenced to life in prison without the possibility of parole. Today, over 100,000 merchants worldwide accept bitcoin payments.
Ian Drury and the Blockchains. At the heart of the bitcoin system was a brilliant bit of software design called a blockchain. Technically, the blockchain is a form of distributed database. Functionally, it serves as the public ledger of all bitcoin transactions. It’s the blockchain that gives bitcoin owners faith in the value and provenance of their bitcoins. That might have been an interesting footnote to the 15 minutes of fame enjoyed by bitcoin. However, as so often happens in technology, people began to see blockchain as much more than a foundation for a cryptocurrency. Blockchain-based systems are now seen as revolutionary changes to industries from banking to shipping to rental cars. Just as dirty dishes gave rise to penicillin, bitcoin has given rise to blockchain.
The Swiss Army knife of software. Blockchain-based systems are now seen as revolutionizing functions as diverse as stock settlements, diamond insurance, medical records management and government record keeping.
Asleep in River City. Given the potential magnitude of the blockchain revolution one would think that the business development geniuses in our state government would be awash in blockchain ideas. It could make Virginia ports more competitive, add transparency to government record keeping, reduce the costs of government and the headaches of complying with regulations. Vermont has an active program in place to enable self-service government. Delaware is pioneering the use of blockchain-based smart contracts to help public and private enterprises lower transaction costs. Virginia? ** sound of crickets chirping **.
Not dead yet. While the Virginia General Assembly slumbers through modernity a small group of Virginians hailing from Blacksburg see the future and are acting on it. Follow My Vote is a start-up trying to use blockchain technology to implement “a secure and transparent voting system for the modern age.” Excellent work! Perhaps, one day, we can use blockchain voting software from Virginia-based Follow My Vote to finally throw the bums out!
— D.J. Rippert
