5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%

TODA Network | Toufi Saliba | Jan 9, 2018

blockchain adoption - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%Despite the skeptics, those that have noticed the hype surrounding current blockchains have in fact only seen less than 0.2% global penetration. If that is a revolution - it's a failure. However, what's yet to come is what will get this technology to the remaining 99.8%; and that will not be ledger-based - but will still be a blockchain at the network level that will be unstoppable. No government, no agency, no company, in fact, nothing can stop it. Think of a Tsunami that has already started - can't stop it.

Decentralized Governance is a Security Model

True decentralization cannot be stopped by any central power, however, in order to take off, decentralization must be self-regulated, a living example of that, Bitcoin for 10 years now, owns itself, defends itself and continues to evolve by incentivizing people around it with the only language they both speak: the money language.

Nature has it, what occurs during the exchange of oxygen with carbon dioxide in your lungs, which uses a decentralized protocol called the Alveolus Capillary Protocol. It is doing billions of exchanges per second in your lungs as you read this, without interference from your brain on its functioning. No matter how powerful your brain is, it can neither stop it nor interfere with it. In fact, the more effective it is the more powerful your brain is and vice versa. Think of the brain here as the government. A government that wants to be effective at servicing people must let decentralized governance take over without a centralized point, aka a weak point that could be attacked from within. Governments who care about the people would care to ensure they are operating with the least friction and most efficacy as they exchange value between each other and even between them and their government, for things such as health records, money, real estate or other value-based digital assets.

See:  Humans on the Blockchain: Why Crypto Is the Best Defense Against AI Overlords

There are five technical necessities that are still missing or incomplete. They must be achieved for blockchain to get to the remaining 99.8%, these are:

  1. Security: Decentralized governance is actually a security model to prevent an attack from within. Security without decentralization can be achieved using traditional databases that are fairly secure from outside attack and have been around for decades, but that won't help because they don't prevent an attack from within. Decentralization must be equal to the number of actual users, in fact, every user must be the node participating in the global consensus. (Yes it can be done)
  2. Efficiency: your users/customers will not use a system that is not efficient - at least not for long. The cost of any system must make relative sense to what we are using it for. You would not purchase a two dollar coffee using a system with a transaction cost that is higher than that. We aren't talking about fees, don’t let that fool you into believing that this is the overall cost. Current blockchains don't reflect the true cost. In fact the cost is hidden from the user by adding a tiny layer of fees, but effectively it takes the cost from the users.
  3. Confidentiality: A public ledger that is replicated is generally not confidential. An open and public system will go mainstream but not a ledger. Perhaps a hash of the block is all you need especially if it can be built in a way that all users no exception can contribute but hey don't have to. Think of some replication but not full replication.
  4. Scalability: This is one of the most publicized problems, in order for any system to achieve mass adoption - it must scale. (Not by reducing any of the points above. In fact we expect the deterministic distributed computing to achieve such a result.
  5. Interoperability: Over 50 projects claim that they have figured this out by building decentralized exchanges that must be relied upon. For P2P interoperability, it is necessary not to have anyone in the middle because they can impact any, if not all of the 4 previous necessities and collapse the system on itself. In security, there is a saying: "you are as good as your weakest link" and by having decentralized exchanges to depend on, they at best become one of the weakest links if not the absolute weakest

What’s Holding Humanity Back?

The most popular blockchains intended to achieve this, however, an exploitation of the Bitcoin protocol that started almost 7 years ago, precisely on Hashcash, the core component of PoW got us to the point where only certain classes of machines can be miners. The incentives of those machines diverged from the incentive of users and contributed largely to the regressive evolution of this revolutionary technology at its infancy stage.

Leakage of Value

This leakage of value is a major cost to everyone, despite the fact that people claim that the current Ethereum implementation is free for people to use. The majority actually think that the cost is what they pay in fees using the Ethereum Gas model, in fact, the fees are low when compared to the overall cost of mining that leaks out from users into a different class called miners. Those miners in Ethereum alone extracted directly over $3.4B from the community YTD which led to the collapse of the ETH price as supply outpaced demand. Some criticize Ethereum to be a Ponzi scheme because of that, while we reserve no judgment; instead, we work with many on a solution that will return this technology to its original promises and make it more disruptive than anyone thought before.

See:  Cybersecurity, Blockchain And The Industrial Internet Of Things

The remaining 99.8% of the people on this planet will all be on chain one way or another, but definitely not on a ledger based chain. This can truly be the next biggest revolutionary technology the world has yet to witness.

Solving By Design

There are over 5000 people working on these issues globally - so why has the situation not advanced? Because most researchers are not liberated, in fact, they are constrained but often find it hard to admit to.

Mass adoption can only be achieved if these issues are solved by design. This means that the blockchain in question must have all 5 of the key elements described - not 3, not even 4 is enough. Without these necessities, entities using the technology cannot succeed, but having them also does not guarantee success.

From the Bottom Up

To achieve these necessities, blockchain needs the right foundation. TCP/IP is the current foundation (protocol) that allows the internet to exist and enables packets of data to be transmitted. However, these packets cannot effectively hold nor transmit value: the ownership of your home, for example.

Why does this matter? This matters because without solving these problems, we would not even want to strive for mass adoption. A system that does not offer security, efficiency, confidentiality, scalability and interoperability (in that order of importance) all must be met or else, what we have to show will never be revolutionary.

Toufi Saliba is the CEO of Toda.Network. Toda.Network launched in 2018 to enable projects to deliver on the promises of Blockchain. The company has formed and continues to form and onboard alliances, startups and joint ventures which are building on the Toda.Network. The TODA Protocol is a network protocol, a modification of TCP/IP, (not replacing it/ that enables value transmission over the packet layer and below the operating system in a fully decentralized setting, without reliance on a ledger. Learn more: Toda.Network.


NCFA Jan 2018 resize - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8% The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%FF Logo 400 v3 - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%community social impact - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%



NCFA COVID 19 letter to government to support Fintechs and SMEs - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%

NCFA Newsletter subscribe600 - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%

Ontario Capital Markets Modernization Committee | Walied Soliman Taskforce Chair | Jan 22, 2021 Job creation and economic prosperity. Fundamentally, these are the most important outputs of a successful capital markets regime. Ontario first enacted its capital markets laws in 1928. For decades, Ontario has been at the forefront of investor protection and market efficacy. We cannot fall behind. Late last year, former Minister Rod Phillips formed the Capital Markets Modernization Taskforce to review the current status of Ontario’s capital markets. By February 2020, Rupert Duchesne, Wes Hall, Melissa Kennedy, Cindy Tripp, and I were appointed to conduct this review. Since the financial crisis in 2008, the global financial system has undergone significant changes. The ongoing COVID-19 pandemic has highlighted the need to be adaptive and forward-looking in developing a modernized capital markets. The Taskforce aimed to address the issues of tomorrow’s capital markets with bold and innovative recommendations that will make Ontario one of the most attractive capital market destinations globally. See: Ontario’s Capital Markets Modernization Task force report draws criticism CSA Provide Comments on the Ontario Capital Markets Modernization Taskforce Consultation Report The Taskforce worked diligently for ten months, through the COVID-19 pandemic. We met over 110 different stakeholders ...
Read More
Ontario capital markets modernization committee final report - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Hardbacon | Julien Brault | Jan 15, 2021 In my time as a business reporter, I was at the forefront during the decline of the country's 2000s tech giant, BlackBerry. BlackBerry launched its mobile app store in 2009, a year after Apple launched the App Store. Everyone knows the rest of the story. See:  NCFA OpEd: Canada’s Open Banking Consultations: Let’s Get it Done! While BlackBerry executives praised themselves for having better sound quality and a more efficient keyboard, what people wanted when they bought a smartphone were apps. Today, the Canadian banks are making the same mistake by refusing to put control of financial data back into the hands of their users, as the European banks are already doing. In fact, since September 14, 2019, European open banking regulations (PSD2) force banks to allow their customers to share their data with third parties according to a standardized protocol. In other words, their customers can choose to share their bank information with an online loan app or even with a budgeting app. In Canada, the federal government created the Advisory Committee on Open Banking in 2018, which delivered its first report in 2020, which was very favorable to open banking ...
Read More
open banking vault with data - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Fintech Confidential | Michael King and Richard Nesbitt | Jan 21, 2021 In our recently published book The Technological Revolution in Financial Services: How Banks, Fintechs, and Customers Win Together, a group of expert contributors from North America and Europe share their insights on how the financial services industry will evolve in the coming decade. The context is the ongoing transformation in the financial  services industry, which is being driven by three structural forces: heightened regulation that followed the 2008-2009 Global Financial Crisis (GFC),  innovation fueled by new technologies and entrepreneurial fintech startups, and demographic trends with the rise of millennials and the retirement of baby boomers. These forces are changing the competitive landscape of financial services, lowering barriers to entry and increasing competition from both inside and outside the industry. Our book outlines what we see as the successful strategies for financial technology (fintech) companies and incumbents, namely banks, insurance companies, and asset managers. While there is much to learn from our contributors, this article shares our main conclusion and a few key takeaways. We argue that the winning strategy for the coming decade will be for banks, insurance companies and asset managers to partner with fintech startups to ...
Read More
NCFA how banks fintechs and customers win together - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
NCFA | Jan 21, 2021 The OSC has recently announced a Charter for a new Office of Economic Growth & Innovation (Innovation Office):  release and innovation office charter. The NCFA welcomes the announcement but remains skeptical. Is this really a "new model" or merely window dressing 1. An Innovation Office alone will not make the OSC more "innovative". Innovation requires a lot more than a mere reference to these words. The Charter points towards "fostering a culture that encourages experimentation, embraces failures as necessary learning steps and allows for a quick pivot to the next idea" and playing a role in the "OSC’s ongoing modernization, which includes adopting a more flexible regulatory approach, making investments in technology and simplifying our rules and processes". Do the OSC leaders (and the Ontario Government) understand how difficult this essential culture change will be?  What does "modernize how we formulate policy and new regulations" mean? Does it involve, for example, more disciplined decision making, better analysis and use of data (including collecting or enabling much better capital markets data generally in Canada), extensive staff training, learning to better manage risk?   We need more information so that industry participants can have greater comfort about what ...
Read More
OSC new innovation charter - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Guest Post | Jan 20, 2021 If you’re new to the world of investing in cryptocurrencies, you might have heard of stablecoins. These are physically-backed assets that differ quite a bit from Bitcoin and other coins. If you’ve heard of them, you’re understandably curious as to what they’re about. This guide can help you with that. How are Stablecoins Different from Bitcoin? As mentioned, stablecoins are tied to a physical asset. Bitcoin is not. It has its own value backed by the electricity that goes into mining it. Stablecoins like Tether or TrueUSD are tied to the value of the US dollar. These are sold on most traditional exchanges. Otherwise, there are also precious metal-backed stablecoins. Coins like these are more often sold on dedicated platforms like Gold Exchange. Now, you can probably infer that because stablecoins are tied to the value of physical assets, their value is inherently less volatile than Bitcoin. As you may know, Bitcoin can (and has) risen or fallen thousands of dollars at any given moment. That volatility might be a boon for some experienced investors, but newer ones might want to avoid them. This is where stablecoins come into play. Stablecoins like SilverCoin allow ...
Read More
stablecoins - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Bain and Company | By Mike Kühnel, Thomas Olsen, John Fildes and Karl Gridl | Dec 16, 2020 Despite decades of technological advances, global capital markets remain characterized by fragmented and siloed networks, with limited interoperability between them. Reconciliation between systems requires extra, sometimes manual, steps. Many processes across the financial ecosystem thus continue to be prone to error and high costs. This applies to public markets but even more acutely to private markets. See:  3 Ways Digital Assets Will Reshape The World As a consequence, a consensus across the global financial ecosystem has emerged: Digitized financial assets and distributed ledger technology (DLT) platforms will substantially improve transparency of information, automation, distribution and, ultimately, liquidity. Adoption of digital assets—assets and regulated financial securities that are represented digitally and administered on digital platforms—will expand beyond the first niche application of cryptocurrencies, with DLT removing many sources of inefficiency. Exchanges, banks, technology companies and other financial market firms will need to make decisions soon about how to participate, as it takes time to build an economically attractive business model and the required capabilities and partnerships. Postponing this decision comes with the risk of losing strategic position as early movers gain share and ...
Read More
digital asset private markets - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Crowdfund Insider | Steven Knipfelberg | Jan 19, 2021 Why are smart contracts significant? Traditionally, parties have relied on intermediaries, such as escrow agents, banks, or governments, to ensure the performance of a contract (or that a party didn’t simply run off with your cash). Smart contracts eliminate the role of intermediaries because they are both self-executing and self-enforcing. The entire transaction is dictated by computer code alone. By cutting out the “middleman,” transaction fees are dramatically reduced, while transaction speed is dramatically increased. Parties can now make a wide variety of agreements without fear that the agreement will be dishonored. See:  The UK Provides Legal Certainty For Smart Contracts And Cryptoassets In Its Landmark Legal Statement Blockchain-based smart contracts are quickly becoming a common method of transacting. Since 2018, private parties have increasingly used smart contracts to tokenize assets and execute the terms of commercial loans and securities lending transactions, such as “repo” swaps of U.S. Treasury bonds. In the near future, smart contracts may be used in an even greater variety of transactions involving international trade finance, derivatives markets, mortgages, and auto leasing. With their ability to instantaneously execute and settle transactions, smart contracts have the potential to ...
Read More
smart contracts and law - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
KABN | Cara Buckspan | Jan 19, 2021 Access to up to 2,000 US Colleges and Universities with reach of up to 1.5 Million Students TORONTO, ON / ACCESSWIRE / January 19, 2021 / KABN Systems NA Holdings Corp. (CSE:KABN)(OTC PINK:TRWRF)(FRA:4T51) (the "Company", "KABN North America" or "KABN NA"), a North American Fintech solutions company specializing in empowering individuals to manage, control and generate value from their biometrically-verified Self Sovereign Identity ("SSI") through its Liquid Avatar platform, announces today that it has entered into an agreement to partner with US based, The Campus Agency to create innovative engagement programs for Liquid Avatar to reach the US college and university student, alumni and family market. KABN NA and The Campus Agency will be working together to engage micro-influencers, develop and launch innovative engagement and Augmented Reality programs to introduce the college and university market to the Liquid Avatar and KABN value programs. The partnership goals are to increase brand awareness, maximize engagement, educate users on the value proposition of Self Sovereign Identity, and generate user benefits and revenue for the partnership program. See: Law reform to move identity verification online Digital IDs Help Open Banking Reach Its Fullest Potential With reach ...
Read More
Gen Z on mobile - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
FinCEN | Release | Jan 14, 2021 WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) announced today it is reopening the comment period for its recent proposed rulemaking regarding certain transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (LTDA). Under the Notice of Proposed Rulemaking (NPRM), banks and money services businesses (MSBs) would be required to submit reports, keep records, and verify the identity of customers in relation to transactions above certain thresholds involving CVC/LTDA wallets not hosted by a financial institution (also known as “unhosted wallets”) or CVC/LTDA wallets hosted by a financial institution in certain jurisdictions identified by FinCEN. See:  Hester Peirce Says SEC Enforcement is Not the Way to Provide Crypto Clarity Today’s Notice identifies additional statutory authority for the proposed rule under the Anti-Money Laundering Act of 2020, provides additional information regarding the reporting form, and reopens the comment period for the proposal. Specifically, FinCEN is providing an additional 15 days for comments on the proposed reporting requirements regarding information on CVC or LTDA transactions greater than $10,000, or aggregating to greater than $10,000, that involve unhosted wallets or wallets hosted in jurisdictions identified by FinCEN. FinCEN is providing an additional 45 days ...
Read More
hourglass time - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%
Financial Times | OpEd by Brian Brooks | Jan 12, 2021 Lenders run by algorithms and blockchain technology will require 21st century regulation The writer is the US acting comptroller of the currency In 1961, Popular Science magazine envisioned self-driving cars. The reality arrived sooner than anyone anticipated, and before safety regulators could adapt. Most automotive laws — on speed limits, giving signals, drink-driving — had been designed to protect against dangerous drivers, not dangerous cars. Autonomous vehicles brought new risks that legacy rules never considered. As one headline on the Wired website put it: “Who’s Regulating Self-Driving Cars? Often, No One”. Banking is headed down the same road. And it’s being driven by the technology behind decentralised finance, or DeFi. But just as the original rules of the road protected us from other drivers, so our current bank regulations exist mainly to prevent human failings. See:  Intro to yield farming and the latest developments in DeFi At the US Office of the Comptroller of the Currency, we require every bank to have officers responsible for its safety — such as a chief risk officer and a chief audit executive. We limit how much banks can lend to their directors ...
Read More
Self autnomous banking - 5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%