Governments find promising use for Blockchain Technology (part 3)
In part 3 of our 3 part series, we want to explore the end game; is the government interceding for good or interfering with progress? We all would hope that the government's actions will help to bring regulatory compliance that allows for free enterprise of entrepreneurs to create opportunities for all persons to benefit from the blockchain and it's relatives. Or for the innovation of cloud mining and hash mining or cryptocurrency trading to become an avenue for so many that have not been savvy enough to enter the traditional stock trading fraternities to now climb up on a level playing field where all people can don their uniform and get in the game and win...and win big.
Opportunity is all around and there is enough for all creative minds to benefit themselves and others. Some say competition creates more value for the consumer. I say create vs compete and we all eat. Challenge the system and also comply, then we all fly. It is a matter of ambitions and perspective. Someone once said, "if you want to help poor people, don't become one of them." You must take action in order fulfill your mission in life and inaction will not get you there. So, what about the government taking action or inaction? Which are they doing and which is best?
In a word...compliance. There has to be a regulatory body for decentralized frameworks. Leaving the core functions in the hands of the people - yes. I do believe we can merge the hybrid open source concept with regulatory compliance. That will benefit all parties.
With the governments finding promise with distributed ledger technology, I tend to believe that they are in a ready-set-go position to take advantage of decentralization in their processes and policies. Then we will have a true "government by the people." Let's briefly finish our 3 part series about "Government and Blockchain Technology."
Government taking an active role?
Some people believe blockchain technology could ultimately have the same kind of transformative impact as the internet, and the private investment dollars and size of the startup ecosystem surrounding the technology has already proved promising. So where can government add value?
In the short term, it can provide space for the open source ecosystem and private development to continue to flourish, while at the same time providing regulatory clarity in areas such as tax treatment of assets and standards for industrial blockchains. Will our nation’s leaders influence the US government position on accredited vs nonaccredited investment for startups/ICOs? It should be a choice of the individual vs the government on who can or cannot invest. If not, other countries will continue to lead the way in this emerging industry?
In the USA Congress recently established a Blockchain Caucus with the goal of studying the technology and how it might aid in financial inclusion. Meanwhile, individual states are also giving blockchain a closer look. For example, Delaware, which is a favored domicile for many companies, is actively exploring how to use blockchain for a corporate registry. Wyoming recently passed a law making it easier for private or corporate entities to establish a blockchain based business in their state. Also Arizona is known to be "blockchain-friendly" for potential business interests. California has recently announced that it will support more education and assist in opportunities toward blockchain for business ideas. The tides are shifting in favor of change to the way we do business.
Whether or not we will see mass adoption of this technology in its existing form remains unclear. But given its rapid emergence and potential impact, blockchain deserves significant attention and consideration.
A follow up to this topic will come with my research and thoughts on investing in blockchain companies via ICOs (initial coin offerings) and the trading of cryptocurrencies. Think about this, what would you prefer, the ability to invest your money in a high return startup or have the government tell you what you can and can't invest in?