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www.vestforsk.no
The Use of Bitcoin and
Blockchain Technology in
Public Sector
Svein Ølnes, Vestlandsforsking
Norstella’s Blockchain Conference, 26.10.2016
www.vestforsk.no
«Everybody» want a blockchain
www.vestforsk.no
 Research institute (foundation), located in Sogndal (est. 1985)
 Research areas:
 Climate and environment
 Information technology
 Tourism
 25 researchers
 Part of the public research infrastructure in Norway
Western Norway Research Institute
www.vestforsk.no
 Researcher at WNRI since 1996
 Main research topic: ICT in public sector
 Interested in Bitcoin/blockchain since 2011
 Bought my first bitcoins in 2011 (Mt. Gox!)
 .. and have followed the development in crypto currencies since then
 interested in the intersection of technology, economy and society
 Currently a student in the MSc program Digital Currencies at the
University of Nicosia
 have published papers on Bitcoin/blockchain use in public sector
 Disclaimer: own bitcoins og ether, have Bitcoin mining equipment
About me
www.vestforsk.no
Statement
 Blockchain technology, and especially universal
and open blockchains like Bitcoin and Ethereum,
have a great potential for use in public sector
www.vestforsk.no
Statement backed by paper
 Blockchain technology, and especially universal
and open blockchains like Bitcoin and Ethereum,
have a great potential for use in public sector
 «Beyond Bitcoin – Enabling Smart Government
Using the Bitcoin Blockchain»
 eGov 2016, Springer LNCS
www.vestforsk.no
www.vestforsk.no
Open vs. closed blockchains
Open
(permissionless)
Closed
(permissioned)
Who can update Everybody with
enough resources
Selected people/org.
Who prod. data Everybody participat. Customers of org.
Incentive to follow rules Direct economic
(carrot & stick)
Reputation
Storing Distributed Centralized
Trust in central actors No Yes
Transaction costs - +
Speed (trans./sec.) - +
Immutability + -
Currency/»token» Yes No
Example Bitcoin, Ethereum HyperLedger
www.vestforsk.no
What is genuine with (open) blockchains?
 Immutability
 «tamper proof» vs. «tamper evident»
 .. but not in itself (ref. Ethereum and The DAO)
 Censor-ship resistant
 «unwanted» transactions will also be processed as long as they
follow the consensus rules
 Open for all and at the same time protect privacy
www.vestforsk.no
What public sector needs to think through
 Interoperability
 open vs. closed blockchains
 Platform/infrastructure for public sector
 from «common components» to common platform
 Clear parallells to the growth of Internet in the 1980s/1990s
www.vestforsk.no
Bitcoin as a platform and information infrastructure
Bitcoin infrastructure (Network Services)
Blockchain, Consensus, Ordering, Hash storage, Security
Bitcoin currency
Colored coins
(Mastercoin,
Counterparty
++)
Sidechains
Payment
channels
(Lightning
Network..)
Smart
contracts
www.vestforsk.no
Bitcoin and blockchain in public sector
 Authentication of documents
 badges, course certificates, CVs
 other certificates and licenses
 ++
 Proof of ownership
 property
 +++
 Economy
 transparency
 audit
 Think of Bitcoin/blockchain as a new Internet-based platform!
www.vestforsk.no
Examples on the use of Bitcoin/blockchain
 Authentication of documents
 Course certificates from the University of Nicosia (digital currencies)
 MIT’s Blockcert is a suite for streamlining the work with certificates
and CVs on the Bitcoin blockchain
 Proof of ownership
 Sweden and many other countries are experimenting with property
registration on a blockchain
 What about Norway?
 Security and anti-spam
 machine-to-machine payments (as a safeguard against email spam,
DDOS attacks, new business models for media companies ++)
 Internet of Things (IoT) is difficult, or impossible, to scale without a
decentralized architecture. Blockchain tech. seems perfect.
www.vestforsk.no
Relevante literature
 Nakamoto Satoshi: «Bitcoin - A Peer-to-Peer Electronic Cash
System» (bitcoin.org/en/bitcoin-paper)
 Andreas Antonopolous: «Mastering Bitcoin»
 Nathaniel Popper: «Digital Gold»
www.vestforsk.no
www.vestforsk.no
Thanks for your attention!
e-mail: sol@vestforsk.no
This presentation:
http://www.slideshare.net/sveino/norstella-blockchain-en
Bitcoin address:
1sveinoFzUtMQ5wnnxMoHX9vb42mvPsWN

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norstella blockchain en

  • 1. www.vestforsk.no The Use of Bitcoin and Blockchain Technology in Public Sector Svein Ølnes, Vestlandsforsking Norstella’s Blockchain Conference, 26.10.2016
  • 3. www.vestforsk.no  Research institute (foundation), located in Sogndal (est. 1985)  Research areas:  Climate and environment  Information technology  Tourism  25 researchers  Part of the public research infrastructure in Norway Western Norway Research Institute
  • 4. www.vestforsk.no  Researcher at WNRI since 1996  Main research topic: ICT in public sector  Interested in Bitcoin/blockchain since 2011  Bought my first bitcoins in 2011 (Mt. Gox!)  .. and have followed the development in crypto currencies since then  interested in the intersection of technology, economy and society  Currently a student in the MSc program Digital Currencies at the University of Nicosia  have published papers on Bitcoin/blockchain use in public sector  Disclaimer: own bitcoins og ether, have Bitcoin mining equipment About me
  • 5. www.vestforsk.no Statement  Blockchain technology, and especially universal and open blockchains like Bitcoin and Ethereum, have a great potential for use in public sector
  • 6. www.vestforsk.no Statement backed by paper  Blockchain technology, and especially universal and open blockchains like Bitcoin and Ethereum, have a great potential for use in public sector  «Beyond Bitcoin – Enabling Smart Government Using the Bitcoin Blockchain»  eGov 2016, Springer LNCS
  • 8. www.vestforsk.no Open vs. closed blockchains Open (permissionless) Closed (permissioned) Who can update Everybody with enough resources Selected people/org. Who prod. data Everybody participat. Customers of org. Incentive to follow rules Direct economic (carrot & stick) Reputation Storing Distributed Centralized Trust in central actors No Yes Transaction costs - + Speed (trans./sec.) - + Immutability + - Currency/»token» Yes No Example Bitcoin, Ethereum HyperLedger
  • 9. www.vestforsk.no What is genuine with (open) blockchains?  Immutability  «tamper proof» vs. «tamper evident»  .. but not in itself (ref. Ethereum and The DAO)  Censor-ship resistant  «unwanted» transactions will also be processed as long as they follow the consensus rules  Open for all and at the same time protect privacy
  • 10. www.vestforsk.no What public sector needs to think through  Interoperability  open vs. closed blockchains  Platform/infrastructure for public sector  from «common components» to common platform  Clear parallells to the growth of Internet in the 1980s/1990s
  • 11. www.vestforsk.no Bitcoin as a platform and information infrastructure Bitcoin infrastructure (Network Services) Blockchain, Consensus, Ordering, Hash storage, Security Bitcoin currency Colored coins (Mastercoin, Counterparty ++) Sidechains Payment channels (Lightning Network..) Smart contracts
  • 12. www.vestforsk.no Bitcoin and blockchain in public sector  Authentication of documents  badges, course certificates, CVs  other certificates and licenses  ++  Proof of ownership  property  +++  Economy  transparency  audit  Think of Bitcoin/blockchain as a new Internet-based platform!
  • 13. www.vestforsk.no Examples on the use of Bitcoin/blockchain  Authentication of documents  Course certificates from the University of Nicosia (digital currencies)  MIT’s Blockcert is a suite for streamlining the work with certificates and CVs on the Bitcoin blockchain  Proof of ownership  Sweden and many other countries are experimenting with property registration on a blockchain  What about Norway?  Security and anti-spam  machine-to-machine payments (as a safeguard against email spam, DDOS attacks, new business models for media companies ++)  Internet of Things (IoT) is difficult, or impossible, to scale without a decentralized architecture. Blockchain tech. seems perfect.
  • 14. www.vestforsk.no Relevante literature  Nakamoto Satoshi: «Bitcoin - A Peer-to-Peer Electronic Cash System» (bitcoin.org/en/bitcoin-paper)  Andreas Antonopolous: «Mastering Bitcoin»  Nathaniel Popper: «Digital Gold»
  • 16. www.vestforsk.no Thanks for your attention! e-mail: sol@vestforsk.no This presentation: http://www.slideshare.net/sveino/norstella-blockchain-en Bitcoin address: 1sveinoFzUtMQ5wnnxMoHX9vb42mvPsWN