Dr. Dan Conway, new to the University of Arkansas as Associate Director and Professor at the Blockchain Center of Excellence, said that the United States continues to lag behind other countries such as Estonia, where the whole country uses blockchain technology.
Conway hosted a workshop on Wednesday March 4 at the World Trade Center in Arkansas on the possibilities of blockchain, bitcoin and related systems. The AU will hold a Blockchain conference at the University of Arkansas on March 13.
Conway has worked on bitcoin and blockchain technology for much of the past decade. He previously taught at Notre Dame, Indiana University, Virginia Tech, Florida and South Florida, focusing on analysis, data science and digital transformation, where blockchain had its origins. Conway has worked with business and government on blockchain strategies and is now working with leaders in India to help design a blockchain game plan.
Conway said that the United States is always a good way to progress in countries like Estonia and Germany. He said that Estonia uses blockchain technology as a full service provider for government and state agencies. Estonia has been described as a digital society with most government services offered online and data integrity is ensured by blockchain technology. For example, citizens can use medical prescriptions, file taxes or even buy a car online without going to the vehicle registration office.
BUSINESS BLOCKCHAIN INVESTMENTS
Conway said that there are many processes that can be applied to blockchain, but that requires that chain members have the same level of trust and want the system to work. He said India is starting to try to develop its blockchain strategy and that China has partnerships between IBM, Walmart and others in consortia to study and test blockchain applications in the business world.
He said the best use cases for blockchain are still under study. He said blockchain should exist as an upper layer over the Internet. He said that the technology within the blockchain is simple, but that it is trying to find the best ways to use the system that is the challenge. He said that a blockchain is nothing more than a series of immutable transactions. He said smart contracts, which are second generation blockchains, have been around for several years. Having worked as a consultant for John Deere, Conway said Deere uses block chains to transfer the title of large equipment.
Conway said that since blockchains do not require managers, using them is cheaper. He said there were no people needed because every link in the chain is immutable. He said that Bitcoin, the concept of virtual money, which uses the blockchain has never been hacked, and although government regulations can get in the way, it is an industry that continues to set new records.
He said several U.S. companies are investing in blockchain, but some are taking place in other countries. Goldman Sachs has invested $ 20 million in blockchain in Estonia, he said. Walmart is also investing in blockchain for food security in China. He said Ford Motor Co. uses blockchain in its vehicles, technology helping the car know how to react in certain circumstances. He said cars built into the blockchain in windshields could signal the driver to go through the stop sign if no other car was coming. He was also able to see a time when cars could talk to each other thanks to blockchain technology allowing virtual expressways.
PROTECTION OF HACKERS, MEDICAL USE
Conway said the blockchain is used by Jabil, a multinational provider of manufacturing solutions for the supply chain and other processes. He said Jabil’s biggest threat was internal since his 200,000 employees were spread across 100 locations. Conway said Jabil uses blockchain to protect his systems by only giving access to a trusted group. He said this had prevented insiders from wreaking havoc on the systems or trying to hold the systems hostage.
Conway said it had visited a large hospital whose system was hacked, and then held hostage for Bitcoin payment. He said the hospital agreed to pay the hackers, but then used the blockchain to protect the system from future hacks. He said hackers were told if they bragged about the breach that their Bitcoin addresses would be turned over to federal investigators. He said the hospital used the blockchain to monitor the underground sites to make sure the hackers kept their promise. Conway said negotiating with hackers and paying the costs was much cheaper than future lawsuits and federal fines.
Conway also said that a company in Atlanta uses blockchain to verify the identity of people who need health services but are afraid to use their real names and addresses. He said the company’s mission was to provide care, no matter who needed it. The use of blockchain for identity allowed people to come and ensured that there was no way to trace their whereabouts.
