Blockchain for AOC
“Large segments of voters, such as those living in remote areas, expatriates, people with physical disabilities and other marginalized communities, can face obstacles to voting in person and already vote remotely. Mobile device voting holds the potential to increase participation in the electoral process.” — newamerica.org
Welcome back Crypto Witches to our 2nd installment of ‘Blockchain 4 …’. This time — we’re taking a look at how blockchain can make the world more accessible — using some key issues posed from one of our own NYC Representatives — Alexandria Ocasio-Cortez.
We’ll be breaking down:
If DAOs and collective ownership can benefit unions?
How can blockchain make secure voting more accessible for all?
Can blockchain break barriers for low-income households to save, invest, and borrow?
Oh, and, how do we do this all sustainably?
COLLECTIVE OWNERSHIP FOR UNIONS
Tweet from AOC
Can a union benefit from creating a DAO? (YES.) But first, what’s a DAO? DAO stands for decentralized autonomous organization. What does that mean? Essentially, that management of a DAO, including its operating rules runs on the blockchain, utilizing smart contracts. A DAO is collectively owned — meaning each participant holds a stake and can vote within the DAO. (Whoo!) Additionally, DAOs offer secure and transparent treasury management — allowing the dispersant of funds to be controlled and allowing for full transparency between all members.
What’s a union? A union is an organized group of workers that unite to make decisions about conditions that affect their work — including but not limited to: fair pay, vacation time, working environments, and safety precautions.
Both DAOs and unions have a similar goal — to represent the collective interest of its members. A DAO can act as a powerful tool for a union. Here’s how:
A DAO can provide structure for leadership, town halls, and voting opportunities for a union
A DAO can ensure secure, financial transparency for all union members
A DAO can offer members true (collective) ownership of the union
“DAOs aren’t a substitute for the labor movement, but they can be a powerful tool to fund creative projects collectively.” — Daisy Alioto
BLOCKCHAIN AND VOTING
Accessible access to voting is important for all — regardless of your political party. Blockchain technology can provide a secure way for citizens to vote remotely without needing to take time off work, find and pay for childcare to make the time, or for those who cannot easily leave their homes. But what exactly is blockchain technology and what makes it so secure?
A blockchain is a growing list of records known blocks. Each block contains information and together form a chain that cannot be altered or corrupted Now imagine blockchain as train tracks. These train tracks are the foundation on which the information runs on (like cryptocurrencies + the unique numerical identifiers that pertain to NFTs.) The blockchain provides security (through cryptography or similar protocols) and infrastructure that keeps the trains — NFTs and cryptocurrency — safe, without needing to be governed by a central figure or bank. Blockchain is already used for:
Monitoring supply chains and food safety
Copywriting and royalty protection (hello, artists)
Streamlining healthcare data to increase efficiency of personal medical records
From long poll lines, the difficulty in taking off time for hourly workers, to those who cannot travel to polling places, and so much more — election voting in the US is certainly not easily accessible for all. (We’re New Yorkers and we have had our share of long wait times!) Voting on the blockchain not only provides security for elections (as it’s tamper-free) but accessibility for all as a secure, digital, remote way to vote. Blockchain also means ‘no hanging chads’, (for those that can remember that 2000-era drama)!
While there is some debate on if blockchain can provide the necessary security for secure voting, (see this article by U.S. Vote Foundation), after thorough research, we have found:
Blockchain technology offers the opportunity for elections to be independently monitored in real-time
Ensure greater trust and transparency throughout the US electoral voting process
Provide increased accessibility though digital and remote working — leading to a democratized way for all eligible voters to make sure their voices are heard
“Large segments of voters, such as those living in remote areas, expatriates, people with physical disabilities and other marginalized communities, can face obstacles to voting in person and already vote remotely. Mobile device voting holds the potential to increase participation in the electoral process.” — newamerica.org
BORROWING AND SAVING WITHOUT A BANK
How can blockchain technology support low-income families and remove barriers to banking? (Such as high monthly costs, overdraft fees, reduced options due to lack of credit and more.)
First, let’s break down what cryptocurrency is. Cryptocurrency (or ‘crypto’) is digital currency that can be used to protect your savings against inflation, earn interest, and invest in new technology. Cryptocurrency uses an online ledger (blockchain) with strong cryptography to secure online transactions. Meaning?
You don’t need a bank account to hold or transfer crypto, it’s accessible to anyone with a phone
Faster transactions + lower transaction fees
Can receive higher APY than traditional banks offer
Cuts out middleman (traditional banks, in this case)
Gives access to credit
Allows people to take out business loans without the chance of discrimination or prejudice
The modern banking system has not had a history of being friendly to low-income individuals and families — nor those without a good credit score + history. Bitcoin was created in 2009 as a response to the US Financial Crisis, leading to the rise of decentralized finance as we know today. DeFi removes the financial control of our current system — for the first time in our modern landscape. DeFi banking opportunities are for everyone — not just the select few. So how to we foster the adoption of DeFi? (Hint: through Education, Crypto Witches!)
“Making it easier to prove who you are, get access to credit, register land titles, and receive insurance payments, blockchain has great potential to improve the way financial services are offered. Far from being only for cyber-geeks, it can be transformative wherever it is put it to service to make finance work for women.” — womensworldbanking.org
AOC has previously rolled out proposals for providing the option of a democratized, more accessible, and greener financial system — which is just one of the reasons we feel she would LOVE the accessibility DeFi offers. Speaking of ‘greener’ solutions in the banking industry …
WHAT ABOUT SUSTAINABILITY?
The blockchain and sustainability discussion is SO important. (We’ll have a full article next week breaking down all the core components of this so watch this space!) But until then, let’s understand the principles of blockchain, cryptocurrency, and how it actually uses energy. Did you know there are carbon-negative cryptocurrencies? (YEP!)
Bitcoin + other proof-of-work cryptocurrencies require very large amounts of energy to perform the computations needed for mining (more on mining soon). Not all cryptocurrencies are mined, therefore not all have serious environmental impact. (Some are minted, which uses proof-of-stake, versus proof-of-work.)
While proof-of-stake cryptocurrencies utilize a great deal of energy, it pales in comparison to the traditional banking and gold industries …
“An analysis by Simone Brunozzi, Operating Partner at tech investment firm Cota Capital, suggests that gold mining is 50 times more expensive than mining Bitcoins and running the Bitcoin network. Producing gold for the wedding band on your finger alone generates 20 tons of waste. “ — Lawrence Wintermeyer for Forbes
It’s also important to note — the majority of energy consumption from proof-of-work cryptocurrencies lies mostly in the mining of new currency. Not the peer-to-peer transactions.
So how do you utilize cryptocurrencies and DeFi banking alternatives without contributing to high energy usage? Look for projects that run on an alternative network to proof-of-work — like Polygon (MATIC) and Solana (SOL). To learn about Alogrand (ALGO) — a carbon-negative blockchain we love — see our recent recap post here!