Hearings purpose
We hope that through this hearing we will have the legislative and investigative authority to apply blockchain technology in this area.
The main participants
FrankYiannas, vice president of food safety at Wal-Mart
Charles Romine, head of the National Institute of Standards and Technology (NIST)
Jerry Cuomo, IBM vice president, blockchain
US congressional research services analyst ChrisJaikaran
And Aaron Wright, an associate professor of internship at Benjamin Cardoso North Law School
Bianews exclusive tracking the compilation of the hearing, the following is a record:
Wal-Mart Food Traceability Test Powered by Blockchain Technology
In early 2017, Wal-Mart and IBM conducted two proof-of-concept tests that proved successful that blockchain technology can provide a viable solution for tracking and validating food sold from country of origin to store in a fast, accurate and accurate manner.
At the end of the trial, we were able to prove that we were able to improve from the 7 days of the traditional approach to 2.2 seconds using the blockchain platform to get the source of sliced mangoes by returning to the farm from the store. Food Traceability '.
As the food system is global, our second proof of concept is in China, which involves pork, one of China's most important animal proteins.
By using blockchain technology, not only can pork be returned to farms from various Wal-Mart stores, but also the authenticity of products and the availability of their records, the shop can scan pork with a simple QR code The animal-fed farm extracts digitized real-life and veterinary records.
Beyond Traceability - Food Transparency
Increasing traceability is one of many reasons we are interested in blockchain technology, but we believe the blockchain can do more than just traceability, but it can provide the foundation for a variety of other benefits. The following aspects:
Optimize the supply chain: Small improvements in the supply chain can bring huge benefits Blockchain technology as the basis for the new information highway, coupled with artificial intelligence and the Internet of Things (IoT), enables instant access and insight into large amounts of data to create A safer, more efficient and more sustainable food system.
Reduce food waste: One-third of all food produced is wasted One of the benefits of a smarter food system is the increased liquidity of food that allows consumers to access more fresh produce and reduce the unification of food at home and throughout the food Body food waste.
Transparency: Consumers today want more from their food system. Consumers want more about their food. Where does it come from? Is it sustainable? Blockchain can serve as a basis for capturing this information , And ultimately to provide it to customers, thereby enhancing consumer confidence and trust.
in conclusion
Again, our ultimate goal is to achieve food transparency, and blockchain technology will play a huge role in every step of food production and mobility by getting out of the present obscurity in food systems. The increase in transparency will bring us Greater accountability, and ultimately the establishment of a safer, more efficient and more sustainable food system that will help people save money and live better lives.
US House of Representatives blockchain Hearing: Blockchain is changing the pattern
Most people who have heard of the blockchain will associate it with the digitally encrypted currency bitcoin.Although they are relevant, it is important to understand that they are not the same thing.Bitcoin is just using blockchain technology Bitcoin operates in conjunction with the network of an anonymous participant.However, the blockchain can also act as a trusted network that handles the interactions between known parties by using permissions.To make an analogy below, The Internet, such as blockchain, is a diversionary component of many types of communication. Bitcoins and other forms of digitally-encrypted currency are just one use of the blockchain, just as social media is just one usage of the Internet.
We have approached customers in more than 400 blockchain projects such as supply chains, financial services, government, healthcare, travel and transportation, insurance, chemicals and oil.
This experience has guided us in establishing three key beliefs that I would like to share with you today:
1. Blockchain is a transformative technology.
Blockchain must be open.
3. Today, the blockchain is ready for commercial and government use.
Blockchain Beliefs 1 - Blockchain is a transformative technology
First, the blockchain is changing the way that no single organization in today's digital cyberworld can survive and work independently.
The center of the blockchain is the concept of a shared, constant book.You see, each member of the blockchain network has an accurate copy of the ledger.New entries in the ledger spread throughout the network.Therefore, interaction All participants in the report have the up-to-date ledger reflecting the most recent transactions, and these transactions can not be changed in the books once entered.
The power of change in the blockchain is that it makes it possible to make shared copies of the common developmental truth, whereby the achievements a team can make far outweigh the accomplishments of any one member themselves.
Now let me explain to you how blockchain really changed the landscape.
Time Savings Because multi-party transactions can be resolved immediately, avoid consumptive reconciliation processes that often take days or even months.
2. Costs have been reduced as business-to-business processes eliminate the overhead of 'middlemen'.
3. Ledger as an immutable evidence of audit trail, greatly reducing the possibility of tampering and collusion, so the risk is greatly eased.
Blockchain belief 2 - The blockchain must be open
In order for blockchain to reach its full potential, it must be based on non-proprietary technologies, which encourages the adoption of a wide range of technologies and ensures system compatibility and interoperability.This, in particular, is for business use Of the blockchain must be built using open source software, combined with flexible licensing terms and a tight community of open communities, meaning no single organization can control the direction of the project and will not lock either vendor.As we read on the Internet As long as they are open, the blockchain can be widely adopted and innovated.
For this reason, IBM is participating with more than 180 industry leaders from the Linux Foundation-led Hyperledger organization Hyperledger is a collaborative open source, open standards, and open governance effort designed to provide business and The government promotes cross-sector blockchain technology.
Blockchain Belief 3 - Today, the blockchain is ready for commercial and government use
Not all blockchain technologies are equal: Enterprise blockchain technology can now address four basic requirements for a wide range of commercial and government uses: accountability, privacy, scalability, and security.
Advice to Congress and the Trump administration
We are working with many government entities on the adoption and use of blockchain technology: agencies such as the U.S. FDA, CDC and OPM are exploring how blockchains can reduce the complexity of the smart Dubai program to Canada's Trusted Digital Identity program. As US government agencies like NIST are actively involved in exploring blockchain standards, U.S. companies are leading the way in blockchain technology development, and while the blockchain is still a team sport, the United States has the opportunity to "go hard Do 'to lead the momentum in the development of the blockchain, and I would like to make some suggestions in the hope of gaining some spleen benefits on the road that Congress and the Trump administration have explored.
First, we should focus on projects that have a positive impact on the economic competitiveness of the United States, citizens and businesses.
Second, adding prudent blockchain to the right projects that have already been invested will help ensure that we remain at the forefront of this transformative technology.
And finally, and perhaps most importantly, when considering regulatory policies, recognize the difference between the use of blockchain in new forms of currency and the wider use of blockchain.
Blockchain has been prepared for the government and it is time for the government to prepare for the blockchain.We are ready to help analyze any such policies and we are happy to work with Congress to ensure the continued expansion and successful use of the blockchain .
in conclusion
Thank you for this opportunity to discuss such an important topic for our present and future. In conclusion, at IBM we believe:
1. The blockchain is a transformative technology: it enables many people to realize more possibilities that individuals can not achieve.
2. Blockchain must be open: only then will blockchain be widely adopted as a springboard for innovation.
3. Today, blockchain has been prepared for commercial and government use: it provides accountability, privacy, scalability and security.
At IBM, we are actively working to ensure that businesses and governments implement the technology with due diligence and we believe the United States has the opportunity to lead the field.
US House of Representatives blockchain Hearing: Blockchain is changing the pattern
National Institute of Standards and Technology Information Technology Laboratory Dr. Charles H. Romine
Voluntary consensus standards
Most SDOs are industry-led private-sector organizations and many voluntary consensus standards from those SDOs are appropriate or adaptive to the purposes of the U.S. government. OMB Circular A-119 Directs U.S. Government agencies to do what is feasible and appropriate Use these standards to achieve the following goals:
Eliminate the federal government's costs of setting its own standards, reduce procurement costs and comply with agency regulatory burdens;
Provide incentives and opportunities to establish standards that meet national needs, encourage the long-term growth of U.S. businesses and promote efficiency, economic competitiveness and trade development;
Further rely on the expertise of the private sector to provide the federal government with cost-effective goods and services.
If properly implemented, standards-setting can improve the productivity and efficiency of government and industry, increase innovation and competition, increase opportunities for international trade, save resources, increase consumer interests and choices, and improve health and safety.
In the area of blockchain standardization, NIST is actively participating in the development of document standards based on consensus and in line with national and international standards.
For example, NIST participated in the American Standards Commission X9 (ASC X9) and INCITS and will participate in the newly proposed IEEE Blockchain Initiative. NIST also participated in ISO Technical Committee 307, Blockchain and Distributed Ledger Technologies.
Potential and Emerging Applications of Blockchain Technology
While financial organizations are likely to be the ones most affected by the blockchain, the potential uses and opportunities for blockchain technology have surpassed digital currencies, for example, those that hold public records such as land ownership, marriage certificates, or birth records Companies can take full advantage of the blockchain.
Blockchain also has great potential for storing and documenting supply chain records. The blockchain can record every step of a product's life cycle: when it is created in the factory, when it is shipped and then shipped to the store, When buying.
New industries may also benefit from the blockchain, which includes notary public who try to prove that someone has access to specific information by recording hashes in the blockchain.
in conclusion
Blockchain is an exciting technology that makes it possible to truly address business and consumer needs using a robust and proven trust model.We still have to do a great deal of work to understand the technology and realize its potential, And set a stage for the market to repay the availability and security enabled to meet real customer needs.
NIST will continue to study and develop the basic cryptography used by the blockchain.We will continue to learn from our research and continue to work with industry in our publishing guide.NIST continues to work with established research groups and technical committees International Organization for Standardization, Standardization for Blockchain, an exciting era as blockchain technology flocks to markets and industries.
Thank you for testifying about NIST's blockchain work and I am very honored to answer any questions you have raised.
US House of Representatives blockchain Hearing: Blockchain is changing the pattern
Aaron Wright, associate professor and co-director of blockchain programs at Benjamin Cardozo Law School
Importantly, for the purpose of this hearing, blockchain is not only valuable for bitcoin as a virtual currency, they support a range of online services that attempt to utilize this technology to store information and, in the event of a potential impact on the United States In some areas of various industries running computer processes. Here I will highlight a few cases:
Given the nascent nature of the blockchain and the fact that most innovations around blockchain technology are underway, the U.S. government has the unique ability to shape the development of this technology by enacting laws and regulations that will limit or promote this A technology development and adoption The United States has the option of implementing certain provisions to develop or operate blockchain-based services that make this technology more expensive or difficult.On the contrary, the United States can also implement a favorable regulatory framework to protect the pilot area Blockchain businesses, as part of a policy to support innovation.
Given the early stages of development, it is still possible to gain the benefits of limiting the shortcomings of blockchain technology, and the United States has the ability to rely on civil society, contract negotiations, voluntary agreements and uninterrupted market trials to resolve regulatory issues related to the blockchain And even if collective action is necessary, there is also a chance for industry self-regulation and the development of the private sector.
However, as a guideline policy, I hope that the United States will be able to exercise thoughtful and technology-neutral regulation:
Allow the exchange of blockchain-based assets and scarce digital goods, especially those used, purchased and enjoyed by consumers;
Enabling all parties to build new blockchain-based agreements without fear of regulatory scrutiny to address the technical limitations described above;
Provide a predictable, concise, consistent and simple legal environment to protect consumers without quarantining the absolute participants in the market;
Review the current laws and regulations that may block Blockchain transactions.
In support of these research and policy goals, I will encourage Congress to consider appointing a national blockchain commission that aims to consolidate the United States' technological position by exploring ways to invest in blockchain-related research (such as through rewards or otherwise) , Promote economic growth and innovation, and help ensure that blockchain innovations come into play. The Commission can:
Utilize the common principles of equipment to help guide federal government regulation of blockchain technology in all areas and to protect financial privacy, individual autonomy and consumer protection interests;
Hold hearings, conduct research, and advise industry, administrations and parliament.
In the above way, we can ensure that the United States remains the best place to develop, market and develop blockchain projects and that the United States can stay ahead of the curve when it comes to Internet-based technologies and taking sensible steps to guide its development.
US House of Representatives blockchain Hearing: Blockchain is changing the pattern
Chris Jaikaran, US government and finance department, parliamentary research division cyber security policy analyst
Congress's potential consideration
Although the blockchain has been used as a financial instrument, it is relatively new in other sectors of the economy, and because of its novelty, the blockchain is being piloted in various industries, but at the moment it does not seem to be a viable substitute for the existing system. With these conditions, the technology does not include the same level of adoption as prior art in the face of potential legislative acts, yet Congress can still provide federal agency oversight to seek:
Use it for government business
Use blockchain to standardize the industry.
The U.S. General Services Administration and the Homeland Security Administration are examining the blockchain as a way to increase the efficiency of current government operations in which the federal government is looking for better ways to manage identities, assets, data and contracts.
Institutions such as the Securities and Exchange Commission and the Commodity Futures Trading Commission are making announcements on blockchain technology to the industry and in some cases they are intended to make it clear that the current legal framework governing other transactions also applies to blockchain transactions .
In both these areas, Congress may want to assess whether these agencies are implementing Congressional policy goals that may be technically agnostic, so they have been proposed by people, or Congress may be emerging for all sectors of technology The adoption of new policy goals.
The hearing concluded
At the hearing, Wal-Mart, IBM, and NIST delivered speeches respectively explaining the current application of the blockchain technology in their respective fields, the functions they have and the expected future application, and made a series of recommendations to Congress including the regulatory policies The use of blockchain in new currency forms should be distinguished from the wider use of blockchain.
The spokesman for the Benjamin Cardoso School Blockchain project also said he hopes that as a guiding policy, the United States will be able to exercise sound and technology-neutral supervision.
And speaking from the Parliamentary Research Office, the General Services Administration and the Department of Homeland Security are examining the blockchain as a way to increase the efficiency of the current government, but at the same time consider what does not seem to be an existing system alternatives.