Tag: bitcoin

AI Agents, AI Tools, Artificial Intelligence, Blockchains, Science, Uncategorized

Understanding Decentralized Science: A New Era for Research Funding

Yogi Nelson

Welcome to the Blockchain & AI Forum, where your technology questions are answered.  Is there an alternative to the existing science research funding model? The answer is yes–there is an alternative, it’s called Decentralized Science (DeSci) and the best example is called Unbound Science.  We begin with what is science research funding, who funds science, and conclude with a very brief mention of Unbound Science.  An exhaustive examination of Unbound Science will be presented in parts two-and-three of this three-part series over the course of the next three weeks.

What is science research funding? There is no precise definition of science research funding that is universally accepted.  However, using a general consensus definition, I think we can say science research funding:  

is the financial support provided to researchers and institutions to conduct studies, experiments, and investigations that push the boundaries of human knowledge. This crucial resource enables scientists to explore new ideas, develop cutting-edge technologies, and tackle some of the world’s most pressing challenges. It typically covers expenses such as personnel salaries, laboratory equipment, data collection, publication costs, and travel for conferences

Who Funds Science Research.  Please draw your attention to the critical phase in the definition, “… financial support provided…”.  The statement begs the question, “provided” by whom?  The answer to that question follows.

According to the National Science Foundation, science research funding by category and percentage of the total science budget is: 

  • Private Sector, i.e., Corporate Research and Development                           50%
  • Federal Government Agencies                                                                       35%
  • Academic institutions                                                                                     11%
  • Private foundations                                                                                            3%

Clearly the top three funding sources dominate the landscape.  If you add the four funding sources the sum equals 99%.  Where is the missing one percent?   You will find it in something called emerging decentralized science platforms.  What are decentralized platforms within a science research funding content?  I’ll explain that next and start by naming this phenomenon—it’s called decentralized science or DeSci.     

What is Decentralized Science (DeSci). DeSci is an emerging movement and technological framework that uses blockchain, cryptographic tools, and decentralized governance to improve how scientific research is funded, conducted, validated, shared, and rewarded. DeSci aims to address long-standing inefficiencies and inequalities in traditional science by enabling open, transparent, and community-governed research ecosystems.  DeSci operates in the web-3 ecosystem; thus, separating it from existing models.  Web-3 ecosystems are characterized by decentralized technologies, i.e., smart contracts, tokens, and governance via decentralized autonomous organizations (DAOs), not top-down hierarchies.  In DeSci, the emphasis is fund, govern, and distribute scientific research in a transparent, open-access, and community-driven manner. In other words, when operating as intended, DeSci is antithesis to the status quo and disrupts the big donor science research funding model. 

How Does DeSci Work.  Under ideal circumstances DeSci is characterized by the following six traits:

  1. Funding Research via Blockchain.  Scientists can raise funds directly from across the globe using crypto-currencies, NFTs, or project-specific tokens.
  2. Decentralized Governance.  Funding decisions can be made through DAOs and/or community members.
  3. Tokenized Incentives.  Contributors are rewarded with tokens for participation, publication, peer-review, data sharing, and many other activities.
  4. Open Access and Data Transparency.  Research outputs are stored on decentralized storage platforms, making the research permanently accessible.
  5. Reputation and Credentialing.  With DeSci verifiable credential, on-chain peer review, and reputation scores are all possible and that helps assess the credibility of researchers without relying solely on traditional academic gatekeepers.
  6. Interoperable and Modular.  Generally speaking, DeSci platforms are composable.  Composable platforms allow interoperability across funding tools, DAOs, publishing platforms, and decentralized identity systems.

What is Unbound Science.  Unbound Science is a prime example of a DeSci platform.  Unbound Science is designed to check every box on the checklist above when it reaches full maturity. Next week a deep dive into Unbound Science.

Until next time,

Yogi Nelson

Artificial Intelligence, Blockchains, cryptography, Digital Currency, international aid, International Finance, Uncategorized, Yogi Nelson

Understanding Blockchain Adoption in Uzbekistan

Yogi Nelson

Welcome to the Blockchain & AI Forum, where your technology questions are answered!  Today’s question: are blockchain and crypto currency adoption all the rage in Uzbekistan?

Seventeen years.  Yes, only 17 years.  In just 17 years, blockchain based projects, including bitcoin, starting from nothing, and all the while battling powerful incumbents, have spread far, wide, and fast to reach places, and spaces, that are distant and unfamiliar to most Westerns.  Today, I’ll highlight just one example of this phenomenon, the nation of Uzbekistan.  Let’s start with the obvious—where is Uzbekistan?

Uzbekistan is located in Central Asia.  Along with Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan, they were all former USSR republics.  Uzbekistan was part of the ancient silk road–a trade networks that connected China with Western Europe.  Although the silk road occurred more than half a millennia ago, Uzbekistan remains connected to the broader world, this time via blockchain and crypto-currency.  Let’s jump five centuries to the 21st.

Setting the Regulatory Stage: The National Agency of Perspective Projects, (NAPP) is the government body that regulates and licenses crypto in Uzbekistan.  In 2022, Uzbek President, Shavkaat Mirziyoyev, ordered NAPP to develop crypto regulations.  NAPP listened and took action.  By early 2023, crypto regulations were in place; by year’s end the first crypto license was issued!  Impressive.  Hold on, the news gets better.  Earlier this year, NAPP authorized Biance, the world’s largest crypto currency exchange, to offer services in Uzbekistan.  Customers are now able to deposit and withdraw funds in the national currency, the Soum, and conduct a wide range of transactions.  More on that in a moment.

What Happened After Crypto Regulations Were Adopted: Since adoption of clear and reasonable crypto regulations, development and usage of crypto in Uzbekistan has skyrocketed.  According to Coin Geek, a journal dedicated to the crypto world, Uzbekistan lacked behind its four Central Asian neighbors prior to 2022.  Not anymore.  Now it’s a leader.  As of this date, there are 15 licensed firms in Uzbekistan and total transactions surpassed $1B in 2024.  Awesome. Moreover, over 500,000 Uzbeks have digital assets—about 2% of the population.  The Uzbek government collected over $3M in fees and revenues in 2024.  This year the government announced an increase in crypto related fees.  What a surprise!  Lol.

Why Crypto Surged—3 Reasons:  Did a crypto friendly government policy trigger the crypto tsunami?  In part, yes.  When Uzbekistan created clear and stable regulations there was a favorable market reaction.  However, government regulations did not create demand; a market for these assets and products existed a-priori.  Crypto in Uzbekistan, and in every nation, is a counter narrative to the existing status quo and a solution to market demand. I’ll give you three specific reasons for the flood of crypto in Uzbekistan, starting with seamless cross-border transactions.

Uzbekistan has a long history of cross-border finance transactions, going all the way back to the silk road, as previously noted.  United Nations data reveals that in 2024, $14B worth of remittances occurred in Uzbekistan.  Stable-coins facilitate fast, easy, and affordable cross border transactions, hence the demand for crypto. 

Reason two is inflation.  Inflation in Uzbekistan ran at 10% in 2024.  Inflation is effectively a “hidden tax” because it erodes purchasing power of middle/lower-income families.  Almost all stable coins are denominated in U.S. dollars. Therefore, although the has been inflation in the US, it is nowhere near 10%, hence that makes dollar based stable coins a hedge against currency inflation. 

Third reason is speculation, plain and simple.  An honest analysis must acknowledge reality—many crypto projects amount to gambling and speculation.  Not a judgement; just an honest assessment.  Apparently folks in Uzbekistan like risk and freedom to choose.   

Time to end with a proverb from Uzbekistan, where they say: “it is not the eyes that are blind, but the heart”.

Until next time,

Yogi Nelson

Uncategorized

Tornado Cash Legal Update: OFAC Sanctions Lifted

Yogi Nelson

Welcome to the Blockchain & AI Forum, where your questions are answered!  Today I answer Malik’s question: “what’s the latest news in the Tornado Cash legal case”?

What is Tornado Cash. Before jumping to the answer, first a moment to understand what is Tornado Cash.  Tornado Cash is a non-custodialprivacy protocol allowing permissionless shielded transactions on Ethereum and derivative networks. In plain English, Tornado Cash is an application that does not hold your crypto currency–you own it, you store it.  Tornado Cash facilitates transactions on the Ethereum blockchain without requiring permission while maintaining your privacy.  How does Tornado Cash maintains privacy?

Tornado Cash = Privacy.  Tornado Cash achieves anonymity by breaking the on-chain link between source and destination addresses through “anonymity pools”.  However, Tornado Cash does not preserve privacy by comingling assets; it uses zero knowledge cryptography.  What’s more, Tornado Cash relies on Ethereum—a decentralized protocol where transactions neither can be changed or altered.  Hence, nobody – including the original developers – can modify or inhibit the protocol or the transactions. What more information about how Tornado Cash works?  Click   How does Tornado Cash work? and Tips to remain anonymous.

What is the Office of Foreign Assets Control—OFAC.  OFAC is an office within the U.S. Treasury Department.  It claims to enforce economic and trade sanctions against specific countries, regimes, individuals, and entitles that pose threats to U.S. national security, foreign policy, or economy.  In other words, the enemy de jour of the U.S. government.  By the way, although OFAC was formally created in 1950, the use of sanctions by the U.S. government goes back to 1812! 

Tornado Cash Placed on OFAC Sanction List. August 8, 2022, OFAC placed Tornado Cash on the sanctions list.  According to the OFAC press release https://home.treasury.gov/news/press-releases/jy0916, “Tornado Cash, is a crypto currency mixer which has been used to launder more than $7 billion worth of virtual currency since its creation in 2019.”  However, OFAC’s statement is partially incorrect on the facts.  Tornado Cash is not a currency mixer nor is it property.  This error, deliberate or not, is materially important as we will see in a moment.  Let’s move on to what happened last week.

OFAC Removes Tornado Cash from the Sanction List.  Last week, the U.S. Treasury removed Tornado Cash from its sanctions list.  That’s a big deal. To understand what happened let’s take a moment to examine a recent court ruling that led to OFAC removing Tornado Cash from the sanctions list.

Last November, the 5th District Court of Appeals ruled that OFAC exceeded its authority when it put Tornado Cash on the sanctions list.  Essentially, the Court of Appeals reversed an earlier decision by a lower federal court.  The Court of Appeals stated the executive branch’s authority to “block ‘property’ in which a foreign ‘national’ or ‘person’ has an ‘interest’” did not apply in the case of Tornado Cash.  In other words, OFAC has no jurisdiction.  Why?  Because the use of immutable smart contracts — lines of autonomous code on the blockchain intended to preserve anonymity in transactions — do not qualify as property and OFAC can only sanction property.  And, smart contracts, despite their names, are not actually contracts. By the way, Tornado Cash’s legal fees were paid by Coinbase.  Wonderful to have friends with cash! 

No surprise—Tornado Cash value catapulted by 73% after the OFAC full scale retreat.  The story ends with OFAC deciding to “exercise its discretion” by dropping legal actions against Tornado Cash.  Lol! 

Until Next Time,

Yogi Nelson

Blockchains, Uncategorized, Yogi Nelson

Will Chile Adopt a Central Bank Digital Currency Soon?

Yogi Nelson

Namaste Yogis.   Welcome to the Blockchain & AI Forum, where your technology questions are answered!   Here no question is too mundane.  As a bonus, a proverb is included.  Today’s question comes from Gina, Santiago, Chile.  Gina wants to know if Chile will soon adopt a digital currency?

Gina, great question!  Central bank digital currencies is a controversial topic.  I’ll explore the reasons why you and countless others, both inside and outside of Chile, believe Chile may adopt a central bank digital currency.  Let’s go directly to the source—Central Bank of Chile (CBoC) to investigate.  The CBoC produced a report in 2024 on the topic.  It’s in Spanish nevertheless here is the link:  https://www.bcentral.cl/documents/33528/130503/Segundo-Informe-MDBC.pdf/1c506d66-1dbf-2434-54bd-3997ec84784b?t=1712352384816. 

However, to answer your question with full context, we must time travel to 2022.  Why 2022? Simple. In 2022 the CBoC  produced the following report:  https://www.bcentral.cl/documents/33528/130503/Primer_Informe_MDBC.pdf/46608531-566b-0703-03ea-bcd0f088d014?t=1692398717733 Below is a summary of the report. 

Central Bank of Chile 2022 Digital Currency Report

I conclude the 2022 report was design to lay the ground work for a central bank digital currency (CBDC).  The version released to the public consists of 32-pages and it outlines a series of advantages/disadvantages but makes no definitive declaration other than more research and study is required.  Given the complexity, more research was prudent conclusion in 2022.  Below are few advantages of a CBDC according to the CBoC:

  • Increase banking services to the unbanked and underbanked
  • Improved central bank operations
  • Private banking/finance innovations
  • Currency fraud prevention
  • International money transfers

The CBoC also noted the following risk of a central bank digital currency:

  • Design and operational risk
  • Establishing relationships with retail users carries reputation risk
  • Immature technology given the stakes
  • Insufficiently clear regulatory and legal issues
  • Counterparty risk from other central banks

Central Bank of Chile 2024 Digital Currency Report

The 2024 report repeats the advantages/disadvantages of a central bank digital currency but I will not.  Instead, I’ll focus on two selected parts of the 2024 report, specifically an overview of what other nations are doing in the digital currency space and the next steps the CBoC intends to take.

Overview of CBDC Projects Across the Globe

  1. Numerous nations across the global are pushing ahead with exploring the implementation of central bank digital currencies, say the CBoC.  According to the CBoC, in 2021 74 nations were exploring a CBDC; in 2024 the number jumped to 135!  The momentum is clearly on the side of CBDC. 
  2. There is a divide among central banks.  Some central banks are exploring CBDC on a wholesale basis, e.g. for use between and among central banks, and private banks.  Whereas some central banks are analyzing the idea of a central bank direct to retail users.
  3. The broad exploration for digital currencies among central banks is creating an extensive library of lessons learned, successes, and failures that will eventually benefit the decision-making process of central banks.
  4. Central banks are moving from proof of concepts to pilot projects quickly.  As of 2024, 26% of central banks entered the pilot project stage.
  5. Despite the momentum, only 2% of the central banks actually launched a CBDC.  Moreover, about 2% cancelled or abandoned the idea.

CBoC Next Steps

No surprise, CBoC says it will continue the project.  The CBoC cites the compelling use case for a central bank digital currency, including innovations in finance.  However, CBoC does say it will remain technology agnostic, for the time being.

I leave with a proverb from Chile: “when the river makes noise, it’s because it carries stones.”

Until next time,

Yogi Nelson

Artificial Intelligence, behub, Blockchains, Uncategorized, Yogi Nelson

beHub: Revolutionizing Healthcare with Cardano Blockchain

Yogi Nelson

Namaste Yogis.   Welcome to the Blockchain & AI Forum, where your technology questions are answered!   Here no question is mundane.  As a bonus, a proverb is also included.  Today we explore the beHub project and its connection to Cardano.  We start with beHub.

According to its website, “… beHub is a single, integrated platform that supports clinicians and healthcare workers with 24/7 access, anytime, anywhere.”  That sounds appealing, but too general. More specifics please.  Okay, try this:  beHub is analogous to Spotify, the music streaming company—a centralized place where medical professionals can access medical device information and training so that health care facilities and clinicians have access anytime from anywhere.  Better.  How about more detail from three perspectives:  medical service providers, hospitals, and manufacturers.   I’ll conclude with the big Cardano reveal.

Medical Service Professional. Let’s take Mary as an example; Mary is a nurse.  In the past, if Mary had an urgent question about a certain medical device her options were:  1) inquire with a co-worker and strain the overworked staff; 2) guess and risk the health of the patient (worst option); or 3) search and delay the care and risk being incorrect or rely on outdated information.  That was then; with beHub Mary can get her answer efficiently, effectively, and securely. How is that possible? Simple. beHub offers up-to-date medical device knowledge.  Suppose Mary has years of experience but has been out of university for some time.  With beHub she can remain abreast of the most recent innovations in medical technology on the beHub platform by watching tutorial videos, for instance.  Moreover, beHub offers continuing education.  Mary can use beHub to stay at the vanguard of medical innovation and fulfill continuing education obligations.  If Mary is new to nursing, existing information is also readily available.  Either way, it works. 

Hospitals. Does beHub benefit hospitals?  Absolutely! First, beHub helps to manage overwhelming workloads and constant pressure. In addition to mountains of duties, clinicians are also expected to master an ever-expanding array of devices and products.  Is this possible without automation?  No way!  Second, with beHub hospitals can reduce risk to patients by offering the training and support required to properly operate sophisticated medical equipment.  This leads to benefit three.  A hospital that uses beHub will maximize the value of its investment in medical equipment.  Given the price of medical technology, it’s no surprise hospital purchasing managers love it.  

Medical Equipment Manufacturers. To medical equipment manufacturers, beHub says to consider four points.  Let’s start with the support it offers to sales teams.  With beHub, sales teams can communicate product changes and up-to-date information on all products on offer to end users.  If clients are in remote locations, this can be an extra benefit.  No need for the sales team to undertake unnecessary trips or answer the same question repeatedly.  Second, with beHub medical providers have 24/7 access to product training and education modules.  With beHub end users can avail themselves of the information needed to operate products safely.  Awesome!  One more.  beHub, offers manufacturers insight into critical customer data, such as what devices are being used, how often, under what conditions, by whom, etc.  If you are a manufacturer, beHub is a market intelligence officer!

Big Reveal and drumroll please! Cardano is the layer one blockchain used by beHub. Cardano operates in the background without anyone knowing it other than those who read my blog!  Another victory for blockchain tech and Cardano.

Time to end with a proverb from Bulgaria:  work without reason, but don’t stay idle without reason.

Until Next Time,

Yogi Nelson