What would Kobrin think of blockchain?

I thought one of the more intriguing articles for this module was the Kobrin article on the role of technology in creating a globalized economy. He goes back and forth a little on the pros and cons technology has had on private networks, hierarchies and markets but his final line of the chapter, my favorite line, says “Modern economic and political actors will have to learn to deal with the ambiguity and the uncertainty of the post-modern future.” Essentially he goes through how technology has influenced the emergence of a globalized economy from an internationalized economy but that technology is here to stay and the drive for it will probably only increase. This push for technology has spurred on the idea of privatized authority beyond the state. One if his examples, the inability to regulate goods that are not transmitted across geographic boundaries but are transferred digitally makes it problematic to control, threatening autonomy and sovereignty. This example made me consider the boom of blockchain technologies and cryptocurrency. I would love to know his opinions on the use of blockchain.

My limited knowledge of blockchain is that at least some of the technology is based on distributed ledger technology (DLT). Distributed ledgers use independent computers to record, share, and synchronize transactions in their respective electronic ledgers. DLT enables the recording of interactions and transfer of “value” peer-to-peer without the need for a centrally coordinating identity (World Bank). There are tech companies using DLT to create verification systems for traceability and transparency in supply chains. Companies like BanQu are using DLT to track a product, or “value” from one step to the next in a supply chain “as the record is etched on the immutable decentralized ledger that is the blockchain. This record is updated in real time and creates a viewable and searchable ledger. This ledger can be viewed and searched by anyone who has been granted permissions, but it can never be tampered with.” (BanQu) Essentially, they are creating a trust network through this distributed ledger on each of the independent computers recording and synchronizing the data.

For those interested in adding more sovereign authority to economic governance, maybe this isn’t the greatest news but it’s great news for the millions of people around the world who previously had not “bankable” identity. They can now take part in DLT through an app on their cell phone and begin to do things like build a record to apply for credit, open bank accounts, etc. And if the average person can use the technology on their cell phone, perhaps there is a use to be found for governments to ensure secure trade and monitor transactions.

Kobrin, Stephen, “Economic Governance in an Electronically Networked Global Economy” in The Emergence of Private Authority in Global Governance, ed. Tom Biersteker and Rodney Bruce Hall (Cambridge, 2002).

BanQu, “Revolutionizing Supply Chain,” 2018 http://www.banquapp.com/supply-chain-management/our-solution/.

World Bank, “Blockchain & Distributed Ledger Technology (DLT)” The World Bank, April 12, 2018, https://www.worldbank.org/en/topic/financialsector/brief/blockchain-dlt.