With the problem of fake news seemingly becoming more widespread by the day, how has this issue impacted the growth and development of blockchain, particularly concerning the mainstream use of smart contracts? With Unblock Tokyo’s series of talks, workshops, and networking activities, join BINARYSTAR and Asia Blockchain Review in exploring the use cases of decentralized oracles to remedy the effects of fake news and pave the way for the mass adoption of smart contracts.
In this digital age of ours, growing global connectivity has literally put the worldwide database of information resources in the palm of our hands, with access made possible through mobile devices that essentially serve as handheld computers. Utopian ideals notwithstanding, the wide availability of information has been a double-edged sword, whereby fake news has become increasingly prevalent as evidenced by the controversy surrounding the 2016 U.S. presidential election.
The severity of the fake news problem has prompted the New York Times to launch its News Provenance Project, which aims to use blockchain to take the fight to fake news. The unfortunate reality is that an overly wide accessibility of information can be counterproductive as indicated by a study that put forth the theory that information overload may have contributed to the fake news problem, as the sheer volume of information makes it difficult for people to distinguish between what is real and what is not. Nonetheless, the problem of fake news is not limited to human beings as even technology tools are affected by it.
In the context of blockchain, fake news is an issue which stands in the way of the mainstream use of smart contracts. In contrast with ICOs, whereby token information is stored on-chain, smart contracts generally require data input from off-chain sources to trigger the automatic execution of such contracts. In this regard, currently smart contract systems generally rely on centralized oracles which connect such systems with the relevant off-chain source of information. Herein lies the issue, as smart contracts systems have no way of verifying the authenticity or reliability of the information supplied by off-chain sources.
Given the importance of information supplied by off-chain sources in triggering the automatic execution of smart contracts, which in turn gives rise to the formation of legal contractual relationships between underlying parties, the issue of trust in relation to the verification of information supplied by off-chain sources is a critical one that has proven to be a stumbling block for the mass adoption of smart contracts, at least until now.
The wisdom of the crowd principle, which provides that the collective wisdom of large groups of people are superior to the individual wisdom of a single expert, subject to the caveat that the opinions of the individuals constituting the group are formed in a manner which is independent of each other, may be the remedy to the trust issues faced by smart contract systems. In this regard, Band Protocol aims to leverage this principle to connect smart contract systems with trusted off-chain information through a decentralized oracle which incentivizes token holders and data providers from around the world to curate high-quality information using a token staking and bonding curve mechanism. Under Band Protocol’s platform, databases or registries are created around personalized tokens that provide economic incentives for token holders and data providers to curate and moderate accurate information whereby those who propose inaccurate information will be punished accordingly.
The anti-fake news crusade undertaken by Band Protocol was given a shot in the arm in February this year when the Thai-based startup managed to raise about US$3 million in funding during its seed round led by Sequoia India, which is making its first blockchain investment in Southeast Asia, and Dunamu & Partners, the venture arm of the South Korean crypto exchange Upbit, as well as venture capital firm Southeast Asia Exponential Ventures (SeaX). Having successfully undertaken its fundraising exercise, Band Protocol utilized the proceeds thereof to establish the CoinHatcher portal, which collates handpicked and curated insightful blockchain-related contents through crowdsourcing.
BINARYSTAR and Asia Blockchain Review are seizing this opportunity to discuss the possibilities offered by decentralized oracles for the blockchain industry, particularly to resolve the obstacles caused by fake news in order to clear the way for the mass adoption of smart contracts. Join us in October as we explore how the use cases of decentralized oracle may offer a saving grace to the mainstream use of smart contracts during our flagship event, Unblock Tokyo.
Expect meetups, keynotes, workshops, hackathons, dinners, and parties where we will discuss the hottest topics in the blockchain and crypto space and make lasting connections with people from all around the world.
Sign on with our promo code ABR25 for 25% off your ticket price: http://bit.ly/33G3i1l
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Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. We aim to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
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