Key Takeaways:
- New York City has released a 61-page "blockchain plan" to guide agencies in exploring new uses of the technology
- The plan includes initiatives such as a pilot project to use blockchain for asbestos certification and an interagency working group to advance public information and consumer safety
- Despite the hype, blockchain has failed to find widespread use outside of the crypto industry, with many experts questioning its utility and value
- Critics argue that blockchain is a "performative gimmick" that has accomplished little in terms of decentralizing power and empowering individuals
- The plan’s future is uncertain, with the incoming administration not yet commenting on whether it will continue to support the initiative
Introduction to Blockchain Plan
The city of New York has unveiled a new "blockchain plan" aimed at guiding agencies in exploring new uses of the distributed-ledger technology. The 61-page document, released by outgoing Mayor Eric Adams, is intended to help agencies investigate potential opportunities and risks, build public literacy on emerging technologies, and establish mechanisms to track progress and coordinate citywide efforts. The plan is a continuation of Adams’ policies and stunts aimed at stimulating the blockchain and cryptocurrency industries.
Background and Development
The plan was developed over the last 18 months and expands on an executive order signed by Adams last October, which established an Office of Digital Assets and Blockchain Technology. The office is led by Moises Rendon, who has been serving as a digital assets and blockchain policy adviser in the city’s Office of Technology and Innovation. Despite repeated attempts to contact Rendon for an interview, the city’s technology office has not provided any information on the new blockchain office’s operations.
Plan Initiatives and Objectives
The plan outlines several new initiatives, including a pilot project led by the city’s Department of Environmental Protection to explore using blockchain to verify asbestos certification. The plan also includes the establishment of an interagency working group, a new "information hub" to advance public information and consumer safety, and technical guidance for agencies on issues of equity, privacy, and data security. However, the plan does not address the question of why the city is expending resources on a technology widely considered to be of little utility outside of the crypto industry.
Criticism and Skepticism
Many experts have questioned the value and utility of blockchain, with some arguing that it is a "performative gimmick" that has accomplished little in terms of decentralizing power and empowering individuals. Ed Toner, Nebraska’s former chief information officer, has challenged anyone to name a widespread use of blockchain outside of the crypto industry. Similarly, Hilary Allen, a law professor at American University, has argued that blockchain has failed to deliver on its promises and that its conceit is largely the same as the cryptocurrencies it enables.
History of Blockchain
Blockchain has been around for several years, and despite numerous attempts to use it for various purposes, it has failed to find widespread use outside of the crypto industry. In the past, blockchain has been used for digital identity software, registering historic locations, and recording land deeds, but the value added by blockchain has never been obvious. In 2022, a group of over 1,500 software engineers and technologists signed a letter to Congress disputing the claims made about the novelty and potential of blockchain technology.
Conclusion and Future
The future of the blockchain plan is uncertain, with the incoming administration not yet commenting on whether it will continue to support the initiative. As the city’s new mayor, Zohran Mamdani, takes office, it remains to be seen whether the blockchain plan will be continued or scrapped. Despite the hype surrounding blockchain, many experts remain skeptical about its value and utility, and it is unclear whether the city’s investment in the technology will pay off.
