Crypto.IQ Daily Digest June 11, 2018

BLOCKCHAIN • FROM FINANCIALPOST.COM

How blockchain can help remove plastics waste, and help the poor at the same time

IQ THOUGHTS:

We’ve heard almost continually about the environmental impacts of cryptocurrency, but the same sources spend little time exploring what cryptocurrency and blockchain can and will do for the environment and beyond.

A recent news cycle talked about the amount of electricity that Bitcoin miners use — that of a small country — and, in journalism terms, the story had legs. It went everywhere, hit every news outlet and put the Bitcoin energy use issue front and center.

That’s fine. We think it’s an important aspect of the space and needs public attention. But if that’s the case, then it’s also the case that the whole story needs to be told. The potential for blockchain to make the world a better, more environmentally sustainable place, should also be front and center.

The story is among the first that showcase blockchain’s potential to do amazing good in the world, in this case using a reward system that the poorest people in the world can use to redeem trash plastic for tokens to buy things they typically can’t afford, things that we consider basics but to the poor are out-of-reach luxuries, things like education and wifi.

The fact is that in almost every case, talk of Bitcoin’s energy use is rarely portrayed alongside its potential to nudge things in a positive direction.

For these environmental stories, we remind you that the existing financial industry has a massive environmental footprint that takes in hundreds of thousands of buildings, the electricity for those buildings, the gas for workers to get there, the gas used at drive-thru tellers. The list goes on.

SMART CONTRACTS • FROM MEDIUM

The Truth about Smart Contracts

IQ THOUGHTS

What most people don’t know about smart contracts is a lot, so if you’re going to invest in blockchain, understanding what they are and how they work is essential.

In crypto circles, the world blockchain is tossed around like everyone knows what they are, how they work and why they’re important. But that level of understanding is a rarity.

Rather, most people know that smart contracts get things done on the blockchain in a trustless way. But what’s really important to understand is that those who create smart contracts must not only be well-versed in the technical aspects of building a smart contract but also in an understanding of how to create a solid contract, something lawyers go to school for years to learn.

The point is cryptocurrency investors need to understand these things about smart contracts before investing so they can better assess the team they’re looking at.