Blockchain

Prof. Silvio Micali speaks with Los Angeles Times reporter Laurence Darmiento about his predictions for the future of crypto. “The moment the blockchain starts to be used for transactions, the few blockchains that are really capable of transacting at a very low cost, they’re going to emerge, in my opinion,” says Micali. “When traditional finance starts getting on the blockchain, you’re going to see the blockchains that are really used in a massive and transactional way are going to accelerate.”

Fast Company reporter Connie Lin spotlights how Algorand, an MIT startup founded by Prof. Silvio Micali, dimmed the lights in Times Square on April 21 to help conserve energy and demonstrate how cryptocurrency could reduce energy consumption. Algorand has developed a carbon-negative blockchain protocol and “utilizes a pure proof-of-stake consensus mechanism to verify authentic transactions.”

Bloomberg reporters Benjamin Bain, Jennifer Epstein and Robert Schmidt spotlight the work Prof. Gary Gensler, who has been nominated as the next chair of the Securities and Exchange Commission. Gensler “not only knows how to mobilize a bureaucratic federal agency but also understands the often impenetrable ways that Wall Street makes money -- and how firms use that complexity to turn regulation in their favor.”

President-elect Joe Biden has selected Prof. Gary Gensler to serve as the next chair of the Securities and Exchange Commission, reports Marcy Gordon and Zeke Miller for the AP. Gensler “was an assistant Treasury secretary in the Clinton administration and later headed the CFTC during Barack Obama’s term. With a background of having worked for nearly 20 years at Wall Street powerhouse Goldman Sachs, Gensler surprised many by being a tough regulator of big banks as CFTC chairman.”

NBC News reporter Martha White writes that Prof. Gary Gensler has been selected as President-elect Joe Biden’s nominee to lead the Securities and Exchange Commission. “Gensler is a terrific choice to head the agency," said Barbara Roper, director of investor protection at the Consumer Federation of America. "He’s as knowledgeable about the markets as anyone on Wall Street, so he can’t be intimidated. He’s a seasoned regulator who knows how to get things done.”

Prof. Gary Gensler will be the Biden administration’s pick to lead the Securities and Exchange Commission, reports Matthew Goldstein, Lauren Hirsch and Andrew Ross Sorkin for The New York Times. “Mr. Gensler is a veteran regulator who played a central role in bringing the big banks to heel in the aftermath of the 2008 financial crisis, giving new teeth to a watchdog agency.”

Researchers from MIT’s Digital Currency Initiative are teaming up with Boston’s Federal Reserve Bank to build and test a hypothetical central bank digital currency, reports Vipin Bharathan for Forbes.

In a letter to the Financial Times, graduate student Daniel Aronoff underscores his view that central banks should proceed with caution when considering digital currencies. “The US Fed and other central banks are wise to embark on the research that will keep them at the forefront of knowledge and, possibly, enable them to develop implementations that are safe and beneficial to the citizens of their countries,” writes Aronoff.

Forbes contributor Jason Brett writes that Prof. Ron Rivest testified before Congress on the feasibility of Blockchain voting technology.

Writing for The Wall Street Journal, Prof. Stuart Madnick examines the security vulnerabilities in blockchain systems. Madnick writes that his research is intended to dispel the notion that “blockchain technology can protect data from misuse. In fact, human actions or inactions still have significant consequences for blockchain security.”

In an article for The Wall Street Journal about blockchain, Tomio Geron highlights MedRec, a system being developed by MIT researchers that would allow patients to manage their own medical records. “With MedRec, if a baby has been given vaccinations by different doctors,” reports Geron, “all of that information can be accessed from the blockchain.”

Last year, the startup Learning Machine launched a program at Sloan and the Media Lab that placed important documents, like transcripts and diplomas, on the blockchain. Now, reports Danny Crichton for TechCrunch, the company is working with the Media Lab on an initiative called BlockCerts, “an open source and open standard securing credentials on the blockchain.”

Camila Russo of Bloomberg reports on Gary Gensler’s comments at MIT Technology Review’s Business of Blockchain conference. Gensler, a visiting lecturer at Sloan and former chair of the Commodity Futures Trading Commission, said many cryptocurrenciers “are operating outside of U.S. laws.”

Gary Gensler, a top financial regulator in both the public and private sector, spoke with Nathaniel Popper of The New York Times about virtual currencies and the need for regulation. This fall, Gensler will hold dual appointments at Sloan and the Media Lab, “where he will write and teach about the potential he sees for blockchains to change the financial world.”

Paul Solman of PBS NewsHour talks with computer scientist Neha Narula to explain how Bitcoin works. “Part of Bitcoin’s threat model is that no single entity ends up getting a majority of the processing power in the network,” says Narula. “If somebody got 51 percent of the processing power in the network, they could theoretically rewrite history and change the state of transactions in the ledger.”