3 minute read
Is blockchain worth the hype for corporate client markets in 2020?
Andrea Amato in conversation with Dr. Joshua Ellul.
I virtually met Dr. Joshua Ellul, the chairman of the Malta Digital Innovation Authority (MDIA) and director at the Centre for Distributed Ledger (DLT), to discuss the relevance of blockchain technology in Malta. Focused around DLT, Joshua lectures a master's programme in blockchain at the University of Malta.
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After discovering Bitcoin for the first time in an online forum, Joshua wasn’t initially too interested in the technology, "I never really looked too deep back then," he stated, as the potential to decentralise more than decentralised monetary systems had not yet been proposed. This opinion was overturned when Joshua came across Ethereum (the second largest cryptocurrency platfrom for Bitcoin), "Bitcoin allowed for a decentralised digital cash or rather gold, Ethereum allowed for the decentralisation of software execution." With this in mind, Joshua found promise in the technology and like other enthusiasts fancied the concept of a digital service that omitted third-party involvement.
Dr. Joshua Ellul
With Bitcoin and other cryptocurrencies’ surge in popularity in 2017, Joshua offered his academic experience when Malta expressed its interest in becoming a leader in the technology. At the time, he was working on releasing his own initial coin offering (ICO), "I had everything just about implemented and read-to-go," Joshua expressed, "but never got around to launching due to being too busy with other activities."
Nevertheless, Joshua looked towards blockchain's potential, "it was great to see Malta taking a lead in this space - and I truly believe the laws passed had foresight." Such encouragement led to the creation of the MDIA, which supports regulating frameworks for the technology.
On discussing the advantages blockchain technology brings to the Maltese economy, Joshua acknowledged established sectors in Malta, namely in iGaming and financial services. His recommendations stem beyond these sectors, "it would be ideal for Malta to attract similar industries that require limited space and only access to a computer - especially with COVID-19." This suggestion is in light of recent workplace trends; teleworking. Joshua believes that blockchain should just be one of the various sectors to attract and that Malta should "widen the net and strive to create a software-tech ecosystem."
Dr. Joshua Ellul
Additionally, Joshua noted the disadvantages to operate some aspects of blockchain in Malta, largely due to the energy consumption some types of blockchains require. "Malta is not the ideal place to host such hardware given our sunny climate and cooling costs that would be required to keep the hardware running," he stated. He then reiterates the need for a specialised workforce to implement the technology, as "underlying issues often require that professionals in the area understand peripheral disciplines."
However, Joshua admits it is difficult to find specialised experts in the field, though this concern is later partially addressed: "It is for this reason, a multidisciplinary Masters in Blockchain and DLT was designed at the University of Malta."
Through MDIA, Joshua believes certification of blockchain technologies is often necessary to "provide assurances to their users, investors, and other stakeholders regarding their implementation, especially for "high-risk or critical applications."
He concluded the interview by noting the technology’s relevance in Malta today, "Malta is still in the trusted software regulatory game and should aim to build a sector and brand that consumers and investors can look to, and trust when it comes to software assurances." Nowadays, through education, knowledge, and collaboration, the technology can be implemented across industries and serve a multitude of purposes.
Our job is to maintain its credibility through constant innovation and a willingness to adapt.
