Eesti Elu / Estonian Life No. 11 | March 19, 2021

Nr. 11

EESTI ELU reedel, 19. märtsil 2021 — Friday, March 19, 2021

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How can tokens and cryptocurrency restore value to non-tangible products?

Vincent Teetsov On Thursday March 11th, a digital collage titled Everydays – The First 5,000 Days by an artist named Beeple was auctioned by Christie’s, sell­ ­ ing for 69.3 million US dol­ lars. The collage is gigantic, with many individual images for the new owner to pore over. Its authenticity and provenance are verified due to the fact that it is an NFT, or non-fungible token. Each NFT has a unique digital property, which you might compare to a limited edition print of a ­photograph.

NFTs are deposited on a blockchain, a digital ledger, where “blocks” are representa­ tions of transactions. Each block contains transaction data, a “hash” code that identifies the block, and the hash code of the block that comes before it.

Every block is connected, and if something is changed in one block, that block’s code changes and invalidates the connection to other blocks down the chain.

This is the kind of technology that cryptocurrencies like Bitcoin and Ether use. Estonia’s e-residency program also uses a blockchain.

The difference with NFTs, compared to cryptocurrency, is that they cannot be exchanged for currency like Euros or Canadian Dollars. They are ­limited and cannot be replicated.

Beyond NFTs, tokens have gathered interest as a concept, including in Estonia. “estcoin” was unveiled in December 2017 by Kaspar Korjus, managing director of the e-residency program in Estonia. At first, it was seem­ ingly miscommunicated in the media, that it would be a na­ tional cryptocurrency, pegged to the value of the Euro and used by all Estonians. This required clarification, especially after former European Central Bank President and Italian Prime Minister Mario Draghi said that “no [European Union] member state can introduce its own currency.” Further explanation ­ from Triin Oppi, former Media Adviser to the Estonian Government, revealed that, in fact, estcoin is meant to be a “token” for use by e-residents rather than all transactions in Estonia.

The tokens aren’t as radical as they were originally antici­ pated to be. Yet, along with the Estonian government being enthusiastic about e-residency ­ and secure internet voting, a government openly discussing tokens shows that Estonia is fertile ground for innovative forms of financial compensa­ tion. In October 2020, the Bank of Estonia announced that they had launched “a multi-year project... to research how tech­

nologically suitable the Esto­ nian e-government core tech­ nology is for operating a central bank digital currency.”

There are several obstacles, at least psychological ones, that would need to be overcome for the use of tokens to become more mainstream.

Public blockchains, which Bitcoin and Ethereum (which generates Ether cryptocurrency) use, are decentralized. They can’t be controlled or changed by an entity like a bank. There is concern from financial insti­ tutions and intermediaries over how public blockchains can’t be regulated. It also isn’t possible to track transactions back to the individuals involved, which could make criminal activity easier to get away with.

Adding data to a blockchain like that of Ethereum uses a significant amount of electricity, due to its “proof of work” cryp­ tography system used to se­ curely add transactions to the blockchain. The news site Vox has relayed a claim from the Institute of Electrical and Electronics Engineers that “one transaction uses more power than the average US household does in a day...” Vitalik Buterin, the inventor of Ethereum, who grew up in Toronto, has ex­ pressed that reducing energy consumption is part of the plan.

Using a “proof of stake” block­ chain is one possible option to consume less energy.

NFTs have come in the form of slam dunk clips from NBA games, as well as the latest album by Kings of Leon. ­ There’s buy-in from big names.

But as an outsider to NFTs, and cryptocurrency, I’m concerned about how speculative the value of tokens and cryptocurrencies is. Few people are in the posi­ tion to spend millions (or thou­ sands) on a digital image. Even if you invested less, though, you could still incur a painful loss if the tide quickly changes and public faith in a token or cryptocurrency’s value disap­ pears.

Don’t get me wrong, I think it’s admirable how typically intangible goods, like digital ­ drawings, photographs, or songs, are being held up for their value. This is value that has very much evaporated due to how small, easy to duplicate, and indistinct digital items have become. But the potential insta­ bility of that value is worrying.

And if you’re worried and late to approach the technology as a result, you face something that’s inaccessible and expen­ sive. I would add, too, how con­ founding the information out there about tokens and crypto­ currency is. Greater clarity in education about these technolo­ gies would draw in the interest and trust of the people who could benefit most from it.

Beeple’s digital collage “Everydays: The First 5,000 Days”.

Women in Estonian government since 1992 ERR Kaja Kallas’ government, which was sworn in recently, has seven female ministers and eight male ministers, meaning women make up 46.67 percent of ministerial roles in government – the highest proportion for a government in independent ­ Estonia’s history.

In Kallas’ new coalition, women hold the positions of prime minister, justice, foreign, culture, education, social pro­ tection and finance ministers.

But how do previous govern­ ments compare? In total, since 1992, when governments first started to be selected based on the rules of the constitution, 127 men and 31 women have been allocated ministerial roles.

The highest number of women in a government, be­ ­ sides Kallas’, was in Taavi Rõivas’ (Reform) first coalition (2014-2015) when six of 17 ministerial roles, or 35.29 ­percent, were given to women.

This is followed by Siim Kallas’ (Reform) government (2002-2003) which had five female ministers out of 16, or ­ 31.25 percent.

Joint third place is given to Rõivas’ second coalition (20152016) and Jüri Ratas’ first (2016-2019), which both had 25 percent of ministerial posts held by women. There were five women out of 20 ministers in Rõivas’ cabinet and Ratas had six female ministers out of 23.

Ratas’ second government (2019-2021) had four female ministers out of 22 – or 18.18 percent – and Andrus Ansip’s second coalition (2007-2011) – three of 18 ministers or 16.67 percent.

The lowest number of ­women, one of 15 ministers, or 6.67 percent, was in Andres Tarand’s first administration (1994-1995) and the second lowest share was 9.09 percent in Tiit Vähi’s third coalition (1995-1997).

The majority of governments since 1992 have allocated fewer than 20 percent of ministerial positions to women. Looking at the posts women have held, they have most often been allo­ cated the position of minister of social affairs or social welfare.

In total, women have held these positions in eight governments.

There have been six female ministers of culture and five ministers of education and re­ search.

Women have held seven positions as various economic ­ ministers, such as minister for foreign trade and information technology, minister for eco­ nomic affairs and infrastructure or minister for enterprise.

Mailis Reps (Center), Urve Palo (then SDE) and Keit Pentus-Rosimannus (Reform) have each held ministerial roles four times. When it comes to the prime minister, only one of 16 has been a woman, i.e. the new incumbent, Kaja Kallas.

It should also not be forgot­ ten that Estonia has a female president in Kersti Kaljulaid, a female EU commissioner – Kadri Simson (Center) – and female chancellor of justice Ülle Madise.

Women also have high-rank­ ing roles in most of Estonia’s political parties. Turning to non-parliamentary parties first, Züleyxa Izmailova is co-chair­ man of the Estonian Green Party, and Kristina Kallas is the leader of Eesti 200.

Of the parliamentary parties, Mailis Reps is deputy chairman of the Center Party and led the coalition negotiations on the party’s behalf, Kaja Kallas is chairman of the Reform Party, and the Social Democratic Party’s (SDE) Riina Sikkut is a former health minister.

There are 28 women in the 101-seat Riigikogu and two of Estonia’s seven MEPs are female – Marina Kaljurand ­ (SDE) and Yana Toom (Center).

The first woman elected to the Estonian parliament was Emma Asson in 1919.

Estonia’s female ministers and prime ministers since 1992: Siiri Oviir, social affairs minis­ ter (1995), (2002-2003) Lagle Parek, interior minister (1992) Marju Lauristin, social affairs minister (1992-1994) Liia Hänni, reform minister (1992-1994),(1994-1995) Liina Tõnnisson, economic minister (1995), economic and ­ communication minister (20022003), Tiiu Aro, social affairs minister

(1996-1997) Andra Veidemann, European minister (1996-1997) Signe Kivi, culture minister (1999-2002), (2002) Katrin Saks, population minis­ ter (1999-2002) Mailis Reps, education ­minis­ter (2002-2003), (2005-2007), (2016­2019), (2019-2020) Kristiina Ojuland, foreign minister (2002-2003), (2003­ 2005) Ester Tuiksoo, rural affairs minister (2004-2005), (2005­ 2007) Laine Randjärv, culture minis­ ter (2007-2011), Urve Palo, population minister (2007-2009); economic affairs and infrastructure minister (2014); enterprise minister (2014-2015); enterprise and technology minister (20162018) Maret Maripuu, social affairs minister (2007-2009) Keit Pentus-Rosimannus, envi­ ronment minister (2011), (2014); foreign minister (20142015); finance minister (2021 – ongoing) Urve Tiidus, culture minister (2013), (2014) Anne Sulling, foreign trade and IT minister (2014) Helmen Kütt, social protection minister (2014) Maris Lauri, finance minister (2014), justice minister (2021 – ongoing) Marina Kaljurand, foreign affairs minister (2015-2016) Kadri Simson, economic affairs and infrastructure minister (2016-2019), Kaia Iva, social protection ­minister (2016-2019), Katri Raik, interior minister (2018-2019) Riina Sikkut, work and health minister (2018-2019) Riina Solman, population ­minister (2019-2020) Kert Kingo, foreign trade and IT minister (2019-2020) Anneli Ott, public administra­ tion (2020-2021), culture minis­ ter (2021 – ongoing) Liina Kersna, education and research minister (2021 – on­ ­ going) Signe Riisalo, social protection minister (2021 – ongoing) Eva-Maria Liimets, foreign minister (2021 – ongoing) Kaja Kallas, prime minister (2021 – ongoing)