Time：10:00 AM (Beijing Time) , August 3 10:00 PM(ET) /7:00PM（PST) , August 2
Groups：Mars Finance Global Family
Stephane Laurent：CMO at Penta
Vivi Lin：Mars Finance Global Partner ，General Manager of Mars Finance International Wechat Community
Steven(Tianyuan) Wei：Finance in Miami university ，Co-founder of Sharp Eye Capital，Invest and Incubate high-quality overseas projects，Media，Exchange，Mine
Linda：Project Manager at Mars Finance
next phase of development of the digitization
Linda:Today we have Stephane Laurent, the CMO at Penta sharing on topic “the role of Blockchain technology as a new form of social contract for the digital age”.
Welcome to Mars Finance Global Family for your sharing session today Stephane
Stephane Laurent :Hi Everyone! Thank you Linda for this introduction and to Mars Finance for having me today
Linda:So today, Stephane will be covering the role of Blockchain technology as a new form of social contract for the digital age.
And he will later share some comments on a recent article targeting Penta at the end of this session.
And I am Linda from Mars Finance, hosting today’s session.
So let’s begin, Stephane.
First of all, please share with us your take on today’s concept of digital age? And where we stand in terms of digital transformation of our society?
Stephane Laurent :Sure
The digital age is the next phase of development of the digitization of our society.
This evolution started about 40 years ago with the advent of personal computers, followed by the emergence of the internet and the generalization of mobile phones. I believe this transformation is irresistible
Wespend more and more time learning, socializing, shopping, interacting in the digital world, the emergence of highly portable computers and more recently of VR/AR/MR devices will increase this ratio even further.
The exponential growth of connected devices entails that in the near future every aspect of our lives will have a translation into the digital space, keeping track of our biometrics and daily activities.
I anticipate that over the next 20 years the connection between physical and digital worlds will become almost seamless
Linda:That’s something we will all be excited to anticipate
So what do you see are the opportunities and threats related to this digitization of the economy?
Stephane Laurent :We should keep in mind that over the past twenty years the digital economy has been a driving force of both global economic growth and the increase of wealth inequalities
And the main reason for this paradox is that data, the main asset class that populate this digital economy, is owned by a handful or organizations
We could say that we are in the Middle Ages of this digital Age, where individuals have little control nor benefits over what they contribute
Which is why we need to define a new social contract, a new set of principles that defines how the digital economy works
Linda:The analogy of where we stand today comparing to Middle Age is interesting.
Let’s hope the Age of Enlightenment is not far from us
Distributed ledger technologies
Linda:What type of new social contract society needs to seize these opportunity? What are the requirements in terms of digital identity, information ownership and security?
Stephane Laurent:Primarily this social contract requires to define a new status for data .Starting with digital identity and personal information
What are the rights attached to personal information, the responsibilities that come with using this data .This new social contract also requires to define new models for the distribution of wealth.
New economic models where data and the value derived from it are shared among all the actors of the digital economy.
The digital economy also requires new law enforcement mechanisms that are as efficient and scalable as thedigital world is fabric is
Linda:And so, what do you think are the new types of the economic and political models needed for this social contract to work? And how blockchain can serve this purpose?
Stephane Laurent:Distributed ledger technologies have certain properties especially in terms of security,transparency and censorship resistance that provide the conditions for a new social and transactional fabric where value and assets can be shared as efficiently as information currently is.
This new infrastructure can contribute massively the protection of rights, ownership and identity against any type usurpation.It also provides the ground for an all inclusive economic system, Bitcoin for instance, is most probably the first money system which success depends on its inclusiveness and its ability to lower barrier to entry.
I believe distributed ledger technology can help define new wealth distribution mechanisms.Decentralized applications for instance, allow completely new business model where data is owned by the users and transactions are made over this data via smart contracts. Under this model, instead of having a few organizations owning and monetizing all the data, marketplaces are created where value creation can be effectively rewarded and wealth shared. As smart contracts become more sophisticated, I am confident they will help reduce transaction cost inside and outside organizations, foster disintermediation, and address more efficiently very complex scenarios
I have spent half my professional life in the corporate world, the other half in NGOs humanitarian agencies and social enterprises, in other words I have spent half my time witnessing how wealth is created and the other half witnessing how it is redistributed to make up for the inefficiencies and injustice seemingly inherent to this value creation process
Fair and sustainable rewarding of value creation is “the” challenge that the industrial age has struggled with since its dawn, the digital age was well on track to fail it until a certain day of November 2008.
AI will play in this new social contract
Linda:With that being said, what is your take on the recent enforcement of GDPR in Europe? Is it good or bad news for blockchain?
Stephane Laurent:GDPR is a regulatory framework that since last month governs how personal information of EU citizens is collected or processed. It is a very important milestone towards the protection of data privacy as it provides a ground for citizens to raise complaints and sanction abuses.
This regulation was developed prior to the emergence of bitcoin and blockchain and to a large extend GDPR is not compatible with blockchain especially its requirement for data to be erasable
However I believe that for the long term, this initiative from the European Union is in line with the purpose presented above and with what blockchain technology can offer
Linda:Lastly Stephane,What role do you think AI will play in this new social contract and how does Blockchain prepare the way for AI systems to facilitate interactions between individuals and organizations?
Stephane Laurent :regulators are having a hard time catching up with the pace of development of technology, mainly because human intelligence has a limited bandwith
Now if you take the GDPR, it is a huge administrative burden. Law enforcement in the digital space will require inevitably the use of Artificial Intelligence systems to be efficient.Another appeal of blockchain in this regard is smart contacts,smart contract can automate the enforcement of predefined agreements and do it relentlessly. Protection of personal data, especially the sanction of breach and abuses will require the use of smart contracts imo
Linda:Thank you Stephane for sharing with us today on the role of Blockchain technology as a new form of social contract for the digital age. We will open up the discussion and welcome questions in just a minute.
There is one more thing I am sure many are waiting to hear your comments on. A recent article was published online targeting Penta and was actually shared within this group as well.
Would you mind to share with us your response or any comments on this article?
Stephane Laurent:Sure thank you Linda for bringing it up .I was very surprised first by the nature of the accusations contained in this article which are preposterous. Second was the tone, very vindictive of the personal accusations
I did not have time to read the article into all its details but after discussion within our team and with our partners we have decided to develop a full response to it. Anyway our official response will be issued in due course and I will make sure it is shared in this community too.
Linda:Thank you for sharing on the article and your insightful topic covered in session today.