REPORT
The Internet of Value

How Blockchain and DLT are enabling the new Internet of Value

SHARE THE REPORT

REPORT
The Internet of Value

How Blockchain and DLT are enabling the new Internet of Value

SHARE THE REPORT

UCL CBT releases report on the new Internet of Value

A collection of articles from the UCL CBT Research and Industry Associate Community on how Blockchain and DLT are enabling the new Internet of Value.

“Today, we are still missing the piece that makes money move as easily as information moves. The experience of sending an international payment is nothing like the experience of sending an international email. We do not yet have an ‘Internet of Value’. But we know we need it.”

— David Schwartz, Chief Technology Officer at Ripple

#000,

UCL CBT releases report on the new Internet of Value

A collection of articles from the UCL CBT Research and Industry Associate Community on how Blockchain and DLT are enabling the new Internet of Value.

“Today, we are still missing the piece that makes money move as easily as information moves. The experience of sending an international payment is nothing like the experience of sending an international email. We do not yet have an ‘Internet of Value’. But we know we need it.”

— David Schwartz, Chief Technology Officer at Ripple

#000,

Motivation for this Report

The University College London Centre for Blockchain Technologies and 18 of its Industry and Academic experts provide a variety of perspectives on:

1)  The massive potential of the technology that can drive the establishment of the IoV;

2)  Blockchain’s component pieces that enable the IoV, including smart contracts, cryptography and various consensus mechanisms;

3)  Specific protocols that propel the development of the IoV such as XRP and IOTA.

The Internet of Value

Eleven years ago, blockchain technology emerged to change the fragmented nature of our monetary system. The technology gives control over value flows to value holders, by eliminating conventionally trusted intermediaries such as banks and escrows, and by allowing all participants of the value network to contribute to the operations of the network. Peer-to-peer transactions surpassing regional and economic infrastructure restrictions become possible. More recently, the advent of smart contracts leads to further efficiency enhancement of the value network on blockchain. A smart contract ensures that value transactions automatically occur following pre-programmed rules without human intervention. In tandem with the Internet of Things (IoT) technology, smart contracts enable machine-to-machine value transactions on blockchains. As such, within the blockchain ecosystem value can be created, stored, retrieved, curated and exchanged swiftly and cheaply just like information, forming the Internet of Value (IoV).

The Internet of Value (IoV)

Eleven years ago, blockchain technology emerged to change the fragmented nature of our monetary system. The technology gives control over value flows to value holders, by eliminating conventionally trusted intermediaries such as banks and escrows, and by allowing all participants of the value network to contribute to the operations of the network. Peer-to-peer transactions surpassing regional and economic infrastructure restrictions become possible. More recently, the advent of smart contracts leads to further efficiency enhancement of the value network on blockchain. A smart contract ensures that value transactions automatically occur following pre-programmed rules without human intervention. In tandem with the Internet of Things (IoT) technology, smart contracts enable machine-to-machine value transactions on blockchains. As such, within the blockchain ecosystem value can be created, stored, retrieved, curated and exchanged swiftly and cheaply just like information, forming the Internet of Value (IoV).

Key Takeaways from the Report

— The IoV can be defined as the instant transfer of assets expressible in monetary terms over the Internet between peers without the need for intermediaries.

— The mission of the IoV is to exchange any amount of value as quickly and fluidly as information is exchanged today.

— The IoV forms a Value Web of relationships that remove the silos of existing data structures and networks.

— The IoV is fundamentally enabled by blockchain.

— Merging the IoT with blockchain technology enables more efficient machine to machine transactions, further enhancing the IoV.

— Advancements in Artificial Intelligence and 5G drive the evolvement of the IoT.

— The removal of intermediaries in combination with increased information transparency leads to a mitigation of the so-called principal-agent problem.

— New IoV businesses can take the form of Decentralised Autonomous Organisations (DAOs) through an optimised governance structure that incorporates decisions made by both computers and humans.

— Everything that can be tokenised will eventually be tokenised – that is the foundation of the IoV.

— Through reliance on purely virtual tokens, distributed ledger technology sidesteps the complications of bridging the real/virtual divide.

— Global central banks could cooperate to reap the benefits of recent technological advances.

— While the transparent and open transmission of data on blockchain imposes privacy concerns, new protocols are being developed to protect personal and confidential information effectively.

Key Takeaways from the Report

— The IoV can be defined as the instant transfer of assets expressible in monetary terms over the Internet between peers without the need for intermediaries.

— The mission of the IoV is to exchange any amount of value as quickly and fluidly as information is exchanged today.

— The IoV forms a Value Web of relationships that remove the silos of existing data structures and networks.

— The IoV is fundamentally enabled by blockchain.

— Merging the IoT with blockchain technology enables more efficient machine to machine transactions, further enhancing the IoV.

— Advancements in Artificial Intelligence and 5G drive the evolvement of the IoT.

— The removal of intermediaries in combination with increased information transparency leads to a mitigation of the so-called principal-agent problem.

— New IoV businesses can take the form of Decentralised Autonomous Organisations (DAOs) through an optimised governance structure that incorporates decisions made by both computers and humans.

— Everything that can be tokenised will eventually be tokenised – that is the foundation of the IoV.

— Through reliance on purely virtual tokens, distributed ledger technology sidesteps the complications of bridging the real/virtual divide.

— Global central banks could cooperate to reap the benefits of recent technological advances.

— While the transparent and open transmission of data on blockchain imposes privacy concerns, new protocols are being developed to protect personal and confidential information effectively.

Contributors

Authors

Andy Yee, Antony Welfare, Chris Wyper, David Schwartz, Fabio Caccioli, Geri Cupi, Hermann Elendner, Horst Treiblmaier, Josep Lluis de la Rosa Esteva, Mike Brookbanks, Nicola Dimitri, Nikolas Markou, Paolo Tasca, Peter Bambridge, Philippe Rixhon, Rajan Kashyap, Soichiro Takagi, Theodosis Mourouzis.

Editors

Jiahua XuNikhil Vadgama, Paolo Tasca

Contributors

Authors

Andy Yee, Antony Welfare, Chris Wyper, David Schwartz, Fabio Caccioli, Geri Cupi, Hermann Elendner, Horst Treiblmaier, Josep Lluis de la Rosa Esteva, Mike Brookbanks, Nicola Dimitri, Nikolas Markou, Paolo Tasca, Peter Bambridge, Philippe Rixhon, Rajan Kashyap, Soichiro Takagi, Theodosis Mourouzis.

Editors

Jiahua Xu, Nikhil Vadgama, Paolo Tasca

Download the Report

Download the full report which includes an overview of how DLT will evolve in the future, and explores in detail various different applications of the Internet of Value.