BLOCKCHAIN IN ISRAEL
07.07.2016 Blockchain
A thriving financial industry in Israel generates new technologies based on the blockchain that leaves no other choice to government officials but to join the common direction. Special adviser to Roy Keidar (Roy Keidar) conducted analysis of current events and the situation around the blockchain in Israel.
The military factor
Despite its small size, Israel has always been known as a center of revolutionary innovations. At the moment Israel becomes a major player among the technologies blockchain. A thriving high-tech industry, Israel has the highest concentration of high-tech companies, second only to Silicon valley.
The main engines of progress in this field is the development of applications cyber security and cryptography, which plays a key role in the defense industry of Israel, and the armed forces serve as fertile soil for the rapid growth of the industry. This situation reminds of the period of development of cyber technologies in 2000.
Profitable private sector and talented entrepreneurs of Israel has led to a significant increase of capital. This, in turn, attracts the attention of government agencies and promotes the growth of human resources as well as the base of the auxiliary organizations and the improvement of the education system.
Learning and development
In Israeli universities there are a lot of experts and inventors of new technologies blockchain. Among them the Professor of University of Science Wiseman (Weizman Institute of Science), ADI Shamir (Adi Shamir) and Professor at the University of Technion (Technion) Eli Ben-Sasson (Eli Ben-Sasson).
Based on the information of the recent report by the international consulting firm Deloitte, the private sector, Israel has dozens of companies engaged in the development of blockchain technology in the field of cyber security, development, device, virtual currency, payment systems and social platforms.
For example, the company offering the app, which eliminates the need of maintaining documentation for international shipments of goods or the Internet application for the purchase and storage of goods, as well as the application generating the templates blockchain for use by banks and enterprises.
The dilemma for the officials
At the time, until the blockchain ecosystem is developing, government officials are feeling insecure. Although, it is not surprising, if we consider the possibility of applying blockchain technology in the future and possible consequences associated with it.
Government agencies around the world wary of the cryptocurrencies that give people the ability to bypass the banking institutions and to hide their income from the state.
Scandals Internet exchange Silk Road and Mt. Gox has only exacerbated the lack of confidence in the cryptocurrency. But besides the obvious concerns, there are deeper reasons to distrust: officials not so easy to accept competition of any decentralized alternative to the centralized structure of ancient States.
Public and private sector
Due to the fact that Israel has a fairly small area, there are constant disagreement between the public and private sectors. This leads to a lack of cooperation between them.
At the moment we can observe such trends in the rapidly growing industry of financial technology. Suddenly appeared the need to change the sluggish and conservative laws governing the banking sector to support the competitiveness of the hundreds of new companies in the sphere of financial technology. All regarding payment, exchanges, trade, credit and insurance. New companies offer more effective and profitable types of financial services.
Control of a decentralized system
Together, these companies create an Israeli hybrid financial technologies, which gradually changes the whole financial industry.
State structures suddenly realize that they are standing at a fork. They do need to learn to adapt to new technologies, to contribute to their development and support.
There is concern that the control may be too rigid or not timely. But the real question is not when and how hard. And how do you control a decentralized system?
While officials ponder a booming industry of financial technology continues to produce innovative technology based on the blockchain, which in the end will not leave a choice to the public authorities, but to maintain progress, and if this is done carefully and in a timely manner, will bring many benefits to the industry.
Upvoted you