Category Archives: News

We are in the midst of a revolution, an industrial revolution, mark 4, with the potential to make the original one appear a mere murmur by comparison.  And there is plenty of fear abounding, the bots are coming and our jobs are going, what if it all goes wrong?  What if artificial intelligence mean the machines turn on us and Arnie’s Terminator wants so much more than our bike, boots and jacket?

Well, that’s one view and consideration of consequences I would say is always sage.  However, with the right level of caveat and caution I suggest that we can step forward with optimism and evidence based positivity.

In this spirit, today I have the pleasure of publishing a report into the opportunity for citizen and state, business and Whitehall, from what is known as Distributed Ledger Technology (DLT), one of the technologies that has arrived with the 4^th Industrial Revolution.

Entitled, Distributed Ledger Technologies for Public Good_leadership collaboration and innovation, the report seeks to set out key areas across the public sector where DLT could enable increased safety and security, transparency, traceability  and trust, reduce cost and increase service for the citizen.

So what, you may ask (as I did not so long ago), is DLT?

DLTs are typically (but not exclusively) enabled by blockchains. A block is a set of data records, as in a database or spreadsheet, which is cryptographically sealed and linked to the previous block.  The sequence of linked blocks (the blockchain) cannot be altered without breaking the chain.  Consequently, an unbroken blockchain promotes trust and provides extremely strong evidence that the data has not been altered or tampered with.  DLT then provides all parties with the correct rights or permissions and automatically enables all to have a local copy of the register or database.

This means that DLT is good for managing unique identifiers that have to be used consistently across multiple systems and organisations.  It ensures data integrity and avoids data fragmentation, allowing far greater integration of new and existing systems and improved organisational effectiveness.

Having worked with experts in the field, in the preparation of this report, I believe that DLT can play a valuable part in enhancing the delivery of government services to the citizens of the UK, in securing the UK’s competitive position as a global leader in technology-based innovation and in protecting the security of government and citizens’ data at a time when both are increasingly under threat.  Without claiming any silver bullet status for DLT, it would certainly seem worth investigating some more.

So, where and how can DLT help?

Well, for example, if HM passport office could enable a DLT solution, bye bye fake documents, identity tricksters and the like and Hello  to a potential £500M gain for the UK.  As any prophet has to say to the sceptic, “time will tell”, but certainly worth further investigation;

In the NHS, currently an estimated 25,000 days are lost, or spent, on doctor identity and pre-employment checks.  Vital, of course, but if done via DLT, imagine those 25,000 days, currently a cost, being converted into care.

Some more food for thought, with a DLT solution enabling traceability and transparency in the food supply chain, when it comes to horse in the lasagne, we could say with confidence, nay more;

Cybercrime now accounts for 50% of UK crime.  Let’s embark upon our own investigations to establish whether DLT can become our best detective and crime prevention officer.

Just some examples.  The report is in no sense claiming that these examples are the best use cases for DLT but that they (and others) are worth further investigation, experimentation and discovery.

The purpose of this report is pretty simple, to re-energise and refocus UK government attention on DLT’s potential so that we can accelerate our own digital maturity, enhance the productive capacity of our businesses and benefit our citizens.

This report is a call to action for all those with the interests of the UK at heart to join in that collaborative effort and the practical steps proposed so that the benefits of DLT can serve as a common good for UK businesses and citizens.

While the report’s focus is on one technology, or more correctly group of technologies, I am fully aware that others – 5G, Cloud computing, Artificial Intelligence (AI), Robotics and even Nanotechnology – are all developing as fast and may indeed compete for future time and investment. The report makes the case that DLT has the potential to enable the better exploitation of those technologies, and also as a means of overcoming some of the issues associated with the existence in government as well as in many commercial entities of “legacy” systems developed piecemeal and over time using different software formats and access systems.

I call on Government to seize this moment.  The great news is this is not about money but leadership, collaboration and connection, experimentation, empowerment and, crucially, implementation to enable Britain to be at the forefront and realize all the benefits of the Fourth industrial revolution for us all. Carpe DLT should certainly be part of this.

Today (15th November 2017) Chris asked the Government what cross-Whitehall work they are undertaking to maximize opportunities from the fourth industrial revolution; particularly in terms of digital skills, artificial intelligence, machine learning and distributed ledger technology.

The question was intentionally broad and included a range of technologies and priorities as Chris hoped to highlight that the Government must grasp the ‘everythingness’ of this new technology.

As Chris wrote in Politics Home:

“the 4IR is already well underway and it will make the first industrial revolution sound a mild murmur by comparison… There is no separate world of digital. It won’t be possible to focus on, for example, health, education or defence and leave others to “do the digital”. 

Crucially, the 4IR is inevitable, not optional and whilst I welcome the inclusion of digital in DCMS I seek reassurance that the scale of the challenge and the necessity for a cross-governmental approach is understood and acted upon.

The technology may be complex – who really knows what goes on inside the black box at Deep Mind or appreciates the finer details of the cryptograph hash function of Bitcoin. But this is not about the tech per se it is about the potential, the solutions which can be realized and what will be required from Government, from all of us, for such realization to become reality.”

On Thursday (6th July 2017) Chris tabled a debate in the House of Lords about what role financial technologies (fintech) can play in promoting financial inclusion. Specifically he asked “Her Majesty’s Government what steps they are taking to promote financial inclusion through the use of innovative financial solutions and new technology, including open access to payment infrastructure, smart phone applications and distributed ledger technology.” During his speech he explained why he was interested in both fintech and inclusion and called on the Government to commit to various actions.

“Why am I interested in fintech? I am interested because it is innovative and disruptive and has the potential to address some of the issues that have dogged our society for decades, not least the inability for SMEs to have consistent and timely lines of credit. Perhaps even more significant is the fact that so many hundreds of thousands, nay, millions, of our fellow citizens have been effectively locked out by being underbanked or unbanked. There has been no real sense that pressure has been put on, or desire felt by, the major financial institutions to lend to SMEs or address questions around the underbanked and unbanked of our society.

Why am I interested in inclusion? This goes right back to the beginning for me. It seems extraordinary that everybody would not be interested in how we enable and empower every single member of our society to play their part and to be fulfilled in whatever field they want. Financial inclusion is critical to this. When we set it alongside digital inclusion, we have two of the most significant building blocks that have to be so well set if we are going to address some of the most significant issues facing citizens in Britain right now.”

Chris went on to ask the Government to look at regulation and funding; by increasing the responsibilities of the Financial Conduct Authority and giving a specific responsibility for financial inclusion. He also asked if the Government would commit to at least equaling the support that the European Investment Bank has given for fintech once we leave the European Union. Chris also highlighted the incredible potential of some initiatives for distributing benefits the Department of Work and Pensions have been looking at. “We have had some great proofs of concept, but we need this to get to scale and then we will truly see the impact and the difference that fintech can make in terms of financial inclusion.” In summing up Chris called on industry and Government to work together to ensure that fintech continues to thrive, continues to deliver and continues to be a great British enabler and a great British export, through and long beyond Brexit.

Read full text here.

Lord Holmes: Inclusive and well funded Fintech sector would be transformational for most vulnerable communities, Politics Home