Craig Wright explains how proof of assignment brings transparency

Craig Wright explains how proof of assignment brings transparency

Getting your Trinity Audio player ready...

The beauty of Bitcoin lies in its ability to stop major crimes, while simultaneously preventing rogue governments from seizing assets or otherwise abusing its powers and privileges.

In a new blog post, nChain Chief Scientist Dr. Craig Wright argues proof of assignment on the blockchain shines the light of transparency on both users and governments, to ensure more effective payment structures.

According to Dr. Wright, the immutability of the blockchain means even errors are noted and followed, unable to be altered, in creating honest, accountable transaction data.

An immutable object is something that remains unchanging over time, and once a block is sufficiently deep, any transaction within Bitcoin or any blockchain is unable to be changed. The scenario is analogous to an Oracle database running an account system in write once read many (WORM) formats. It is used in all public companies in the U.S. Such a system does not preclude the correcting of mistakes; it requires that a mistake is noted and followed.

In the absence of a global government, governments must work together to tackle cross border crimes like drug trafficking, people smuggling and money laundering. With blockchain and proof of assignment, Dr. Wright suggests governments can more quickly and efficiently work together to act on these crimes.

He noted, “A worldwide freezing order and a subsequent action of asset seizure would require enforcement actions in multiple jurisdictions. The requirement, of course, limits the types of orders and actions that can be done. Every small government seeking to abuse the rights of their citizens will not be able to use Bitcoin in order to seize assets. Where crimes are heinous enough in multiple jurisdictions, as are major drug trafficking, people smuggling, high-level money laundering, and other crimes, we will find that multiple jurisdictions can act simultaneously.” 

While governments will still retain the power to set laws and assign property, Dr. Wright argues the transparent, public nature of bitcoin records were essential to a free society.

 Governments will retain the right and privilege to seize goods and to assign property. Bitcoin or any blockchain or cryptocurrency cannot alter the scene. The scenario is not what any totalitarian government would desire. It is what a free society needs. In Nazi Germany and Stalinist Russia, records were kept away from the people; they were maintained in a manner that did not allow people to know how many property seizures had occurred, how many people had been moved or imprisoned, or anything that would let people see the full scope of the horror that was occurring.

Read Dr. Craig Wright’s new blog post, Proof of Assignment, here.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.