Design Principles for Digital Community Currencies

Community currencies are alternative currencies, which enable the mobilization of local resources for local needs and building resilient communities. They allow community members to perform economic transactions like buying products and paying for services using an alternative currency as a medium of exchange. For decades, regional, paper-based community currencies have been in use across the world. With the advent of the digital age, community currencies are increasingly moving into the digital space. Digital Community Currencies (DCCs) create opportunities for addressing challenges that traditional community currencies are facing, such as the inconvenience of handling two currencies in one wallet and the geographic limitation to a limited user population. This research builds upon characteristics and challenges of community currencies and derives six design principles from a literature review, an analysis of 16 community currency projects and an interview with a community currency project manager at the end of the project’s life. The design principles serve as a basis for establishing resilient and scalable DCCs. They contribute to the limited IS research on phenomena of social sustainability and have major practical implications when implemented in existing community currency systems

Beyond Bitcoin: Issues in Regulating Blockchain Transactions

The buzz surrounding Bitcoin has reached a fever pitch. Yet in academic legal discussions, disproportionate emphasis is placed on bitcoins (that is, virtual currency), and little mention is made of blockchain technology—the true innovation behind the Bitcoin protocol. Simply, blockchain technology solves an elusive networking problem by enabling “trustless” transactions: value exchanges over computer networks that can be verified, monitored, and enforced without central institutions (for example, banks). This has broad implications for how we transact over electronic networks. This Note integrates current research from leading computer scientists and cryptographers to elevate the legal community’s understanding of blockchain technology and, ultimately, to inform policymakers and practitioners as they consider different regulatory schemes. An examination of the economic properties of a blockchain-based currency suggests the technology’s true value lies in its potential to facilitate more efficient digital-asset transfers. For example, applications of special interest to the legal community include more efficient document and authorship verification, title transfers, and contract enforcement. Though a regulatory patchwork around virtual currencies has begun to form, its careful analysis reveals much uncertainty with respect to these alternative applications

End-user Empowerment in the Digital Age

End-user empowerment (or human empowerment) may be seen as an important aspect of a human-centric approach towards the digital economy. Despite the role of end-users has been recognized as a key element in information systems and end-user computing, empowering end-users may be seen as a next evolutionary step. This minitrack aims at advancing the understanding of what end-user empowerment really is, what the main challenges to develop end-user empowering systems are, and how end-user empowerment may be achieved in specific domains

Bitcoin: the wrong implementation of the right idea at the right time

This paper is a study into some of the regulatory implications of cryptocurrencies using the CAMPO research framework (Context, Actors, Methods, Methods, Practice, Outcomes). We explain in CAMPO format why virtual currencies are of interest, how self-regulation has failed, and what useful lessons can be learned. We are hopeful that the full paper will produce useful and semi-permanent findings into the usefulness of virtual currencies in general, block chains as a means of mining currency, and the profundity of current ‘media darling’ currency Bitcoin as compared with the development of block chain generator Ethereum. While virtual currencies can play a role in creating better trading conditions in virtual communities, despite the risks of non-sovereign issuance and therefore only regulation by code (Brown/Marsden 2013), the methodology used poses significant challenges to researching this ‘community’, if BitCoin can even be said to have created a single community, as opposed to enabling an alternate method of exchange for potentially all virtual community transactions. First, BitCoin users have transparency of ownership but anonymity in many transactions, necessary for libertarians or outright criminals in such illicit markets as #SilkRoad. Studying community dynamics is therefore made much more difficult than even such pseudonymous or avatar based communities as Habbo Hotel, World of Warcraft or SecondLife. The ethical implications of studying such communities raise similar problems as those of Tor, Anonymous, Lulzsec and other anonymous hacker communities. Second, the journalistic accounts of BitCoin markets are subject to sensationalism, hype and inaccuracy, even more so than in the earlier hype cycle for SecondLife, exacerbated by the first issue of anonymity. Third, the virtual currency area is subject to slowly emerging regulation by financial authorities and police forces, which appears to be driving much of the early adopter community ‘underground’. Thus, the community in 2016 may not bear much resemblance to that in 2012. Fourth, there has been relatively little academic empirical study of the community, or indeed of virtual currencies in general, until relatively recently. Fifth, the dynamism of the virtual currency environment in the face of the deepening mistrust of the financial system after the 2008 crisis is such that any research conclusions must by their nature be provisional and transient. All these challenges, particularly the final three, also raise the motivation for research – an alternative financial system which is separated from the real-world sovereign and which can use code regulation with limited enforcement from offline policing, both returns the study to the libertarian self-regulated environment of early 1990s MUDs, and offers a tantalising prospect of a tool to evade the perils of ‘private profit, socialized risk’ which existing large financial institutions created in the 2008-12 disaster. The need for further research into virtual currencies based on blockchain mining, and for their usage by virtual communities, is thus pressing and should motivate researchers to solve the many problems in methodology for exploring such an environment

Trends in crypto-currencies and blockchain technologies: A monetary theory and regulation perspective

The internet era has generated a requirement for low cost, anonymous and rapidly verifiable transactions to be used for online barter, and fast settling money have emerged as a consequence. For the most part, e-money has fulfilled this role, but the last few years have seen two new types of money emerge. Centralised virtual currencies, usually for the purpose of transacting in social and gaming economies, and crypto-currencies, which aim to eliminate the need for financial intermediaries by offering direct peer-to-peer online payments. We describe the historical context which led to the development of these currencies and some modern and recent trends in their uptake, in terms of both usage in the real economy and as investment products. As these currencies are purely digital constructs, with no government or local authority backing, we then discuss them in the context of monetary theory, in order to determine how they may be have value under each. Finally, we provide an overview of the state of regulatory readiness in terms of dealing with transactions in these currencies in various regions of the world

Constructing grassroots innovations for sustainability

One of the cleavages within sustainable development is division between grassroots environmental action, often deemed good on participation terms, and green innovation, usually centred on technologies in firms and deemed good for ecological modernisation. This special section is dedicated to an obvious and missing connection: grassroots innovation for sustainability. Grassroots innovations typically involve networks of activists and organisations generating novel bottom-up solutions for sustainable development; solutions that respond to the local situation and the interests and values of the communities involved (Seyfang and Smith, 2007). What they share is commitment on the part of those involved towards openness and inclusion in the processes of innovation and the outputs of innovation. Research is still needed that considers whether and how grassroots innovators network with one another; the extent to which movements for grassroots innovation approaches exist and how they operate; whether and how innovations diffuse through processes of replication, scaling-up, and translation into institutions; and whether or not these developments constitute alternative pathways for sustainability. The empirical contributions in this special section consider the dilemmas of going to scale, the challenges of moving from innovation to institutionalisation, and the risks of capture and instrumentality when grassroots innovations encounter more powerful political economies of conventional innovation systems (see also Smith et al., 2013). A recurring theme is diversity in innovation for sustainability; which might be served best by resisting pressures to mainstream, yet simultaneously generates accusations of marginality. In highlighting these themes and introducing the special section, we use a particular example, the Brighton Earthship, and which all contributing authors visited as part of a research workshop on grassroots innovation held at Sussex University in May 2012 and that led to the papers here

The political imaginaries of blockchain projects: discerning the expressions of an emerging ecosystem

There is a wealth of information, hype around, and research into blockchain’s ‘disruptive’ and ‘transformative’ potential concerning every industry. However, there is an absence of scholarly attention given to identifying and analyzing the political premises and consequences of blockchain projects. Through digital ethnography and participatory action research, this article shows how blockchain experiments personify ‘prefigurative politics’ by design: they embody the politics and power structures which they want to enable in society. By showing how these prefigurative embodiments are informed and determined by the underlying political imaginaries, the article proposes a basic typology of blockchain projects. Furthermore, it outlines a frame to question, cluster, and analyze the expressions of political imaginaries intrinsic to the design and operationalization of blockchain projects on three analytic levels: users, intermediaries, and institutions.</p