BY SANDRA HIRSH AND SUSAN ALMAN
Blockchain has generated a lot of buzz due to the potentially disruptive and transformative possibilities it offers. It is clear from the expanding literature that blockchain technology is on the brink of revolutionizing the public and private sectors. Conferences, books, white papers, start-ups, and numerous back-channel discussions have explored the ways blockchain technology can address seemingly endless processes. The extensive media coverage of the growing popularity of blockchain technology, and their predictions of its being a game changer, caught our attention, and we began to think of possible blockchain use for library applications and how this could be investigated. As we looked into it more, we discovered that blockchain technology was being discussed widely, but without clear directions for library applications.
As we started exploring blockchain possibilities, we were frequently asked: can you please provide a simple explanation of what blockchain is? The problem is that blockchain, as a new and emerging technology, still feels like an abstract concept. Blockchain still has very few actual implementations, which makes it hard for many of us to get our minds wrapped around what it is, how it can be used, and why people are so excited about it.
Simply put, blockchain is a decentralized and distributed ledger technology (DLT) that has no central authority. It is used to record (and store) the same information in a block across many computers. These blocks are linked together in a chain. A record cannot be altered after it is created unless the majority of users agree to make the change in the chain or blocks. As Darra Hofman, one of the experts who participated in our blockchain project and a PhD candidate at the University of British Columbia, explains: “A blockchain is basically a distributed database where lots of different parties can read and write transactions to the database. Instead of a third party checking those transactions, the blockchain has a built-in consensus mechanism that checks transactions to make sure they’re good (that I have the $20 I just tried to spend, for example).”1
Each record that is put into the chain is given a unique digital signature created by a cryptographic hash function or algorithm; this acts like a digital fingerprint. In addition to a hash, each block in the blockchain also includes the hash of the previous block, a timestamp, and data about the proof-of-work algorithm (this is how new blocks are mined and verified). This creates the “chain” part of the blockchain. This is also what makes blockchains hard to tamper with, because if anything changes in any of the blocks (even if it is just the deletion of a period), this changes the hash (the unique identifier) of the block, which then breaks the blockchain.
The information in a blockchain cannot be changed unless the majority of users in this decentralized group agree to it. If there is no agreement, then the record reverts to its original value. This feature has enabled blockchain to be a trusted and reliable technology. There are instances from cryptocurrency blockchains where more than fifty percent of the network was controlled by members who could make changes or block new transactions from taking place or being confirmed. A 51 percent take-over is less likely to occur in a private or permissioned blockchain where users are not able to participate individually. Centralized organizations like libraries are most likely to use permissioned or private blockchains.
As we learned more about blockchain, we wondered if the buzz over it was all hype, or whether the technology could be used effectively in libraries and information centers. To answer this question, in 2017, San José State University’s (SJSU) School of Information secured a grant from the Institute of Museum and Library Services to launch an eighteen-month examination to explore the ways that libraries can utilize blockchain for practical library applications while the implementation of the technology is still in development. An advisory committee helped to develop the scope of the project, which included five main components: (1) develop recommendations on the future uses of blockchain technology within the information professions; (2) create a Blockchain blog2 and website; (3) offer a free virtual conference, called Blockchain Applied: Impact on the Information Profession;3 (4) engage in deep discussions with leading experts at a National Forum,4 an invitational gathering to discuss the feasibility of blockchain applications in libraries; and (5) develop and offer a blockchain MOOC (massive open online course).
Through this process, we have discovered that blockchain technology has many potential applications in libraries. However, the path forward includes a number of issues and tasks that must be resolved. This book includes a compilation of what librarians and information professionals need to understand about blockchain technology, and offers several speculative visions for how blockchain could support the core work of libraries. Librarians need to understand new technologies in order to determine which ones will improve operations and services, while also avoiding new and unproven technologies that would not be useful.
As a next step in this project, we plan to develop models that will indicate if blockchain applications in library settings are feasible and scalable. These pilot projects will allow librarians to experiment with real-life examples. Blockchain is currently an unproven technology for the information profession, with many advocates, skeptics, and opponents. We have a professional obligation to examine this technology’s potential applications in order to make informed decisions about it. The essays in this book are written by information professionals who have interest and experience in blockchain technologies, and who offer their ideas for exploration and consideration. We invite you to explore their ideas in this book, and also contribute to the Blockchain blog at https://ischoolblogs.sjsu.edu/blockchains/.