Venture Forward gift launches initiative on blockchain and decentralization of power

Princeton University launches a blockchain initiative and its potential to disrupt and redistribute power in society. Supported by four alumni in a single major donation to Princeton’s Venture Forward campaign, the initiative will bring together researchers across disciplines to better understand the potential benefits and pitfalls of technology.

The rise of cryptocurrencies – digital money without a central management organization – has followed waves of previous technological revolutions, from the printing press to the internet, each of which has ushered in profound changes in the distribution of political and economic power in society. Blockchain, the technology behind cryptocurrencies, does not operate under central control, which opens up the possibility of innovations and societal changes beyond cryptocurrencies, including new types of contracts and communication platforms.

“Technology has always disrupted power, but blockchain is a new platform to do so. It is very exciting and important to think broadly and deeply about the applications it makes possible, as we also generate innovations that move the boundaries of the technology itself,” says Andrea Goldsmith, dean of the School of Engineering and Applied Science.

The initiative will be based on the School of Engineering and Applied Science, at the same time as it engages innovators and researchers across the social sciences, public policy, economics and the humanities. It will accelerate basic research, not only in the underlying decentralization technologies, but also the societal effects of these technologies. This work will create a vibrant environment for teaching and learning around these technologies and their effects.

The initiative received initial funding from four alumni who are leaders in technology, investment and blockchain. The donors are: Peter L. Briger, Jr., graduated 1986 and principal and co-CEO of Fortress Investment Group; Joseph M. Lubin, graduated in 1987 and co-founder of the Ethereum blockchain and cryptocurrency platform and CEO and founder of ConsenSys, a blockchain company; Daniel W. Morehead, graduated in 1987 and Founder and CEO of Pantera Capital; and Michael E. Novogratz, graduated in 1987 and CEO of Galaxy Investment Partners.

“These gifts enable Princeton to pursue a groundbreaking research initiative with the capacity to shed light on the impact of blockchain technology and its potential societal implications,” said President Christopher L. Eisgruber. “Through Princeton’s distinctive approach to interdisciplinary research and teaching, the initiative will lead to a better understanding of the potential of this important new technology. I am grateful for the forward-thinking thinking and generous support of this extraordinary group of alumni. “

Blockchain, a digital ledger of transactions that is open to all to manage and view, but at the same time secured against fraudulent entries, is rapidly being developed for use beyond digital currencies. For example, several companies use blockchain to create and manage contracts. Some technologists see blockchain as the basis for the next generation of the Internet, known as Web3, where different users not only generate content, such as social media posts, but also own and manage the distribution platforms.

Lubin, whose Princeton degree was in electrical engineering and computer science, said a major goal of the gift is to engage Princeton’s strength not only in engineering but also in the social sciences. “It is a very powerful technology that has the power to transform the economic and social model of the internet as we know it. Our collective understanding of both the advantages and disadvantages of digital technology has developed greatly over the last two decades of digital innovation. The emergence of Web3 gives communities an opportunity to jointly take stock and evaluate how this new era of digital innovation can best serve its citizens.

“Our realization of the promise of Web3 is conditional on it being built in a way that is sustainable and well managed, distributed and resilient, as well as open and participatory,” said Lubin. “The social sciences have a crucial role to play in helping to define a vision for how Web3 can achieve these goals, as well as in establishing the principles that will guide our innovation, to ensure that Web3 can best serve society globally.”

Jaswinder Pal Singh, professor of informatics who is leading the initiative, said that such decentralized technologies can be transformative for society and that new, highly collaborative research is essential to distribute the new technologies in ways that result in the greatest benefit and least harm.

“There has been a long-standing problem in computer science: How to reach agreement or consensus among a distributed set of devices that do not trust each other. How do you get them to agree that something is the truth?” said Singh, who is also a co-founder of a blockchain-based company. “The Bitcoin blockchain solved that problem in an innovative and powerful way. It has, for the first time, made it possible for people to agree that something has happened and to gain the necessary trust without the need for a centralized authority, with a code that is visible to all. “

This has implications not only for currencies, but for many types of assets, information and management, he said. Companies are already building many new types of technologies, creating completely new fields such as decentralized finance, known as DeFi. Although the initiative is not intended to promote cryptocurrencies or any particular use of blockchain, it will promote research broadly in this new field.

“We are at a very early stage in understanding the opportunities and challenges associated with these technologies and their applications,” Singh said. “The decentralization of trust can be as powerful and transformative as the worldwide network. It can transform existing systems and lead to new applications that we can not even imagine today, with far-reaching consequences for society. We must be engaged not only in technology and its use, but also in the economics, governance and policies associated with them, and to do so with industry. Getting it right will require basic, interdisciplinary research and education, and close engagement with the fast-moving start-up society. “

The decentralization initiative will accelerate three areas of work at Princeton: the underlying construction behind blockchain and related technologies; innovative use of technologies not only in finance and economics, but also in areas such as voting and news; and what implications such technologies may have for society.

“It’s just such a cross-cutting set of applications, perfectly tailored to Princeton because we have great strength in all of these application areas, we are at the center of a regional hub for technology entrepreneurship, and we have a tradition of educating students who work and think. across disciplinary boundaries, Goldsmith said. “Technology is moving fast, so bringing a wide range of experts together with the engineers who build these platforms is critically important to students and to society.”

Princeton researchers will also work with external entities, including technology companies, to bring innovations into the market, while regularly convening academics and thought leaders on the effects of such technologies.

Goldsmith said the engineering work will bring together Princeton’s already strong research teams in networking, consensus algorithms, optimization, game theory, cryptography and computer structures. The work of applying the research will include interdisciplinary collaborations within or outside Princeton in areas such as economics, finance, politics and the humanities.

“We will knit together the advances in engineering with the transformative applications of the new platforms, and also understand the societal implications of these changes in technology,” Goldsmith said. “It’s a great place for Princeton to take the lead.”