EKMH Innovators Interview Series
An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
To write that 1irstcoin LLC Senior Advisor Sean Brizendine is just involved in Blockchain in an understatement. Since 2011, Brizendine has actively focused on Blockchain technology research and development and become a key connecter in the industry. In addition to his current role at 1irstcoin, Brizendine is also a certified ICO Bench Expert, IIB Council Certified Blockchain Professional, and EC Council University Lecturer and Advisor. Brizendine remains committed to the movement by playing several active advisory roles at BlackPearlChain, LohnControl, GreenTek, MorCrypto Exchange and UBIQWIFI. Readers may also have seen his interviews with NASDAQ. In short, Brizendine is a force in the sector and one to watch.
I had the pleasure of connecting with Brizendine via email to discuss a variety of topics facing the cryptosphere and blockchain community, including regulations and challenges for tax administrations to cypherpunks to the VATCoin to Multivin space programs. Fasten your seatbelts… Our interview follows.
EKMH: You recently co-authored an article with Ksenija Cipek, Dame of Honour, and noted, “Taxpayers must, amongst other things, have a simple, fast, secure and cost-effective way of exchanging information with tax administrations and vice versa.” Please discuss how new technologies such as blockchain can help streamline data exchange and security and enable the Fourth Industrial Revolution.
Sean Brizendine: The challenges for tax administrations and taxation, raised from 4th industrial revolution or digital evolution, are enormous. The way of doing business by taxpayers changes rapidly. There are more and more new business models which disrupt business models known so far. We have digital economy. Today we have sharing economy, collaborative economy, gig economy, economy of cooperation. Many businesses are doing in virtual world, via online platforms. Yesterday the defined permanent establishment -- an office with desk and chair -- was normal; today we have a virtual permanent establishment. Challenges arise about how to tax profits made by this new business models. Of course solutions on the international, even global, level remain the best approach. Why? Every tax administration has a strategic goal of increased compliance. A very important solution is to have a simple, structured, transparent, understandable, and accessible tax legislation. Administrative burdens on the taxpayer should be less. On the other side, if that approach is not possible to achieve, we should not be surprised that countries will find solutions on the national level as we see today in matters of digital tax (i.e. in Austria, Italy, UK, Turkey and other countries).
With respect to communication, tax administrations in particular, should ensure:
-Quality data warehouse
-Minimizing error data, real-time data and data usage
-Security and data protection
-Controlling data, especially its immutability
-Exchange quality data
-Timely and in the shortest possible time (effectiveness in the prevention of tax fraud, but also exchange of data with the taxpayer, which affects the increase compliance)
-Lower cost for both sides
-Timely detection and prevention of taxpayers' risk behavior, as well as internal risks
-Predictive analyses for future preventive communication
Tax administrations must monitor, analyze and test new technologies in order to make quality solutions solely for priority. Anonymity of data is not acceptable. The data must be accurate in a visible way so that all relevant information for tax administration can be read from them, that said, it is clear that new technologies such as Blockchain and DLT can provide in certain segments, better communication with tax administrations. Immutability data, use of smart contracts, real-time data, are just some of the benefits.
Considering that tax administrations communicate with a huge amount of data, attention to the selection and implementation of new technologies is of particular importance. In addition, new technologies also contain certain disadvantages, but this should not be a reason for a priori withdrawal. High quality analyses and studies can provide the best solution for the digital era. Tax administrations should be ready at this time to accept all the challenges posed by digital evolution.
EKMH: Which problems persist when dealing with transparency, control, security and real-time information?
Sean Brizendine: The new system based on blockchain or DLT or any other technology should totally assure security of data. Cybersecurity is very important part of the whole system. But new technologies such as blockchain have characteristics which should be tested in pilot programs within the tax administrations, and even implemented such as Estonian KSI blockchain was. Real time information is not something unexpected in the digital era. If we look at new, very sophisticated and fast tax frauds, it is normal that tax administrations have to react fast to prevent such a fraudulent behavior. Blockchain’s advantages are being analyzed by many tax administrations, but of course blockchain has its disadvantages. If we look at the huge amount of the lost tax revenue, that is no other way than embracing the advantages of the new technologies.
EKMH: How can tax systems best monitor, test and develop the best solutions, both in legislation and in technology, including all procedures, and most effectively perform their function? How do you see future blockchain applications addressing these issues in tax systems?
Sean Brizendine: First, the paradigm between tax legislation and technology has already shifted. That means that sometimes technology has already directly impacted legal solutions. Second, the best, and probably the only way to develop and build new systems for tax administration purposes, is exclusively common work of the business side (tax administrations who have experts for legislation, tax procedures, tax audit and others) and the IT sector (who has new technologies experts). All interested parties should be involved as we want the best results.
Some of the potential areas for using blockchain technology include storing data, securing methods, Increasing compliance, VAT transactions, VAT fraud, transfer pricing, and employment tax.
For example, on the European Union level, we already can see prioritization of using blockchain technology in the European Blockchain Observatory and Forum, the European Blockchain Partnership and the International Association for Trusted Blockchain Applications (INATBA).
EKMH: Please share an update of what’s happening now with the VATCoin and the EUTAXCoin?
Sean Brizendine: The initial concept of the VATCoin was introduced by Richard Ainsworth, Musaad Alwohaibi and Mike Cheetham’s paper VATCoin: The GCC’s Cryptotaxcurrency, which was designed as a proposal for the Gulf Cooperation Council. Steps ahead could be the further development of concept for all taxes on international level such as the EU. The most important goal is to prevent tax fraud and collection of taxes in real time. TAXCoin (or EUTAXCoin) would be based on Blockchain technology with usage of smart contracts. All the concepts of the TAXCoin or EUTAXCoin are in being researched and studied to find the best way for possible implementation.
EKMH: What responsibilities have you assumed as a leading crypto influencer and advisor?
Sean Brizendine: I primarily became a 'Great Connector' with my nearly nine years as a Bitcoin & Blockchain Technology Researcher. Since 2011 I have developed many great contacts in the industry which date back to nearly the beginning of this historic time. My experience allows me to be able to provided connect individuals and companies with the proper individuals and companies, including exchanges in which to handle their Blockchain needs on an A to Z Basis. My contacts include programmers to handle Blockchain Development and Architecture, Exchanges for IEO Listings and General Listings, Growth Hacking, Institutional Investment Networks which include Global High Net Worth Individuals, VCs and Hedge Funds & Family Offices, Mainstream Media & Television. Shows such as Innovators & Exploring the Block have allowed me to be invited to speak at the NASDAQ Marketsite hosted by legendary OnAir media sensation and former Bloomberg, WSJ & CNN Finance anchor/reporter Jane King. I have also been a guest on LilaMax Media four times and soon will appear on the New York Stock Exchange Digital Asset Report, hosted by Vincent Molinari.
EKMH: How have you found a balance between teamwork vs cypherpunk solo work?
Sean Brizendine: I am hardly a True Cypherpunk but honored for your reference. Cypherpunks perform the ultimate teamwork only in a Trustless Decentralized fashion on a Peer to Peer basis which is how the Internet was built and is maintained and always will be.
EKMH: Multivin space programs??? What’s next?
Sean Brizendine: I spent time as a Multiven Advisor to the legendary Multiven Team run by my Hero/Mentor Peter Alfred-Adekey, the CEO of Multiven. Hal Finney himself was a member of the decentralised experts platform that Peter created to help secure the integrity of the software that runs the Internet. Hal joined the exclusive platform Pingsta in 2007 when they launched along with the late Dr. Laurence Roberts, ARPAnet designer and 1000 other cryptographers, security experts and software engineers. When Peter decided to launch the world's first P2P marketplace on the blockchain www.multiven.io, he decided to award Hal's family, along with Wei Dai and Nick Szabo some Multicoins for their contributions towards the creation of cryptocurrencies.
I am truly honored to have been a part of that and given the chance by the legendary Cypherpunk/Network Engineer Peter Alfred-Adekeye in advising him in multiple ways along with a focus on this historic Multiven NIO (Nodes-In-Orbit) Program which will one day run full Blockchain Nodes in space on Nano-Satellites for ultimate security and decentralization fulfilling the wishes of Satoshi Nakamoto, which is what this is all about.
EKMH: How can the “best actors” be encouraged to play an active part and “do the right thing” in the new economy and stay involved in the Third World Movement and its entrepreneurial spirit?
Sean Brizendine: We must all hold the responsibility to be the best that we can be at all times. I believe most in self-policing the Industry, however, traditional law enforcement will always play a role. In the end, the movement will be about Reputation and AI which through Machine Learning in time we will know everything past, present and future, once we reach the singularity.
EMKH: In a recent blog post you wrote, “Bitcoin and other publicly based open source ledgers that would make up the Blockchain based smart contracts platforms and tokens that fuel these contracts will one day change the world as we know it.” When do you think that we can be bank-free and keep track of our finances on us at all times through devices or memorization of a phrase or passkey?
Sean Brizendine: Once we bridge to the most current forms of Non-Invasive Biometrics.
EKMH: And last but not least, which books and/or podcasts top your “Must Read/Listen” list?
Sean Brizendine: Anything by Andreas Antonopoulos, Don Tapscott or Bitcoin/Blockchain for Dummies.