Notes From The Week #9

Welcome back all. Hope you’ve had a good week. This week we’re looking at the global security concern that the most important commodity in the world could soon provide. However, it’s not all doom and gloom—we’re also celebrating a technological feat that could come to provide a domino-effect for so many important developments, in crypto and the wider Web 3 ecosystem, moving forward: the ETH merge.

Water: The Security Concern

As I was doing the rounds for my graduate job applications I was encouraged quite a few times to watch The Big Short. The film provided an entry-level breakdown of the workings of high finance and the events that led to the Global Financial Crash of 2008. As the film comes to a close you are met with the below closing statement as the credits start to roll.

Up until this point I had never seen water as more than just a commodity that was needed for biological and ecological sustenance. I had never seen it considered as a potential investment asset class. I don’t know how comfortable I am just yet with water being touted as an asset class but I think the framing could help us understand the importance of water in relation to peace and security.

Roughly 70% of the earth’s surface is covered in water, but over 97% is saltwater. Saltwater cannot be used for drinking, crop irrigation or most industrial uses. Of the remaining 3% of the world’s water resources, only about 1% is available for human consumption. In that 1% there are a myriad of macroeconomic issues that will make water security a prevailing issue for the rest of the century. It is expected that there is going to be a 40% shortfall in water by the end of this decade 1 as a result of climate change, increased population growth particularly in developing nations resulting in increased resource competition.

The increased population growth in developing nations should be an indicator for a potential security concern as these are the exact nations that have the lowest do not have access to clean drinking water. According to the UN World Water Development Report 2019: in Sub-Saharan Africa, only 24% of the population have access to safe drinking water2. When referenced against the fact that more than three quarters of global population growth over the next 80 years is expected to take place in sub-Saharan Africa you can see the indicators pointing to an inevitable security crisis.

Only a few countries in the world have been able to achieve the level of sophistication in their processes where water is routinely safe to drink, or can be safely and easily released back into the environment. Since securing a sustainable supply of clean water is a common goal shared by all nations—there should be efforts put in ensure adequate knowledge and infrastructure sharing between nations that have developed these processes and nations that haven’t. If not in the spirit of collaboration then in the spirit of self-interest as security concerns can easily proliferate particularly in an ever globalising world.

Ethereum Moves to Proof of Stake

It’s happened! If you’ve been following the crypto/Web 3 space then you know this has been the most anticipated event of 2022. Ethereum’s move from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. These are the systems that can be used to authenticate crypto transactions. In the now former Proof-of-Work system, miners would compete to publish blocks (and thus continue the blockchain) by aiming to solve cryptographic puzzles. In the Proof-of-Stake system, validators that stake (contribute to the blockchain) at least 32 Ethereum with the network are randomly selected to create blocks (and thus continue the blockchain). In a Proof-of-Stake system, validators receive rewards for helping to secure the network.

A big shout out to all builders, researchers and co-ordinators that made it happen—this is arguably one of the most impressive open-source collaborative events the internet has ever seen.

That Philly Pain Sound

While Hip-Hop’s birthplace will always be the Bronx of New York other cities across America have provided their own imprint on the genre. West Coast’s G-Funk sound dominated radio play and sales for a portion of the early-to-mid 1990s. The chopped and screwed sounds of Southern Hip-Hop became a force in the in the late 2000s and early 2010s and was soon followed by a drill sound that illuminated from the Mid-West. Hip-Hop has been a collaborative project for African Americans, Caribbean Americans and Latino Americans across the US. Each bringing their own unique contributions to the genre. East Coast Hip-Hop can often be dominated by New York City’s five boroughs. As a result, Philadelphia’s decorated Hip-Hop heritage can often get overlooked.

When we look at the anatomy of Roc-A-Fella records we see that Philly rappers were crucial to the stability that was necessary as it’s main star and co-founder Jay-Z sought to adapt his style to a more mainstream audience. Jay-Z’s first two tapes under Roc-A-Fella records; Reasonable Doubt and In My Lifetime Vol.1 presented a more gritty, spirited and underground sound for the former drug dealer trying to make it good in the music industry. Whilst not being the most commercially successful of his tapes they earned him and the Roc-A-Fella records a reputation on the streets as the sounds for the hustlers and the every day person trying to make ends meet whilst hoping for a better tomorrow. As Jay sought to become more commercial and climb the charts in some ways his music became more aspirational. However, Roc-A-Fella seemed to anticipate this transition signing artists who would help keep the ears of the label’s more street-oriented fans. The most notable artist was Philadelphia’s Broad Street Bully—Beanie Sigel. Who would later go on to be an integral part of Roc-A-Fella’s State Property.

The underground is the heartbeat of a Hip-Hop city with deep history and strong roots. State Property member Freeway depicted the underground in a way that resonated not just with the Philadelphia natives but with all underground rap lovers. Freeway’s skills as a battle rapper solidified his reputation with Roc-A-Fella’s fan base with his verse on What We Do being a cult classic. When the streets love you, it doesn’t matter how long you’ve been out of circulation—all the DJ needs to do is press play and we’ll do the rest. This moment at a Philadelphia 76ers game is a perfect example of that.

If you’re looking for more sounds from Philly, check out this playlist:

Until next week. Peace.