Ukraine and the Digital Decentralization of Geopolitics

As Putin lined up his tanks along the Ukrainian border, it was not only leaders of democratic nations, but their citizens who mobilized a resistance. The private sector, civil society, and now individuals are shaping geopolitics like never before.

The speed and scope of this mass collaboration have taken most of the world by surprise. To those of us who’ve spent our lives looking for digital solutions to our planet’s most pressing problems, it has not. This digital response is fitting if our goal is to minimize the loss of life and liberty in an unprovoked war of aggression. It has multiple prongs.

First are the traditional economic sanctions against Russia, executed with unprecedented speed and crippling power — so quickly and relatively easily because our financial markets and supply chains run on digital networks.

Second is the swarm of bans by iconic organizations. Revered cultural institutions like the New York Metropolitan Opera have barred performances by Russian artists who support Putin. International sports associations such as FIFA have suspended Russian teams and athletes from competition. As significant as these actions are, the digital buzz around them is ubiquitous. As they take effect, the void of Russian sports and cultural news will be deafening.?

Perhaps most important are the digital initiatives of people on the ground. Through the Internet, citizens and journalists in Ukraine have reported on the unfolding human tragedy and shown the extraordinary courage and resolve of the Ukrainian people. Using a mobile device, a young, charismatic, selfie-taking president has seized a Churchillian moment in history and inspired not only his people but people around the world. With open source intelligence and satellite imagery, Ukrainians can track Russian movement and coordinate their own, whether fighting or fleeing to safety.

Likewise, in Russia, citizens have shown extraordinary courage. Despite the threat of large fines, long prison sentences, and life-altering criminal records, many have communicated about and participated in anti-war protests in cities across Russia. The government has arrested nearly 7,000 demonstrators so far. Through digital channels, many Russians are accessing uncensored and more factual accounts of the war, its causes, the resistance of Ukrainian citizens and military, and the impact of Russia’s strikes on civilian populations. They are sharing that information through those same channels. Some have even leveraged online restaurant reviews and dating profiles to disseminate news about the war.

As democratic as these digital tools are, rallying around data is only half the story. Citizens are directly funding the Ukrainian resistance through peer to peer networks powered by the underlying technology of so-called crypto -- blockchain?

If Ukraine were being invaded ten years ago, you donated to the Red Cross. Now you can send money to put weapons in the hands of Ukrainian resistance fighters. The Internet has evolved from simply sharing information to sharing assets, including money, giving individuals new geopolitical muscle.

Blockchain technology, though difficult to explain, is relatively easy to use. You don’t need to understand Amazon’s algorithms to buy goods from Amazon. With the advent of blockchain, one can send funds and other digital assets from their smartphone to anyone else’s smartphone anywhere in the world—no need for banks, clearing houses, custodians, or other intermediaries.?

The Ukrainian government has created public crypto addresses to receive funds, and 40 percent of all military suppliers to Ukraine are now accepting crypto as a form of payment. To date, crypto holders have donated more than 100,000 cryptoassets totaling upwards of $100 million (update prior to printing) to the Ukrainian government and Come Back Alive non-governmental organization, which supports the Ukrainian military.?

President Zelenskyy said famously: "I need ammunition not a ride." Individuals from around the world responded, loading him up.

Grassroots efforts have also sprung up. An anti-Putin art collective has sold a non-fungible token (NFT)—a non-replicable digital depiction of the Ukrainian flag for $6.75 million in support of civilian victims of the war. The Ukrainian government plans a similar NFT sale to support its war effort. With blockchain, anyone with a smartphone can deliver money quickly and directly to the people who need it.?

Should Russia occupy Ukraine and exile Ukrainian leaders, we could very well fund a resistance through a crypto-enabled, nongovernmental global community—and Putin would not be able to stop or silence it. All this is possible because of the speed, efficiency, and low cost of decentralized, censor-resistant, digital asset networks like Bitcoin and Ethereum. Think of it as the mass collaborative equivalent of war-time victory bonds.

To those who say that Putin could sidestep sanctions through these same crypto networks, this is not the case. . While cryptoassets constitute a large and liquid market, the supply isn’t large enough nor widely held enough to displace US dollars, according to the US Treasury Department. Also, converting large amounts of money requires on-ramps and off-ramps such as centralized exchanges, which are under sanction in Russia, thus limiting their usefulness.?

To be clear, all these efforts haven’t stopped Russian aggression. Over a thousand civilians have died, and the war rages on. While no one knows how this conflict will end, we know that the new tools of mass collaboration will be instrumental in shaping its resolution. They will also be central to rebuilding the two countries, both victims of an ill-conceived war.?

Don Tapscott is executive chairman of the Blockchain Research Institute. He has written 16 books about the digital age including Wikinomics, How Mass Collaboration Will Change the World and more recently, Blockchain Revolution. His newest book is Platform Revolution: Blockchain Technology as the Operating System of the Digital Age . His TED Talk on blockchain has been viewed by over 7 million people.