Alberto Di Mauro interviews Professor Silvio Micali, who was honored with the 2021 ISSNAF Lifetime Achievement Award. Professor Micali explores the significance of bridging scientific and technological advancements between Italy and North America, highlighting how his work contributes to this global collaboration. Additionally, he delves into the broader implications of decentralized finance and digital currencies, envisioning a future where technology empowers individuals and promotes international cooperation.

Prof. Micali is a member of the ISSNAF Honorary Board.

Professor Micali, congratulations on receiving the ISSNAF Lifetime Achievement Award! This accolade recognizes your remarkable contributions to cryptography and computer science. ISSNAF aims to bridge scientific research between Italy and North America. How does this award impact you, and do you see yourself as a key player in building this bridge?

I’m deeply honored to receive this award, both as an Italian and as a member of the North American scientific community. I view awards not just as honors but as responsibilities. On one hand, this recognition motivates me to enhance my work and further engage with both communities. On the other, it offers an opportunity to strengthen connections between Italy and North America, fostering greater cohesion and collaboration.

Let’s delve into your expertise. You founded Algorand, which you describe as a fully decentralized, secure, and scalable blockchain. Could you summarize Algorand’s key features and explain how it differs from systems like Ethereum and Bitcoin?

At its core, blockchain is an open, immutable database where transactions are recorded and cannot be altered. The real challenge lies in determining who gets to add the next block to this chain, as this person holds significant power.

Bitcoin and similar systems use a computational race to resolve this, where participants solve complex cryptographic puzzles. While this method initially seemed fair, it has evolved into a competition dominated by those with extensive resources, leading to centralization, high costs, and substantial energy consumption.

Another approach, Delegated Proof of Stake (DPoS), assigns this responsibility to a select group of delegates, creating a centralized system by design.

Algorand offers a novel solution: from a pool of 10 billion tokens, 1,000 are randomly selected to form a temporary committee that decides on the next block. This random selection process is secure and fair, as no one, not even those with immense computational power, can influence the outcome. It’s both scalable and quick, allowing for participation in milliseconds. Furthermore, the anonymity of committee members prevents bribery, as their identities are hidden until after they vote.

This approach addresses Vitalik Buterin’s claim that decentralization, scalability, and security could not coexist in a single blockchain. Algorand successfully integrates all three, offering a more sustainable, low-cost, and efficient system compared to Bitcoin or Ethereum.

Additionally, Algorand’s blockchain avoids forks, ensuring certainty in transactions, and maintains a consistent block creation time of 4.4 seconds without interruptions. This reliability is crucial for essential services.

Algorand also excels in smart contracts, executing transactions automatically and securely in seconds at minimal cost. This efficiency reduces the need for intermediaries, fostering a more direct and democratic financial system. Unlike Bitcoin, which only handles currency exchanges, Algorand supports various transaction types, including bonds.

In March 2021, Algorand partnered with SIAE (Italian Society of Authors and Publishers) to issue NFTs for copyright management. What do you aim to achieve with this collaboration?

SIAE issued 4.5 million NFTs on Algorand, representing digital rights for 100,000 artists. This blockchain-based system makes ownership and usage of musical works transparent and traceable. Artists and stakeholders can see how their works are used and receive fair compensation with minimal transaction costs.

Historically, SIAE aimed to protect artists from exploitation, and this on-chain solution enhances transparency and efficiency. Algorand’s capability to process 4.5 million NFTs in a single morning demonstrates its efficiency and cost-effectiveness, proving invaluable for managing and distributing digital rights.

Could digital currency in the future represent not only economic value but also an identity value, fostering an open community beyond state borders?

That’s an intriguing question. Money has always had a social construct element, even before digital currencies. Historically, different coins circulated within the same state, and international trade often relied on dominant currencies like the dollar or pound.

A truly decentralized currency could potentially serve as a unifying tool, promoting international cooperation and transcending national boundaries. While the exact impact remains to be seen, such a currency could encourage global collaboration and help form a cohesive international community.

With the rise of intangible cryptocurrencies, could we be moving towards a parallel universe to the physical one?

Parallel universes already exist in a sense. Money, even when physical, is inherently abstract, relying on trust and social constructs. Digital currencies and assets are an evolution of this concept. Whether physical or digital, money always depends on the societal agreement of its value. Thus, while digital money may seem novel, it’s an extension of the same fundamental principles

As an Italian who moved to the US and achieved great success, including receiving the prestigious Turing Award, do you view yourself as a ‘brain on the run’? How can Italy view this phenomenon positively and seize opportunities?

Are we talking about brain drain or the export of Italian talent? Italians abroad showcase the excellence of Italy’s artistic, commercial, and scientific sectors. By gaining recognition, we enhance the value of Italian contributions globally, benefiting Italy in the process.

Italy's traditional openness to diverse influences contrasts with emerging global xenophobia. While Italy sometimes overlooks its domestic talents, there are notable successes, such as Nobel laureate Giorgio Parisi and acclaimed filmmakers like Giuseppe Tornatore and Paolo Sorrentino.

Italian talent abroad contributes to global cultural and scientific advancement. Personally, I found that starting anew in a different environment allowed me the freedom to innovate. The experience abroad enriches both the home country and the host country. In summary, this phenomenon is a positive force for both global progress and Italy’s own growth.