Bitcoin Cryptocurrency Blockchain Ethereal Altcoins Fintech – Chances are you’ve heard of one or all of these terms and wondered what the… Did you know that the way we exchange value and make decisions in our legal systems, corporation structures, trade systems and marketplaces are about to fundamentally change? This new era being ushered in will be brought to us by the blockchain which is the technology that Bitcoin has been riding to the moon and into deep space.
The term blockchain may be new but the concept is built on very old principles of finding ways to lower uncertainty about each other to exchange value. When we were a hunter-gatherer society we traded within our group and used force and violence to enforce trade. Banks, governments and corporations eventually grew out of a necessity to ‘appear’ more complex and civilized, thus lowering uncertainty about trading value. The image of a landowner with a big house, and a nice car tends to make many people think that this person is successful and it would be valuable and worthy to exchange with that person. These early institutions were the tools that helped manage complexity and uncertainty as trade grew to broader areas where their personal control was weak.
Today these institutions are facilitating economic activity online. For the first time in history, we no longer have to rely on political and economic institutions to lower uncertainty in the exchange of value. We can now rely on technology.
So what is a BLOCKCHAIN anyway
The blockchain is a database or public registry of assets and transactions over a peer to peer network. This record of who trades what and when is stored in “blocks” of data linked together and secured with cryptography. This large database is stored on each and every computer that accesses that network.
These records can contain information about the ownership and location of assets for currency, titles, contracts, certificates, personal identification and much more. Of course there is much more to know about this new technology but this is blockchain technology simplified.
The Certainty of Blockchain lowers Uncertainty
As previously stated, when uncertainty is lowered between parties wanting to exchange goods or services all parties feel more comfortable to do more business. Here are a few ways that Blockchain technology smashes old ideologies in social interaction and business.
The very thing that makes the blockchain work is our mutual distrust.
Not knowing who we’re dealing with- When you buy something online, most people read reviews and profiles to gain a better understanding. This method is flawed because let’s face it, a great number of the reviews we read and the profiles we see are fake. Blockchain technology provides a way to store any information about any user from any source. It’s more than a profile because it’s verification cannot be forged. For example, with blockchain technology, it would be impossible to fake the fact that you were issued a government identification like a drivers license or birth certificate, or that you’re over the age of 21. It makes identity portable and empowers everyone to trade more freely.
No Transparency- How do you know what you bought is what you wanted and is there a record of the transaction for your protection? Can you think of other purchased items that would benefit blockchain technology? How about medicine and luxury items. On the blockchain, a shared reality is created among non-trusting entities that is authenticated, secure, and scalable.
No Recourse if something goes wrong- Blockchain allows us to write binding contracts in the form of code, between two people without third party interference. Meaning, one would no longer need a third-parties like credit cards.
Blockchain provides a decentralized database for all aspects of our lives, from money, to business, and politics. United we stand, and for far too long we have been divided on these issues. Imagine all parties pulling their data from one secure source instead of the fragmented bits and pieces we work with today. We are in the information age, but when it began, it’s creators did not present this tool in an organized way for all who used it. Blockchain technology is the first major movement to help organize and secure our lives as we gather more information to help our uncertainties become sureties which will in turn propel us into the future.