Blockchain is digitized trust.
Humanity has taken huge leaps with the advancement of trust.
Think of large early civilizations. The king or the sovereign would determine which other fiefdoms you could do business with. It made it safer, less risk.
The rule of law, peace and security, Magna Carta, personal rights, regulations, they are all backed by the power and trust of various entities.
It was all based on paper. The signature or seal to verify trust. Money, trade deals, contracts, ownership of property.
We are now moving so fast that the paper based system, even accelerated by computers, is still a paper based system. This system has become restrictive because it just isn’t quick enough.
We are trying to run a 21st century machine on a 17th century operating system.
Blockchain is the evolution of trustworthiness.
Business is the transfer of information and work using banks and governments with accords and treaties and agreements that try to control and guide and protect. Whatever they try to protect; people, markets, status quo, its all apples to apples from the perspective of trust.
This huge centralized, Rube Goldberg machine to manage business and trust was great 100 years ago. It worked, and your grandparents are right to be proud of it, it worked well. In a very short time business went from a months and weeks scale to days, hours, minutes and milliseconds. Improving everything including the speed and efficiency of transactions, orders, deliveries and fulfillment, It used to take ridiculous amounts of time to get business done and time is money.
We leapt forward again during what I call the punch ticket phase.
Punch clocks and slide rules and transistors. It wasn’t perfect but it was making it better and safer to conduct the business of living and growing.
This period of time shows that if you really start tracking information, you can do a lot more with the same equipment and resources than when you just sort of intuition-ed your way through it.
Btw, Six sigma should be celebrated like e=mc2
Back to the present time. We are now hitting the barrier of the traditional paper based trust system.
Yes, we’ve had computers for 70 years and all we’ve done for the first 60 was to use those computers to make the paper system go faster.
Large segments of our lives are still based on paper. Birth certificates, passports, diplomas, contracts, even sales receipts.
Receipts are important. Receipts for the sandwich you bought is a trust certificate. It proves that you paid for a sandwich and it also is the store showing trust. Here is proof that you bought a sandwich from our store. If it makes you sick, you can prove it was us. Trust and vulnerability are related.
Prescriptions, diplomas, certificates, receipts, all of these are all trust documents. Proof of your trustworthiness on a specific bit of information. Information that is collateral in a trust judgement.
And even a computerized paper based system is too damn slow and cumbersome.
We need a better system for the business of trust.
Block chain is the answer. It replicates everything we needed from the old paper trust system. Everything. Its all there. Stop whining about gold for a second.
I’ll get you there, please trust me :-)
Bitcoin can replicate everything we need from the old system and more.
It gives us added functionality, a huge boost in speed, flexibility and security.
Think schooling and training. Blockchain allows information to be public but not modifiable. And control of the modification can be transferred.
You go to a class and learn how to bake a cake. The school gives you ownership of a bit of blockchain that proves you took the course. Add in other information in the code about what you learned, when you took it, etc.
You then apply to a job for a cake maker person. You can show them the code given to you by the school.
If the school has a good reputation, that information is already available in public domain, the business that has the cake baker job will accept it as proof that you know how to bake a cake.
If the school has a poor reputation, people won’t accept it as proof and no one will want to go to school there.
It is the same for buying things, same for birth certificates.
Information can also be encrypted and posted through block chain and only viewable to individuals that have the key.
You can still have government regulation where you need to. Where it is still beneficial. Think law, infrastructure, trade social programs and taxation.
Imagine you have a digital passport. You can use it as proof of who you are based on a piece of code given to you by your home country.
That is your piece of code. No one can steal it because you own and control the encryption password to read it. Without the encryption passphrase, it is just a string of 1s and zeros written in ridiculously complex code.
You can share those ones and zeros with anyone you like, they can read them and even copy them, but they can’t take them or modify them. The cannot claim ownership or control of them if they don’t have the encryption password.
It gets deeper and far more complicated but basically you can own trust. Add in time to this and you can have data that can be trusted for a given time period.
You got your cake baker certificate from the school in 2015, the school had a good reputation, during that time. Since then it has declined, but a certificate from that time period is trustworthy.
Same with the passport or visa. The government can give you some code. But when you share some of the code with a border guard, they can check your home countries proof of you for this data. It could be expired, which means your trustworthiness as a citizen of that country is uncertain.
Same for anything else you can think of. School, medicine, work, communication, law, property, finance. Literally everything in the world.
Faster, more secure, more flexibility and more function.
Pretty soon your passport, your house key and your credit card will all just be a blockchain string.
Oh, btw, unlike gold, blockchain information can’t be stolen.
You can lose access to it, you can accidentally share it or leak access to it, but it can’t be taken by physical force. It sounds like semantics but it is not. I can leave billions of dollars right out in the open and no one can touch it. No one can even see it unless you want them to.
Reminder, we are talking about blockchain, not bitcoin.
Bitcoin is only one implementation of blockchain technology. You could create your own blockchain and only share it with people you do business with.
I personally could be forced to give access, but the blockchain itself has not been compromised.
Blockchain is the ongoing maturation of humanity and trust.
The surge in Bitcoin is merely the realization of the possibilities manifested in a currency.
Imagine what blockchain will do for health and food and helping our fellow humans.