Passing of the Digital Torch
When I look at history I always love to go back and examine how people have propagated fear, despite the major advances made in science and technology. The information technology boom took place between the years of 1997 and 2000 before the crash, which occurred from 2000 to 2002. Research indicates the dot com bubble peaked at 3 trillion dollars. According to the U.S. inflation and buying power calculator, 3 trillion dollars is now worth between 4.1 trillion to 5.4 trillion dollars.
During the late 20th century, the Internet created excitement towards businesses and online commerce that had never been seen before; consequently paving the way to the creation of many Internet companies we rely heavily on today such as Amazon.com, ebay.com, pets.com and more. It created unimaginable wealth. Many Internet entrepreneurs and individuals became dot com millionaires and billionaires.
The rapid advancement of the Internet has created major changes in our everyday lives. The impact on society from the Internet is prominent in almost every aspect of our lives today from the way we order Jimmy Johns to the way we bank, shop, take classes, communicate and socialize. We basically have the entire world in the palm of our hands.
How has Internet changed our daily lives?
Let’s see, ever heard of multi tasking? Of course you have. In fact I’m sure you have another tab opened right now while reading this blog. The Internet has made it possible for us to accomplish multiple tasks at the same time with our devices.
It has allowed us to become our own doctors- Unless you have trouble breathing or have a major injury that requires you to see a doctor. Anyone of us can look up practically any symptom online and get information that can help us make informed decisions to better our lives and health.
No more need for phonebooks-Remember those old heavy yellow books that used to come to your door for free. Well they’re obsolete now. Thanks to the Internet and Google we can find not only the phone numbers for practically anything we want but can also find the location.
Social media allows us to communicate more frequently, creatively, and personally than ever before- This is not necessarily true for everyone. Different cultures possess different responses toward social media. However, It is estimated that in 2016 around 40 percent of the world population had Internet connection. The advancement in mobile technology in internet accessibility allows us to maintain constant contact with our loved one’s through social media platforms.
When is the last time you dug through record bins? Audio and Video streaming sites have completely transformed the music and movie industry by providing streaming platforms. Sites like YouTube, Spotify, Pandora, iHeartRadio and Slacker have remarkably improved quality video and music accessibility. We even have made ourselves online libraries that relate to our personal preferences. These services are limitless unlike the old analog audio recording and playback cassettes we used to own.
I feel like I’m stating the obvious but sometimes we don’t realize how far we have come. Because of the Internet, we are be able to access music from anywhere at any time.
Now that we have a firm understanding of the major impact the internet has had in our lives lets talk about Blockchain Technology, the potential impact it may have in our lives, how it will be different than the internet and shouldn’t be compared with the DOT com bubble.
Blockchain Technology
So what is blockchain technology? Most people recognize it as the underlying technology behind crypto currencies like bitcoin and Ethereum. But it so much more than that! It is an incorruptible digital ledger for economic transactions that can has been programmed to record not only financial transactions, but also everything and anything that has value. I know it can sound complicating, but when broken down it really is not. The first blockchain was conceptualized in 2008 and implemented in 2009 as a core component of bitcoin and it has served as the public ledger for all bitcoin transactions. Since then we have witnessed many developments in cryptography, database and network management.
Blockchain technology has a social perception strongly related to bitcoin and other cryprocurrencies. Some people even relate it to criminals and anti government agendas because of its early use. Individuals who are saying these things are not viewing the bigger picture. It’s a lot more than that.
Blockchain technology possesses some very significant assets that some corporations and independent users are already taking advantage of. It is decentralized, secure, open to public use, and basically unhackable. It is hosted by millions of computers simultaneously. This is where blockchain technology has its advantage over the internet. While centralized data is more controllable, manipulation of data and information are common. Blockchain has made data transparent and available for everyone to access while disclosing anonymity.
What can we do with Block chain technology?
Make micropayments- Micropayments can be defined as anything less than 50 cents or as low as a fractions of a penny. A special type of system is needed for such payments, which are so small that they can’t be processed by credit cards. This is where Blockchain technology shows some of its potential power. It allows developers to create new cryprocurrencies, which are able to process, these incredibly small micropayments. Prime examples of these micropayments are noticeable in the Steemit system. Steemit allows people to get paid not only for content, but also for every single post and comment.
Reduces operational costs- We are already witnessing the massive changes blockchain is creating in the financial service sector! Wealth management and commodity exchanges can be considered as one of the main beneficiaries. Because of blockchain technology, they are able to save a substantial amount. Since, there is no third party required in the blockchain model, costs from the fees of third party vendors are eliminated.
Shortens Settlement time– A quick question… How fast are trades settled in financial markets? If I decided to sell a stock now, it would take several days for my securities to settle!
In the financial industry, especially in post-trade settlement functions, blockchain can play a vital role by allowing a rapid settlement of trades, as it does not require a verification or reconciliation process. Day Traders would be celebrating in the streets. Utilizing blockchain technology would allow them to shorten the time from when they executed their trade until the final settlement. The 3 to 5 day rule would become obsolete.
Emergence of Digital currencies- Digital currencies are being used for many business practices and millions around the world already have embraced bitcoin and other digital currencies. Bitcoin was the pioneer of digital currency and continues to be the dominant force, with a market capitalization as close to $250 billion. It is increasingly becoming acceptable in many institutions and retail stores such as Expedia, Dish, Shopify stores, Microsoft, Virgin Galactic, Wikipedia, and Tesla.
Increases Competitiveness- The free access guaranteed by a decentralized blockchain removes barriers of entry into the market ultimately sparking competitiveness. Different parties and entities will be able to leverage this technology to gain competitive advantages, control costs, provide superior services, and ultimately improve how they operate business.
Reforms Copyright security- Our current copyright system in the United States doesn't provide enough resources for victims of theft. Currently there are a number of platforms working on protecting the intellectual ownership rights to works of art such as painting, scripture, poetry, music, movies, video games and etc.
Security & Full transparency- No blockchain transaction can be compromised or deleted post execution. It safeguards the privacy of all users since the transacting addresses are shown and are publicly viewable.
Blockchain Technology already enabled us to trade cryprocurrencies, form peer-to-peer lending, establish digital identities, run a decentralized marketplace and create smart contracts. The potential markets it has the ability to impact for the greater good is outstanding. Imagine if we took advantage of blockchain technology to clean up our voting system. I can go on and on with my list but I believe I have made my point.
These are the things I believe are possible with blockchain technology, but I would be ignorant to say this is all there is to it. I am a strong believer of this new technology. Right now it is a bit early to put a price tag on something we can’t fully understand. Arguably, bitcoin might be in a bubble but digital currencies are not and blockchain technology is definitely here to stay! Much like the internet, blockchain technology is a force that has the ability to revolutionize our world. It is only getting started; As the old adage goes I can see the forest, but I can’t see the mountain ahead.
Thanks for reading!
Alazar.