Blockchain technology has applications in every sector of the economy. We should not judge the blockchain on the implementation challenges of bitcoin and other crypto currencies. Doing so is like judging the internet on the implementation challenges of email.
The bitcoin has captured the public imagination more than any other application of the blockchain. The crypto currencies we have today are the first versions. They may survive or will be replaced by others. This is bitcoin 1.0.
The blockchain is the internet of value. It is a peer to peer network of trading value. The transactions are secured by encryption. Blockchain technology is the protocol of trust.
Human beings struggle with trust in their daily dealings. Fiat currencies have failed to guarantee that trust. We still keep paper money under lock and key. The distribution of fiat currency is biased towards the rich.
The blockchain promises to resurrect dead capital. It is an inclusive technology which makes everyone a bank. It is cheaper to keep your own crypto currency than for a traditional bank to keep your fiat currency. As has happened in many countries, the money can just disappear.
We have seen long queues at banks in Zimbabwe. Crypto currency solves the liquidity crisis. The problem is that it threatens the establishment. Central banks around the world have been able to run Ponzi schemes on its citizens. Crypto currency takes away that privilege.
The problems we have around the world are caused by inequality of income and of capital. Incumbent political parties in Africa have been able to abuse state resources to remain in power for decades. Blockchain technology can change that. Elections can be done on the blockchain to eliminate rigging and manipulation. The legitimacy problem can become a thing of the past.
So trust is an important aspect for humans. The current systems have tried and struggled to provide trust.
We should all try to understand how blockchain technology works so that we can identify or build applications in our areas of expertise.
