Cryptocurrency gets all the attention. Markets are exciting, a rush for all the junkies out there. Buy low; sell high. Fortunes made overnight, changing the lives of many.
We know that this rarely happens. The majority are not wildly successful in the markets. If they are, it is by applying long-term principles to grow their holdings.
Cryptocurrency is no different. Many of the early bitcoin hodlers are sitting on a fortune. While a few times it right, most rode the waves of bulls and bears. Their wallets are full today but it took a while to get there.
Something that is a bit less interesting yet does solve a much bigger problem is blockchain. This is revolutionary in nature because of what it does address.
In this article we will go through some of the specifics regarding this technology and how truly revolutionary it can be.
A World Without Trust
Trust is fleeting.
This is something we can see taking place. With the introduction of fake news and, now, fake people, events, and videos, we can only guess at what is reality. The mainstream media proves itself repeatedly to be a propaganda arm. Of course, social media is not much better with all kinds of views espoused, most based upon some ideology.
Then we have our institutions.
Celsius. FTX. Silicon Valley Bank. Credit Suisse.
All these institutions failed. They were trusted by tens of thousands of customers only to leave them hanging. While there were some protections in place by governments, as we will see, this isn't the solution.
Then we have UBS agreeing to a $1.435 billion fine for fraud relating to the sale of residential mortgage-backed securities during the Great Financial Crisis.
Skyrocketing to the top of the list is government. We are rapidly seeing the trust in these institutions dwindle. Between the lockdowns during COVID to more endless wars, a confidence crisis is forming.
Corruption is out of control in most nations. Politicians are making laws from what they are basically exempt. The conspiracy theories of long ago seem to be coming true.
All of this is obliterating trust.
Most that is centralized is being corrupted.
Thinking About Trust
Some are calling blockchain a way of thinking. This is because of the movement that results once someone starts to ponder this.
Transparency. Decentralization. Distribution. Accountability. Friction elimination. Counterparty risk reduction.
All of this should be a part of blockchain.
When people start to consider trust, it all ties into the ability to rely upon information and what is holding it.
Our data is prostituted, sold to the highest bidder. Even then, it is not secured with breaches being a regular occurrence.
We presently have system where trust is instilled by regulation, which leverages the trust that we have in governments. What happens, however, when trust of both is gone?
This is what we are facing. Those who think about these matters realize that, as conditions worsen, people are going to find out what they trusted bites them.
Here is where blockchain can provide the solution.
Record Keeping
If we simply consider the idea of decentralized databases and non-centralized record keeping, we can see how many things instantly change.
Let us take government as an example.
What happens if all government records, which are public, are placed on blockchain? This includes all data that governments accumulate.
Suddenly, the corruption tied to the information is removed. All real estate holdings are evident and traceable. Research data is stored in its native form, allowing anyone to review it. Political contributions are recorded for transparency regarding the funding process.
Many services can be eliminated simply by having the data openly available. All records are open, 24/7. Information is not only transparent but distributed.
Of course, this is the low-hanging fruit.
Blockchain Services
It is hard to envision something radically different from what we know. All of us are reared in a centralized world. That said, we can already see some of the potential of this transformation.
In addition to record keeping, blockchain can move towards providing full fledged services. So far, the interest is basically in the financial arena yet that is just the tip of the iceberg.
Having a trusted, permissionless system means that services built on top can also operate in a similar manner.
When an open source front end is tied to a blockchain that is the back end, we are dealing with a trust based mechanism that comes from decentralization. No longer are we dependent upon regulation over a JP Morgan or some financial institution like that.
At the same time, with an ecosystem like Hive, we no longer are required on the altruism of Elon Musk or Mark Zuckerberg. True account ownership is something the masses underestimate.
Dictators, no matter how benevolent, are still dictators. Unfortunately, history shows that the scale tends to move towards tyranny.
It is said that absolute power corrupts absolutely.
The way to avoid this is to remove the power from the hands of centralized entities. By moving to a decentralized mindset, we start think of ways to break these patterns.
In Conclusion
A world of blockchain starts with a mindset. It is a way of thinking an approaching out activity based upon this. Actions need to start to align, pushing us to shun that which is has the opportunity to abuse trust.
Anything that is centralized falls into this category. The Internet is an example of something that was designed to be open and ended upon controlled by a handful of centralized entities. These corporations became some of the most powerful in the history of the world.
The change starts with the individual. Complaining does not solve a great deal. To effect change, we have to vote with our money, attention, and trust.
It all begins between our ears.
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