How the Technology Behind Blockchain Could Change the World?
The Bitcoin revolution did not go unnoticed in the more traditional sectors of industry. The great potential of this technology to revolutionise many business areas, such as finance, law, and logistics, is being actively explored across the board.
Photo Credit : GECKO Governance,
Blockchain technology became a reality with the creation of Bitcoin in 2009. Bitcoin demonstrated that it was possible to use asymmetric cryptography and a competitive consensus process to create a securely decentralised digital currency. Bitcoin transactions are secure and very difficult to hack, as proven by its meteoric rise in value as well as the proliferation of alternative cryptocurrencies.
The Bitcoin revolution did not go unnoticed in the more traditional sectors of industry. The great potential of this technology to revolutionise many business areas, such as finance, law, and logistics, is being actively explored across the board. The advantages include increased security, reduced costs as a result of disintermediation, and greater opportunities for collaboration.
Blockchain systems are also a great way to speed up the transfer of information, allowing control of data flows to be technologically delegated to the rules of the network. Unreliable, untrustworthy, or simply slow and expensive third parties are taken out of the equation. In a world which demands increasingly easy and safe connections, this is a huge advantage. Blockchain technology can be applied to any field that demands great transparency and security; of which public organisations like land registries and industry regulators are classic examples.
In fact, it has been theorised that blockchain technology can be a shortcut to trustworthy institutions in environments where they do not currently exist due to systemic corruption. The transparency and immutability of blockchain make it impossible for officials to exploit their positions in state institutions for personal gain. The benefits entailed for society and economy are huge; trustworthy institutions mean that citizens can trust that their stake in society is secure. This means investment, stability, growth, and innovation.
In the case of real-estate, smart contracts can be done at a faster pace and without the intervention of third parties as regulators, only with the need of the agents involved, such as the bank, the buyer, the seller and the land registry. That is the case, for example, of the Swedish Land Registry project, which enables the process of buying and selling the house to be much simpler and avoid fraud from every party involved.
Not only does the blockchain provide security and disintermediation, it also represents a more philosophical approach to the control of data and the control established by governments, many times corrupted. With the blockchain, all information can be shared democratically, reducing the barriers to establishing robust institutions in developing countries, or countries affected by war and other crises. The blockchain is, in a sense, an egalitarian system that creates broad and flat networks of trust even under the most adverse conditions.
In other words, blockchain can change the world by transferring control over information from a centralised few to a much more localised and communicative network of actors, bringing together different technology to make the internet a safer place for our information. When analysts and blockchain experts say that “blockchain is the future”, it is on the one hand because it creates new ways for technology to interact with the world, and because it potentially has the power to bring communities together to fight corruption, monopoly power, and authoritarianism.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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