Why Blockchain tech is here to stay?

The first banking notes issued by the Bank of England in 1695 were hand written.[1] Thereafter with the industrial revolution and increase in international trade the number of banks and power allotted to them changed drastically over the next 300 years. In 2008 amidst the chaos that ensued due to the sub-prime crisis, which shattered the global economy, a solution for the upgradation of this archaic system; became very clear to a certain Mr. Satoshi Nakomoto.

In a clear and concise 9 page document [2] he demonstrated that a decentralised crypto ledger system, which can be scaled up for real world application, can prove to be an answer to bridge the gaps caused by traditional systems.

Like many people reading this. I was quite impressed & enthralled when I first heard of bitcoin and what problems it sought to solve. That was around seven years ago, when my inner skeptic ruled- that this had to be a temporary phenomenon. I expected it to be confined to small groups. Then eventually like most hypes; forgotten in time. Like many of us who dismiss real applicable innovations because of habitual legacy thinking.

I couldn’t have been more wrong.

Present day Scenario: While I write this, there are 17.2 billion bit coins currently in circulation with a peak market cap of 326 billion dollars in December 2017.[3] The total crypto-currency market cap alone is expected to cross 1 trillion US dollars by the end of this year.[4]

What’s even more significant is the development and application of the technology which makes crypto-currencies possible — block chain. The block chain system is akin to the railway track for a train. It provides the necessary infrastructure that makes crypto-currencies usable. The block chain addresses and solves many limitations encountered by traditional systems. Here are a few salient features of the block chain that make it an indispensable solution to the emerging future.

Transparency.
Imagine a world where all transactions that occur, around the world can be viewed by everyone or anyone. These transactions are tattooed as ledgers in virtual space forever. Knit together by an invisible string of cryptic code to keep it organised in a sequential manner. Making both mundane and crucial transactions that affect people, accessible by the general public. A similar concept,was conceived in ancient India by what is termed as the ‘akashic-records’; a hyperspace where all interactions between all living beings on this planet are stored; in a universal database. Although the akashic records remains beyond the access of regular people like you and I. We can monitor all transactions on the block chain via a computer and an internet connection.

Transparency secures trust. Dispels doubt. Increases confidence, engagement and productivity.

Losses encountered due to corruption; minimised. With less leakage, resources get utilised better. Benefiting all the stake holders involved .

Decentralised.
Another feature of the block chain which enables it to be more uniform is its decentralised nature. This is what makes it more trustable, because it is immune to manipulation by a few. It is neither governed nor minted by a single controlling power or authority. That responsibility is chosen based on the functionality of the block chain. For eg. in the bit coin network, any individual connected, can offer their services for the network. These services can be broken down to individuals investing on their own hardware, to power the processing engine that drives the network. All tasks that have to be executed for the functioning is shared and distributed across the entire network.Those that contribute are in turn rewarded back in bit coins.

Utility.
Unlike conventional FIAT currencies that are also symbolic tokens of value. Block chain based currencies actually perform work by solving problems, to add value. This attribute ensures the appreciation in value just by its mere function. Block chains can also be used as robust records to facilitate the transfer of legal documents, which ascertain ownership rights associated with property, merchandise, or any such goods and products.

Etherium is an example of a block chain network that enables people to build businesses, create value and facilitate trade within its own frame work. This is all done without the need of intermediaries. Consumers can purchase products developed by organisations on the same platform. The compensation of the cost is assured through the distribution of etherium tokens. These tokens can be used to pay the employees of the organisation which in turn can be used to purchase other products on the network. This uniformity reduces conversion losses making it more profitable as compared to traditional systems.

Accessibility.
CodetoInspire.org is a non profit organisation based on etherium that provides education, technology and support to Afghan women.[5] By using the block chain tech as a tool, grass root organisations are emerging around the world. Empowering people, who previously were restricted to participate in the local and global economy.

The walls that confined certain demographic groups to engage economically and politically are now beginning to dissolve via block chain tech.

This in turn distributes power over communities. Preventing favorism, monopoly and other stagnation caused by conventional systems. Uniform distribution of power in turn reduces the probabilities of rebellions, increasing harmony and overall economic stability.

Security.
Block chain networks are spread out across millions of nodes(computers) interconnected in virtual space. Since it is decentralised, it would take an enormous amount of computing power to modify the entire network. This protects the block chain from internal manipulation.

Unlike traditional assets and currencies which require immense cost to keep them secure, in state of the art facilities like treasuries and vaults, away from the reach of thieves or bandits. Crypto currencies are encrypted with a unique code that is derived from the owners private digital signature. So even if ownership is changed, the blocks of ledgers, can be tracked and the record of its movement monitored. Traditional token systems like FIAT currencies or gold, once stolen can be reused in black markets around the world. Blocks, however can be retraced. The block chain system thereby reduces incentives for theft.

The world as we know it is changing exponentially every moment as never before, in known history. In this change, so will the systems that facilitate its interactions. With the increase in accessibility of information through out the planet, so will there be a change in the needs and desires of the people accessing it. Traditional systems which are viewed as a benchmark now, have evolved over hundreds of years of trial and error. The funds raised by the first Bank of England, was primarily intended to wage wars against France. Lets turn the page into a new chapter with a system that promotes more transparency, security & peace.

The enormous leaps taken by the block chain industry since its inception in 2009 will make way for paramount growth, which is required in many regions of the world. Rest assured it is here to stay and at one time, for a generation in the future, will be as normal & ‘trusted’ as the very systems it seeks to replace.

References:

[1] Britishnotes.co.uk. A History of British Banknotes. Available: http://www.britishnotes.co.uk/news_and_info/features/. Last accessed 13th Aug 2018

[2] Nakomoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System.Available: https://bitcoin.org/bitcoin.pdf. Last accessed 13th Aug 2018.

[3] Blockchain.com. (2018). Currency Statistics04/. Available: https://www.blockchain.com/charts. Last accessed 04/08/2018.

[4] Andreas Kaplan. (2018). Cryptocurrency market valuation to hit $1 trillion this year -Cryptocurrency Predictions 2018 — News Analysis — Fri Aug 3. Available: https://smartereum.com/3223/cryptocurrency-market-valuation-to-hit-1-trillion-this-year-cryptocurrency-predictions-2018-news-analysis-fri-aug-3/. Last accessed 04/08/2018

[5] Codetoinspire (CTI). Home. Available: http://codetoinspire.org/. Last accessed 13th Aug 2018.
BitcoinCryptocurrencyEconomicsAkashic RecordsBlockchain
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