“This article by David Hamilton was originally published at CoinCentral.com here“
Why Blockchain Technology Will Be Essential to the Trust Economy
Blockchain technology provides us with the ability to operate a decentralized economic sector that utilizes a Peer-to-Peer protocol that is both more secure and efficient than the current global economic structure. The immutable and unalterable nature of this revolutionary technology makes it perfectly suited for economic use in these digital times.
The world’s economic stage is shifting dramatically. People are tired of the inefficiency of the current banking system that has become so powerful and centralized that these organizations are no longer beholden to any laws. These organizations continue to expand unchecked and with the blessings of the government.
A Brief Look at the Blockchain
Luckily, blockchain technology provides a viable economic solution to these concerns. Blockchain networks utilize a vast array of computers to store data in redundancy. This data is called “blocks” and when they are connected together they form a “blockchain”. Each block has a code from the previous block to ensure that all blocks are in their exact order and no data can be changed on the network until a predetermined amount of nodes approves the transaction as valid.
The Trust Economy
The future of blockchain technology looks bright. Industries from all over the world are starting to utilize this innovative technology to advance their current business models with impressive results. Removing the need for third-party verification systems is critical to achieving a higher level of efficiency in the global economy and only blockchain technology can provide this solution to the market.
Immutable and Unalterable
At the core of blockchain technology is its immutable characteristics. Nobody can alter your blockchain records without simultaneously hacking thousands of computers at the same time. Blockchain technology provides you with an unalterable digital ledger system that is both faster and cheaper than the current solutions.
These ledgers could revolutionize the way in which we transfer ownership of our property. Imagine if your home ownership records were stored on a blockchain and you never had to worry about a dispute in the future. This seems like the future but it is already here as multiple blockchain real estate platforms already exist.
Blockchain technology is perfect for protecting both physical and digital assets. For example, imagine an artist or a photographer’s work being recorded on a blockchain. This would allow the owner of the content to easily prove that they are indeed the true owner and that the item is the original piece.
The 100-year old camera company Kodak launched their KodakCoin ICO earlier this year to create a platform that utilizes this exact technology to protect photographers from unauthorized use of their content. Content theft has been a huge problem for photographers in this digital era and Kodak hopes to bring some closure to the issue with their project.
The platform scours the internet and places the data against user’s content to ensure that no unauthorized use of said content has occurred. If one is detected, the platform will automatically notify the content creator of the infraction and send the offender an offer to purchase rights to the content if the creator so desires.
It is safe to say that there is little to no trust in the current economy’s structure. A single transaction must go through thirty or more third-party verification systems before it is processed. On top of that, there are major credit institutions that are making billions off of providing this information to interested parties.
The transparent nature of Blockchain technology would allow for these institutions to be tossed aside for a more transparent and open business model where anyone could prove their creditworthiness without concern of paying ridicules fees.
Considering the centralized role that these credit companies have assumed in the market, it would be a huge upgrade to the current economic system to eliminate these wasteful organizations in order to institute an automated blockchain-based system.
Supply Chain Blockchains
The day is quickly approaching when you will be able to see the development stages of your product to ensure the quality. Imagine that you could scan a single orange and get such information as the day it was planted, harvested, what it was fed, and how long it was shipped. All of this could easily be encoded in a supply chain blockchain.
Supply chain blockchains are essential in allowing high-quality products to shine in the marketplace. The ability to prove a products authenticity and craftsmanship is important and only blockchain technology will allow us to do this in a manner that is efficient and automated.
Smart contracts are one of the biggest additions to blockchain technology to come about. Fabian Vogelsteller is credited with both developing the technology and coining the phrase “Smart Contracts”. These handy protocols allow you to embed action specific parameters into the blockchain which is essential to having a thriving trust economy.
Smart contracts allow for multiple individuals to invest in a single asset with confidence. A smart contract could be programmed to monitor the investment until a certain action has been completed. Once the trigger action is activated the contract will automatically fulfill its preprogrammed duties including calculating and distributing funds to all of the investment parties.
Smart contracts are getting even smarter with more functionality being developed daily. Today’s third generation smart contracts are able to complete very complex procedures. This flexibility is further fueling the growth of the decentralized economy and is essential to building trust in this technology.
The Trust Economy Runs on Blockchain
The technology exists today to develop an economy that is both more secure and efficient than its predecessor. Blockchain technology is quickly becoming the smart choice for the most important tasks in our economic sectors and as integration continues, there is no doubt that this amazing technology is sure to see further implementation in the marketplace.
What do you guys think? Can you see the trust economy one day rivaling our current systems? Let us know on Twitter and be sure to sign up for our newsletter to stay informed on all the most important updates in the crypto marketplace.