Ten years in, nobody has come up with a use for blockchain

Kai Stinchcombe, MA, and BA and BA,

Stanford University – Political Science and Colorado College – History, Math & Computer Science.

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1.      Introduction

Is blockchain poised to be the great thing in the future?

The blockchain is the topic I hear with increasing regularity about the technology that, was primarily associated with the cryptocurrency Bitcoin.

Actually, I have not learned much about blockchain or Bitcoin either, despite the last few years of enthusiastic captions in multiple tech publications. However with the news this year that Moscow mayor plans to process a voting system by blockchain, and ArcBlock project which just launched on 03/01/2018 was created the first ecosystem in the world. The technology is changing every day with great inventions which contribute to developing business sector as well as other sectors. I realized it was time to do some research what blockchain is – and I realized blockchain is “the most important IT invention of our age”.

According to searching information about blockchain, the issue I have with this definition and especially what I consider to be an important defining characteristic of the blockchain. Whether blockchain is the great invention and will be used largely in the future or nobody has come up with the use of blockchain which that is a topic of Kai Stinchcombe I was particularly interested. That topic was posted on 23 Dec 2017 on hackernoon.com

Although I did not agree with the author’s arguments, I have to admit that most of the blockchain/cryptocurrencies supporters are only looking forward to the future, however, the current benefits of this technology are almost negligible even it was invented more than 10 years ago.Scope

2.      Scope

2.1 Author

At present, Kai Stinchcombe is founder and CEO at True Link financial. Graduated from Colorado College with BA, history, Math & Computer Science from 2000-2002, and Stanford University with MA, Political Science. He started the career with founder and Executive director at Roosevelt Institute as Builder a campus-based policy research organization to 8,000 members, 80 chapters, seven full-time and 20 part-time staff from 2004 – 2007. Then, he was cofounder at Aktana from 2007-2010. He established sales strategy software for the large enterprise. After that, he became a founder of strategic districts. From 2012 – 2013, he worked at LendUp as head of Risk and Data Science.

He has wide and expert knowledge of the business market.

He wrote a series of valuable articles and posted on various news pages.

 

            2.2 Research

Before going to the main of this topic, let’s find out what blockchain is and why it is so much attention.

The blockchain is described with a simple definition as digital ledger. It is a ledger, a distributed, digital ledger.

In October 2008, Satoshi Nakamoto, known only under a virtual name on a forum of cryptography experts, published an article outlining an electronic money system that did not require any Centralized power does manage/validate payment activity among members. In early 2009, Nakamoto released the open source code for the currency system and called the currency bitcoin. At the time of launching the system, Nakamoto created and distributed free bitcoin to its original members, with nearly 1 million accounts in the account never being contacted by Nakamoto. By the end of 2010, this mysterious character declared to leave the game and disappear.

With bitcoin, Satoshi Nakamoto replaced the centralized power with two basic principles based on cryptographic algorithms.

 

The first of these – the blockchain – is an ingenious combination of a hash function with a ledger that records the entire rotation of a bitcoin coin since it was created. Applying cryptography to accounting books ensures that once a bitcoin transaction has been recorded, no one can change it again without being detected.

 

The second proof-of-work (POW) principle is a concept developed by the cryptographers long before Nakamoto. Accordingly, an individual can prove that he or she has spent a considerable amount of time trying to find a solution to a cryptographic problem that anyone can then easily verify.

The Economist commented that Satoshi Nakamoto’s greatest achievement was to create a system of trust-less decentralization with only algorithms. In other words, blockchain technology has replaced the belief in state power or the intrinsic value of precious things like gold and diamonds.

 

 

3.       Commentary

Although author gave us a realistic view of the application of blockchain. In my opinion, the view of this article is quite narrow and there have some flaws, as comments below the article.

The core is not the blockchain, It is the “crypto economy”. Three key pillars are: decentralize, security, and scalability. The author wrote this article based on the current technology, current economic dynamics, so it will not fit and will not realize any potential in the future.

The blockchain is a new paradigm, which will always have the arguments. Firstly, if we look at the adoption in the enterprise, for example, the Ethereum Enterprise Alliance(EEA) which connected with 500 enterprises, startups, academics, and technology vendors with Ethereum subject matter experts. I do not think the heads of EEA who did not recognize the views which are mentioned in this article, they still established the EEA alliance and they are still working on the new blockchain application. Because things which we still have not found, we can not say to be “useless”.

We can think about the past, for example, dotcom bubble, and there are many things which we thought to be useless, just to get the internet today.

I think to add 10 years which is just enough for making proof of blockchain concept, meaning that 10 years later it still works as we wish, not a fundamental flaw, and everyone will welcome, even today, we do not appreciate it much.

 

Not only bitcoin and any encrypted currencies, the blockchain with the decentralized and irreversible principle which is gradually being applied to many fields that require the accuracy of the information and honesty of the participants. At the end of November 2017, the Australian Securities Trading Center (ASX) began testing a securities depository system which used blockchain technology.

Before,  De Beers which is the largest diamond-mining and trading company in the world promoted the effectiveness of blockchain for a diamond-themed profile system. Blockchain has become so prevalent that some companies tried to put the blockchain brand in their name to boost stock prices. It looks like the dotcoms nearly 20 years ago.

Ignoring the crazy prices of bitcoin or the movement regarding everyone want to use blockchain, the explosion of cryptographic algorithms in economic and financial applications which could be the start of social change later. Satoshi Nakamoto invented the blockchain mechanism for the purpose of creating a currency which is independent of the state and circulates between countries. Bitcoin exists and operates based on an interconnected community via the Internet regardless of nationality.  As well as the blockchain system of ASX, it removes the role of a central agency instead delegates the operation and management of information to its members in a democratic method: everybody is equal and the majority will win. Professor Tyler Cowen of George Mason University argued that promoting the role of the community of bitcoin and the blockchain technology which is a bright spot in the oppressive political context today.

Not just financial transactions, the principle of consensus in the community is clear with smart contracts on the Ethereum app which is developed after bitcoin for several years by Vitalik Buterin. With this tool, many types of transactions / civil contracts in the future will not need the management of the state. The boom in capital mobilization (ICO) is based on a smart contract on Ethereum, for example. Although many countries are cautious with the ICO, even banned this form as in China, the ICO will certainly be a formidable opponent of the IPO in the future. At present, despite the bitcoin price is still continuing to fluctuate, many other foreign money transfer services are using this bitcoin system and there are operating very effectively, competing with traditional money transfer services.

In the context of stalling globalization by the recent financial crisis and the emergence of narrow nationalism in many Western countries, blockchain applications show that technology will pass political barriers. Of course, it is still a long time before national power comes to the fore in blockchain or other technologies, but a coherent word is more likely than the inevitable consequence of this technology trend.

Perhaps with Satoshi Nakamoto building a more equitable, democratic, and democratic (one-CPU one vote) community than the billion-dollar fortune that lies dormant in the root account of the bitcoin system. Although such huge assets may be wasted, although bitcoin may be leaving as many other currencies in history, blockchain technology will inevitably continue to grow and will challenge the institutions/structures of the commune. The Society has existed for thousands of years to look forward to a better future for humanity.

4.      Conclusion

 

 

 

 

 

 

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