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How Blockchain Revolution is Going to Make Global Economy More Fair


Nov 21, 2017 Posted /  2177 Views


How Blockchain Revolution is Going to Make Global Economy More Fair

Simply explained, blockchain is a network of decentralized data that is collected by different blockchain miners worldwide and put together is a single unified and evenly distributed platform.

As the New York Times described it, “Blockchain is the early leader...They are actually making the entire ecosystem.”  

It will revolutionize the economy of the entire world, to start with. But it has the potential to do much more. It can completely remodel how we handle or think about any of our assets that have "Value"-- things like money, financial assets like stocks and bonds, loyalty points, intellectual property, music, art, a vote, carbon credit and other assets.

How does a blockchain work?

In the network of the blockchain, suppose every 10 minutes, a block of data is created which contain the information of all the transactions or activities of the past 10 minutes. Now different blockchain miners are present all over the world huge amount of computing powers in their hand and work a lot. These miners compete to analyse and validate these data blocks and the first one to do so is rewarded in the digital currency. Then these blocks and linked to the previous block which is in turn connected to its previous block, thereby creating a chain and each of these blocks are time-stamped like a digital wax seal. And this data is spread to millions of computers all over the globe. So if someone is to hack a block, he needs to do it in millions of computers in the world all at the same time using highest levels of encryption. So you can imagine yourself how safe the system of blockchain is.

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How is it useful?

According to Federico Pistono, “Now we have a system where there is a huge centralization of power, centralization of capital, centralization of risk, and in particular, the big players are de-risking everything by hedging the risk on the small guys particularly in developing countries.”

With blockchain there will be simultaneously anonymous and secure, decentralised, peer to peer, instant and frictionless interaction with the highest level of security using ingeniously simple algorithms and without the over-ruling authority of a single organisation.

The first generation brought us the Internet of Information. The second generation — powered by blockchain — is bringing us the Internet of Value.

It presents and maintains a tamper-proof public ledger using mass collaboration and cryptography. It will build trust and transparency which has been missing in every economy throughout the ages and the first generation of the internet couldn’t manage this either. This has the capability to find a remedy to the problem of unequal distribution of wealth, leaching of wealth and resources by the rich from the poor and the unjustified concentration of wealth in just a few hands.

How will blockchain affect our lives?

Two types of blockchain systems are mostly in use today- Bitcoin blockchain and Ethereum blockchain. With Ethereum blockchain you can build smart contracts. It's a contract that self-executes and the contract handles the enforcement, the management, performance and payment -- the contract kind of has a bank account, too, in a sense -- of agreements between people. This will mean a great deal to any artist who is not given what they are due in today's world of piracy. A singer earned 10 times more for their hits 10-15 years ago than what they do now due to the lack of enforcement of intellectual property rights. With a blockchain network, they can regulate access to their songs and also ensure that they are paid for it by attaching these self-inflicting smart contracts.

Perhaps you are an immigrant who sends his hard earned money to your loved ones in some another country, you will have to pay big sums of money for the service and also it will take over a week for the money to reach. With bitcoin, you can transfer is from your moment in an instant and they will receive it in a day.

These cryptocurrencies will change the way the world works. People who are fed up with the lack of transparency or accountability of their political leaders or someone who is not given his due by an insurance company, will all see a new era with the advent of blockchain slowly throughout the world.

However, this new system will also create new winners and losers both. The banks and corporations may not cooperate in the rise of this new era, but this is an advancement is bound to happen and we surely look forward to it.

 


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Tags: blockchain blockchain network blockchain work blockchain system bitcoin Ethereum Ethereum Blockchain

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