The Blockchain Disruption imagines e-commerce powered by dispersed digital ledgers. Bitcoin is the most famous “dispersed digital ledger.” When transaction information is “in the cloud,” dispersed, and understood from many angles interesting things happen. This infographic provides blockchain basics.
Find the infographic on BlockchainHub.net.
Most blockchain objections focus on Bitcoin-like currency. The “not redeemable” complaint seems foolish. The American dollar isn’t “redeemable” either. We collectively agree money is worth something in trade for something else. Currency is the ultimate Ponzi scheme. Something has value because we say, believe, or act like there is value.
Similarly, the “only exists in the network” objection sounds foolish too. More and more everything only exists in one networked system or another. Sun Microsystems John Burdette Gage was right. The network is the computer. Gage’s statement is especially true when we walk around with supercomputers of yesteryear in our pockets.
Finally, and this may be the most absurd objection in a chain of crazy ones, no central bank controls a blockchain. After the meltdown of 2008, we would welcome more crowd wisdom and less central bank “too big to fail” bravado particularly when our money is concerned.
The Blockchain Disruption
Doesn’t require much creativity to imagine many blockchain disruptions. When our transactions are digital, verified, and discoverable fraud is almost impossible. Blockchain makes fraud all but impossible. We realize, writing that last sentence, Bitcoin has been famously hacked.
Bitcoin’s growing pains don’t invalidate the point – it is all but impossible to steal from a multi-point, distributed and verified network. When there is a single blockchain – Bitcoin – massive amounts of hacker energy goes into finding the exception to the “no fraud possible” rule. Once blockchains are everywhere and Bitcoin’s many lessons shared, digested, and incorporated stealing from a multi-point distributed networks will all but cease.
Too many large bad bets placed by the few banks controlling world currency almost sent the world into a great depression in 2008. Money loves the scale, and even the world’s economic scare in 2008 hasn’t prevented big banks from becoming larger. The answer is breaking banks into more of a de-centralized, multi-point, blockchain-like system.
In multi-point systems, the weakness or failure of one node can’t break the chain. And the strength of the chain works to correct any node’s weakness, compromise, or failure. Instead of toppling the banking Jenga blockchains create distributed protections.
Blockchains Aren’t Just For Bitcoin Anymore
What is the value of a massively distributed ledge you, me and everyone we own contributes and can access? So much rich, targeted and current information so easily available makes the Internet of Things possible, helpful, and capable of making our lives easier instead of more cluttered and chaotic. Imagine how our websites will change when we know our returning customer Martin is visiting and he just purchased a mid-century bedside table from Target (as I did the other day).
We would use predictive analytics to organize a website’s presentation to assure conversion after algorithms include customer blockchains. Our websites won’t be a scrum of items customers don’t care about, won’t buy and must wade through. Blockchains will make our digital experiences more efficient, meaningful, and rewarding. Instead of filtering massive haystacks looking for a single needle blockchain remove the hay. We will see, experience and be able to buy, engage with, and share needles we care about NOW.
How do you think blockchains will disrupt your industry? Read Blockchains Will Disrupt Every Industry in the Huffington Post for more. The Blockchain Explained on the Marmelab blog is a good read too.
The Ethereum Ecosystem is also a good read for how blockchain could disrupt contracts and supply chains.
The more we thought about blockchain the more David Amerland’s What If We Had A New Values System for Goods and Services came to mind.