Blockchain - The Trust Protocol

Since the Internet invented, we’re using it as a medium to exchange information, the phrase exchanging information means we all have a copy of this information. When I send email or any piece of information to my peer, I’m actually sending a copy not the original. But when it comes to exchanging assets – things like money, financial assets like stocks, bonds, intellectual property, music, art, a vote, and other assets – sending a copy is not a good idea. So if I have to send you 100 dollars to buy your product – it’s really important that I don’t still have the money and you don’t have the product.

Today, we rely on institutions or intermediaries like banks, government, corporations, social media companies and credit card companies. These institutions helped us to establish trust on our economy and to manage our trade as the uncertainty and the complexity grew, and our personal control was much lower.

Marketplaces such as Amazon, Alibaba, eBay, etc. were built to act as the intermediaries to facilitate our economic activities. Overall, they are doing very pretty job -- but they are centeralized which means they can be simply hacked, -- slow things down, -- they take charges, -- and they capture our data. These institutions are a tool to lower uncertainty so that we can connect and exchange all kinds of value in society. Now, we are entering a further and radical evolution of how we interact and trade, because for the first time, we can lower uncertainty not just with political and economic institutions, like banks, corporations, governments, but we can do it with technology alone.

What is Block Chain?

The blockchain is a ledger; ledger keeps track of transactions between parties by recording all the entries. The ledger is duplicated across the world and has copies on each peer. So if there is one transaction takes place in blockchain so there is a Peer-to-Peer (P2P) connectivity among them and the evidence of this transaction is replicated across all holders of the ledger. Every peer has an identity on the blockchain “a unique 30-plus-character alphanumeric blockchain address”, the user has the ability to appear as anonymous but the transaction is recorded.

Blockchain: The Trust Protocol

• Peer Transparency: Blockchains allow for us to create an open, global platform on which to store any attestation about any individual from any source. This allows us to create a user-controlled portable identity. It is more than a profile, but a unique 30-plus-character alphanumeric blockchain address. Having this kind of portable identity around the physical world and the digital world means we can do all kinds of human trade in a totally new way.
• Process Transparency: A decentralized database created that has the same efficiency of a monopoly without actually creating that central authority. So all of these vendors, all sorts of companies, can interact using the same database without trusting one another. It means for consumers, we can have a lot more transparency. As a real-world object travels along, we can see its digital certificate or token move on the blockchain, adding value as it goes. This is a whole new world in terms of our visibility.
• Transaction Transparency: Blockchains allow us to write code, binding contracts, between individuals and then guarantee that those contracts will bear out without a third party enforcer.

"So for the first time now in human history, people everywhere can trust each other and transact peer to peer. And trust is established, not by some big institution, but by collaboration, by cryptography and by some clever code."

"Blockchains give us the technological capability of creating a record of human exchange, of exchange of currency, of all kinds of digital and physical assets, even of our own personal attributes, in a totally new way. So in some ways, they become a technological institution that has a lot of the benefits of the traditional institutions we're used to using in society, but it does this in a decentralized way. It does this by converting a lot of our uncertainties into certainties."

Sources:

How the blockchain will radically transform the economy

How the blockchain is changing money and business

The Truth About Blockchain

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About: Khaled Samy Hall

Khaled is the Co-founder and CEO at HYNO World company, and ST-United General Manager. Khaled has a long history of successful career growth in a variety of industries. He is currently the Book Author of "The ROI analysis: Project Management Office Development" and active Blogger.