Blockchain vs the Blockhead

Blockchain vs Blockhead

OK, I will admit it, I still don’t get the cryptocurrency concept….it’s not that I can’t get it – heck, I have masters of economics and spent countless hours studying the banking systems (thanks Dr Folsom).  I think I could figure it out, of course…..

Seems like Blockchain has become the buzzword for data privacy and security – what started out as a concept to support the distribution of cryptocurrency has bled over to mainstream data sources.   In concept, I am starting to get it – the idea that you have blocks of data that build off each other and are validated by the “community” makes a lot of sense. I even get the concept of anonymous transactions through the use of tokens.  The decentralization of data based on the assumption that it all just becomes a number so to speak – that clarity is lost in the masses – but nothing bad can happen because everyone can see it.

It reminds me of the first time I was in Chennai (Madras) India.   For most of the trip I was given the VIP treatment with private cars, drivers, attendants, etc…..every possible need I had was taken care of. On one rare evening when we didn’t have any events or meetings, I decided to leave my hotel and venture into the city.  At first it was a bit exciting – India seems to be a very odd mix of first and third world – there are 300 million people that are “middle class” or above – but there are another billion people who are still mired in poverty.  As I walked the streets, I became a bit un-nerved because there were so many people just standing around – seemingly with nothing to do.   At first, it made me uncomfortable – but then I realized it was exactly the opposite -with so many people out – I was entirely safe….no harm could ever be done to me because there would always be a thousand witnesses…… A blockchain of People…..

In many ways, that feels like the promise of blockchain – if everything is open and viewed by the masses then each of us is anonymous but safe – nobody cares who we are but everyone cares that things are done right.

However, the same trip to India also showed me the opposite effect- the scary power of the masses……one night we were leaving my host’s seaside villa. We had to drive through one of the typical Indian villages where the other billion reside.  On most of our trips, everything was smooth– but on this one night – everything seemed off.   As we drove out of the seaside community – we saw a crowd of what seemed like a thousand people. Almost immediately, we were stopped and got “the shake down”- our driver had to pay the men in order for us to proceed.  Instead of a thousand witnesses to a crime – it seemed like this group was backing those men up – they decided what we had was something to be shared.   They passed their own mob rule, and now suddenly we were unsafe – everything could be taken away – but we were just as anonymous – nobody cared that a crime was being committed because they did not see it that way.

The democratization of data is a bit of a utopian dream. In concept it seems practical, but we always seem to forget that the thirst for power always distorts democracies – history has shown us that time and time again, a few will find the “loopholes” or cracks and will exploit them to their absolute advantage – and the moment that happens the dream of the true democracy dies…….Doesn’t anyone remember reading Animal Farm (Orwell)? 

So, what to make of blockchain? I don’t know yet – maybe I’m over-reacting and letting my liberal arts education cloud my thought – but I still feel like a blockhead because I don’t yet understand how it can be exploited – and I know that power always corrupts and individuals and small groups will always look for ways to get the power……where are the Pigs?

In the meantime, I will focus on building out MonitorEDU based on simple principals that everyone can understand – we limit data collection, we value privacy, we value simplicity – we strive to make it easy and accessible.  We are not using blockchain to store and distribute our data – we use the “catch and release’ method – collect only what you need – and let it go when you no longer need it.

Call me a blockhead – but I like things that everyone can understand.