The Truth is Out There – Trust and the Blockchain

During the part of the cold war, Ronald Regan coined the phrase “Trust, but verify”. Not only did these words create a path that led to the collapse of the Berlin Wall, they are also appropriate for the new blockchain age.

Every piece of transaction data that is stored on the blockchain is first verified by consensus before it becomes the absolute Truth. So if it is recorded on an automobile blockchain that I own a Subaru Forester VIN # 1234, then this can be treated as the “Truth and nothing but the Truth”.

If someone asks you to verify your ownership you could provide your thumbprint and the VIN number to confirm that you are indeed the rightful owner of the vehicle.

In the age of distributed ledgers, multiple copies of the same information are held and verified to allow the sharing of truth about any activity by any number of authorized entities. Further, only the information that a user actually needs for verification is shared, increasing privacy.

As we reach the stage of mass adoption of this technology, the following five areas need to be addressed in order for a smooth transition into using blockchain technology.

There are already several companies active in Identity and Assets on the blockchain. Security and Privacy are constantly evolving with several new blockchain based players emerging. Standards are also evolving and these will facilitate the exchange of information across separate blockchains. All of these building blocks will take shape in 2018 and accelerate the implementation of many different types of distributed ledger solutions across many industries.

Every transaction involves the first four base components and the necessity to ensure Trust within the blockchain ecosystem by consistently providing the Truth of the recorded information. As The Economist stated in 2015, we are rapidly developing “The Trust Machine”.

The Trust Machine is arriving and the blockchain technology is evolving at a rapid rate. Right now every company needs to learn what the blockchain is and how it will change their industry. Don’t get left behind as the blockchain revolution arrives!

Edwin Carlson

CEO, EQIExchange (a division of EQIBank)

Global Lecturer on Blockchain and Business