Blockchain – On the Cusp of a New “Foundational” Technology

Blockchain - the peer-to-peer network that sits on top of the Internet—was introduced in October 2008 as part of a proposal for Bitcoin. While blockchain was the secret sauce which enabled the rise of Bitcoin, the applications of blockchain reach far beyond the Fintech sector. Yes, the parallels between blockchain and TCP/IP are clear. Just as e-mail enabled bilateral messaging, bitcoin enables bilateral financial transactions. The development and maintenance of blockchain is open, distributed, and shared—just like TCP/IP’s. And just like e-mail, bitcoin first caught on with an enthusiastic but relatively small community. TCP/IP unlocked new economic value by dramatically lowering the cost of connections. Similarly, blockchain could dramatically reduce the cost of transactions. It has the potential to become the system of record for all transactions. If that happens, the economy will once again undergo a radical shift, as new, blockchain-based sources of influence and control emerge. The problem is, reconciling transactions across individual and private ledgers takes a lot of time and is prone to error. More details to follow. Lawrence, Cyrptocurrency Academy (https://genesysinternetdesigns.blogspot.com)