Revolution Started After the 2008 Financial CrashBitcoin the first Blockchain based decentralized crypto currency was designed by Satoshi Nakamoto in 2009. His identity is still unknown.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)
Trustless Trust
Transition from Trusting an Entity to Trusting an Algorithm.
Now we can even transact anonymously.
Centralized Trust to Trustless Decentralization
Trust is built into the design through Cryptography, Blockchains, Consensus & Proof-of-work Algorithms.
Source: IBM
Blockchain EvolutionFirst Generation
Bitcoin, ZCash (new): Cryptocurrencies
1.5 versionColored Coins : Multiple cryptocurrencies on same network
Second GenerationEthereum, Chain, Hyperledger: Smart Contracts
Many Blockchain networks for specific use cases.
Private, Consortium and Public Networks.
Side chains (like Thunder) for scaling up transactions.
Rethink Everything
Rethink MoneyRethink Firms & OrganizationsRethink Social Networks Rethink Trade (P2P, B2B)
Rethink MoneyMoney is an artificial instrument to :
Store Economic ValueMeasure Economic Value (Accounting Unit)Transfer Economic ValueUSD will LOSE VALUE
SWIFT & VISA are implementing Blockchains
Rethink OrganizationFirms and Organization are a group of individuals who have opted to come together, centered around an economic activity, to create an economic value greater than the sum of the individual contributions. Borderless Communities governed by DAO
Rethink Social Networks and TradeBlockchain enabled truly unmediated and secured transactions between two or multiple entities governed and enforced by Smart Contract algorithms powered by Cryptocurrencies . Aggregators are the Potential Road Kills:Amazon, Flopcart, Ebay, Facebook, Uber, OLA
All is Well?First Generation Problems:
Mt. Gox, Dark web, Ranson wares, Silk road, Money laundering... Multiple blockchain economic offenders arrested.
Less than 1000 entities (mostly Chinese) control 60% of Bitcoins.
Next Generation Frauds:
Ethereum DAO hijack. DDOS attack. Both resulted in hard forks.
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