Let’s talk about Blockchain and Cryptocurrency
Blockchain is fundamentally a new paradigm for organizing activities at a much larger scale than the current paradigm, with less friction and more efficiency. Not only is blockchain technology decentralized, it can be used as a general model to interconnect all human and non-intermediated transactions and provide a global scope due to the availability of a sufficiently liquid underlying network.
Blockchain technology can be used for resource allocation, especially allowing for an increasing number of automated resource material world assets as well as human assets. Blockchain technology facilitates the coordination and recognition of all forms of human interaction, promoting higher levels of cooperation and potentially for human/machine interaction. Perhaps all modes of human activity can be transformed conceptually with or at least through blockchain technology to some degree. Moreover, blockchain technology is not only better organized model in terms of function, practice and quantity; by requiring consensus to operate, qualitatively, the model can also have greater freedom, equality and empowerment. Thereby, blockchain is a complete solution that integrates internal and external qualitative and quantitative benefits.
This article will talk about the potential of blockchain technology in enabling a new value system that will better support the dynamics of social sharing and examines a discussion that began with the evolution of values in the history of economic thought. Its value is analyzed through cryptocurrencies as a coordinating mechanism for defining meaningful actions within a certain context, linking the price system to the establishment of capitalism and industrial economies. Then, its relevance to the information economy is discussed and demonstrated as a techno-economic context for the sharing economy, and new ways of value creation are identified to better reflect the social relations of sharing. Blockchain technology may not only reshape every category of money markets, payments, financial services and economics, but it may also offer similar reconfiguration possibilities for all industries, even more broadly across almost all areas of human activity.
Keywords
Cryptocurrency | Blockchain technology |Decentralization |Distributed networks |Scarcity |Secure payments |Bitcoin
A blockchain is a distributed ledger or database of transactions recorded in a distributed manner over a decentralized network of computers, which, as the name implies, is organized in a linear sequence of smaller sets of cryptographic data (called “blocks”) containing batches of transactions with timestamps. Just as each block contains a reference to its precedent block and an answer to a complex mathematical puzzle that is used to validate the transactions it contains. The innovation behind blockchain stems from a combination of existing technologies: peer-to-peer networks; cryptographic algorithms; distributed data storage and decentralized consensus mechanisms [1].
As a general-purpose technology, blockchain is a way to record the state of specific transactions that the network has agreed to in a secure and verifiable way , so blockchain can be used in any system that contains valuable information, including money, titles, deeds, intellectual property or even ballot or identity registration data. The innovation of Bitcoin is that it brings decentralized scarcity to the digital realm. No one knew it was possible until Satoshi Nakamoto invented it in 2008. A cryptocurrency is a digital or virtual currency protected by cryptography that is virtually impossible to counterfeit or re-consume.
Many cryptocurrencies are decentralized networks based on blockchain technology, and decentralized networks are distributed ledgers implemented by a decentralized network of computers. A defining characteristic of cryptocurrencies is that they are typically not issued by any central authority, thus making them theoretically immune to government intervention or manipulation. Cryptocurrencies are systems that allow secure online payments named after virtual “tokens”, which are represented by ledger entries within the system. “Cryptography” refers to the various encryption algorithms and cryptographic techniques used to protect these entries, such as elliptic curve cryptography, public-private key pairs, and hash functions [2].
The first blockchain-based cryptocurrency was Bitcoin, which is still the most popular and valuable. Today, there are thousands of alternate cryptocurrencies with various features and specifications. Some of them are clones or offshoots of Bitcoin, while others are new currencies built from the ground up.
Bitcoin’s Traceability
Bitcoin and its underlying blockchain technology have grown to become the foundation of a global crypto-asset ecosystem with a total value of approximately a quarter trillion dollars, with many ups and downs during that time. Most notably, many crypto assets have yet to recover from the 2017/18 bubble period to half of their all-time highs, or even never recovered, but this calculation ignores the significant progress Bitcoin has made over the past two years — developing a robust 24/7/365 spot and derivatives market and continuing to build a decentralized network for the new world to build the underlying infrastructure.
The peak bubble period for cryptocurrencies was between in December 2017 and February 2018. Blockchain will not disrupt the financial industry in the next decade. There is indeed a revolution happening in the financial services industry, but it has nothing to do with crypto or blockchain. They are private, centralized, and recorded only in a few controlled ledgers. They require access, which is granted to qualified people. And, perhaps most importantly, they are based on trusted authorities that have established their credibility. All of this is “blockchain” in name only. This suggests that, with licensed databases, all “decentralized” blockchains are ultimately centralized when they are put into use. Thus, blockchains do not even improve on the standard spreadsheet invented in 1979.
At the heart of the appeal and functionality of Bitcoin and other cryptocurrencies is blockchain technology, which is used to maintain an online ledger of all transactions ever performed, thus providing a very secure data structure for that ledger that can be shared and agreed upon. A copy of the ledger is maintained by an entire network of individual nodes or computers. Each new block generated must be verified by each node prior to confirmation, making it virtually impossible to falsify transaction histories.
Many experts believe blockchain technology has great potential for uses such as online voting and crowdfunding, while major financial institutions such as JPMorgan Chase (JPM) see the potential to reduce transaction costs by streamlining the payment process. If not stored in a central database, digital cryptocurrency balances can be lost due to the loss or destruction of a hard drive if a backup copy of the private key does not exist. Also, there is no central authority where governments or companies can access personal information about individual funds.
Blockchain technology helps illustrate the existence of at least three different levels of information. The first level is silly, unenhanced, unmoderated data. Level two data can be presented in the way society requires, enriched by hundreds of millions of users through social networks, with denser quality of information and network models that have made the Internet possible. Now there is level three: data verified by blockchain consensus, the highest level of data recommendation based on accuracy and quality supported by group consensus, the formal structure of intelligent agents experts have formed a consensus information about the quality and accuracy of this data. Blockchain technology thus produces a consensus-derived third layer of information that has a higher resolution because it has a higher resolution of intensive modulation through quality attributes while achieving greater globalization, equality, and free flow. Blockchain as an information technology provides high resolution modulated information about quality, authenticity, and derivation. Thus, consensus data is quality confirmation with mass voting, a seal of approval, representing the popular vote, representing quality, accuracy, and true value of the data, achieved by seamless automation of the mining mechanism.
So what can a community do with a broad mechanism for confirming the quality of data?
Consensus information only helps to emphasize blockchain technology, core infrastructure elements, and the types of scalable information necessary to use authentication and verification mechanisms in order to efficiently scale human progress and evolve into a global and eventually transcendent planetary society. I think the ultimate vision for humanity is probably that the universe is information, a vehicle for progress, implying a transition to a higher resolution information flow. Information can be conservative and confidential, but its density (the sheer volume of information) can be infinite, and blockchain technology will be seen as a core infrastructure element to expand the future of human progress and may be the most effective tool to increase the resolution of information throughout the world and the universe as a whole.
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