The topic of blockchain has been covered many times in details. There are pros an cons to all technology. Covering another blog of what it is just doesnt make sense. What I would like to write about is why blockchain use case have not been implemented if it is indeed such a disruptive technology. Before I dive deeper into the topic I would just like to say what many others already believe “bitcoin is THE killer app for blockchain” there might be many others but currently it is the only successful implementation.
Trusting the trust-less network:
Before we get into details of how powerful a distributed, decentralised network aka blockchain is, we must understand and start trusting a network that runs without trust. This is easier set than done. Pitching the concept is not very easy to an institution. Blockchain is not really a trust-less network per say as you must trust miners (however these miners really cant overwrite or edit your transactions), the origins of who these miners doesnt really matter, in addition to this we must also trust the blockchain node operators which can be thought of as record keepers. Then there are concepts of a private blockchains which I wont touch here as I think its pretty much useless. However we must also talk about private, and permission-ed blockchains over public chains. This is a concept which is a bit harder to understand, and most likely the one that institutions want to implement. And for this we must understand how coins such as ethereum, omni, waves, nem and hyper-ledgers (supported by IBM and Linux One Foundation) really work. In essence we must understand the true power of blockchain lies in the number of nodes if we are talking hyper ledger, nem(Proof of Importance or POI) or POS (Proof of Stake), or miners in Proof of Work (POW). I think we should understand these concepts in details as most of the problem arises when we dont see how a distributed network truly operates. The problem here is that institutions agree that its a great technology but they still dont truly trust it. At the same time they want to centrally control it to make a profit off it.
Blockchain is designed to change the backend design/structure of current systems, and enable them for future AI controlled setups. In an environment where there maybe no need for such a setup. But when you need trusted machine readable contracts and transactions there is no other way other then blockchain.
…. To Be Continued