What is Blockchain Why a Trustless Trust Algorithm can Change the World

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.

It’s Time to Rethink!