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Blockchain Introduction

Blockchain is a terminology or a word that has different meaning and interpretations for various groups of people depending on their type of work or position they occupy in the society.

For example, for those who are called developers blockchain is information and data that are encrypted and are maintained in a distributed data base. Perspectives and how various groups view what blockchain is has been summarised in the following table.

• Blockchain has attracted lots of attention globally
• Trust – people can trust based on the blockchain technology
• Serve – they can serve in a network that is peer to Peer
• Trust is not based on a centre but on technology and cryptography
• Cryptography is codes of information.
• Cooperation can now be created in distributed global Networks
• Blockchain create fundamental about a united world of the future. Some of these questions about money, economy, trust, transparency and values.

Questions:

• What are the benefits of Blockchain in our lives in the future?

• In which direction we are moving as we embrace the blockchain technology? 

• What are the inspiring aspects of Blockchain socially and economically and to what extent those dimensions and aspects will be expanding?

• Why some call the Blockchain a Trust Machine, or Certainty Machine?

• What is transparency when we use blockchain?

In this article as part of Crypto Competence we examine Blockchain as a new emerging technology. It is better to look at blockchain not only from technological point of view but also from socio-economical point of view, In addition we examine how blockchain is going to affect the next version of Internet, i.e., ‘Internet 3.0’.

Blockchain is a new terminology you might have heard about a number of times. What it means from many perspectives are listed in the above table. Accountants say it is a distributed leger of multiple entry replacing the double entry book keeping. It is said that, “blockchain and the world of accounting would be close bedfellows, working side by side to create the perfect system of asset recording, storage and administration”.

As you have noticed every one of these groups have certain explanation for it. They have understood it in certain way that make sense and is meaningful for them. While for developers is a database that is encrypted and is distributed for others such as finance, trade or commerce, it is a technology that maintain a ledger that is distributed.

For those who are involved technology itself blockchain is considered as an industry. And they are using blockchain as a foundation to create and develop the next internet, i.e., internet 3.0.

For economists and sociologists maybe other groups, is an economic, social and technological phenomenon to be utilized in solving economic, social and technological problems.

From whatever angle you look at blockchain it seems it is understood that it is here as a tool or a vehicle to shape the humanity, the community of, around the world in some sort and shape. The point is whatever blockchain is shaping, it is shaping it in a decentralised fashion. It is decentralised because it is created and managed by a peer-to-peer P2P network of people where everyone is equal in that network. It is in fact a technology that is moving us to a decentralised world.

Shaping it in a decentralized fashion, which means we do not need a person, a key person at the top to lead the rest of, um, group, but we will share, um, um, network, which is equally, uh, you know, um, which everybody is equal in that sense in that network. Therefore, for this group, it is for the rest of the board is a technology that is moving us to a world, which is decentralized.

The following example illustrates how does decentralisation works. In a democracy, we have prime minister as the head, the centre, of power, and ministers who are in hierarchy appointed by the prime minister are the next in power and in hierarchy. In this organisational chart Ministers are second in rank to the Prime Minister. Now if we reorganise according to a decentralised peer-to-peer network based on blockchain, then we will not have Prime Minister, rather, the Prime Minister also function as a minister and together with the other ministers forms a network of ministers who function collectively as the government. In this organisational chart all are ministers and all have equal in rank. There is no centre of power. The network has the power and make decisions by consensus, meaning all agree to the decision being made rather than one person as illustrated in the following diagram.

If we include prime minister as a minister and plus those ministers, we have a group of 20, 30, 40 ministers. These ministers become the network for the group.

There are a great number of people who are fascinated by this new network, as, new phenomenon.  Most people are interested in this new way or organisation for the first time in the history of the humanity. When people see themselves as equal partner in the network, they feel great. They function better as they can also contribute and be part of the decision-making process.

They start to have confidence in themselves and in the group and they can trust that, uh, that structure, it is immutable and un-hackable.  These networks could become large and even to hundreds of thousands or millions. The trust and transparency is highly observed in Bloch chain by the technology, via cryptography, and the structure of the blockchain. This is purely relied on the computer codes and computer programming, which is all based computer engineering and computer science. Therefore, what blockchain expands the capacity of human being for cooperation, for unity, and equality withing the network of people serving each other as well as their clients and customers. Therefore, this will increase new qualities between individuals and between members of the group that they can help each other into a better world, perhaps, a more united world in which there is no fear of fraud, theft, manipulation and deletion and interfering with the accounts by manipulation.

So far, these activities have been managed by a centralized organization, which always has had a key person at the top. That key person, may use his powers, wrap anything and hide anything because he has the power and he is in the charge of the whole operation. So, the key person can cheat, but they can manipulate and twist things to gain personal benefits/ Or get involved in frauds because they are in power. They can influence various decisions to their own financial benefits and gains. You may find examples of these in African countries in, middle East countries, Asian countries, South American countries.

As mentioned before, in this way, for the first time in the history of humanity, the people around the world can trust each other and they can have certainty about where they work, what they do and the network they are in. And they can get involved in a network around the world. In other words, humans can get involved with any network they like to cooperate to do. In this way, they are also equal to the people in the network, i.e., to the other people in the group.  Therefore, blockchain is connecting people in a network to serve each other and humanity. Blockchain increase the certainty and trust.

And the certainty and trust is not in the hands of a, a central figure who has been manipulating by using their power. We have inherited this type of organisation from the industrial age. The trust and transparency are in the blockchain technology and is in the cryptography. It is thus immutable and is also un-hackable. What is cryptography? We will talk about it in more details in the future chapters. In a nutshell, it is comprised of a number of computer codes, i.e., computer programming. This move will make and cause that the capacity of humanity or every human being the potential of every human being and be tapped and capacity of every human being increased for cooperation, for service, helping each other and helping the group and their network.

The blockchain technology doesn’t have a nation. Blockchain Technology is the for world, it’s for the whole humanity. Therefore, technology bringing the global community closer and closer. You may have discovered it yourself. Aeroplanes make the world like a global village, brought the world together. Internet made the world so connected like it is one country. Mobile phones brough the world even close. And now Block chain is bringing the whole world on our door steps very close and even it is moving us to global living and global unity of networks. Every network can be global to include people who want to be included in the network. This is amazing stage in the history of technology. What technology is doing is now moving us further towards a global community, towards globalism.

This technology is comprised of a bunch of codes, computer codes, and new framework that does not accept any fraud, any deletion. It is immutable and un-hackable.

Blockchain is getting rid of the central authoritative central figure,

There are many problems in the world that are global. Then we have national governments. We don’t have global government. National governments do not agree when facing global problems. They are not participating in global solutions. Rather they focus on the national problems.

So, who is going to care about global problems? No one. if big countries like China, big countries, like for example, Russia, like United States, or continents like Europe, sometimes they’re not interested to participate in something global. Either they avoid global solutions if it is not beneficial for them. Because it costs them and they do not want to lose money.

So, the situation is that blockchain is going to solve some of the global problems. It has the potential to all sorts of global problems.  Therefore, we, we make a conclusion here. Blockchain is a technological, social, financial, and economic dimensions of our lives. This is just the beginning. Block chain is an emerging industry and it is at its infancy and is evolving.