Blockchain Technology is Changing the World's Institutions
In 2009, Bitcoin became the world's first decentralized virtual currency and launched the first commercial use of blockchain technology. Since that time, Bitcoin's blockchain has caused a massive crack in the foundation upon which all traditional institutions rest.
Government's don't issue bitcoin currency, the platform requires no corporation to function, and its blockchain transfers monetary value without a bank. While Bitcoin virtual currency is accepted around the world, it is not legal tender in any jurisdiction. Because of its decentralized blockchain, no government can shut it down or block any of its person-to-person transactions.
The blockchain is a new method of recording information in a digital database. While bitcoin introduced the world to blockchain technology, the term “blockchain” does not always reference Bitcoin. This innovative decentralized technology can be used anywhere to record and maintain many types of data.
Modern societies around the world trade and exchange value represented as a national currency, goods, services, and even information. Formal institutions such as banks, corporations, and governments are the established mechanisms that facilitate, regulate, record, and maintain trade. Consequently, these hierarchal and centralized institutions have become the de facto gatekeepers of society's money, property, and information.
In past centuries, gatekeepers were able to accumulate massive amounts of wealth and power because of centralized networks; where only a few influential individuals controlled and regulated trade.
With the introduction of blockchains, this old centralized power structure is now experiencing a seismic shift which is lessening the gatekeepers' grip on society's historic formal institutions. Blockchain technology is a critical innovation that may eventually replace most of these notorious monoliths.
In 2018, blockchains have started to erode power from the gatekeepers' institutions by transplanting centralized control of society's assets to trusted decentralized blockchains.
While bitcoin currency is not a likely tool for changing the world; blockchains were designed for this task. It is accurate to state that every bank and government in the world are currently discussing blockchain technology. Blockchain technology is an elephant in the room.
Blockchains facilitate the exchange of value and information through a distributed cryptographically secure platform and not a centralized control mechanism such as a bank, company, or government agency. Commercial blockchains eliminate the past authority and control that traditional institutions have maintained over money, property, and information.
The tasks accomplished through a decentralized blockchain allow users to enter guaranteed binding legal contacts without the need for a third party. It is the blockchain smart contract, not the third party institution, that provides the guarantees and contact enforcement without the bank or corporation getting in the way.
We no longer need to trust a bank's centralized server to record financial transactions and maintain an authentic account balance. A decentralized blockchain precisely delivers these services without the need of a third party, and without the expense of a bank.
We no longer need to use the government's money. Privately issued digital currencies, which are not legal tender and circulate outside of banking channels, are recognized and accepted as digital units of trade and monetary value.
We no longer need to establish a government-sanctioned corporation to raise funds, issue stock, or offer shareholder voting rights. The features are all available through decentralized blockchain organizations, Initial Coin Offerings, and security tokens.
Bitcoin's blockchain has demonstrated how the financial world can function beyond the reach of the world's established institutions; and beyond the control of existing centralized powerbases. Blockchain technology dissolves the gatekeepers' power.
Modern blockchain technology is quietly replacing society's old institutions by eroding their authority, eliminating the need for gatekeepers, and re-distributing control through decentralized organizations. Blockchains facilitate the exchange of value without any involvement from those old gatekeeper institutions.
Can you imagine a world where free bank accounts and credit lines are available and accessible to every person on earth through a cell phone? Blockchain technology levels the playing field for humanity and will eventually replace most of society's old established institutions.
Without bank or government supervision, blockchain technology allows us to execute instant online immutable global financial transactions with any other party in the world. A blockchain can also provide us with trusted digital credentials from a previously unknown party and the enforcement of a smart contract without the need or cost of a trusted third party intermediary. The blockchain can also efficiently facilitate the tracking of products shipped to our homes.
Bitcoin introduced the world to blockchain technology, and it is changing the world. You can either recognize this innovation or be left behind!