The Blockchain Revolution And The End of Trust in Crypto

Societies naturally organise by creating centers of power, starting with head of the family, on to the village chief, and all the way up to the European Union and United Nations.

Centralisation is a good thing, and has led to rapid evolution of society, with institutions such as banks, railways, corporates, governments, etc. all coming to play.

The blockchain revolution and the end of trust
hitwill (60) in blockchain • yesterday
“One Ring to rule them all
One ring to find them,
One ring to bring them all,
And in the darkness bind them,
In the land of Mordor
where shadows lie”

The one ring

In the classic, the “Lord of the Rings”, Sauron’s ring was a coveted tool of power that let the holder control those connected to it. The story shows how men struggled with an object of power, which though first intended for good, ultimately corrupted all that touched it.

Societies and centers of power
Societies naturally organise by creating centers of power, starting with head of the family, on to the village chief, and all the way up to the European Union and United Nations.

Centralisation is a good thing, and has led to rapid evolution of society, with institutions such as banks, railways, corporates, governments, etc. all coming to play.
Big Corp
credit: barewalls.com

However, centralisation also means that we have to yield power to those we trust, and they have not always acted in our best interests. Recent examples include:

Enron - The billion dollar company that was embroiled in accounts-fraud and insider trading, where executives sold stocks to the public they knew were worthless, in the months leading Enron's bankruptcy.
2008 Credit Crisis - Resulted from risky mortgage products and lax lending standards by banks, which then repackaged bad loans and sold them to unsuspecting countries. This led to the financial crisis spreading in Germany, UK, Ireland and other European nations.
Banks failing - This happens more often than we realise, with a recent example being ABLV, Latvia's third largest bank failing under accusations of money laundering.
Corrupt fiscal policy and failed nation states - Countries that have printed their money to levels where inflation becomes detrimental include Germany, Zimbabwe and Venzuela. In 1971 the US ended the gold standard, after other nations realised it had been printing more currency than it could back with Gold.
Supply chains - that harm the environment, people or animals in developing countries to provide their customers with cheaper products. Apple was recently discovered to having its products made with poor labour practices, that involved children.
Social media data exploitation by large companies who own, farm and sell your personal information.
Land rights - Powerful officials in poorer countries regularly grab property because citizens are unable to provide substantial proof of ownership.