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The blockchain disruption
- 1. The Blockchain Disruption WHY ITEXCITES ME….
- 2. We all haveheard about bitcoin… For all the wrong reasons I guess…. Bitcoin is used to buy illegal drugs, traffic in arms and people, and to hide criminal gains. And it hasn't been stable: The price has shuffled around a lot, invoking something more like a casino, rather than something to build a prosperous, steady future on. But fundamentally Bitcoin is doing exactly what email did to internet when t all started. It is just starting the Blockchain revolution and we are just looking at the tip of iceberg right now.
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- 5. What is theblockchain? A blockchain is a ledger of digital events with no central database. It runs simultaneously across thousands of computers, distributing the record across the world. The blockchain is like a collective brain that no one controls and everyone can view. It's both public and private. As a user, you encrypt your personal information, only allowing that data to be revealed when you make a transaction, such as when you transfer bitcoin to another person. But currency isn't the only thing you can deal in. You can also store and transfer digital assets such as stocks, bonds, and airline miles. You can create digital IDs, allowing you to access secure web sites or sign documents.
- 6. Internet of Everythingneeds a Ledger of Everything.
- 7. More important inthe IOT era That's because the blockchain allows peer-to-peer relationships without "trusted intermediaries" and not only in human-to-human relations. It can also automate exchanges between machines. The new platform enables a reconciliation of digital records regarding just about everything in real time. In fact, soon billions of smart things in the physical world will be sensing, responding, communicating, buying their own electricity, and sharing important data, doing everything from protecting our environment to managing our health. This Internet of Everything needs a Ledger of Everything.
- 9. Transparency & Trust Aclear upgrade from the internet what we know today. When two parties transact through the blockchain, both sides can be sure that what took place just took place, and that the record of the transaction will be stored in perpetuity. And because changing anything in the ledger requires a majority of users agreeing to the change, to hack one block, you would have to hack all the other blocks that refer to it. So, it's theoretically incorruptible.
- 10. Implications Like the Internetitself, blockchain technology started as a niche pursuit of computer programmers. To be involved, you needed to download some obscure bitcoin program from some dodgy website. But, today, the blockchain is going mainstream, and it's losing its mysteriousness. In a country like India where there is extreme disparity across the population it will help issues like economic rights and economic inclusion. There are millions of people who do not have access to banks and financial tools. The blockchain can store and transfer value in a frictionless and cheaper way than today's financial networks because it doesn't require a bank that needs to make money on your account. “All you need is a smartphone and an internet connection.”
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- 12. Property rights Imagine doingaway with all the property disputes that are recorded in the judicial system every day and the years it takes to reconcile. When citizens don't have formal property rights, they live in fear that it could be appropriated at any time. They also can't approach a bank to get a loan to improve the home, and thus up its value. The blockchain won't actually enforce rights if someone comes to door with a gun in their hands. But it could create useful records, making expropriation more difficult. Every time there's a discrepancy, you can check if the data have been changed. It's like the proof is on the Internet.
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- 14. Remittances The blockchain couldreduce the cost of sending "remittances" from people living in rich countries to relatives who live in poorer ones. Total remittance flows to India last year was $72.2 billion. And yet, they currently come with high transaction costs. For example, to send Rs.100 in cash from the U.S. to India using Western Union incurs Rs.11 in fees. Abra, which received $12 million in venture capital funding last year, uses the blockchain to enable person-to-person payments without going through a conventional agent network. Instead, it employs its own users as tellers. To send money, you deposit funds into an account, using either a debit card, or by meeting up with another user and handing them cash. The money is converted to bitcoin and transferred to a mobile phone overseas. The recipient finds another local teller, either a person or a participating business, who converts the digital cash back into local currency. Both tellers set their own rates for helping out, with Abra also taking a small cut. Crucially, using the service requires no technical knowledge of bitcoin or blockchain architectures. Indeed, Abra is a good example of how bitcoin/blockchain is now being made consumer-friendly. It took Western Union 150 years to get to 500,000 agents worldwide. Abra will have as many tellers in its first six months.
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- 16. Supply chains From woodfurniture to cotton T-shirts, many products these days claim to be responsibly sourced. But sometimes it's hard to trust these claims are true. Did that organic cotton really come from that farm in Turkey? And was that meat really raised on such-and-such farm and brought to the city on Monday last week? At the moment, we just have to trust the supplier and the retailer that what they're saying is accurate. It allows suppliers and merchants to map and track supply chains, creating open and inviolable records of product development and delivery. And, importantly, it also lets certification bodies like FSSAI assert that what happened in the chain actually took place. It means we can have certifications registered in an open database that's fully transparent and trusted, because it's impossible to change it. Well the Maggi episode might not have happened or avoided by using blockchain technology.
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- 18. Foreign aid Billions ofdollars in foreign aid flow to developing countries each year, but often this money doesn't deliver full value. As per UN figures roughly 30% of foreign aid never reaches its destination or it's misspent on the wrong things. This is especially true after natural disasters, like the Nepal earthquake, when large amounts are sent in lump sums and local systems aren't equipped to cope. The blockchain could be used to transfer digital cash, thus bypassing middlemen who are either expensive or outright corrupt. There would be a ledger offering an ongoing accounting of transfer, and the money could go directly to recipients' phones, so they could make their own decisions about how to spend the donations. Moreover, using "smart contracts," donors could tie money to pre-agreed milestones on the ground.
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- 20. Universal Identity We allknow how well has the Aadhar program is being conducted in India. The lack of IDs currently limits access to education, health, and other social services. The use of blockchain could mean existence of people who have no official record or accurate records for those who are on them. No falsification and no duplication. UNICEF recently announced a $9 million fund to invest in tech startups, including those working on blockchain applications. Bitnation, a "decentralized governance" initiative, already offers BlockchainIDs, letting anyone become "world citizens" beyond their normal passport status. Syrian refugees, for instance, can also claim "emergency IDs" if they've lost their conventional papers.
- 22. True sharing economy Theblockchain could allow us to share goods and services in a less intermediary-centric way, thus enabling cheaper and more frictionless transactions. There would be blockchain cooperatives where assets, like cars, are programmed to be shared, according to "smart contracts" set up on the network. So, for example, you might drive your Tesla to work, then put it into autonomous "sharing" mode. It would then leave the parking lot and make its way onto the road, where it could be hailed by anyone on the blockchain network. Uber, for example, keeps 20% of the fee you pay when you exit a participating vehicle. You will see intermediaries like these obviated in transactions which will be peer-to-peer.
- 23. Also read The Futurein Balance: 2020 https://digivine.wordpress.com/2015/10/20/the -future-in-balance-2025/