Beneath this mask, there is an idea, and ideas are bulletproof- What is blockchain- beginner guide
Hello, everyone! Today, we’re embarking on a thrilling journey through the digital cosmos, where we’ll uncover the fascinating evolution of the internet — a concept once dismissed as a fleeting fancy, yet ultimately revolutionizing our world. We’ll also peer into the horizon of blockchain technology, a frontier I believe is poised to create a seismic shift in our future.
The Internet: Our Indispensable Companion
What’s that one indispensable tool in our lives that shapes our routines, empowers our work, bridges our communication, and captivates our leisure hours? As hinted in the title, it’s the internet. But was it always this integral since its inception? What were the initial reactions to this digital marvel, and did people truly grasp its potential? Let’s dive deeper.
Every great invention begins with a spark of imagination. The internet was no exception. Its conceptual roots can be traced back to Belgian visionary Paul Otlet, who first dreamt of a universally accessible network. Its technical journey began with early computer networking in the 1950s. Through a series of pioneering efforts, the internet evolved, ushering in transformative applications like email, online shopping, and video calls by the mid-1990s. This era marked the public’s introduction to the “World Wide Web.” But what was the initial reception like?
Like many groundbreaking innovations, the internet was met with skepticism. To say people were cautious would be an understatement. Many dismissed it as a transient trend, soon to be forgotten. The notion of digital communication seemed superfluous to some. Reflecting on this era in a 1999 interview, Elon Musk, remarked:
“In 1995, there weren’t many people on the internet, and almost nobody was making money from it. People thought the internet was a fad.”
But let’s ponder: Why was the Internet birthed? What void did it fill? What problem did it resolve? What did it accelerate?
The internet bridged a crucial communication gap, enabling instant, global connectivity. It transformed the way we communicate, shop, and stay informed. By streamlining supply chains, it offered global accessibility at our fingertips. It reshaped journalism, challenging government opacities and enlightening the public about worldwide events as they unfolded. It evolved protest cultures by facilitating mass mobilization. In transportation, it simplified navigation and travel planning. In essence, the internet made the world accessible from the palm of our hand. Guitar legend Carlos Santana of the band Santana eloquently captured its essence:
“ The internet should be a path to a world where there are no boundaries, obstacles, flags, or countries, and the only passport you carry.”
Intriguing, isn’t it? A world united under one passport, one heart. Can we attain such a global unity? How much further can we expand the internet’s horizons? I’ll delve into this in the upcoming section on the metaverse, but for now, I invite your thoughts and perspectives in the comments.
2- Blockchain and Cryptocurrencies: Beyond Just Digital Money
In drawing parallels with the internet, I aim to highlight the revolutionary potential of blockchain technology, which, much like its digital predecessor, is still in its early stages of adoption. Skepticism mirrors that of the internet’s nascent years, as major countries are yet to fully embrace this innovation. This is the very reason I began with the internet, a journey of skepticism turned triumph.
“There is nothing more powerful than an idea whose time has come.” -Victor Hugo
Firstly, let’s demystify a common misconception: blockchain is not synonymous with cryptocurrency. Cryptocurrency is merely one application within the broader ecosystem of blockchain technology. So, what exactly is blockchain?
Imagine a series of blocks and chains. Visualize these blocks as journals, each filled with detailed entries. The chains symbolize the linkage of these journals in a chronological, unbreakable sequence. Picture you’re jotting down notes for an exam in one journal. Once it’s full, you don’t erase its contents to reuse it; you start a new journal, continuing from where you left off. The blockchain operates similarly, building a continuous, irreversible chain of data blocks.
Consider this real-world application: selling a house. Traditionally, this transaction involves land registries and governmental paperwork. Now, envision executing this process entirely online, where the transaction is instantaneously recorded in a blockchain system, eliminating the need for physical registries. This is not just a possibility but a future we’re swiftly approaching. Embracing and understanding this technology is pivotal.
If you’re enjoying this exploration of blockchain’s transformative power, feel free to take a break and express your appreciation with a round of applause — you can applaud up to 50 times!
Now, let’s delve into the myriad changes blockchain technology is poised to bring, especially in the financial sector. We’ll draw insights from the Deloitte 2021 Global Blockchain Survey, as featured in the October 2021 issue of Harvard Business Review.
We’ll explore blockchain’s impact across diverse fields: medical records, identity management, food traceability, voting, insurance and claim processing, banking, cross-border payments, letters of credit in international trade, certificates of origin, shipping documents, incident tracking systems, NFTs (Non-Fungible Tokens), applications in local governments, social aids, regulatory compliance, open data, and the burgeoning world of smart contracts…
Now, let’s see what those in the finance sector think about this. In Deloitte’s survey, financial executives were asked whether they agreed with these statements:
1- “I believe digital assets will be somewhat or very important in our industry in the next 24 months.”
79% of financial executives agreed with this statement.
2- “I believe digital assets will be a strong or partial alternative to legal tender currencies or replace them in the next 5 to 10 years.”
76% of financial executives agreed with this statement.
Now, let’s talk about cryptocurrencies. First, for those who don’t know what a cryptocurrency is, let me explain it in points:
1-Cryptocurrency is not Bitcoin; Bitcoin is a type of cryptocurrency.
2-Cryptocurrencies are divided into coins and tokens.
3-Coins have their projects and blockchains.
4-Tokens, on the other hand, are found on different blockchains.
5-The value of these assets depends on supply and demand.
6-Bitcoin, the first cryptocurrency, is quite simple in terms of its project. It was the first to use the blockchain system financially, creating a revolution.
7-Bitcoin was designed to allow people to send money to each other 24/7, with very low commissions and at a high speed.
8-There are thousands of coins in the cryptocurrency market. Each has a “whitepaper” explaining its project, which can provide valuable insights.
Cryptocurrencies: Pioneering the Future’s Financial Landscape
Cryptocurrencies, despite their infancy, are poised to be pivotal in shaping the future’s financial fabric. It’s crucial that we set aside our biases and strive to understand, and even champion, this burgeoning market. It’s teeming with groundbreaking projects that promise to revolutionize our world. Why not be creators in this field? Why not contribute to the evolution of global technology?
Reflecting on blockchain, let’s revisit the questions we posed about the internet. Why was blockchain developed? What gap does it intend to fill? What problem does it aim to solve? What will it accelerate?
Blockchain’s journey began in 2008, introduced by the enigmatic Satoshi Nakamoto, with conceptual roots dating back to 1991. To understand its purpose, let’s turn to a passage from “The Truth About Blockchain” by Marco Iansiti and Karim R. Lakhani, featured in Harvard Business Review’s February 2017 issue:
“An open, distributed ledger that can efficiently record transactions between two parties in a verifiable and permanent way.”
Blockchain addresses a critical inefficiency in the financial sector: sluggishness. Imagine transferring large sums instantly, bypassing the cumbersome procedures of traditional banking, and avoiding hefty transaction fees. Blockchain enables secure transactions anytime, anywhere. Smart contracts will simplify daily transactions, offering lower-cost alternatives to conventional banking services. Insurance processes will become more streamlined and cost-effective. Inconveniences related to institutions like land registries, notaries, and marriage offices will be a thing of the past, as decentralized systems handle these records, contingent on meeting specific conditions. The scope of blockchain’s impact is vast and continually expanding.
Recall our discussion on the internet — a limitless domain. This applies to blockchain as well. Elon Musk, a prominent figure in the tech world, has been a vocal advocate for blockchain and cryptocurrencies, despite facing criticism and accusations of market manipulation. His support mirrors the initial skepticism towards the internet. As familiarity with blockchain grows, so does its acceptance. Skeptics, often uninformed, may doubt its longevity, but history has shown us that today’s skepticism often turns into tomorrow’s norm. The transition from skepticism to integration will be swifter with blockchain than it was with the internet. What seems speculative today might become indispensable in a mere five years.
Every idea, project, and technology holds significance. New ideas often intimidate those in power because they signal change, and change redistributes power dynamics. This article is a tribute to the thinkers, the debaters, the activists — to everyone who cares about our world and our future. I leave you with a poignant quote from the film V for Vendetta:
“Behind this mask is more than just flesh. Beneath this mask, there is an idea, and ideas are bulletproof.”
If this exploration of blockchain and its transformative potential resonates with you, don’t hesitate to show your support. Remember, you can applaud up to 50 times!
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