The Business Blockchain. Mougayar William

or as just a publishing platform. These are necessary but not sufficient conditions or properties; blockchains are also greater than the sum of their parts.

      Blockchain proponents believe that trust should be free, and not in the hands of central forces that tax it, or control it in one form or another (e.g., fees, access rights, or permissions). They believe that trust can be and should be part of peer-to-peer relationships, facilitated by technology that can enforce it. Trust can be coded up, and it can be computed to be true or false by way of mathematically-backed certainty, that is enforced by powerful encryption to cement it. In essence, trust is replaced by cryptographic proofs, and trust is maintained by a network of trusted computers (honest nodes) that ensure its security, as contrasted with single entities who create overhead or unnecessary bureaucracy around it.

      If blockchains are a new way to implement trusted transactions without trusted intermediaries, soon we'll end up with intermediary-less trust. Policy makers who regulated “trusted” institutions like banks will face a dilemma. How can you regulate something that is evaporating? They will need to update their old regulations.

      Intermediary-controlled trust came with some friction, but now, with the blockchain, we can have frictionless trust. So, when trust is “free” (even if it still needs to be earned), what happens next? Naturally, trust will follow the path of least resistance, and will become gradually decentralized towards the edges of the network.

      Blockchains also enable assets and value to be exchanged, providing a new, speedy rail for moving value of all kinds without unnecessary intermediaries.

      As back-end infrastructure, blockchains are metaphorically the ultimate, non-stop computers. Once launched, they never go down, because of the incredible amount of resiliency they offer. There is no single point of failure unlike how bank systems have gone down, cloud-based services have gone down, but bona fide blockchains keep computing.

      The Internet was about replacing some intermediaries. Now the blockchain is about replacing other intermediaries once again. But it's also about creating new ones. And so was the Web. Current intermediaries will need to figure out how their roles will be affected, while others are angling to take a piece of the new pie in the race to “decentralize everything.”

      The world is preoccupied with dissecting, analyzing and prognosticating on the blockchain's future; technologists, entrepreneurs, and enterprises are wondering if it is to be considered vitamin or poison.

      Today, we're saying blockchain does this or that, but tomorrow blockchains will be rather invisible; we will talk more about what they enable. Just like the Internet or the Web, and just like databases, the blockchain brings with it a new language.

      From the mid-1950s forward, as IT evolved, we became accustomed to a new language: mainframes, databases, networks, servers, software, operating systems, and programming languages. Since the early 1990s, the Internet ushered in another lexicon: browsing, website, Java, blogging, TCP/IP, SMTP, HTTP, URLs, and HTML. Today, the blockchain brings with it yet another new repertoire: consensus algorithms, smart contracts, distributed ledgers, oracles, digital wallets, and transaction blocks.

      1

      “A Next-Generation Smart Contract and Decentralized Application Platform,” https://github.com/ethereum/wiki/wiki/White-Paper#ethereum.

      2

      “On Silos,”

1

“A Next-Generation Smart Contract and Decentralized Application Platform,” https://github.com/ethereum/wiki/wiki/White-Paper#ethereum.

2

“On Silos,” https://blog.ethereum.org/2014/12/31/silos/.