We stand at a unique moment in history. Our society is transitioning from the industrial economy to a society stipulated by new technologies ranging from nanotechnology to digitalization. Blockchain is one of the latest waves of digitization.
It is a technology that promises to redefine transparency, trust as well as inclusion throughout the world. However, as per research, blockchain technology is relatively new and can also lead to many issues as it solves. Blockchain refers to a response to the prevailing changes in our era.
By now, many of us have wondered and read-aloud regarding the impact and idea of blockchain in its numerous forms as well as manifestations on how everything is done today. Innumerable numbers of detailed analyses by digital experts surface in the media every day. There are articles and news regarding experimental pilot projects and industry consortiums. A plethora of startups is already providing numerous software solutions and platforms.
Many people consider blockchain as a transformative agent so revolutionary that very soon it is likely to redefine industries by transforming underlying business processes and business models. They see far-reaching and immediate consequences, particularly in payments and banks. Yet, others dismiss it as a brainchild of technical geeks. It refers to staple nourishment provided at industry conferences and till blockchain gives way to something more emblematic and alluring.
The technology of blockchain might not be disruptive in its strategic sense, however, it represents breakthrough strategic thinking when technology is taken into consideration. If it happens to live up to its promise, it comes with the potential of rewriting the business models of the industry and workflows on solid digital foundations.
Perhaps one of the primary reasons that blockchain technology has got so much attention signifies as it speaks to something that people globally happen to be feeling instinctive. It appeals to various people as a possible solution as it is all about applying a counterintuitive approach to issues despite the usual technology deterministic perspective of how it is discussed.
Blockchain enthusiasts have identified numerous industrial applications in all industry sectors. Among them, very few come with strategic merit. People witnessing its potential know that it will require a long time concerning business infrastructure to transform from what it is now to something autonomous, automated, and inclusive decentralized infrastructure platform that will facilitate businesses to be carried out directly between transacting parties. The first bilateral applications of blockchain are to be discovered in payments and finance.
Bilateral Approach of Blockchain
Bitcoin is dependent on the foundational technology of blockchain. Credit card payments, bank account transfers, and all the numerous payment services that happen to be available throughout the world need intermediaries for exchanging value and transferring money between two parties.
Maximum transactions happen to be done utilizing settlement and clearing processes. Payments through banking networks first happen to be cleared and then settled. Here’s where blockchain comes in. Blockchain helps eliminate mediator accepted mechanisms of settlement and clearing. Rather than a central processing entity, coins or digital tokens with intrinsic value happen to be exchanged between parties. It is a process similar to exchanging real coins or cash that does not incorporate a mediator.
While the technology of blockchain helps with bilateral trade, there is no reason why multilateral or other forms of pre-programmed logic for managing relationships throughout multiple parties cannot be done.
Multilateral Approach of Blockchain
One of the key issues that demand a multilateral approach is digital technology regulation. Although numerous initiatives have been created globally for establishing such a regulation, we need to widen the knowledge of those attempts along with the principles of human rights throughout the digital industry.
For instance, blockchain is entirely cross-border. It understands no national boundaries as both technology or a currency and it requires a multilateral and unified approach to regulation. It additionally demands that those operating within the civil services globally be just more than technically aware. They are required to know how regulations might be interpreted in code. Smart contracts require inclusion as well as the diversity of thought. We cannot neglect the codification concerning social norms into smart contracts to be managed by startups solely as the procedure in which they happen to be implemented possesses a huge impact on people and thus requires it to be managed throughout society.
Education happens to be critical not only for government leaders or civil service professionals but for all. In the similar manner that we acknowledge the traffic rules, we are required to be taught how to maintain the data highways based on which our society is now being developed. According to research, approximately one-third of the total population can understand the statistics and data that constitute the outputs concerning the open data movement.
It goes much further when it comes to blockchain, demanding that citizens completely access the new approach to managing data and acknowledging the key management principles and cryptography. Else they are likely to face losing government services or their money. Transitioning into an entirely digital economy without upgrading the education systems can be considered as a sure-shot recipe for disaster to come.
By comparing the best of both worlds, it can be concluded that – by developing appropriate multilateral solutions, we can address the current developing technologies and possess reasonable perspectives for ones that have not been considered yet. It is the reason why it is essential to engage with new technologies. Apart from rejecting or accepting such technologies in an outright manner, we need to give them notable consideration and work collectively to address and assess their impact.