A Blockchain researcher, entrepreneur and educator, Bettina Warburg, describes how the blockchain will eliminate the need for centralized institution, to facilitate trade, evolving age- old models of commerce and finance into something far more interesting – a distributed, transparent, autonomous system for exchanging value. Warburg believes that we are entering a further and radical evolution of how we interact and trade – using technology alone.
Blockchain and the Economy
“Blockchain new technological institution that will fundamentally change how people exchange value; and also a continuation of every human story,” Warburg stated. “For as humans, it finds ways to lower uncertainty,” she continues.
Douglass North is the first person who explored the idea of institution as a tool in economics to lower uncertainty. This institution allows the economic wheels to function efficiently. North also saw this institution as tool to lower uncertainty so that people can connect and exchange all kind of value in the society. This is very much applicable in cryptocurrencies, particularly Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and more.
Blockchain is a decentralized database that stores a registry of assets and transactions across a peer-to-peer network. Transactions in cryptocurrency markets are secured through cryptography. The transaction history is locked in blocks of data that are cryptographically linked together and secured.
Cryptocurrency transactions are recorded immutably across the Blockchain network. Every record is replicated on every computer that uses this network. That being said, Blockchain can be compared to Wikipedia because it is an open infrastructure that stores many kind of assets, history of custodians, ownership, and location for assets like the digital currency Bitcoin, as well as other assets like a tittle of ownership of IP, certificate, contract, and personal identifiable information.
How Will Blockchain Lower The Uncertainty as promised to transform economy?
There are 3 forms of uncertainty which people deal with
- not knowing who is dealing with
- not having visibility into transaction
- not having recourse if things goes wrong
Blockchain allows us to create an open global platform in which to store any attestation about any individual from any source. It also allows a user controlled identity and create a shared reality across non trusting entities.
Furthermore, it can create a decentralized database that has the same efficiency like monopoly without creating that central authority. It can write codes and binding contracts between individuals without a third party enforcer.
Blockchain is not just an economic evolution it is also an innovation in computer science.That gives a technical capability of creating a record of human exchange.
Warburg believes that the people are about to face the world were distributed autonomous institutions have quite a significant role.