blockchain: what can it do? quick intro (1)
TRANSCRIPT
The BlockchainGives every object an online economic identity
No third parties Direct peer-to-peer exchange globally
The biggest innovation since the internetGlobal financial/commercial inclusion
The Problem: E-commerce & Third Parties
In the age of the internet why can’t we simply trade online directly with anyone else in the world without the need for a third party?
We still rely on the existence of payment gateways, banks, visa, mastercard and other third party infrastructure. For me to participate I have to create accounts, provide personal information and pay fees to them. I cannot participate globally, until they offer me this service.
Centralised third parties are created to perform functions we are not capable of doing ourselves. In this case they are there to ensure trust between parties trading at distance i.e. SWIFT banking.
DavidBank/Network of clearing houses Dennis
The internetThe internet gives all objects that we own a digital identity. We can list them on an online store, or we can advertise it on facebook or websites. We can do this online ourselves without the need for a third party simply by using the internet.
The internet does not give our assets a digital economic identity.
I still need to work with a third party to exchange assets of value online. These third parties by proxy give my assets a digital economic identity
“I” cannot sell my shirt or my shoes online. “I” cannot send money from America to PNG. “I” cannot do any of this. Instead “I” am completely dependent on a middleman to create, implement, establish and maintain their e-commerce infrastructure i.e. a payment gateway.
The blockchain allows us to leapfrog this requirement from centralised bureaucracy to technologically driven decentralised networks facilitating direct peer-to-peer trade anywhere near instantly. A unique digital asset sent from one party to another with little to no friction. The only prerequisite is internet access.
The blockchainGives my assets a digital economic identity.
I can now transact with anyone else on the internet directly peer-to-peer without the need for a central third party. I can sell my shirt online to anyone without a bank account, a credit card etc I just need internet and a smartphone. Registering an account is as easy as opening up an email account.
People are now empowered to act as their own banks or third party institutions when trading at distance b
As opposed to the current system the blockchain is a decentralised and distributed ledger. It records every transaction on the network publically viewable by all. Completely cryptographically secure. More secure than credit cards.
No more middlemanBecause the ledger is available to all there is no reliance on any one party.
Near instant settlement, low cost, global financial inclusion, low barriers to entry.
Only prerequisite is internet access
Once ownership of an asset is recorded and approved by the network this is final. Proof of ownership cannot be altered until ownership has been transferred by an exchange on the blockchain.
Increased liquidity, increased transparency and auditability. Proof of ownership
Trade directly between parties without the need for a third party. Anyone, anywhere, anytime.
What the internet did for information and communication: The blockchain will do for global trade, commerce and proof of ownership
Take a minuteThink about every inefficiency brought about by over-reliance on central third party institutions.Time delays, inaccurate record keeping, lack of transparency, high fees and charges etc
Now think about the possibilities
Direct peer-to-peer trade. Every object you own can be registered online and exchanged online directly with anyone else with no third party infrastructure needed.The only thing you need is internet connection i.e. a smartphone.
No More Middle MenDavid DennisThe Blockchain
Vs
Sending money via banks (with third party) Sending money via the blockchain
Use casesBanking the unbankedProperty title registryTransparent voting
National and International IdentificationInternet of things
Increased liquidity in paymentsFx Cross-border payments
Much much more…
The blockchain in 2016.The personal computer in 1975. The internet in 1993. The blockchain in 2014. The biggest innovation since the internet.
Particularly important for developing countries
Opportunities for investment and entrepreneurship.