Blockchain is trustless. Why this could be the new revolution of the 21st century business?

digital currencies, blockchain, trust

We need to see things differently in a world of globalization. For many people, trust is still important.

When it comes to blockchain, where it is possible to do operations or contracts without a middle-person or trust, it is, for many people, still just a joke.

Globalization and effectivity

As the world becomes more like one big village, we need to allocate things effectively. All of them. We know how to do it with money, because we have internet banking. But what about the other things? Why can’t we work with them in the same way?
Blockchain has allowed us to run the economy based on the transmission of information. Such as smart property, cryptographic keys or electronic signatures. This information means we own something, and concept of ownership is a basis for economy.

What does it really mean – trustless

Many people still believe that trust is needed. They put their money in a bank, because they trust it. Banks lend money to people, because they trust people (after obtaining necessary information about them, of course). However, in the case of a bank going bankrupt or people developing an inability to pay, the trust vanishes. In many cases a person can realize, that trust is only relative.
On the other side, blockchain is offering creation of a smart contract, in which all conditions have to be fulfilled no matter the circumstances. We don’t even need to know the other side or need a middle-person to do the business, which can be carried out instantly and over the whole globe.

From one machine to another

Machine-to-machine or M2M business has the potential to make things easier, because it will increase the safety and liquidity. If you look at it from another point of view, you can use this concept everywhere. For example: marketing, insurance, production companies could all become obsolete middle-man concepts. Machines could use digital currencies for their transactions and here we are – a completely new business model is here.

Conclusion

All of that was just a sci-fi a few years ago and nothing more. Almost no one could’ve imagined machines being able to do this kind of jobs. But we’re getting there. Maybe in the future there will not be the need for banks, insurance companies, brokers, real estate agents, publishing companies, and any other such middle-man profession that comes up to your mind.
Source: Splinter.cz

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