On Tokens and Markets -2
Find Part(1/2) here for reference.
During most of my Interactions in Singapore, Dubai & Mumbai, I realised that some of the smartest people I know are still oblivious to developments in Blockchain. While several people are caught up in the currency aspect of Bitcoin and other crypto networks, Crypto-networks such as the bitcoin blockchain are in fact enabled by four key innovations which have evolved over the last 20–30 years –
Cryptography(256 bit encryption)
There were significant advances in 256-bit encryption technology and cost
We saw multiple implementations of p2p networks over the last 20 years!
The key issue with p2p networks is that intermediary nodes can alter transactions without the sender or the receiver knowing that the transaction is altered.
Proof of work/proof of stake or other governance models
The incentive structure implicit to public blockchain networks
The true Game-changer
The convergence of these innovations solve for byzantine general’s problem, which in layman terms means that anonymous parties anywhere on the internet can now transact value without the need for traditional third party enforcement rules. THIS is extremely powerful towards creating a new mechanism for transfer of value & global trade.
Ledgers have existed since before verbal language did, but this is the first time in history of trade that we have means of creating consensus over distributed nodes at scale. We now have the ability to can now create ‘programmable money’. The entire monetary issuance and governance systems is being re-invented. This is a radical concept and not easy to digest when our frameworks have been fine tuned to believe that money is green & money is supposed to do x, y & z. Have a look at my friend Siddharth Sthalekar’s company https://sacred.capital/#/ to get a better understanding of what this might look like in the future.
Turing Complete Systems
Ethereum took the use case to the next level with Turing complete systems implemented on top of the blockchain. Since then we have seen an outburst of new projects built on top of the ERC 20 standard. New methods of corporate governance such as the DAO, in addition to new means of capital formation via ICOs/TGEs have seen a burst of energy move into the space.
CZ from Binance talks about the importance of ICOs here — https://medium.com/binanceexchange/icos-not-just-good-to-have-but-necessary-543916b7e76
World’s Largest Stock Market/ Trade network
If all a company/corporation is, is a series of contracts running certain instruction sets, then those instruction sets can now be extrapolated and implemented in a distributed system of general consensus using the blockchain. Up until a solution to Byzantine generals’ problems was presented by Satoshi, it was only theoretical to discuss large scale trust-less systems. The blockchain allows us to take the rules of a central network and distribute the same set of rules in a trust-less system where- code is law! We are still very early in understanding how this will affect current economic frameworks, but we are on track to see entirely new wealth systems being created in the near future.
Balaji S Srinivasan ( Founder of 21.co) talks about this topic in depth in this CNBC article: https://www.cnbc.com/2017/09/05/balaji-srinivasan-21-co-interview-on-blockchain.html
We at www.zenprivex.com believe that we are witnessing the creation of an entirely new asset class which will unlock significant value in global economy and trade. This is why we are proud to announce the launch of www.108token.com. This single token gives average investors access to the fast growing asset class!