On Misunderstanding the Purpose of the Blockchain Technology

Аlех Оsh
Jun 11, 2018 · 3 min read

The big corporate world doesn’t completely get it .

Quote from the report by Deloitte: “Tokens are digital representations of ownership of currency, equity, and other tangible or intangible assets. Some benefits of tokenizing assets include increased speed of transaction settlement, increased liquidity of assets and mitigation of investment risk.”

No. Tokens are much, much, much more.

I think there’s also some misunderstanding about trust and trustlessness. Below is the complete quote from IBM’s handbook for business owners about determining blockchain fit. They suppose your business needs modernisation through blockchain only if you have some issues with trust.

This looks weird, and ultimately, wrong. An attempt to place a permissioned large-corp-led blockchain in the position of the ultimate trust source is an unneeded fantasy of semi-messianic redemption. By the way, the other useful-to-know-about extreme of the wrong is here.

I think no single stand-alone platform can create any “above-average” trust by definition (except for BTC, but that’s another story, tokens on top of Bitcoin won’t have the full decentralisation of bitcoins). But when we are talking about dozens of collaboration platforms and thousands of tokens that constitute the ecosystem, we shouldn’t worry too much, on average. It surely won’t get any worse than today and today is not that fatally bad.

We are wrongly tamed. We are all too scared about having to trust someone. We transfer our reasonable fears of monopolies such as Facebook to smaller companies, which are all closed black boxes too. Every time you do business with a large service, it feels like playing an extension to the classic pirate game where you are exactly at the end of the chain. They don’t even talk to you these days.

In crypto, it will be different. Systems are pretty compatible and people can migrate (or fork, if there’s a crowd big enough).

And, after all, there’s no need to trust each other. We don’t need blockchain to act as an intermediary between companies and our own paranoia.

On the contrary, business is a trustless game and it’s going on! Here are some less typical hints for good students: rich people are more unethical and testosterone levels aggravate that; aversion to the economic risk (losing money or opportunity) has been proven to be lower than aversion to being betrayed; the reciprocal feedback method which centralised monopolies like Airbnb deploy actually spoils reputation information and trade efficiency.

Have fun!

Programmable Economics

Journal by https://www.ple.services

Аlех Оsh

Written by

Programmable Economics

Journal by https://www.ple.services