Corporate adoption is killing blockchain, but Bitcoin will live on
by Aleksandar Svetski, CEO, Amber.
The word “blockchain” has been thrown around over the last few years, promising to ‘solve all the world’s problems’. These promises have revolved around some sort of guarantee of security and permanence for digital assets such as cryptocurrency on a shared ledger.
The idea of removing intermediaries or ‘the middle man’ so that transactions can occur directly between buyer and seller is inherently alluring. But, this “blockchain” word, which is usually used by groups and individuals who want to raise ridiculous non-dilutive capital rounds (as with ICOs over the last few years) and recently by corporates who are late to the party wanting to sound ‘hip’ (so they can raise more capital), is completely misunderstood.
Blockchain’s broken promise
Blockchain is not all that it was promised, no matter how much these corporates dress it up. The blockchain on its own does NOT give you any form of security and permanence if it must be run by some ‘trusted’ institution, or if you remove elements from it like proof of work or economic incentives. Why would there be any reason to use a blockchain, which is supposed to remove ‘the middle man’, if someone is managing it? This just reinforces its inherent uselessness.
The zero to one moment, the creation of a network that achieves consensus (agreement by all parties) and is able to operate in an open, truly decentralized manner and that disintermediates the third parties is already here. In fact, it was launched in 2009 by Satoshi Nakamoto.
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