Economist have been exploring people's behaviour for hundreds of years; How we make decisions, how we act individually and in groups and how we exchange values.
They have studied the institutions that facilitate our trade like Legal systems, cooperations, market places.
BLOCKCHAIN is a relatively new technology that will change how we exchange values, while blockchain is relatively new, it is also a continuation of a very human story. The story is, as humans we find ways to lower uncertainty about one another so that we can exchange values.
One of the first people to really explore the Idea of Institutions as a tool in economics to lower uncertainty about one another and be able to trade was the Noble Economist Douglass North who died at the end of 2015.
What Douglass North meant by Institutions were really just formal rules like a constitution and informal constraint like bribery. This Institutions are the grease that allow our economic wheels to function.
Institution like Banks for currency, Government, cooperations helps us manage our trade as the uncertainty and complexity grew and our personal control was much lower.
Eventually with the internet we put the same institutions online we built platform market places like Amazon, E-bay, Alibaba. Just faster institutions that acts as middle man to facilitate human economic activities.
As Douglass North stated that Instititions are tools to lower uncertainty so that we can connect and exchange all kinds of values in the society.
And I believe we are now entering a further and radial evolution of how we interact and trade because for the first time we can now lower uncertainty not just with political and economic institutions like our banks or government or cooperations but we can do that with TECHNOLOGY alone.
So what is BLOCKCHAIN TECHNOLOGY ?
Blockchain Technology is a decentralized database that stores the registry of assets and transactions across a period of peer network.
It is basically a public registry of who owns what and who transacts what. The transaction are secured through cryptography and over time that transaction history gets locked in blocks of data that are then cryptographically linked together and secured making it very impossible to hack.
This creates an immutable and unforgeable records of all the transactions across this network, this record is replicated on every computer that uses the network. It's not an app, it is not a company.
It is closest in description to something like wikipedia, we can see every thing on wikipedia, it's composite view that is constantly changing in being updated. Those changes can be tracked overtime of wikipedia, and we can create our own wikipedia because they're just a date infrastructure.
Wikipedia is an open platform that stores words and images and the changes to that data overtime.
On Blockchain you can think of it as an open infrastructure that stores many kinds of assets, it stores the history of custodianship, ownership and location for assets like digital Bitcoin, title of ownership, certificate and contract.
Five things Blockchain Technology is doing and why we all need to be involved like never before
i) Protecting rights through immutable records ( It cannot be hacked unlike the banks and government)
ii) Ensuring compensation for the creators of values
iii) Creating a true sharing economy
iv) recapturing our identities
v) Ending the remittance report
If this post is informative and good please upvote, resteem and follow me 