For those who missed it, Kodak announced this week they are getting into the blockchain game. This had an impact upon the stock which doubled on the announcement. Kodak is now going to issue a token that it will use as the currency on its new platform which allows people to upload their pictures while also scouring the Internet to see if anyone else is using them.
This would have been a wonderful plan about 10 years ago. Today, not so much.
The challenge these corporations have is the decentralized horse has left the proverbial barn. I believe, that while we are at the early stages, we are already seeing the power of blockchain unleashed.
While some might take exception to this, I believe for something to qualify as a blockchain, part of the equation is that it is decentralized and open. That is what makes it revolutionary. That is what spurs innovation. Without these two components, we are simply left with a database.
It is also the reason why I do not give Ripple high long-term prospects. It is a controlled, centralized system. Again, what is revolutionary about that. The idea that you are "blocking and chaining" might have some effect, as long as you do it. Of course, what is to say they have to carry on with that method?
This is the same challenge we face when looking at countries issues their own tokens. Like the corporations, governments are not about to cede control which occurs when something is decentralized. Hence, we are basically operating under the same system. As one candidate said, like putting lipstick on a pig.
STEEM is revolutionary because it is decentralized and open. Yes, the blockchain can be forked which appears to be the case with the Vice Token. However, it is also the same thing that provides the power against corporations with a lot more power and money. In truth, they cannot take it over. At the same time, they cannot stop it. People all over the world are responsible for running the system (called witnesses). They can be voted away at any time if the community desires that. Like with hacking attacks, there is not an area where a "competitor" can pinpoint. That is the power of decentralization.
We are going to see a lot of corporations embrace "blockchain". Of course, we are going to have the scams like Long Island Blockchain Company where they are just adding a word to the name. At the same time, we will see legitimate corporations getting involved with this. Do not be fooled. What they are creating is not revolutionary.
Last week, Mark Zuckerberg made news when he said it was his goal this year to fix Facebook. One of the areas he is paying attention to is cryptocurrency. This sent shivers down the spines of many people on here. To start, it isnt likely that Marky Mark is really concerned, at this time, about Stemmit. Multiple billions compared to 600K users is nothing to worry about. Plus, if you really look at it closely, Steemit is modeled to after Reddit. Let's be honest, Facebook has a ton more features that promote interaction than are on here. It will be a long time before we see Facebook in Steemit's cross hairs (if ever).
That does not mean Steemit cannot be great. Reddit has 250M daily active users. So what is to prevent them or Zuckerberg from pulling the plug on this place by issuing their own crypto?
The answer lies in control. They are not about to give that up because it also means giving up money. These two entities are making a fortune under their present system. To turn to a system like Steemit, requires giving up control along with profits. I cannot see that happening.
In addition, the innovation is not there. Facebook came up with some amazing stuff in the 13 years it is around. The problem for them is that a blockchain will come up with the same level of innovation in a few years. Facebook and Reddit have paid employees who are hacking away at code. These people are good at what they do yet it is their job. They have certain hours they keep which limits the breakthroughs.
In short, a centralized system will never compare to a decentralized one when it comes to innovation.
Steem has thousands of people hacking away at code designing all kinds of things. There is even uptopia.io which was created to lay out basic code for developers to take and use for their own creations. You do not have this at Reddit or Facebook. Everything is closed and controlled.
While Reddit might be far ahead of Steemit at this point, the gap will close quickly. Reddit is on a bicycle while Steemit is in a Ferrari. That is the best way I can describe the difference in innovative power between a centralized versus a decentralized system.
So the next time you hear about a company like Kodak with their big blockchain announcement, remember that it is a centralized system. Then also ask yourself, could or is something like that being done on an open blockchain? If it is not, chances are it will be.
We entered the age where the power of the establishment is an illusion. What is really power is when the abilities of hundreds of thousands of people are unleashed on a blockchain. On steem, we are moving towards realizing that reality.
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