Disrupting the trust business | The Economist
Will the centre hold?
These efforts give a taste of what will be possible, says Albert Wenger of Union Square Ventures (USV), a venture-capital firm. He thinks that such decentralised organisations could one day disrupt the tech giants. At their heart, he argues, those tech titans are gigantic centralised databases, keeping track of products and purchase histories (Amazon), users and their friends (Facebook), and web content and past search queries (Google). “Their value derives from the fact that they control the entire database and get to decide who sees which part of it and when,” he says.
In some areas the blockchain may even make life easier for governments. Last year Dubai announced that it wants all government documents secured on a blockchain by 2020, a prerequisite for agencies to become completely paperless. The technology could also be used as a cheap platform to generate what poor countries lack most: more efficient government and trust in contracts. And some hope that the blockchain could make the United Nations work better by helping it keep track of all its programmes, creating transparency and reducing waste.
In a world run by blockchains, decentralisation could be pushed even further, to include objects. Once they have their own identity and can be controlled via a blockchain, it is possible to imagine them becoming, in a way, self-determining. A few years back, Mike Hearn, a former bitcoin developer who now works for R3, a blockchain consortium, suggested the idea of self-driving cars which are also financially autonomous. Guided by smart contracts, they would stash away some of the digital money they make by ferrying people around, so as to pay for repairs or to replace themselves when repairs are no longer worthwhile. They would put themselves in long-term parking if not enough rides are to be had—or emigrate to another city. They could issue tokens to raise funds and to allow owners to get part of their profits.
Disrupting the trust business | The Economist
Will the centre hold?
These efforts give a taste of what will be possible, says Albert Wenger of Union Square Ventures (USV), a venture-capital firm. He thinks that such decentralised organisations could one day disrupt the tech giants. At their heart, he argues, those tech titans are gigantic centralised databases, keeping track of products and purchase histories (Amazon), users and their friends (Facebook), and web content and past search queries (Google). “Their value derives from the fact that they control the entire database and get to decide who sees which part of it and when,” he says.
In some areas the blockchain may even make life easier for governments. Last year Dubai announced that it wants all government documents secured on a blockchain by 2020, a prerequisite for agencies to become completely paperless. The technology could also be used as a cheap platform to generate what poor countries lack most: more efficient government and trust in contracts. And some hope that the blockchain could make the United Nations work better by helping it keep track of all its programmes, creating transparency and reducing waste.
In a world run by blockchains, decentralisation could be pushed even further, to include objects. Once they have their own identity and can be controlled via a blockchain, it is possible to imagine them becoming, in a way, self-determining. A few years back, Mike Hearn, a former bitcoin developer who now works for R3, a blockchain consortium, suggested the idea of self-driving cars which are also financially autonomous. Guided by smart contracts, they would stash away some of the digital money they make by ferrying people around, so as to pay for repairs or to replace themselves when repairs are no longer worthwhile. They would put themselves in long-term parking if not enough rides are to be had—or emigrate to another city. They could issue tokens to raise funds and to allow owners to get part of their profits.