Everyone has heard of the Blockchain before but have you ever asked yourself why do we need Blockchain Technology in the first place? So many wonder how it works and what the future holds. But why do we need blockchain technology?
Trust through family relationships
Trust forms the basis for relationships and interactions. So about one hundred and fifty members of a community can organize themselves on the basis of family relationships and build trust. Our brain has this limit.
But how can we overcome this limit of trust?
Crossing these borders is called civilization. So over time, we have found ways to increase the number of people we trust. To do that, we invented the language. But that was not enough, and so we invented religion, money, organizations, and institutions. So the era of industrialization began and so the internet was the next big step for us. As a result, it helps to make decisions globally, to work together and to organize ourselves.
Power and corruption create a trust problem
So in central organizations, decisions are made above and executed below. Thus, information must tile from the bottom up and concentrated there.
The problem here is the above-concentrated power and therefore leads to corruption. So the lack of integrity and trust makes it impossible for us to grow.
This power bundling is also central to our digital communication. So with online applications, we can collect important information and processed on a central system. Therefore, users have no choice but to trust this instance. As a result, we can not make trusting decisions without a third party. But why do we need blockchain technology now?
Using peer-to-peer systems to solve the problem of centralization
So peer-to-peer systems can solve the problem of power bundling with a decentralized computer network. Thus, they consist of individual computers of users who communicate over a network.
So people join a system that they trust and help to make it save. Therefore the integrity of the system is needed to build trust.
The threat of integrity in the peer-to-peer system
Full integrity in a peer-to-peer system is a big challenge. So technical failure can cause parts in the network to fail. In addition, a scammer can try to use the system for his own purposes. So they destroy the basis of the system to make money. As a result, these threats can lead to the resolution of the system because we no longer trust it.
Blockchain solves the integrity and trust problem
On January 3, 2009, Satoshi Nakamoto invented Bitcoin. He changed the way we trust. So Bitcoin is based on the blockchain technology. It allows us to trust other people on the Internet without the need for a trusted party.
Integrity in a decentralized peer-to-peer system is achieved through transparency. Therefore blockchain makes it possible to create integrity in a system where the number and trustworthiness of the members are unknown. As a result, we need blockchain technology because the system is not corruptible and we can trust it.
“Why do we need Blockchain Technology” – Summarized:
- With the beginning of civilization, the number of people we trust has increased
- The internet has created a global network
- But these organizations and institutions developed a corrupt power structure
- Peer-to-peer systems create trust and integrity
- So if people no longer trust the system, this is the end of the system
- Mean participants threaten the integrity of the network
- Blockchain maintains the integrity and creates trust
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