BlockChain, but Why?
Why would it make sense to be on the blockchain?
I have recently been obsessed with figuring out blockchain and cryptocurrencies.
I initially had a conversation with a banker working in payment solutions, and I had previously been quite dismissive of the prospects of bitcoin. In further conversation, I realized I was lacking fundamental knowledge of how and why does a blockchain work, and I decided to learn all that I could; both technical and in practice.
A blockchain is simply a series of blocks which hold some data, and to edit the data you must spend computational resources. These blockchains which act as a record, are very easy to store, and ensure against easy editing of records. Once something is recorded, everyone can have a copy on their system and it can be saved forever.
Blockchain is so interesting as it eliminates the need of a third party in the exchange of money. Imagine I have a $1000 here in Hong Kong and I want to send it to my friend vacationing in Tokyo (popular spot for HKers). Through any conventional method it would mean I need to trust a third person with my money (a bank, or maybe some guy who's travelling to Tokyo too) to ensure it reaches him. But this creates a moment of vulnerability- the money is hidden and opaque during the transfer- which means it operates only on the basis of trust. If we add a blockchain ledger onto the equation, the moment the transaction is recorded onto the ledger, every party would have a copy of the transaction history which is impossible to manipulate. This can allow finance to finally be decentralized. This would also rapidly reduce settlement times (this process has already started)
This was obviously a very simplified view of the blockchain tech, but the way I'll introduce to someone without technical knowledge.
Blockchain has moved from a fringe technology into institutional grade adoption by major banks and asset managers. A trend that has gained momentum recently is the tokenization of real world assets, which means even real estate can have a digital tokenized equivalent having fractional ownership and 24/7 liquidity. You can carry a piece of a house in your hand, in a sense. There is rapid progress being made while the regulatory watchdogs are also still forming their opinions on the same, thus it can be confidently said this is an exciting space to watch out for.