Blockchain

Blockchain Market Size Forecast:

The global market for blockchain technology is projected to grow significantly in the coming years. It was valued at $11.4 billion in 2022, is expected to reach $17.57 billion in 2023, and is forecasted to soar to a staggering $469.49 billion by 2030. Despite these optimistic projections, comprehending blockchain remains a formidable challenge, even for technology experts, and even more so for the average person. However, it is worth taking the time and effort to understand this groundbreaking technology.https://www.fortunebusinessinsights.com/industry-reports/blockchain-market-100072

What is Blockchain?

At the heart of blockchain technology lies a seemingly paradoxical philosophy: "While we do not trust each individual component, we have trust in the system as a whole." This means that participants on a blockchain network can have faith in the information recorded on a shared ledger, without necessarily having to trust the individuals verifying that information. Additionally, no single entity has the authority or power to halt transactions on the network.

Blockchain is a complex interplay of mathematics, economics, psychology, and governance. Despite the rampant speculative investments, scams, and price manipulations associated with cryptocurrencies, the technology of blockchain is still in its infancy. For example, when comparing the market capitalization of Bitcoin with leading corporations like Bank of America, Apple, and Microsoft, Bitcoin only ranks around 20th, Only 5% of Bank of America's market capitalization compared to

(https://coinmarketcap.com/largest-companies/)

Interestingly, the term "blockchain" is not commonly heard in everyday conversations, at least not in my professional environment. The internet, for instance, took over two decades to become commercially viable, and even longer to be adopted by the mainstream public. This suggests that the adaptation of new technologies is a slow and gradual process.

Basic Role of Blockchain

The primary role of blockchain is to facilitate secure information sharing, even among parties that do not trust each other. Everyone can maintain a copy of the ledger and have confidence that all copies are identical. This scenario is similar to choosing the most delicious donut from a selection of ten; instead of relying on a single famous influencer's opinion (centralized), everyone tastes and votes for the best one (decentralized), resulting in everyone holding identical voting results.

Definition of trust "trustlessness"

Trust is the cognitive ability to evaluate risk.

For example, would it be more rational to invest in a cryptocurrency that promises to make you a millionaire overnight based on social media information or to hand over your credit card to a waiter at a restaurant?

It would be the latter. (What? The former? I've done it too...OMG)

Trust involves a willingness to expose one's vulnerabilities based on the expectation that the other party will act in one's best interest.

Structure of Trust

The structure of trust can be categorized into three main types:

P2P: Interpersonal trust, where trust is based on personal relationships ("I trust you because I trust you.").

Leviathan: Structural trust, where trust is guaranteed through a framework of regulations.

Intermediate: Trust that is guaranteed through a reliable intermediary.

In a blockchain network, the concept of "trustlessness" prevails, meaning there is no need to trust any single entity or participant. However, the output produced by the network is trustworthy and reliable.

In summary

blockchain technology aims to redefine the concept of trust in the digital age by enabling secure information sharing among untrusted parties, eliminating the need for central authorities or intermediaries, and ensuring the integrity and immutability of recorded data. This revolutionary technology has the potential to transform various industries and create new opportunities for innovation and growth.

So, I'm thinking of sharing what I've learned about blockchain in a few posts. I'm trying my best to get everything right and backed up with facts, but if you spot anything off, I'd really appreciate the heads-up.

Thanks for reading, and have a great day!