Blockchain: End of Bureaucracy & Transformation of the Systems

The Blockchain Technology

“Distributed ledgers”, that is what the whole thing is all about. Well, of course, there is more to it than that. But for now, let us start with how it carries out and delivers.

Now imagine you live in a Utopia. Perfectly balanced, like the kingdom down in South India ruled by the king Mahabali. All the citizens are honest, trusting and the whole system is transparent.

Not nearly as possible these days, isn’t it? Dear readers, let me just tell you, you’re wrong. The blockchain technology is exactly what the world needs right now. Maybe not what it wants, but most certainly what it needs. A system is being built where the whole area of data security and safety is autonomous with zero human intervention.

How does it work? 

Imagine you want to buy a property in a foreign land. How can you trust the guys there? How can they trust you?
What if there is a well-established escrow?. Both parties now feel a sense of security. Now what if the escrow was a computer? Or maybe a network of thousands of them? This is roughly what blockchain brings about.

The fundamentals of the Blockchain technology are already familiar to most of the ones who lingers around social media platforms. It was quite the buzzword in 2017. Even if you had not dug that deep, you have most probably heard of #Bitcoin, #miners, #mining etc.

So how does this work? Let us take a look: 

Suppose, Mr. Ramakrishnan from India wants to pay Bob in US, $10,000 and suppose, this is equivalent to 10 units of a concurrency running in the BC Technology:

• Ramakrishnan has a unique address and a digital signature. He enters a transaction agreeing to pay 10 coins to Bob from his wallet. 
• He broadcasts this message in to the network. Now he also has to mention his wallet number (the Public Key) and sign with his digital signature (the Private Key).
• Now, the hash (a mathematical encryption function) value of the transaction is available to all the nodes in the network for inspection.
• Just like an election process, the nodes votes on the validity of the transaction. If it receives majority, it passes for a block and is added to the chain.
• Since each block in the chain refers to the previous one, it is impossible to alter a transaction that has been added to the chain.
• Even if anyone tries to alter the block, he will have to convince the remaining thousands of nodes in the network.

The frown on thoughts on giving state support to the cryptocurrencies is often due to the threats of money laundering and tax evasions. However, a number of countries including Canada, the US and Australia have all given their assent to use Bitcoin:

"Countries providing state support to Bitcoins"

The world is preparing itself to embrace the new tech.

This is just the area of finance covered so far. There’s still more to go. Wherever the data you communicate needs to be encrypted and shared, the Blockchain technology can help you. Be it the medical world, engineering or finance, every lines of formal communications can be made chains of blocks.

Bureaucracy                                                                                             

Bureaucracy, Ludwig von Mises explained in 1944, is “always applied with an opprobrious connotation”. It has stood the test of time all around the globe. Right from the beginning of time, third party assurances and validations have been heavily depended upon. The haunting question is, is there any value added? Is all of this worth paying what we pay now? 

People with power have made the systems complicated and then they charge heavy fees and duties to get through with it.The long lists of professionals, bureaucrats, and politicians are all eating up most of the hard-earned money of the businesses. 

To put an end to all of these, the authorities need the promise of a corruption free, transparent system. If that is ever made possible, the inspections, audits, verification, assurances will all be possible with the least cost.
Long arrays of compliance forms, consultations with numerous counsels and taxmen, government authorities. Now imagine all of these being replaced by smart contracts, and legal verifications and audits carried out electronically. The businessmen and government can feel comfortable and there are lesser chances of fraud. 

Everything controlled and co-ordinated by a decentralized autonomous system.

The future is as always incomprehensible on the present day, but the technologies to get these clogs out of the system has already been theorized.

In a paper by Melanie Swan, a Contemporary Philosophy student in Kingston University, London, the idea of “Blockchain Thinking” is being discussed.

Decentralized Autonomous Organizations - A whole new species.

These are organizations represented by rules encoded as a computer program and without much of a government influence. It’s all on distributed databases and AI. Although, the legal status, structure and other matters are still behind the clouds, they sure are promising.

Imagine utility companies, NGOs and local governments run by a few lines of computer codes. All the resources it has would be managed without error. The Standard to Cost of living ratio in such an environment would be very high. Self-driving cars, Electricity companies, Banks all working 24x7 with hardly any human intervention, all thanks to the AI and Shared ledger technology.

The advent of the BC tech, in its entirety is distinctively critical to all sorts of performers in the society. The Media, the Banks, the governments, large corporations are all stakeholders of the upcoming game.

Conclusion: Being Efficient

As said, the brain child of Satoshi Nakomoto (an incognito used by the creator(s)), the Blockchain Technology can be a real game changer and is transforming the way the world thinks and works. There will be a major shift of workforce into more productive jobs and the mechanical ones will be slowly phased out. The systems will be more strong and corruption free.

A world more secure, transparent and efficient. The future is here.