GET­TING TO GRIPS WITH BLOCKCHAIN

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Is crypto go­ing to go up? Is there go­ing to be a crash? How close are we to a dot-com­like bub­ble burst? I get these ques­tions all the time. The prob­lem, in my opin­ion, is that these are the wrong, short-sighted ques­tions as if blockchain is just a get rich quick scheme.

The im­pli­ca­tions of this tech­nol­ogy for the so­ci­ety lie be­yond our un­der­stand­ing, which is a bless­ing and a curse at the same time. It's a bless­ing be­cause blockchain tech­nol­ogy will likely make the world a bet­ter place.

It is the end of the tragedy of com­mons, and it will re­duce in­equal­ity. The mere fact that cur­rency is­suance is no longer the mo­nop­oly of gov­ern­ments is a tec­tonic shift in our so­ci­ety that will chal­lenge the es­tab­lished or­der. It is a curse for very few peo­ple who un­der­stand what Bit­coin is and how it works. For many, it's just a spec­u­la­tion game, which, very likely, will end up in mil­lions of dol­lars losses. Yes, we are in a bub­ble where we have all sorts of fraud­u­lent projects with the word blockchain slapped on them for no rea­son.

How do we get the most of this tech­nol­ogy while elim­i­nat­ing the risks as­so­ci­ated with it?

First, ed­u­ca­tion, which for many of us will come in the form of a crash. If you don't want to be one of the losers, read the Bit­coin whitepa­per and fol­low the train of thought of An­dreas Antonopou­los, Nick Sz­abo, Naval Ravikant or Nas­sim Taleb.

Sec­ond, don't trust any­one, in­clud­ing my­self and the gen­tle­men above. One of the fun­da­men­tal prin­ci­ples of Bit­coin/ blockchain is the re­spon­si­bil­ity that any­one in­volved has to take on (at least re­gard­ing con­trol­ling your pri­vate keys). Those that Mak­sim Iz­maylov, CEO and founder of Wind­ing Tree and a speaker at the 2018 Ara­bian Ho­tel In­vest­ment Con­fer­ence, tells us that we need to ed­u­cate our­selves about blockchain and for many of us that will come in the form of a crash. try to con­vince you to buy any crypto to­kens do that for a rea­son, which prob­a­bly in­volves the move­ment of wealth from your pock­ets into theirs. You are re­spon­si­ble for mak­ing an ed­u­cated de­ci­sion and bear the con­se­quences.

Third, fo­cus on the right thing, ig­nore the hype (it's easy to do af­ter the first step). What we're cre­at­ing here is a new set of rules that the next gen­er­a­tion of busi­nesses will be us­ing.

An­other topic that is brought up all the time is the scal­a­bil­ity of blockchains, which for cor­po­ra­tions jus­ti­fies oxy­moronic pri­vate blockchains.

Re­mem­ber, we weren't able to watch 4kqual­ity movies on the In­ter­net on day one, It took us 20 years! Pub­lic blockchains are al­ready scal­able with layer two tech, such as Light­ning Net­work, and many other projects aim to solve these is­sues. This tech­nol­ogy is so im­por­tant that we'll prob­a­bly find many dif­fer­ent ways of over­com­ing the prob­lems of scal­a­bil­ity and pri­vacy.

Re­gard­ing the ques­tions at the be­gin­ning, we'll have a crash, but I am bullish. But don't take my word for it, do your home­work.

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