{"id":1872,"date":"2019-08-08T02:35:21","date_gmt":"2019-08-07T23:35:21","guid":{"rendered":"http:\/\/kusuaks7\/?p=1477"},"modified":"2024-07-18T09:57:11","modified_gmt":"2024-07-18T09:57:11","slug":"blockchain-marks-the-next-step-in-the-internets-evolution","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/blockchain-marks-the-next-step-in-the-internets-evolution\/","title":{"rendered":"Blockchain Marks the Next Step in the Internet\u2019s Evolution"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1872\" class=\"elementor elementor-1872\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-73b48df3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"73b48df3\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ce5f8b2\" data-id=\"2ce5f8b2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1ac970dc elementor-widget elementor-widget-text-editor\" data-id=\"1ac970dc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\u201cBlockchain matters because no business operates in isolation,\u201d says &#8220;Blockchain for Business,&#8221; a recent book by Jai Arun, Jerry Cuomo and Nitin Gaur. \u201cBy implementing business processes that leverage the collective knowledge of the group, processes can be orders of magnitude more cost-efficient.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7146a5e elementor-widget elementor-widget-text-editor\" data-id=\"7146a5e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tSince it first came to light over a decade ago as the public, distributed ledger for the bitcoin cryptocurrency, people have struggled to understand what blockchain is and what it\u2019s good for. This is not unusual for potentially transformative technologies in their early stages. The key question is whether blockchain has the potential to become a truly transformative technology over time. Almost everyone\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2018\/12\/blockchain-beyond-the-hype.html\" rel=\"noopener\">agrees<\/a>\u00a0the answer is yes.\u00a0\u00a0<a href=\"https:\/\/www.gartner.com\/en\/documents\/3627117\" class=\"broken_link\" rel=\"noopener\">According to Gartner<\/a>, the business value-add of blockchain will be more than $176 billion by 2025 and it will exceed $3.1 trillion by 2030.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ff11143 elementor-widget elementor-widget-text-editor\" data-id=\"ff11143\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThere are two fairly distinct blockchains camps: one primarily focused on blockchain as the underlying platform for cryptocurrencies, the other on the use of blockchain in the business world.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d31fdbd elementor-widget elementor-widget-text-editor\" data-id=\"d31fdbd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe cryptocurrency camp, best characterized by bitcoin, is mostly based on public, permissionless blockchains, which operate anonymously and require some kind of proof-of-work or proof-of-stake systems. The second camp, best characterized by Hyperledger, is mostly interested in business applications, and is based on the use of private or public permissioned blockchains networks to handle interactions between institutions that are known to each other.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-52b02c9 elementor-widget elementor-widget-text-editor\" data-id=\"52b02c9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t&#8220;Blockchain for Business&#8221; defines blockchain as \u201ca shared, decentralized, cryptographically secured, and immutable digital ledger,\u201d and then adds a few key attributes that are important to enterprise blockchains:\n<ul>\n \t<li><em>Accountability<\/em>. \u201cNetwork members are\u00a0<em>known\u00a0<\/em>and identified by cryptographic membership keys with assigned access permissions by business role.\u201d<\/li>\n \t<li><em>Privacy<\/em>. \u201cAlthough members are known to the network, transactions are shared only with those members that need to know.\u201d<\/li>\n<\/ul>\n<ul>\n \t<li><em>Scalability<\/em>. \u201cSupporting an immense volume of transactions is critical to enterprise scenarios.\u201d Permission-based enterprise blockchains aren\u2019t throttled by proof-of-work or proof-of-stake requirements.<\/li>\n<\/ul>\n<ul>\n \t<li><em>Security<\/em>. \u201cEnterprise blockchains are fault-tolerant. With fault-tolerant consensus algorithms, the network continues to operate even in the presence of bad actors or carelessness.\u201d<\/li>\n<\/ul>\n<ul>\n \t<li><em>Motivational<\/em>. \u201cAn enterprise blockchain benefits from a built-in incentive system to help accelerate the adoption curve,\u201d such as tokens similar to loyalty points to encourage participation in the blockchain ecosystem.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-222e1b4 elementor-widget elementor-widget-text-editor\" data-id=\"222e1b4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn the 1990s, the internet was supposed to usher in a much more open, decentralized economy. But, as we well know, it hasn\u2019t quite worked out as expected. Instead, it\u2019s led to the rise of\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/02\/the-rise-of-the-platform-economy.html\" rel=\"noopener\">platform economies<\/a>\u00a0driven by powerful network effects. A\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/11\/the-rise-of-the-global-superstar-company.html\" rel=\"noopener\">few companie<\/a>s have become category kings, dominating competitors in their particular markets.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29210eb elementor-widget elementor-widget-text-editor\" data-id=\"29210eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tHow did this come to happen, given the internet\u2019s open protocols and highly distributed architecture? Science writer Steven Johnson\u00a0 provided a\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2018\/02\/blockchain-and-the-promise-of-an-open-decentralized-internet.html\" rel=\"noopener\">very good explanation<\/a>\u00a0in a recent\u00a0<a href=\"https:\/\/www.nytimes.com\/2018\/01\/16\/magazine\/beyond-the-bitcoin-bubble.html\" class=\"broken_link\" rel=\"noopener\">article<\/a>.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d76822 elementor-widget elementor-widget-text-editor\" data-id=\"1d76822\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tConsider the internet as being composed of two different layers stacked on top of each other: InternetOne and InternetTwo. InternetOne\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/02\/design-choices-that-are-shaping-the-evolution-of-the-internet.html\" rel=\"noopener\">was designed<\/a>\u00a0to be a relatively simple, highly flexible, general-purpose data network that would support a wide variety of applications in the InternetTwo layer. The various open protocols used today\u2014TCP\/IP, HTML and URLs\u2014are associated with InternetOne. Being general-purpose was a fundamental design choice that has enabled the internet to keep growing and adapting to widely different applications.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-916cf94 elementor-widget elementor-widget-text-editor\" data-id=\"916cf94\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tBut, to keep InternetOne simple and flexible, just about everything else, including identity and\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2017\/01\/securing-and-growing-the-digital-economy.html\" rel=\"noopener\">security<\/a>\u00a0management, became the responsibility of the applications in InternetTwo, which has few universal open standards. It was left to private-sector companies to define such protocols in each of their applications.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-91408c3 elementor-widget elementor-widget-text-editor\" data-id=\"91408c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe lack of identity and security standards is a major reason for the rise of\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2019\/01\/superstar-dynamics-in-the-global-digital-economy.html\" rel=\"noopener\">superstar companies<\/a>\u00a0that established de facto standards within their proprietary\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/02\/the-rise-of-the-platform-economy.html\" rel=\"noopener\">platforms<\/a>\u00a0based on their huge troves of data. Consequently, while the open, decentralized internet is alive and well in the InternetOne layer, the InternetTwo layer has become highly centralized, dominated by a few huge companies.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-71f86ae elementor-widget elementor-widget-text-editor\" data-id=\"71f86ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tBlockchain technologies have the potential to address these serious internet problems\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2017\/09\/platforms-blockchains-and-the-evolution-of-trust.html\" rel=\"noopener\">by enabling<\/a>\u00a0the exchange of the critical data required to\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/11\/trusted-identity-and-data-ecosystems.html\" rel=\"noopener\">validate identities<\/a>\u00a0in a secure, decentralized manner without the need for a central platform or other intermediaries. Over time, blockchain-based applications could be used to coordinate the self-organizing activities of large numbers of individuals and institutions in a secure and decentralized manner, as was the case with the internet\u2019s early objectives.\n\n&#8220;Blockchain for Business&#8221; argues that this is what makes blockchain one of the most disruptive technologies of the 21st century, a major next step in the\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2017\/06\/is-blockchain-the-major-next-step-in-the-evolution-of-the-internet.html\" rel=\"noopener\">evolution of the internet<\/a>.\u00a0 Blockchain technologies drive such transformational opportunities in three key ways:\n\n<em>Distributed organizational structures<\/em>. \u201cThe distributed nature of blockchain technology with consensus and smart contracts delivers a self-governing business network with a greater autonomy that flattens traditional enterprise structures into a distributed and shared structure.\u201d\n\nTrusted business models. \u201cBlockchain presents many opportunities\u2026to disrupt traditional business models by using peer-to-peer exchange with trust, digital and automated execution of business contracts, and agreements with smart contracts. The intermediation between third parties is handled by distributed ledger and transparency, and transactions integrity with security and cryptography.\u201d\n\nDecentralized ecosystems. With blockchain,\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2019\/05\/from-the-network-is-the-computer-to-the-blockchain-is-the-business.html\" rel=\"noopener\"><em>the ecosystem is the business<\/em><\/a>. Value is co-created among cooperating organizations and systems.\n\nIn the end, the book says, \u201cIt is not a matter of mastering the blockchain technology; instead, it is rethinking your current market role, value streams, and existing business ecosystems and finding opportunities to transform.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>While the open, decentralized internet is alive and well in the InternetOne layer, the InternetTwo layer has become highly centralized, dominated by a few huge companies. Blockchain technologies have the potential to address these serious internet problems&nbsp;by enabling&nbsp;the exchange of the critical data required to&nbsp;validate identities&nbsp;in a secure, decentralized manner without the need for a central platform or other intermediaries. Over time, blockchain-based applications could be used to coordinate the self-organizing activities of large numbers of individuals and institutions in a secure and decentralized manner, as was the case with the internet&rsquo;s early objectives.<\/p>\n","protected":false},"author":612,"featured_media":3556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[98],"ppma_author":[3320],"class_list":["post-1872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain"],"authors":[{"term_id":3320,"user_id":612,"is_guest":0,"slug":"irving-wladawsky-berger","display_name":"Irving Wladawsky-Berger","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Wladawsky-Berger","first_name":"Irving","job_title":"","description":"Irving Wladawsky-Berger, a Guest Columnist at WSJ CIO Journal, is Research Affiliate at MIT Sloan School of Management, Adjunct Professor at Imperial College, London, and Chairman Advisory Board at r4 Technologies."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/612"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=1872"}],"version-history":[{"count":4,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1872\/revisions"}],"predecessor-version":[{"id":36885,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1872\/revisions\/36885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3556"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=1872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=1872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=1872"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=1872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}