At the moment, the financial world is going crazy for blockchains.
Apparently, they are going to revolutionize our world — making any existing record-keeping practice obsolete, whether in the fields of property, insurance, trading, contracts and anything else that requires keeping track of things.
Record-keeping is important — there is no question that inventions fundamental to record-keeping, like writing, math, and double-entry bookkeeping, propelled human civilization forward.
Blockchain is being talked about as if it is as important an innovation as writing, money, or other fundamental social institutions.
So, I am working to figure out just what it is about blockchains that makes them so transformative.
As far as I can tell, a blockchain is, at its most basic level, just a list.
And, the innovation seems to be: we will keep the list together instead of having one person do it. I’ll have a copy, you’ll have a copy, and my friend will have a copy.
And somehow, keeping the list together means that we don’t have to worry about trust anymore.
Even though there are other people involved in keeping the list.
I am probably missing something, but I don’t get it yet.
If you have it all figured out already, I would love to hear from you. If you, like me, are still trying to figure things out, I welcome your incoherent ramblings as well. Perhaps we can sort this out together.
I look forward to it.
4 thoughts on “Let’s Get Together, Yeah, Yeah, Yeah…”
The banking world has no idea what blockchains are. It’s an echo chamber, and very very few people are actually able to understand the tech. tldr: Blockchains are for regulatory arbitrage. Check out my series in American Banker for the quick run down.
Thanks for the tip! I will check it out.
Listened to your podcast with Izabella Kaminska — loved it! Thanks for thinking critically about this important issue. 🙂
@prestonjbyrne is one of the brighter brains on the crypto scene. I’d follow him, check out his blogs. I’ve learned a lot from Preston.
I’m just up the road in Austin. We’re learning how to apply the thing we learn to real estate securitization. It’s an exciting time.