Towards web 3.0: Why it is foolish to extol the blockchain and reject bitcoin


Towards web 3.0: Why it is foolish to extol the blockchain and reject bitcoin

Pedro Febrero — economist and engineer by training, founder of the platform Bityond. In his expressive article on CCN he explains what, in his opinion, the blockchain is different from the DLT and also shows how the cash incentive in the form of cryptocurrency is able to create value networks, which should be distributed among the people.

I have long thought, before to write this article, as was trying to understand why many people confuse the blockchain with a distributed registry (DLT).

My goal is not to shame “cryptoexpert” for spreading misinformation. I just want to explain why a proper understanding of the blockchain and distributed consensus are so important.

In my opinion, the key difference between the technology of distributed registry (DLT) and bloccano about which forget many technologists and marketers, is the actual cash incentive, which in the second case, makes a database work in a decentralized way.

It won’t be easy to admit it, but you probably cheated.

When you’re reading in LinkedIn or Twitter on how private blackany like Hyperledger that could change supply chains and the financial industry, or that the blockchain can once and for all to solve all business problems, you hang noodles on the ears.

It makes no sense to create a decentralized system controlled by a small group of people. If you require control over the system by a few of “their” people, it is reasonable to use the blockchain technology a distributed registry or cloud computing.

Commonly used data structures

Before moving on to how to distinguish between the blockchain and the DLT, we list the most frequently used data structures:

Arrays are the simplest and most widely used structure. Other data structures such as stacks and queues, are derived from arrays.
Stacks allow you to save the previous state of your work (which is limited to a certain number) in memory so that the latest status is displayed first. It is impossible, if you just use arrays.
Queues, like stacks, is another linear data structure that stores elements in sequence. The only significant difference between stacks and queues is that instead of using a LIFO method (last in, first out) queues implement the FIFO method (first in, first out).
Linked lists similar to a chain of nodes where each node contains information such as data and pointer to next node in the chain. There are pointers head-elements that point to the first element of the linked list and if the list is empty, then they just point to zero.
The tree structure is a hierarchical data structure consisting of vertices (nodes) and edges that connect them. It is similar to count, but the key difference from the graph is that the tree structure cannot be a cycle.
A graph is a set of nodes that are connected to each other in the network view. Nodes, also called vertices. The pair (x, y) is called an edge indicates that the vertex x is connected with the vertex y. The rib may include such parameters as weight/cost, showing the cost for moving from vertex x to vertex y.
Loaded/prefix-tree — version tree-structured data, which should be considered separately. It is quite effective for solving problems with lines, as it provides quick search. Basically, the prefix tree is used to search for words in the dictionary, providing automatic suggestions in the search engine for IP routing.
Hash tables: hashing is a process used to uniquely identify objects and store each of them in a pre-computed unique index called a key. Thus, the object is stored in the form of pairs “key — value”, and the set of such elements is called a dictionary. Each object can be found using this key. There are different data structures based on hashing, but hash tables are used most often.

So, after reviewing the above, we can conclude that the blockchain correspond to a hash table with a hierarchical tree format — they contain the blocks with the transactional inputs and outputs (UTXO), and was placed in chronological order.

An important conclusion of this section is that blackany cryptocurrency can use different types of data structures to achieve similar goals, but the unifying factor in all cases is the underlying cryptocurrency related bloccano.

What is the blockchain

The first thing to get people to say “the blockchain” rather than “bitcoin”, we need to understand what the blockchain.

Usually people use that word to mean “a registry that does bitcoin work”. In fact, bitcoin and the blockchain are inseparable from each other, since they cannot exist separately.

Without the blockchain cryptocurrency is just a centralized database that can be distributed between different locations and sites with the help of cloud computing. In addition, the cryptocurrency, owned by a narrow group of people — it’s just a digital currency, with which we were familiar before.

The definition of the blockchain, which will surely appeal to most of you, is: decentralized consensus through a distributed centerstone Protocol that allows to transfer data to third parties.

No more, no less.

Easily create a private database stored under the tutelage of your private nodes/servers, which would work almost like the blockchain, but without an actual cryptocurrency. But it is really just a database (e.g. Oracle or SQL), belonging to the group of individuals. you can Have access to this registry to read and write, but no decentralization will not, because there will be a monetary incentive.

The most important part of the blockchain is bitcoin. It would seem, a trifle, but it gave rise to decentralized money for the bankers and representatives of big corporations now want to strangle him.

What is distributed system

To explain what a distributed system (DLT) in one sentence can be something like this: it is a system of multiple parties working as a single unit relative to the external user. Such a system may consist of several actors, who perform different roles: substitute each other, interact with each other, relay the messages, temporarily store information for others, but in the end strive for the same goal.

In other words, some participants/parties/processes and the relationships between them.

Than DLT differs from the blockchain

Without delving into technical details, it can be argued that DLT or a distributed registry that is only many databases, distributed in different places (the cloud / management systems — ERP). The purpose of the DLT is done by storing the same data on multiple servers that you can access the data or update them at any point in time (for example, if one of the servers experiencing the problem). The data marked with time stamps, therefore, are presented in chronological order.

The system administrator can provide different access levels to different groups of users (including their roles), allowing them to make changes in the system (registry).

The blockchain should not be confused with DLT, because it has other properties. In fact, the DLT may need to call a distributed database that people did not think that the word “register” refers to the actual registry. Data storage can take many different formats, and one of them is the blockchain. Examples of alternative structures — a IOTA and Directed Acyclical Graph Circle.

Combining blackany (and prominent) feature is that they have attached to them the cryptocurrency. They function as a means of payment between the user writes some data in the registry, and a miner, registered the data. In addition, miners check the records and protect the network.

Cryptocurrency without the miners there would be incentive to secure the network!

As you can see, although the DLT, and the blockchain rely on a distributed infrastructure, only the last decentralized management and ownership of the data owned by you as long as you have the key.

DLT vs blockchain

So dive into the rabbit hole? Wonderful!

Why do so many people confuse the blockchain and the DLT?

The answer is quite simple: most people don’t understand these technologies and their purpose. Fortunately, many of us live in places where the money is more or less stable (with the exception of occasional financial crises), so I see no reason to use these technologies.

The blockchain— the hype we got no real need, and then created the concept that decentralized technology is able to change different aspects of our lives.

As I mentioned, blockchain— HYIP is associated with a number of different fields of activity, from registration of rights to land to the financing, and now the people crazy on the potential of the technology.

“Technology will make everything faster!” — some say.

“It will forever change the trade!” — telling others.

And when you ask them about bitcoin, they say it’s just hype, but the real value is to use database — blockchain technology that runs bitcoin.

Are they serious?

What is the real value of this technology? That he provides us with a cryptocurrency that enables you to decentralize everything, or in a database for safe storage information?

It is funny that the other actually existing decentralized bitcoin, so the question was just a Ruse for the skeptics.

I mean, it’s silly and pointless to use only half of the possibilities of this wonderful technology and a second to reject, blaming “just hype”.

Clearly a misconception about the blockchain and DLT is that, speaking about the blockchain, people use the concept of a decentralized consensus Protocol, while in fact the blockchain is just one of many ways of organizing information in a data structure.

The blockchain today

The key to power is knowing how to keep that power.

Google and Microsoft were once “destroyers” trying to change the world in their own way. I think they achieved this because they have given billions of people access to information. However, this information is kept under their watchful eye, and now it’s time to pay for a free lunch.

There are a few new rules, such as “Common EU regulation for personal data protection” (GDPR), which try to solve this problem. Although in the end, as is usually the case with EU legislation, such rules could make the whole Internet less efficient, the leakage is not going anywhere. Information will be stored in the same place where and earlier — on the servers of large private companies.

Did agreement use cookies to ensure that your web browser is no longer keep them? No. They just complicate the navigation in the network, and now it takes you more time.

The point is that we do not benefit from the fact that our data is stored in different places, and do not receive remuneration for participating in various networks.

If information is power, those who possess it have the power. Instead of just earn money on the sites you visit and analysis of your online habits, some companies bring this information in a presentable and sell to those willing to pay the highest price.

You probably think that company should give you back the power over your data, and believe that you will be able to achieve this. But how? Can the EU or anyone else to confirm your claim?

The abundance of web sites from different jurisdictions makes it difficult to remove your data from the network, and against selling them without your permission.

Rhetorical question: do you think GDPR will be a solution to the problem of abuse of information?

The power of decentralization

More reliable and simple solution is to create products that return power to the users without forcing the company to further damage the site navigation and to comply with pointless rules.

This is the purpose of bitcoin.

Is there anything special about this blockchain the registry? Actually no. As we discussed above, this is just a data structure similar to an Excel spreadsheet that keeps track of who and what belongs.

You need to access this table? Need bitcoin!

No cryptocurrency would not be able to write data in the blockchain; this decentralized network, where you need some currency to help people pay for protection of their information, and that in turn showed how much money they have.

Wait. It’s probably something more!

We need to talk about why it is so important to believe in the ability of decentralization. But first answer the question: what is missing for mass recognition and acceptance of cryptocurrency?

Maybe a technical problem? Same as scalability, which is usually expressed as the number of transactions per second?

Maybe this is a philosophical problem connected with reflections on how difficult it is to earn/receive cryptocurrencies as companies asking you to buy some tokens and not give it to you as a reward for what you use their network?

Killer crypto app

If we want to understand how this decentralized registry can change the world, we need to represent its properties and to think about how they can be used for business.

As you know, decentralization means that all people can participate in all aspects of management. Perhaps you have thought about how effective the democratic system in reality. (And think about it you have because it is ineffective.)

There is no way to provide a better distribution of wealth — even the most effective system.

Most organizations have no reason to switch from conventional IT infrastructures to the blockchain system, if they somehow do not want to decentralize value.

With this in mind, we come to two important conclusions:

DLT is ideal for centralized organizations and products;
blackany optimal for decentralized organizations, and products.

Now, when the whole picture emerges, it becomes clear what the killer application. It is something that changes the structure of organizations and creates value.

By combining the power of distributed infrastructure with decentralized control and Autonomous regulations consensus, which provide trust between equal parties, we can achieve an entirely new and unprecedented ways of creating and distributing value.

It concerns not only money, but literally everything we seek.

No doubt, great to track the origin of products in a public registry or securely store personal identification information in a place where only you can access them; this is a great and revolutionary ways of using technology to better distribute value among members of the network.

And the path to the new Internet should be paved with a fundamentally new approach to making/receiving a value.

But how will it look?

Web 3.0

Now hundreds of projects are decentralized versions of popular platforms such as Google, Twitter, Facebook or LinkedIn. Some projects, such as Steemit, browser Brave and Wabi, has already deployed a real decentralized application.

A characteristic feature of the business, aspiring to create a decentralized network, it should be the correct implementation of incentives so that a large part of the benefits provided to users.

Why don’t you get a reward for participation in that or another network? Why not share your data with third parties for a fee? What if we start to estimate in money everything we do on the Internet?

The need blockchain technology will not really be clear to most until, until we forget how to do without it.

This is the same with the Internet or mobile phones.

Blockchain, which we know today as database or registry used to store bitcoins in the coming years will change significantly, as more people have been creating ways of decentralizing the distribution of values. Perhaps all blackany will interact with bloccano bitcoin, and it will become the standard, as was the first.

Or not.

The fact is that, whatever baccani, we need to change the measure of values, in order to have this technology developed. The more effort people take to ensure that technology remains under the supervision of a Central authority, the harder it is to part with old ways of thinking.

If the tokens can represent almost anything, sooner or later companies will start to associate them with their business models and move from receiving benefits due to the users to provide them with value. If there is licenzirovanie performance of a particular company, product or idea, and then there are different ways of transition from a centralized structure to the network, where all owners of the token will be in the same position.

If our vision is the decentralization of values, then is there a better way to do it, and then change how we make/get this value?

Web 3.0 is nothing like a brand-new way for companies and organizations to restore value to the users to its rightful owners.

Why enrich a minority when you can enrich the most?

If the ultimate goal is to better distribute values, then for sure you can’t use the blockchain, separate from bitcoin.

Sorry if disappointed!

As I mentioned in the beginning, I write on this subject in order to eliminate confusion with DLT and bloccano, and does not seek to hurt those who hold a different point of view. However, it should be borne in mind that any technology we can expect both good and bad results. Using the blockchain associated with centralized digital money, we give our confidential information to third parties. If we do the reverse, take back what rightfully belongs to us, is the ability to freely exchange values in the network. I believe that this should be limited use of new technology.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.