Blockchain without cryptocurrency, will it be just a new kind of database ?
Early this morning, my friend share a video of Adam Ludwig, CEO of Chain. In the interview with the business insider, he is talking about more or less relation between a blockchain and a cryptocurrency. Because, if I understand right, a blockchain solution doesn’t need to have a cryptocurrency to run.
Here is the interview if you want to see it yourself
So, is a blockchain is just another type of database?
I’m going to try to chew this from some perspective. One, from the idealism behind the blockchain movement. And two, from a business point of view.
But before we go, yes, technically blockchain is actually just another type of database. Can agree more on this :)
The Idealism
Even something so “simple” sometimes changes the world. Like some silicon gate, a day walking to Xerox Palo Alto center, or even a database software. Although, technically blockchain is by no means simple. But, it just a database right?
But it is not for some …
This has been discussed and write and talked by so many people over and over again. What is it? The idealism behind the blockchain. People believe that blockchain can help humankind move into a decentralized system which is more democratic (autonomously democratic), more fairer (in trade, access, etc) and more efficient.
Think of it. If this happens, it may change the world.
I give you one example. Direct connection means no more middlemen. Imagine when a farmer in Indonesia able to sell their banana directly to a supermarket in Osaka, Japan. Think the value this farmer could get.
That kind of impact, can you say something “just” with that kind of impact
The Business
From the business point of view, we have two sides of the crowd here. On the left corner, we have corporation from the old world. And on the right side (not that right side from the united state of Donald Trump mind you), we have people from the future that haven’t materialize, the people who truly believe in the idealism and the power of a blockchain.
I think they both need the business … or frankly speaking, money
The old world needs money to keep on going. The future world needs money to build their dream society.
The corporation camp (yes, I keep changing the way I call them) interest has grown lately. With all the buzz, they now feel the need to understand this hype, is it a dangerous threat, is it an opportunity or is it just a bunch or skinny boy from Russia that flies around the world.
Some of them lead the way. They’ve already found out the benefit of the blockchain for the corporation camp. To simplify, blockchain has the ability to increase the profit of the corporation, by making them run more efficient through an automated business process and have a central ledger to dismiss dispute that could cost them big money if it happens. Maybe there are more, I don’t know …
In the corporate world, all of it means money, more revenue, more profit, less cost.
To enable this, most of them will run a blockchain base system in closed private manner. Their blockchain will still run like a normal blockchain system. It still has many computers as a node to process and store the block data, distributed in the different area, possibly running on top of a virtual machine in the cloud, but all of them are “inside” centralize control. It is a distributed private database. In their system, they don’t need proof of work mechanism and they don’t need a cryptocurrency to as incentive another outside party to run the database.
Yes, in the corporate world, blockchain is just a database.
Let’s get back to the right corner. The idealistic crowd.
They want to make the world a better place. And they believe a blockchain technology can help them realize it.
They begin to tweak the idea how they can use it. They want to give access to financial services to millions of unbank people. They want our private data is in our control. They want people to have their own private identity that trusted by anyone. They want a supercomputer that anyone can join the building process and have access to.
They have so many ideas, they working on it, and they need the money to build it. But, in decentralize world, when there is no middlemen and people have a direct connection to others, peer to peer via blockchain, they need to figure it out how to get the money.
Because they are not new middlemen, they are the builder of a new (virtual) road that connects all the dot. What they build is infrastructure, a connecting point for specific services and automated business process that enable a transaction, agreement and many other using a smart contract.
They need a new business model.
And for now, the business model is (to simplify), create cryptocurrency or token/coin and do an ICO (initial coin offering) to raise fund.They created cryptocurrency or token/coin also work as an incentive to people who join to help create and run the system.
I’m sure, soon we will see another refine business model than above. Let’s give them sometimes to think and work it out.
This can go even longer…
But by now, I hope you can see the picture here, why the blockchain can see both as just a database and as an idealism that has so much more than just a database.
To end my article, I want to repeat my statement above. Even something so “simple” sometimes changes the world. Keep open your eyes and your mind, because another simple thing might come tomorrow, and it can change your life and others. Sometimes, it might even make you a billionaire :)
And that’s it. As always, I might have wrong about this, because I’m only a human :) All the truth belongs to Allah. If you have different opinion or point of view, I always open for discussion.
Thanks for reading :)
Note : i take the picture from the internet and linked where i find them. If these are your and you want me to remove them, just let me know.
