RBI Governor recently made a statement: "Blockchain is more than 10 yrs old technology and can grow and will grow, without Cryptocurrencies (or whatever name you decide to call it by)".
Very interesting statement, so let's break it down.
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Very interesting statement, so let's break it down.
👇👇
1/ Yes, Blockchain is an older technology and has numerous benefits.
2/It is also a fact that to run a network, you need to offer right incentive to people (the most obvious being money).
Because on the network, a bunch of things need to happen -- eg: building protocols, verification of data etc.
Why would someone do this for free?
Because on the network, a bunch of things need to happen -- eg: building protocols, verification of data etc.
Why would someone do this for free?
3/Now, government can allocate a big budget to power up this blockchain and build a range of applications.
Sounds really good, but why would they build decentralised platforms and make this democratic?
Government=handful of people: they want to hoard power.
Sounds really good, but why would they build decentralised platforms and make this democratic?
Government=handful of people: they want to hoard power.
4/ Moreover, government cannot ensure mass scale adoption of these platforms.
If this were the case, Government could have started its own Facebook, Google and Tesla too.
This is a govt school for you:
If this were the case, Government could have started its own Facebook, Google and Tesla too.
This is a govt school for you:
5/ Worst, you can't create a self-sustaining system on a government backed blockchain.
Why?
We have severe budget constraints, now suddenly if we divert critical health/education budget to 'blockchain' budget, yeah good luck building a political consensus.
Why?
We have severe budget constraints, now suddenly if we divert critical health/education budget to 'blockchain' budget, yeah good luck building a political consensus.
6/ Now, you might say: hey can't we form Public Pvt Partnerships and get the ball rolling?
Well, you can -- but again, you will have firms like the two A's in India (won't name them here), who will hoard all the power.
No Blockchain revolution for free, right?
Well, you can -- but again, you will have firms like the two A's in India (won't name them here), who will hoard all the power.
No Blockchain revolution for free, right?
7/So the solution is to build a system, where
- The rules are written.
- Mathematically protected.
- Decentralised (or largely decentralised).
- Have incentive for people to sustain the blockchain.
Sounds familiar?
- The rules are written.
- Mathematically protected.
- Decentralised (or largely decentralised).
- Have incentive for people to sustain the blockchain.
Sounds familiar?
8/The point is: hate is great. But, are there any better methods?
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