Blockchain or Bullshit? How to Identify the Real from the Fake
Learn how to differentiate real blockchain from fake databases with our guideFebruary 14, 2023
Blockchain technology was designed to enable a decentralized, neutral, and censorship-resistant system. It is meant to open up the ability to transact, collaborate, and engage on a global level. The key is to remove trusted intermediaries and create an open, transparent system that enables a tsunami of innovation. But, how can you tell if a technology is truly a blockchain or just another database? In this article, we will guide you on how to differentiate the real from the fake.
A real blockchain system must defend the properties of an open, borderless, transnational, and neutral system. It must make it impossible for any actor or several colluding actors to censor or blacklist users, restrict countries, seize bitcoin, or freeze transactions. All participants must be able to engage with the network. If you can replace the word "blockchain" with "database" and the brochure reads the same, it's probably not decentralized, borderless, neutral, censorship-resistant, or open. It is just a database that re-establishes trust and intermediaries.
The purpose of blockchain technology is to remove trusted intermediaries and create an open, transparent system. The real value of blockchain technology is the possibility of fundamentally changing the way we allocate trust on this planet. It allows a twelve-year-old JavaScript programmer to have the same influence and power as JPMorgan Chase. The technology can be used to improve the way we transact, collaborate and engage on a global level with everyone.
However, some companies use the blockchain technology to strengthen the same centralized institutions to improve their bottom line. This is not what the blockchain technology is designed for. The goal is not to create a cartel of the same market makers who manipulated and compromised every market in history. This is not a recipe for efficiency, immutability, security, or transparency. It is not a blockchain. It is bullshit!
In conclusion, it's important to evaluate the technologies carefully when we see people taking something with the fundamental purpose of removing trusted intermediaries. A real blockchain system enables a decentralized, neutral, and censorship-resistant system. It allows everyone to engage with the network. On the other hand, a fake system re-establishes trust and intermediaries. It is just a database. Remember to replace the word "blockchain" with "database" and see if it still reads the same.
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