By COMO Team
10 min reading
Blockchain, the chain of endless possibilities
Yes, blockchain is the technology that supports bitcoin. But it is not only that; this technology is a significant accounting book where all Bitcoin transactions are registered.
In other words, the transactions are perfectly registered and available to everyone to guarantee the integrity of the payments. In this way, blockchain works as an unalterable public registry, a consensus tool among all its users.
This could mean the end of the order based on the hierarchy. Since the beginning of time, people always have needed the authority of third parties or institutions to coordinate (officials, experts, judges, politicians, central banks, supervisory entities, and legislators). That massive list of elites costs a lot of money and generally makes the processes complicated and burdensome.
Think about what you would need to do to buy a house. It would help if you dealt with notaries, property registrars, and bank officials. Still, blockchain allows us to simplify all these procedures—the possibility to do them almost immediately with complete safety and at a much lower cost.
Imagine, for example, that we replaced real estate property records with this technology. What would happen? Through blockchain, it would be communicated to the world that a house was transferred, and its payment was made. This communication is made in an inviolable and unalterable way.
In this way, all users can know what properties are in each account without knowing the person's identity behind that account. The same goes for money and other assets: vehicles, company shares, contracts, copyrights, and patents.
We will no longer need a central bank from a company like Visa or any government authority to validate a transaction. The consensual knowledge of this transparent transaction will give it validity.
DAOs and smart contracts
DAOs may be the most surprising application of blockchain.
An application that has the potential to revolutionize many of the human institutions that we all know on a global scale.
A DAO is nothing more than an organization regulated and directed by intelligent contracts on the blockchain with condensed rules known to all: no bosses, no coordinators, no hierarchies, and no need for a superior entity to control everything.
Until now, money and assets were always owned by a person or a group of people; however, all this could change from now on. Can you imagine companies whose owners are not human beings but machines? Can you imagine a company whose owner is just a few lines of code in the cloud?
Thanks to blockchain and artificial intelligence, this could be possible.
“Administrative tasks would almost completely disappear. Now, at this point, can you imagine a city without politicians?”
Examples
Let's think about an insurance company controlled by a DAO with hardly any human intervention. Imagine that a group of farmers in the United States created an insurance cooperative to protect themselves from frost.
In that case, the company would collect insurance money from all these farmers. If somewhere in the United States, a frost at a specific time damaged the crops, it would automatically compensate the farmers by sending money to their cell phones or their current accounts.
What is the point of all this? Well, among other things, to multiply the productivity and efficiency in every task. Imagine all that this could lead to. Many services would be much cheaper now, Thanks to blockchain.
But it does not end here. With this artificial intelligence of DAOs, we could imagine investment funds, pension funds, or NGOs without bureaucracy. DAOs can hire analysts and programmers, but they can also make their own decisions according to their programming and learning abilities.
The end of corruption
Administrative tasks would almost completely disappear. Now, at this point, can you imagine a city without politicians? A council with very simple rules constituted as a DAO.
The problem most people see with representative democracy is the introduction in history of the intermediary element of the professional politician. A figure that once reached power, ends up behaving like an old-fashioned extractive elite. The question is what, can blockchain contribute to all this?
To create something that is already known as distributed democracy. A new concept that could largely replace the representative democracy as we know it. So much so, that it is likely that by the end of this century many politicians will be replaced by this new type of governance.
A system based on large sets of DAOs and smart contracts to which the individual may or may not join optionally and even regardless of the territory where he lives. With this new system, we could all participate directly, or we could also delegate specific decisions to the best valued, most prepared or most reputable members.
Just as you hear it. The blockchain paves the way to end bureaucracy and corruption. It may be seen still far away, but just 30 years ago it was also said that the Internet was an illusion.
References:
https://www.cnbc.com/2022/06/30/bitcoin-falls-below-19000-again-as-pressure-mounts-on-crypto-firms.html
https://hbr.org/2017/01/the-truth-about-blockchain
https://hbr.org/2022/04/how-daos-could-change-the-way-we-work
https://www.sciencedirect.com/science/article/pii/S0040162522003304
https://www.aph.gov.au/About_Parliament/Senate/Powers_practice_n_procedures/pops/Papers_on_Parliament_66/The_Contemporary_Crisis_of_Representative_Democracy
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