The concept of Blockchain has been around since the 90s. However, only recently, with Proof of Stake, has it started to become more mainstream. Most people really know about Bitcoin or just the trading platforms, but what about the technology and movements behind it?
Blockchain has the ability to revolutionize the way we look at the way we use the internet and technology. Right now, we currently have a centralized model that allows for control and monopoly of concepts. In addition, we have a flawed patent system that protects the big guy, and the little guy has minimal resources to fight off any patent infringements. Sometimes I wonder if the idea of patents itself is killing innovation, but that thought is entirely for another blog.
So what is it about Blockchain that makes me think it has the potential to change income inequalities?
Decentralization. The idea of decentralization can be used more broadly in areas we don’t currently use and could actually help us as a society. Like when it comes to power and resources, utilities. Suppose they were more localized or with solar panels and backup generators and batteries or people living off the grid. We would have mass power outages that could affect hundreds of thousands of people at a time when they need to shut things down.
This still doesn’t explain how Blockchain and decentralization can help solve income inequality. So again, how?
To start, we would have to look at some of the technologies and algorithms being built for blockchain. Take Filecoin, for example. Filecoin allows users to build DAPPS that store user's data with multiple points of redundancy, keeping users from centrally locating their data. It also allows them to pick and choose whose application works best for them in regards to storage. Some coins help lend out crypto assets, and users can gain interest based on their usage. The concept of buying altcoins at a lower rate and using staking to gain a higher percentage of saving increases than you would with a traditional bank. All these ideas and concepts are important, but why?
With decentralization, we can release the control of the Big Tech monopoly. Right now, the majority of us use the same search engines, the same companies to host our emails, the same companies for our server virtualizations. This makes it easier for hackers to hack a centralized location and gain hundreds of thousands of user data. Realistically it doesn’t really matter how well they maintain their systems; with that many users on file, it's hard to manage. Even with AI, there is still the possibility of u[date being missed or not going through and leaving many user data vulnerable.
This is where Blockchain comes in. With decentralization, we can rebuild the way we traditionally run the internet. We could have more localized models for gaining access to data, how we store data, how we do market research, and how we reach out to others on social networks. Each DAPP can have to ability to reach others on cross chains, and it would be more difficult for hackers to gain access to all user's information at once. It also allows small businesses to start building local DAPPS based on location giving the little guy the ability to host users. Security measures could be built along the blockchain to keep the DAPPS more secure on an infrastructure level.
Marketplaces could be built on blockchain that allows goods to come from more local and national before going international. All these options are possible. Decentralizing and breaking up big tech would allow for Blockchain technologies to grow. We have allowed for too long these big tech companies to gobble up start-ups at our own peril.
If they didn’t acquire all these start-ups and control most of the patents, how many companies do you think still would have been around to employ people during the pandemic? The reality of this is how many companies that were acquired were just broken up and only a small portion of their technology taken to be used while the patent itself became useless?
Decentralization and Blockchain can have greater reach even when it comes to government and voting. Maybe over time, we will see where the chips fall, but big tech controlling the masses' data isn’t helping society but hindering the possibilities of what could be. The internet has a lot of room to be improved upon. These improvements create more opportunities for jobs and the consumption of online technologies to spread out, giving a chance for small tech companies to thrive in an online consumer market. IoT, for example, could be the entry point for the internet; instead of using 5G, we could connect through mini nodes that will eventually be all over with the rise of smart technologies. Multiple companies could host email services or virtual desktop services, and whatever other type of services could be used in the cloud.
I guess over time; we will have to see where this takes us. Hopefully, with the current movements and excitement behind the technology, we will see more people build upon what’s being created to push us forward to a more fair and equal internet. Giving rise to new developments and giving us a second run at tech start-ups who have a chance to take on the big guys.