Banks are centralized ledgers and big places where they protect deposits in their buildings, basically it’s Trust system in nutshell !
What’s Trust System
Trust system involves three people, me & you & someone between us, from government, to bank to insurance company.
We trust them, we give them power to run things up, but when you give up your liberty and power is because you trust that they won’t harm you, steal from you etc.
that’s trust system.
What’s Ledger ?
Ledger is Database that keeps Balances & transfers. Every financial organization has this
ledger is either software/digital ledger or a paper ledger,
But those ledgers are centralized, which means they’re kept privately and run by one organization (bank..) and kept away.
What’s Money ?
Money is simple paper with value, this green paper’s value comes from physical asset (gold,…).
Any asset that has value (in society) and could be traded is money ! cigarette, diamond etc) are all considered money (in past they buy things –trade- using gold & other assets).
The Blockchain Revolution
Blockchain is a database, a ledger — Balance & transaction- shared on network — computers related to eachother, that’s blockchain.
the difference between bank’s ledger and blockchain, that blockchain is shared database, blockchain aka shared/public ledger is you can’t modify, update but you can have copy of whole ledger, you can only read this ledger but can’t modify or update balances, but just validation
transaction aka Mining.
Bitcoin and altcoins (Ether, Dash, Zcash…) are digital money it works inside the blockchain, and blockchain is run because of computers that validate & store & have copy of the ledger (balances & transactions…).
Miners are basically bank employees because they run this ledger and make it possible & validate transactions and get paid in bitcoin/altcoin for doing this.
Bitcoin blockchain (network) allows only transactions, another blockchain appeard it’s called Ethereum, on this blockchain not only transactions but on Ethereum’s platform (network) you can build smart contracts.
Smart contract is piece let’s say of software, once done programming it to do some functions (mainly used to rely decentralized Apps (dApps) and to connect with blockchain network) once programmer finish it and send it to the blockchain network he will never be able to change or have any control over it.
Smart contract example : Nassym creates smart contract that gives Nesrine < Digital Asset/Token> let’s call it NAS-Token, in exchange for that Token, Nesrine gives me digital money (Bitcoin or dash or Ether)that i can use to fund my project, or buy weed or simply buy pizza ! and Nesrine can use this Digital asset or token to exchange it on Exchange like any digital currency, she can trade it or keep it as investment because it’s asset like any physical asset (gold,cigarettes etc).
I can’t take from her this asset because Blockchain’s ledger it’s written owner of this asset is Nesrine, and she owns it, i can do nothing about it once issued to her. All this done automatically and nobody can steal or fraud etc.
Future is AnCap (Anarcho-capitalist)
It’s real big change coming, not a revolution by weapons, but decentralized platforms that are smart enough to be a Trustless system.
A place where everything is done by smart contracts and we won’t need centralized authority to run my assets to be safe, because blockchainnetwork will protect it.
Anarcho-capitalism IS SIMPLY Blockchain, because no third party will control my & your assets.
Bank or government simply not needed to run ledgers, nor play role of middlemen between people, blockchain network will !
So when other blockchains get less nerdy, more used than digital currency & trading, we’llget rid of banks and any centralized orgranisation ! and we can chant loudly.
FUCK THE BANK !
You can read & explore Blockchain, digital currencies & smart contracts :
Guys to know about & read /follow
Dick Olsson Blog
Paul Reynolds blog — lies and startup PR
Book : How i found freedom in unfree World by Harry Browne.
This article was written By Nassym Louradi, Algerian Entrepreneur & Financial Analyst based in Kenya & Algeria, Founder of KodePay
Follow on Twitter : @Nkashboi
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