Danni and Dettmann Do Blockchain
Why do we all still think blockchain has anything to do with bitcoin?
Dettmann taking it from the top of the bill, which is my rightful place of course. We broaden out just a little bit beyond AI to look more closely at blockchain this week. Although its roots are in bitcoin and crypto, blockchain has a much bigger future than those rather dysfunctional ‘currencies’ which are still really hard to use, high risk and generally frowned on. You should not be frowning on blockchain of course. Read on.
We think that the global blockchain market might reach into the trillions by 2030. Some naïve individuals think it might be three times that. Either way, it’s going to be a long and bumpy road.
The biggest concepts to wrap your head around are the idea of a register of transactions that is publicly accessible by anyone who needs it in a transparent way. This turns out to be really efficient for managing contracts and also for de-risking counterparty issues in banking and other financial services. The ledger, or the list of all prior transactions, is simply moved around as transactions take place. New transactions are added on to the end of the blockchain ledger and the process continues indefinitely.
This means any interested counterparty can see the entire transaction history. It is efficient and secure, although the security element is hard to understand. How can a publicly accessible document be secure? Surely it would be more secure to keep it secret? I am sure Danni will try her best to explain this conundrum but the problem with secret ledgers is that they are prone to fraud. Like open source software, open and transparent ledgers can be more secure. It turns out that they really do have many advantages.
If it’s that good why does it seem new? This is the kind of thing I ask myself all the time. Fortunately I have Gemini. As with AI, blockchain is not new. The ideas have been kicking around since the 1990s. The clever part is that encryption is added to the public ledger to keep it safe. It was that idiot Satoshi Nakamoto who published the Bitcoin whitepaper in 2008 who made all of us think that bitcoin and blockchain are the same thing. They’re not at all.
Danni Explains
So, here’s the thing, I actually knew nothing about blockchain. Last week, when Dettman joked about me not knowing much about AI, I thought, Hey, I know ‘some’ stuff! But this time? He’s absolutely right. [I don’t think he would have thought that about you. He thinks you know more about AI than he does which is why he says these things sometimes. Dettmann.]
That being said, his explanation above is surprisingly clear and basic. Is he okay? [Very much not.] So, if you haven’t already, go and read the above, it’s a solid start. And now, let’s bring this thing to life with some real-world use cases that even I can understand.
Where is Blockchain Actually Useful?
Finance: Money Without the Middlemen
You know how when you send money internationally, it takes forever, costs a fortune, and makes you feel like you’re funding some secret bank conspiracy? Blockchain cuts out the middlemen (banks), making transactions faster, cheaper, and more secure. Think of it like Venmo, but without Venmo needing to exist.
Healthcare: Keeping Your Medical Records Safe
Imagine if your medical records weren’t locked away in a hundred different hospital systems. Blockchain lets hospitals, doctors, and patients share secure, tamper-proof medical data, so you don’t have to fill out the same forms every single time you visit a new doctor. It’s like if Starbucks finally started remembering exactly how each of us takes our coffee.
Supply Chains: Where Did Your Avocado Actually Come From?
Ever wonder if your organic, farm-to-table avocado is actually from some warehouse in a mystery location? Blockchain tracks every step of a product’s journey, from farm to supermarket. It’s basically a receipt that can’t be faked, making it harder for companies to lie about where things come from.
Digital Identity
Lost your ID? Forgot your password? With blockchain, your identity can be verified in seconds, making security way better. No more answering ‘What was the name of your childhood pet?’ for the 10th time, unless, of course, your password really is SmellyCat123.
So… What Should We Actually Learn?
A blockchain ledger is just like your fridge. A lot of stuff goes in, but you might not really understand what’s happening inside. That’s okay. Just know that it’s not just for crypto, it’s already changing industries, and learning the basics now means you won’t feel left out when it becomes a bigger part of everyday life. [So: what I said. Dettman.]