Fundamental Blockchain Principles
Privacy is priceless because you cannot put a price on it without compromising on your freedom. Freedom is precious, and so is privacy. vision for bitcoin was developed on this very premise. It’s why the technology is based on seven Blockchain principles that resonated with passionate leaders of the tech community, who developed it collaboratively to protect freedom and privacy in digital affairs. Satoshi did not envision bitcoin to succeed the internet like it is touted to have. We doubt that he ever intended it to. His vision for bitcoin was restricted to it being a facility for free exchange of money – specifically, digital money. Essentially, it was to create a digital economy. So simple and original was his idea that it was magnificently profound.
Satoshi combined computer science with economics and other disciplines to create a technology that worked on trust to change our institutional and economic systems. Although, he never outlined the principles of blockchain technology explicitly, they have been widely observed and discussed by those fascinated by it. The principles implicit in blockchain technology have now lent themselves to the re-designing of software, businesses, organizations, and even governments. The principles of blockchain have renewed trust to user in an era of digital economics and intrinsically fair social systems.
Blockchain works according to seven basic principles. These principles are:
Trust is intuitive and not forced. It is felt while blockchain technology, which uses a distributed verification system for transactions that does not centralize power. Integrity is felt in the decision rights of blockchain users, the network’s incentive structures, and the way blockchain technology, quite simply, operates.
Blockchain is a peer-to-peer network, which distributes power among the different members using the technology. This means no single person or system can ever shut blockchain. It would require many users with serious machining power to run blockchain down, and even they might not be successful. Blockchain is robust and resistant to attacks and fraud due to a distributed power system.
Satoshi knew that he would have to depend on a community of programmers to bring his bitcoin blockchain vision to life. Therefore, his system incentivizes appropriate behaviors so that users can lay claim to a stake in technology by demonstrating good behavior. The technology is “of the people” in the literal sense, and therefore, blockchain developers will always have a vested interest in keeping it safe and efficient.
Fair Cryptographic System:
Codes scare people, who can’t decipher them. Nonetheless, blockchain cannot do without code. Blockchain lends its cryptography a level of authenticity and integrity that can be felt intrinsically. It cannot ignore good conduct or reckless behavior. Which means, good behavior is definitely rewarded, and the consequences of reckless behavior affect only those who behave recklessly.
Rights are reserved in a transparent manner so much so that it is self-evident to most users. Blockchain users know exactly what rights they’re entitled to, and that they are equal and fair in the best way possible.
Blockchain was not created only for the rich. As a decentralized, global and virtual economy, it is for everyone. A white American man has as much right to participate in this economy as a brown Indian woman. Blockchain knows no race, no ethnicity, no nationality, nothing that creates “others” and excludes them. It is an economy par excellence in the sense that it is truly includes everyone with a computer and some understanding of blockchain.
Lastly, blockchain establishes a separate virtual identity for its users to protect their privacy both – online and offline. The identity uses a series of numbers, much like code, that are difficult to profile. Hence, blockchain fosters trust by eliminating the need for any real (or seemingly real) identity. It protects the identity of its users so that they can participate in the digital economy freely and fairly with integrity.
The Design for Future
Blockchain has truly been designed for the future. It has revolutionized the way data and assets are exchanged online using set principles that enforce and incentivize ethical behavior and participation. Blockchain recognizes no skin color, sexual orientation or gender in its users. It is inclusive, robust, and still, quite private. Its design is one that fosters trust and paves the way for re-modelling our public and private institutions.