Why our economic freedom depends on blockchain

Rage Comment : No matter what kind of human system is inseparable from the defects caused by human factors, it is impossible to achieve our ideal world. For example, the free development of the economy depends on a trustless system. Therefore, the emergence of blockchain is a response to our demand for a perfect system. Blockchain can enable us to achieve self-control in all aspects, whether it is economic, social, material, or spiritual.

Translation: Annie_Xu

American economist Milton Friedman once said, "Only the government can take the best paper, write with the best ink, and then declare it worthless."

So why do we rely on governments to manage currency?

It seems that along the way, while dodging the problems inherent in a highly regulated economy, we have made progress and overlooked a simple truth: Our economies and institutions are not just created by people; they are regulated, maintained, modified, manipulated and changed by people; sometimes by human will and sometimes not; sometimes for the better and sometimes not.

That is, no economy or participant can escape human flaws.

Trust represents the immutable principle of a successful free market economic system. So what do we need to trust? Business owners, merchants, or banks? The economy itself? The ability to prevent or allow interference?

We use our own assets to trade with these "trusted parties" based on reputation, relationships and experience. These trusts are not unfounded guesses, because bad things may happen to those who do so.

Suppose that some solution was found to remove this trust in order to ensure the security of transactions in a free-market economy; it consisted of an indivisible set of rules, like the constitutional rights of American citizens.

We need a “trustless” system.

Welcome to blockchain

Ever since Bitcoin has changed every aspect of our lives, its underlying blockchain technology has awakened global financial giants and major governments.

Now they are scrambling to upgrade their pre-internet, pre-mobile infrastructure to new trustless standards. Blockchain is the database of the future, and the future is already here.

How do I make this assertion? First of all, blockchain is a digitally recorded information ledger. This information record is stored in blocks, which are connected into chains. The information on each block is protected by a cryptographic hash and arranged linearly after the previous block. In this way, the information in the ledger cannot be modified, ensuring trust and transparency.

While the mainstream media continues to publish news and arguments, what it fails to tell you is the importance of blockchain.

Every major bank and securities market operator is now exploring and deploying emerging technologies centered on blockchain. But its application areas go beyond the financial industry. Bitcoin and Ethereum have proven to be the most successful use cases so far, with the latter focusing on digitizing and enforcing agreements through smart contracts; that is, the digitization of law.

Even when immersed in the various alternative applications of blockchain technology, we can still see endless possibilities.

Most pre-internet and pre-mobile infrastructure providers should adopt blockchain technology because it is cheaper, faster and more secure than existing technologies.

Spiritual food intake

Imagine that you can control your own medical records and credit records, use blockchain to protect voting systems, and provide tax audit agencies with information ledgers in the form of immutable tokens.

Imagine that the world today is the same as it was a decade ago, full of redundant operations, wasted resources, disorganized intelligence, and a lack of information sharing that makes it impossible to take effective measures.

Imagine having a system to share information in real time without transferring control of the information.

For example, there is insufficient information sharing between credit card companies, banks, payment processors, etc. This system allows them to share information without revealing specific information about customers or merchants, especially metadata; it can solve the challenges currently faced by the industry.

Economist Milton Friedman said, "The concentration of economic and political power inevitably leads to dictatorship."

Blockchain can isolate these two powers and return them to the hands of the people.