The Internet as Accountant

Cryptocurrency, and the blockchain innovation that makes it possible is like a tsunami that has been spotted way out in the ocean, approaching our shores at 600 miles an hour. We see it, and it’s moving fast. It doesn’t look like much, but we know it is going to hit our shores and when it does it is going to change the landscape forever.

Blockchain is what we call a transformative and disruptive technology. The invention of the blockchain has transformed the internet into an open-source accounting tool. Like the telephone, television, personal computer, an the internet all, blockchain will change the way we live our lives. Blockchain, then is also disruptive. Particularly in the realms of money, commodities, e-commerce, contracts, and even cloud services, it will rip control out of the hands of businesses and institutions that fail to harness and use it themselves.

You can see below that the financial industry has noticed. On April 4,2016, the Of Two Minds blog posted,

… To say that the future of money is blockchain-based crypto-currencies and payment platforms is to state the obvious nowadays. If this wasn’t the case, then why are Goldman Sachs et al. (i.e. the global too big to fail banks) rushing to patent their own proprietary versions of blockchain technologies? Why are banks investing heavily in companies that are trying to establish a global blockchain platform for banks?

The reason is that banks understand their core reason to exist is threatened by peer-to-peer, decentralized payment platforms and currencies. … (The Future of Money)

The big banks are developing and patenting proprietary blockchain technologies, because if they don’t then blockchain will pass them  by and people will more and more learn of ways to carry out their transactions without them.

Cade Metz, in Wired, reported in February of 2106 that the Depository Trust & Clearing Corporation (DTCC), which oversees the entire stock settlement system:

… called on the entire financial industry to collaborate on blockchain-like technology. “The industry has a once-in-a-generation opportunity to reimagine and modernize its infrastructure to resolve long-standing operational challenges,” said DTCC president and CEO Michael Bodson. …

It was a big deal …“We’re owned by the industry,” says DTCC chief technical architect Robert Palatnick, “and everything we do is at the request of the industry.” … Through the DTCC, (Josh Galper) says, the market’s big players are mobilizing themselves to exert control and influence over the next generation of blockchain products. …

Yes it’s a big deal when the entire financial industry dives headfirst into a new disruptive technology. Metz continues,

The DTCC is also one of the founding members of a sweeping open source software project that aims to push the blockchain idea across the business world … originally dubbed the Open Ledger Project. Last week, however, the Foundation officially rechristened it the Hyperledger. And it unveiled a governance structure meant to foster collaboration across the project’s myriad members, including big tech names IBM, Intel, and Cisco as well as financial outfits such as JP Morgan, Wells Fargo, the London Stock Exchange, and the DTCC. …

The real power of the blockchain is as a distributed ledger that’s outside of the control of any one organization—a ledger that keeps, as Palatnick calls it, “a single indisputable version of the truth.” … With the blockchain, this truth can be controlled by a network of machines and an open ledger that all … can see. …

Nasdaq, for one, is building a private stock exchange using the blockchain. Companies like Goldman Sachs are investing in Digital Assets Management, a blockchain startup run by former JP Morgan exec Blythe Masters. And this whole movement takes on added meaning, Galper says, with the involvement of the DTCC: “A DTCC investment really makes it real.” …

Certainly, the DTCC is not embracing the blockchain … that underpins bitcoin across the Internet on countless independent machines. Through the Hyperledger project, the DTCC is instead exploring a new version of the blockchain that businesses could run on their own machines. … (Why Wall Street Is Embracing the Blockchain—Its Biggest Threat)

The Hyperledger project will establish blockchain as the dominant transaction process worldwide but it is likely to take a few years to implement. In the meantime, while BitCoin is still the blockchain managing the largest amount of capital, the fastest growing and second runner up is OneCoin. At the current pace, OneCoin will soon surpass it and is very well positioned to ride the blockchain tsunami to the shore. What is OneCoin, you ask? A very good question.

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About icliks

Biding my time in central ms ... yours too, if ur reading this.
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