Blockchain — Decentralisation for Everyone
By: Aravind M
Tags: Other, Cryptocurrency, Cryptography, Blockchain

Photo by Launchpresso on Unsplash

Blockchain is exactly what it sounds like, a chain of blocks.

Well, it is not as simple as that. Many of us know a little about the ledger system many institutions keep to build the trust people have in them. Yes, trust is what drives the economy, markets and financial systems.

The value of that 100 Rupee note in our pockets is based on trust, trust in the Government by the people, trust in the lenders by the Government, trust in the Government by the World Bank.

Trust — The central pact of value

Trust drives value, it is what makes sense of the exorbitant debt of every country. Trust gives meaning to transactions. Trust drives a country, from the backseat.

Without trust, there would be no system, let alone value.

Cryptography — The mathematical trust

Trust in the system is needed for the daily activities of each and every person under the sun. But, it is temporary and often abused without any remorse. Yet, trust in mathematical constructs is foundational and fundamental. Math can be tested time and time again to ascertain the correctness of the system.

Math cannot be hijacked by those in power.

Cryptographic Transaction Record — The perfect union

So, if transactions can be trusted just by the math behind them, then no system is required to verify them.

The system becomes both the enabler and the enforcer.

One such system is the Cryptographic Transaction Record in Blockchain. Yes, a blockchain is a cryptographic transaction record that tracks every transaction, large and small. Anything that is in the system, is tracked, and verified periodically to check the correctness in the record.

Public Record — A public scare

But, if all transactions are tracked, there is a significant chance that an individual can be tracked just by using the transaction record associated with them. This causes concern for people to use the system in the first place.

If all transactions can be associated with the person that initiates that transaction, then there is a very real possibility that the transactions associated with them will be monitored for meta-information. This meta-information can then be used to create a profile for the person making the transactions.

The trust in the system is broken, because of the machinery that enables it.

Encrypted Information — A layer of anonymity

There is a solution to this problem — Encrypting the information behind the transaction and then, embedding it. A lock and key solution, if you will.

A lock in the form of a public key, a key in the form of a private key.

Generic RSA algorithms that ensure that the encrypted transaction is accessible only to the person who created it and nobody else. This offers some respite for the people that need it.

Accessible Trust — A better financial model

Thus, trust is taken back from the prying hands of those in power and is made accessible to those who need to test it, to their heart’s content.

Trust is made to stand on a pedestal with lights lit brightly for everyone to see.

Trust regained back is trust given to the mathematical model, that detests everyone that tries to hijack it.

Trust is given back to the people, where it rightfully belongs.