Blockchain Bandwagon
Tags: Branding, In The Know, Bitcoin, Blockchain, Trends

Korea and China may be tightening regulations to keep the cryptocurrency craze under control, but Japan next door continues to host one of the most bitcoin-happy economies of the world. The epitome of this movement can be found in Kasotsuka Shojo, or the Virtual Currency Girls, a Japanese girl band determined to harness the power of J-pop to spread the word about virtual currencies. Donning masks, knee-high socks, maid uniforms and cryptocurrency symbols, the members sang with a kawaii fervor at their debut live concert, performing songs like “It’s hell if you buy at a high price!” and “Don’t underestimate the Market.” Fans could buy merchandise — and even photos with their favorite performer — but only if they paid in bitcoin. Add to that the government’s lax attitude about virtual currencies and you have an entire generation creating a no-holds-barred speculative bubble.

Kasotsuka Shojo’s debut single The Moon and Virtual Currencies and Me is eerily reminiscent of Pussy Riot’s Punk Prayer. Be it feminism or virtual currencies, both their members, like modern missionaries, gained notoriety for singing hymns to the gods they praise.

But as disciples don’t we have a question or two for those who preach the gospel? What is bitcoin? How does it relate to other virtual currencies? And how does it differ from blockchain?

Just hearing the words “nodes” or “miners” makes my eyes glaze over, but as it turns out, blockchain is like the internet. We don’t actually have to know how it works to be able to use it. All the average bitcoin enthusiast needs to know about blockchain technology is what it does: Ease the transfer of payments and other kinds of information.

It’s a ledger that protects and encrypts each transaction by connecting it with nearby transactions. That way, no single part is susceptible to hacking or copying. Identical “blocks” of information are spread across a network and cannot be controlled by any single entity, making the system robust. Because the network maintains and grows these “blocks” of transactions by sharing and continuously updating them, it’s as quick and collaborative as a Google spreadsheet.

Paging Harry Potter, I can’t help but think of blockchain’s blocks as digital Horcruxes. The way Lord Voldemort would divide his soul into pieces and embed them into unique objects to avoid being completely destroyed is not unlike the way blockchain splits our data to maintain its integrity. The database also is decentralized, so it removes the need for middle agents to convey the information. “Not too shabby,” the Dark Lord might say. Welcome to digital anarchy.

Australia’s primary securities exchange, which recently brought in blockchain to clear and settle trades, might potentially be saving millions of dollars by removing middlemen from transactions. Even a major financial service corporation like MasterCard is slowly inching toward a new world order with its “MasterCard Blockchain API” — that, after Ethereum’s co-founder posited that blockchain might eventually replace credit cards. And the latest phenomenon sweeping the cryptocurrency market off its feet? CryptoKitties. These one-of-a-kind breed-able collectibles are like Pokémon cards, except that an average kitten would cost you ~50 ETH (based on the Ethereum blockchain), or nearly $23,000 in actual money.

Initially used only to support the exchange of virtual currency, blockchain technology has quickly started to lend its robustness and security to myriad other uses. It’s already transcending the world of finance to impact healthcare, food safety, diplomacy and education.