Since the early 1980’s technical designers have been looking for a solution for the Internets issues of privacy and security. Despite their best efforts to redesign the process, there were leaks because of the involvement of third parties.
Paying with credit cards over the Internet was insecure because users had to reveal too much personal data. Furthermore, the fees were too high for smaller transaction payments. What the Internet required was a “perfect” technological protocol where doing business on the Internet didn’t requires a leap of faith.
In 2008, the global financial crisis occurred and Satoshi Nakamoto, a pseudonymous for who we are still unaware, outlined a new protocol for a peer-to-peer electronic cash system using a digital currency or crypto-currency, called Bitcoin.
With this, many traditional macro-economic assumptions didn’t necessarily hold true. Prior models consisted of buyer and a seller doing a transaction through an intermediary. Crypto-currencies could conceptually allow individuals to interact directly without the need for an intermediary.
Crypto currencies differ from traditional fiat currencies because they are not created or controlled by a country’s central bank. This protocol established a set of rules in the form of distributed computations and this ensures, data integrity of the data exchanged among all the participating devices. The need to flow through a trusted third party would no longer be relevant.
This was a tremendous breakthrough as it was the distributed trust network that the Internet always longed for. Today, tech experts everywhere are trying to get a better understanding of what it means to have protocol, that allows for the manufacture of trust through cleverly programmed code.
This paved the way for trusted transactions directly between two or more individuals, authenticated by group collaboration and authenticated by mass collaboration and driven by collective self-interests. Each party works for their own benefit and collectively, for the benefit of the group (all users).
Blockchain technology is sophisticated but the concept is simple. Blockchains allow money to be sent directly and safely from me to you at faster speed, higher security, less errors without going through an intermediary, like a bank or credit card company. It also permanently time-stamps and stores exchanges of value, preventing individuals from altering the ledger.
There is no central database to hack as blockchains run on volunteers around the world. Since it is public, anyone on the network can view it at anytime with no single institution responsible for auditing transactions, records or altering the ledger.
What this means to the traditional economics rules is that new digital ledger of economic transactions has the potential to record using code virtually everything. Birth and death certificates, financial records, supply chain details, where your food was sourced or virtually anything you can think of – can all be recorded in the form of tamper proof transactions.
Think of the profound impact that this will have on people. You will be able to tell if your vegetables are really produced organically, if your coffee has been ethically harvested. You could also send money across the world instantly, securely and with little or no fee.
And this is just the beginning, blockchain technology holds the potential for providing countless new applications that have the potential to transform many things. At GLITZKOIN we are building a blockchain based diamond-trading platform. Transactions would be paid for using a crypto currency, no currency conversion overheads and no expensive bank intervention.
GLITZKOIN has a professional team from the diamond industry with decades of diamond industry experience. We have brought aboard, strong technical team with expertise to build a state of the art diamond trading platform using the Stellar based blockchain.