Who is Don Tapscott?
Don Tapscott is the author of a dozen books on technology and sees one that could change everything around us, and he’s not the only believer. Tapscott and his son co-wrote a book called blockchain revolution, named after the technology that supports bitcoin, blockchain, and cryptocurrencies.
While Bitcoin, a digital currency traded in online exchanges risen more than 1700% percent during the last two years, to a total value of 136 billion dollars, exceeding American Express value. The surge has people wondering whether Bitcoin is in a bubble. For Tapscott, that question is missing the real story.
“the real pony here is the underlying technology called the blockchain.”
Tapscott says that technology is the key to creating trust in peer-to-peer transactions like sending or receiving money without a bank or a credit card company in between
“…and trust is achieved not by a big intermediary; now it’s achieved by cryptography, by collaboration, and by some clever code.”
Blockchain as a chicken McNugget
Here’s how the blockchain works when you send or receive an asset the transaction is recorded in a global public ledger, a network of millions of computers store copies of that ledger and work to validate new transactions in blocks. When each block is verified, it’s sealed and connected to the preceding block which in turn is connected to every block that has ever been validated creating a secure blockchain.
“There’s now an immutable record of that transaction, and if I wanted to go and hack that transaction, say to use that money to pay somebody else, I’d have to hack that block plus the previous block in the entire history of commerce on that blockchain. Not just on one computer but, across millions of computers simultaneously, all using the highest level of cryptography, while the most powerful computing resource in the world is watching me.
The way I like to think of it is that a blockchain is a highly processed thing sort of like a Chicken McNugget and if you wanted to hack it’d be like turning a Chicken McNugget back into a chicken. Now someday someone will be able to do that, but for now, it’s going to be tough.”
Tapscott predicts these global Ledger’s or blockchain could affect several parts of the economy during the next decade, in particular, the financial industry.