TEDx speaker Corey Padveen believes that the world as we know it is coming to an end and you won’t even know it happened. Corey spoke to The Cryptograph about how he thinks blockchain will change the world saying:
“The limits to how the blockchain can change the world and socialize day-to-day processes is virtually limitless. The way I like to describe it is that if you can think of any process that involves steps or stages – like finance, government, or business – then you’re thinking of a process that can be revolutionized and simplified with the blockchain.”
He holds the belief that the blockchain revolution will be mostly silent and that most of the global changes will take place on the back end.
“The most exciting thing about blockchain technology, in my opinion, lies outside of crypto, but in the socializing of data. I think people are used to tangible changes in technology, like a smartphone or a physical website that we can see and use – think Facebook. The most exciting capabilities related to the blockchain are how they operate silently while doing so much to change a process.”
Corey’s Starbucks example really stood out to me because it exemplified how the blockchain will change the world and also how those changes will not be realized by the everyday consumer.
The example is of a customer using their Starbucks payment app to pay for a coffee. The payment process is relatively smooth. The customer scans their smartphone and their credit card info is accepted as a payment.
However, the real action is what is taking place behind the scenes.
According to Corey, as many as five separate third-party entities are involved in that “simple” payment process. All five of which can potentially take fees and be breached by hackers, resulting in the theft of the customer’s data. Each step is independent and your information can be compromised at any one of the steps.
This may sound like a far-off scenario, but it should be noted that estimates for stolen data sales on the dark web are around $100 billion in the last seven years, making this a very profitable and highly competitive market.
Additionally, Corey mentions that if titanic corporate conglomerates like Sony, Target, and Equifax can be hacked while employing entire teams of cybersecurity engineers than it is not at all unreasonable to be paranoid about consumer data safety. The aforementioned hacks left the data of thousands of consumers for sale on the dark web.
Corey believes the solution is the blockchain.
The distribution, or socialization, of data ensures no malice is taking place within the network by having every node in the network validate transactions. That same Starbucks payment can be made entirely peer to peer (no trusted third parties), be verified, and be secured in a single step through the very nature of the blockchain.
Corey sums this up by saying:
“Data security is left in the hands of third parties that, although qualified and working exceptionally hard to protect information, is still just a third party susceptible to a hack or breach. The blockchain’s ability to socialize risk and privacy solves a modern version of the Tragedy of the Commons, whereby utilitarian concepts allow what’s good for one to be good for all.”
The idea of a chaotic blockchain revolution in which tech geeks tear down the federal reserve seems to be just an exercise of the imagination, but to Corey Padveen the idea of socializing data across the globe and using decentralized blockchain networks to solve security issues is an inevitability.