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Blockchain vs. the Internet – Where is the Revolution?

the Blockchain vs. the Internet – Where is the Revolution? On the trail in the history of the Internet and decentralized technological future. Emanuel Coen

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Blockchain vs. the Internet – Where is the Revolution?
the Blockchain vs. the Internet – Where is the Revolution? On the trail in the history of the Internet and decentralized technological future.

Emanuel Coen
At the 1. May 2019 BTC$was 5321,00 0.69% Facebook Twitter LinkedIn xing mail

although now partially forgotten, to remember the beginnings of the Internet in many ways to the developments that we see today in the Blockchain industry. I do not mean the often-mentioned Hype-cycle of the bursting of the bubble and the subsequent resurrection. Rather, I mean the ideological and infrastructural Similarities.

In the first years of the Internet, a close-knit and idealistic developers created a community of open protocols. These protocols (such as TCP/IP, HTTP, SMTP) promised a simple information exchange at a global level. Until today they are the Foundation of the Internet.

Fair competition and open exchange of data

In the early stages of the Internet, ruled fair conditions of competition. Any talented developer could use Internet protocols to create services such as search engines, browsers, Online stores, etc. However, the Internet protocols were not extensive enough. You specified a Standard for open data exchange, but not for the storage and monetization of data.

In the absence of such Standards of Internet companies have a strong interest in it, to save data centrally. For web-start applications as an empty frame, useful you are, if you are fed up with users and data. As the popular Internet companies developed this fast competitive advantages, to obtain, one can still today hardly. From a pure applications, platforms and App Stores, where other company constructions services and, increasingly, in a relationship of dependence were were.

Facebook, Yelp, Google & co.

The Problem is that oligopolies ("GAFA"), but that these platforms started as place for deer to be listed. As evidence one can point to the seemingly endless list of Facebook scandals, or the removal of the Yelp-recommendations by Google to promote its own service called "Places", or the Change in the Twitter API terms of use and the associated expulsion of more than 143,000 applications that relied on Twitter. The list of such examples is long.

The point is that platforms have a strong interest in behavior during the construction phase in the interests of the users, but due to the strong dependence of arbitrary and distortionary behaviour as you like. On the Internet protocols hardly anyone, on the applications talking about today is as good as any. It is clear that the creation of value in Web 2.0 is created at the application level.

Blockchain – The age of the protocols

The technology Revolution, which goes hand in hand with the spread of crypto networks, has the potential to make this dynamic on its head. Crypto-networks networks based on the Internet, and

consensus-are mechanisms to maintain a distributed database and update the Token to use to move Miner/validator the purpose of the consensus procedure.

These characteristics might usher in the age of the logs. Here, the first characteristic, the public database is the key. Instead of individual silos of information in a competitive environment has been breaking through the network for cross-storage of the data. In it users can your data without any friction from one application to the next take

anyone Who has exported his key from a Blockchain Wallet to the next, you will have noticed that the Wallets are only act as user interfaces that use the same public data on the Blockchain (transactions, account balance, etc.) and for the user to graphically represent.

The same phenomenon can be observed if you look at the development around the Ethereum-based, Peer-to-Peer Lending protocols, such as Maker or Compound. These protocols provide the core functionality for decentralized Lending is needed, and are integrated by dozens of applications.

the Status of The loan, the user can watch in any of these applications. The user interface is for the Commodity, which can replace the User without effort. Much more valuable, however, is the underlying Protocol. Quite unlike the Internet, the value added in the Blockchain-era influence on the Protocol level and not at the application level. You only need to compare the market value of Ethereum (Protocol) with the Coinbase (application) to see that the markets rate the protocols higher than the applications.

incentive schemes in crypto-networks

The second characteristic, the cryptographic networks of the Central platforms of superior power, are the incentive mechanisms. They are caused by the Interaction of the Token and miners/Validators. These mechanisms guarantee a say in the development of the network. So can't sell, for example, each of the participants in its network token, if he is satisfied, and even the code base of the network copy (a Fork), to create a competitive network.

other than the Central platform, can not encounter a Blockchain so your users in front of the head. Even if it would technically be possible, that a handful of profit-oriented decision-makers takes place undemocratic changes to the Protocol could be forked for the Rest of the community, the Code. Without significant developer community, and continuous Innovation, the value of the "old" Blockchain would sink quickly.

furthermore, mean crypto-networking, a Revolution for the funding of Open-Source Software. A scare went some time ago by the Internet community, as the public was that just a developer of full-time employees in the maintenance of a critical and requiring maintenance of the Internet infrastructure project, worked. Vinton Cerf, inventor of the Internet, reported recently in an Interview and warned that the Internet is still very far away from the original vision, and more basic research is needed.

In the Blockchain-the area, increasing the network participants have a financial interest, to Finance over the long term in both infrastructure and application projects, to the value of the Token. This interest in public infrastructure projects, it has never and will lead to a never-before-seen value in development of protocols.

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