The new programmable economy

I have been diving into the Blockchain technology last 4-5 months. The deeper I come the more I understand that this technology might change our future dramatically. It is not a next version of what we do today, it is something completely new.

I just read a Gartner document with the title “Hype Cycle for the programmable economy”. And I loved the word programmable, because that’s what this is all about.

I will not dive into Blockchain here, and recommend you to watch some of the videos on YouTube or read any of those hundreds of excellent articles online. In one “transaction” on the Blockchain one can store a script. This script can be triggered by an event.

Scrip might like this:

Peter transfer 100 Euro from his dya-2-day wallet 36273fae36462cce4637 to his pension fund wallet no 3217eah3523e25623526 every month the 10^th. When the amount is more than 100 000 Euro, the monthly amount is reduced to 25 Euro. When Peter is older than 70 years old, the transfer stops. If the interest rate is zero or below, do not transfer next month.

From http://www.dnacapsule.com/

The business logic is inside the transaction in the distributed database of Blockchain. The database is distributed, meaning that it is outside the bank’s technical infrastructure.  It is transparent to other banks, central bank and regulator. 

It is 100 % safe and with, if possible, better security that present payment and banking systems. It is something completely new.

This means that most of the computer system that all banks run today might be obsolete in 5 to 10 years, so are a lot of the processes internally in the bank. But is not only banks, it is telecom companies, supply chain management, hospitals, pharmacy industry, hotels, …. you name it.