Blockchain Believer
Once upon a time, way back in the nineties,
we’d dial-up internet as Gen-Xers and like this
world wide web though static and slow
but that or a library? ’twas rock ‘n’ roll!
Email for the masses and clicks for info,
chat crazy for facts ’bout whatever, ya know?
Fast-forward: iPhone, the mother smartphone,
gave birth to apps and interweb on the roam.
This era, big data, ‘came known as the cloud
Web 2.0 reigned and Lords over us now;
but behind scenes, geeks have been building
back better systems than vast data-stealing
like Zuckerberg’s Facebook; just ask the twins:
instead of retreating, they doubled their wins.
Investing in crypto they focused attention,
pioneering the rise of decentralisation,
as that’s where the future promised land leads,
‘cos Web 3 point oh! is the answer conceived
to defeat the greed of the bankers, elites,
and assume control from those who mislead.
Truth is our weapon, the blockchain our steed.
Fairer tactics created. Will you believe?
Once upon a time, way back in the nineties,
we’d dial-up internet as Gen-Xers and like this
world wide web though static and slow
but that or the library? ’twas rock ‘n’ roll!
Email for the masses and clicks for info,
chat crazy for facts ’bout whatever, ya know?
Fast-forward: iPhone, the mother smartphone,
gave birth to apps and interweb on the roam.
This era, big data, ‘came known as the cloud
Web 2.0 reigned and Lords over us now;
but behind scenes geeks have been building
back better systems than vast data-stealing
like Zuckerberg’s Facebook; just ask the twins:
instead of retreating, they doubled their wins.
Investing in crypto they focused attention,
pioneering the rise of decentralisation,
as that’s where the future promised land leads,
‘cos Web 3 point oh! is the answer conceived
to defeat the greed of the bankers, elites,
and assume control from those who mislead.
Truth is our weapon, the blockchain our steed.
Fairer tactics created. Will you believe?
Evolution of the web: 1.0 > 2.0 > 3.0
Promise of the Blockchain
Blockchain technology promises to revolutionise almost every facet of society, industry and commerce. To understand how this relatively new technology is being programmed to build a better tomorrow, we need to recognise the problems our current systems have failed to resolve. Despite individuals and nations becoming increasingly divided along lines of politics and nationality, most would likely agree the status quo of a minority profiteering at the expense of the majority and our planet is unsustainable and unethical.
However, for the promise of the blockchain to materialise, we, the people, need to weaponise our game with smarter thinking to fell the Goliath of centralised money creation. Because, when it comes to power and control, it’s always about the money.
Money is a good servant, a dangerous master.
Francis Bacon
But first, what is money?
Money is something we use to buy and sell goods and services. Whether it’s cash (notes and coins), cheques, debit/credit cards, or wire transfers – money acts as a medium of exchange between two or more parties.
Money is a store of value, such as our labour and potential. For example, society values the work of a teacher, who transfers the energy (labour) they invested in their planning and lesson delivery into the inquisitive and curious minds that will potentially become tomorrow’s educators, scientists and thought leaders. Monkey see, monkey do. We rely on money having a consistent value to ensure the work we get paid for today is worth the same when we spend it tomorrow. Next month. And, ideally, by the time monkey say. In a nutshell, money transfers energy (work) and its associated value from the present to the future. Money has value because we believe it stores the fruits of our labour over long periods of time. Generations X, Y and Z.
Just as our work differs from person to person, so does what we value. Some people prefer apples, whilst others prefer oranges. Depending on how many apples and oranges are available (supply), and how many people want them (demand), determines their price (value). The fewer apples and oranges there are (scarcity), the more valuable (expensive) they become. By the same logic, printing more dollars ($), pounds (£) or euros (€) makes them worth less. Some might argue they’re becoming worthless in the age of quantitative easing aka money printers go brrr! This devaluing of currencies is caused by printing money more quickly than the rest of the economy is growing, meaning your money becomes less valuable simply because there’s more of it sloshing around society, chasing the same amount of goods and services. This leads to inflation and, in the worst cases, hyperinflation.
He who tampers with the currency, robs labour of its bread. And apples and oranges.
D.Webster, US Sec. of State (1841-43; 1850-52)
The Gold Standard
Historically, people have used various items to act as a medium of exchange, such as: a bushel of wheat, salt (hence, salary), whale teeth, seashells, coins, and precious metals (silver and gold). European countries and the US began backing their currencies with gold in the 19th century, creating what came to be known as the Gold Standard. The US valued an ounce of gold at nearly $21 in 1834, and $33 by 1933; highlighting the reduced purchasing power of the dollar over 100 years. In 1933, the US nationalised ownership of gold, making it illegal for private citizens to own the yellow metal.
Nations could continue to cash-in their US dollars (USD) for gold at a rate of $33/ounce, which increased to $35 by 1970. However, France calculated the US was printing more money than it had gold reserves to back those bits of paper with pictures of dead US Presidents. Alive French Presidents, Charles de Gaulle and then Pompidou, continued to cash in France’s reserves of USD for gold until August 15th 1971, when President Nixon declared he was suspending the convertibility of US dollars into gold. This became known as the Nixon Shock. All currencies which had been pegged to the dollar (and, indirectly, gold), became fiat currency overnight, which meant they were no longer backed by any tangible asset but, unbelievably, the word of politicians. Global currencies were now worth nothing more than the confidence other countries placed in each other and, from national perspectives, the promises made by the ruling political class, which, regardless of country or political persuasion, universally translates to something Pinocchio is infamous for.
The Petrodollar
In the wake of the Nixon Shock, the dollar devalued as it became clear the US had truly printed more dollars than it could back with gold. To counter the dollar’s waning power and influence, the US Secretary of State, Henry Kissinger, brokered a deal in 1974 with Saudi Arabia, the world’s largest producer of oil, to influence OPEC (Organization of the Petroleum Exporting Countries) to sell oil only in US dollars. This meant every country in the world now needed dollars to finance the purchasing of black gold. The world went from a monetary system pegged to gold to one backed by oil. This was the birth of the Petrodollar.
This new system created a huge global demand for dollars, which not only cemented the dollar as the world reserve currency but catapulted it into the stratosphere in terms of power and control. Since then, the US has defended attacks on the Petrodollar. Iraq 2003? The reality is the US went to war with Iraq not because of weapons of mass destruction but because, in 2000, Saddam Hussein switched sales of oil from dollars to euros. One theory is the decision was a political statement against American Imperialism and weaponization of the dollar (through use of sanctions), as the move was, at the time, expected to cost Iraq millions in lost revenue. However, in late 2001, the dollar depreciated 17% against the euro, and the decision proved extremely profitable for Iraq. Following Iraq’s defeat, however, sales of oil were converted back to dollars, despite the fact it wasn’t in the best interests of the Iraqi people.
As uncomfortable as it might be to some readers, the more likely reason terrorists target Western nations has little to do with defeating enemies of Islam but rather a reaction to the monumental abuse of power, particularly by the US, in effectively stealing a country’s most valuable resource and, thus, robbing its people of prosperity and causing them to fight over scraps to survive. Desperate people…
The Petrodollar
In the wake of the Nixon Shock, the dollar devalued as it became clear the US had truly printed more dollars than it could back with gold. To counter the dollar’s waning power and influence, the US Secretary of State, Henry Kissinger, brokered a deal in 1974 with Saudi Arabia, the world’s largest producer of oil, to influence OPEC to sell oil only in US dollars. This meant every country in the world now needed dollars to finance the purchasing of black gold. The world went from a monetary system pegged to gold to one backed by oil. This was the birth of the Petrodollar.
This new system created a huge global demand for dollars, which not only cemented the dollar as the world reserve currency but catapulted it into the stratosphere in terms of power and control. Since then, the US has defended attacks on the Petrodollar. Iraq 2003? The reality is the US went to war with Iraq not because of weapons of mass destruction but because Saddam Hussein switched sales of oil from dollars to euros in 2000. One theory is his decision was a political statement against American Imperialism and weaponisation of the dollar (through use of sanctions), as the move was, at the time, expected to cost Iraq millions in lost revenue. However, in late 2001, the dollar depreciated 17% against the euro, and the decision proved extremely profitable for Iraq. Following Iraq’s defeat, however, sales of oil were converted back to dollars, despite the fact it wasn’t in the best interests of the Iraqi people.
As uncomfortable as it might be to some readers, the more likely reason terrorists target Western nations has little to do with defeating enemies of Islam but rather a reaction to the monumental abuse of power, particularly by the US, in effectively stealing a country’s most valuable resource and, thus, robbing its people of prosperity and causing them to fight over scraps to survive. Desperate people…
Debt-based money
The US, having successfully supercharged the dollar as the world reserve currency (fuelled by oil, instead of weighed down by gold), is also the champion of the debt-based monetary system. Whenever a borrower takes out a loan or a mortgage, the money isn’t necessarily borrowed from the deposits made by savers. Instead, banks literally create new money out of thin air and add it as an asset to its balance sheet, which is actually a debt (liability) to be paid back in the future by the borrower. Hence, debt-based money. The creation of new money and debt is a feature of fractional-reserve banking, a system which also allows a bank to legally lend out 90% of deposits as loans; keeping a fractional reserve of just 10% in the bank. Hence, you get the picture.
The US, the world’s largest economy, finds itself in a collective debt to the tune of more than $30 TRILLION. Historically, the way governments have tried to deal with such huge debts is to inflate the supply of the currency (print more money), which makes the debt worth less. Inflation rewards behaviour which spends more than is earned, and punishes those who are financially responsible. So, the debt piles up at the expense of fiscal prudence.
The Great Recession
If all depositors attempt to withdraw their bank savings (usually due to a loss of confidence), a bank run occurs. In 2007, Northern Rock experienced the first run on a British bank in almost 150 years. News stories showed queues of people lining up to withdraw their life savings, which many lost.
In 2008, the sub-prime mortgage crisis hit the US and collapsed huge investment banks, such as Bear Stearns and Lehman Brothers. What came to be known as the ‘credit-crunch’, almost led to the entire collapse of the world financial system. The Big Short brought the story to the big screen. The problem is the debt is now even larger, so the sequel will need a bigger screen. All the world’s a stage but most of us are silent characters, who didn’t read the script.
Governments deemed certain banks and organisations ‘too big too fail’, and bailed out banks and corporations. Politicians financed (private) corporate losses with (public) taxes, meaning the consequences of risky behaviour by private companies would be paid for by the general public, who were outraged that rewards were privatised but risks socialised; especially as no bankers were jailed for their greedy antics.
Bring forth the blockchain
Sometimes, instead of trying to fix a broken system, we have to build a fairer one that will reward responsible, rather than greedy, behaviour. One that will elevate, rather than suppress, the poorest people and nations. Otherwise, the madness will get crazier and inequality more outrageous.
In 2009, Bitcoin became the first real-world application built on blockchain technology invented 18 years earlier in 1991 by Stuart Haber & W. Scott Stornetta. They wanted to create a transparent record of transactions, which would be tamperproof because they would be digitally timestamped to prove a particular version existed at a specific point in time. Records could be updated but it would show as a newer version at a later date. The original and all previous versions would still exist on the blockchain. The system created a chronological list of events and all subsequent changes. This was an elegant solution for financial transactions, legal documentation and any other area which would require proof of a particular truth at a certain point in time.
Bitcoin created a trust-based peer-to-peer (P2P) decentralised payment system using cryptography to secure its blockchain network, hence: cryptocurrency. This technology doesn’t need middlemen, meaning individuals can be their own bank. Despite this fundamental revolution, it is yet to dawn on the masses. The largest US bank, JP Morgan, whose CEO (Jamie Dimon) called Bitcoin a fraud in 2017, started offering clients crypto-related financial services in 2021. Hence, if you can’t beat ‘em…
Bitcoin. The Second Coming?
The Great Recession was The Great Reason for Bitcoin’s creation, and a message was encoded in its first ever (Genesis) block by its creator, Satoshi Nakamoto, The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.
Although the identity of the Bitcoin creator, Satoshi Nakamoto, is a mystery, one thing is certain: it was created as a digital form of money that could neither be controlled nor corrupted by governments. The genius was creating a digital store of value with the same properties as physical gold: there is a finite supply (21 million Bitcoins); blocks needs to be mined (this is known as minting: converting electrical energy consumption – proof of work – into the next block), which acts as a store of wealth (yes, Bitcoin’s value is volatile but that’s because it is just over a decade old, so will become less volatile as adoption increases); the rate of inflation (new blocks mined each year) is about 2%; and people believe in it. This is what makes it digital gold. Unlike physical gold, it’s easy to move across borders. Bitcoin is encrypted on a smartphone, computer or hardware wallet, which might afford a customary glance.
The threat from Bitcoin to the status quo of money creation controlled by governments and central banks is the reason why, in the summer of 2021, China made it illegal to mine Bitcoin. The Chinese Communist Party (CCP) saw it as a threat to their CBDC (Central Bank Digital Currency), the Digital Yuan. So, what happened to the miners? They packed up their rigs and left for crypto-friendly countries, such as Kazakhstan, the US, and El Salvador.
El Salvador (The Saviour) became the world’s first nation to adopt Bitcoin as legal tender. In response to concerns about Bitcoin’s proof-of-work mining consuming more energy than some countries, President Bukele stated the cryptocurrency would be mined using renewable geothermal energy from the country’s volcanoes. Perhaps, the Second Coming will be a decentralised eruption, spreading incorruptible truth.
Evolution of the blockchain
Blockchain 1.0 was Bitcoin (BTC) but it is slow to process transactions and offers little utility, other than being a digital store of value and a peer-to-peer payment system. It is built upon proof-of-work (PoW), requiring computers to mine the next block by completing mathematical puzzles which increase/decrease in difficulty, depending on the number of miners. The value comes from the amount of energy consumed to mine new blocks and maintain the network, which has caused controversy due to the alleged damage it causes the environment.
Blockchain 2.0 is Ethereum (ETH), which introduced the world to smart contracts and created a platform for third parties to build decentralised apps (dApps). Originally built on a proof-of-work model – which causes problems with scalability (not ideal when building a global supercomputer) and high gas fees (network transaction costs) – it is now in the process of transitioning to a proof-of-stake consensus, drastically reducing gas fees and energy consumption and, therefore, the detrimental effect on the environment.
Blockchain 3.0 are proof-of-stake networks, which consume far less energy and are considerably faster than PoW networks. Examples are Polkadot (DOT) & Cardano (ADA). Like Ethereum, both platforms allow 3rd parties to create smart contracts and build dApps. Polkadot is a fully-functioning ecosystem, whereas Cardano will offer smart contracts from early September ’21. Whilst Cardano has been criticised for being slow in its approach, this is due to its measure twice, cut once philosophy. When comparing Cardano and Ethereum, some draw parallels with the tortoise and the hare. Others argue there’s room for both to be winners but there’s likely to be many, just like the current web 2.0 world of Microsoft, Apple, Google, and Amazon, which all offer similar services and products, and compete for market share with each other.
R/Evolution
Evolution evolves a revolution
nx generation implements solutions
gifted to the future
whose children dream past designs
walk new paths and hope truth to find
to learn their mind and mind their teachings
a conscious revelation reaching.
It’s not just about the money
Bitcoin inspired an entire industry built on blockchain technology. Altcoins, disparagingly referred to as sh!tcoins (and there are many), refers to all crypto tokens which are not Bitcoin. Currently, 12,000+ Potentially, a big pile of 💩 It’s important to note the term is generally used by Bitcoin maximalists who believe it’s the best cryptocurrency simply because it was the first, and all other coins are imitations. Nothing could be further from the truth.
As the technology has evolved, more and more projects have been created to address real-world problems. Bitcoin (BTC) seeks to address the inherent unfairness of the global monetary system, and other networks like Ripple (XRP) have created near-instant cross-border payment solutions, without the extortionate fees associated with international bank transactions. They just need to win/settle their court case against the SEC, which argues XRP is a security. We recommend following the Legal Briefs channel to keep up-to-speed with how that progresses.
However, it’s not just about the financial system. There are decentralised blockchain solutions for various industries, including: Supply Chain Management, Data Management, Insurance, Data Storage, Charity, Voting, Governance, Health, and Energy Management.
One particularly promising project is the Energy Web Foundation’s Energy Web Token (EWT), which is building a decentralised energy grid, allowing energy producers of all sizes to trade with any customer, anywhere. It will help speed up the adoption of renewable energies and address problems such as greenwashing (selling green tariffs to consumers, even when some of the energy comes from fossil fuels). As of Autumn 2021, the current energy price crisis (known as the EFFing Crisis in the UK) may lead to government crackdowns on the vast energy use of Bitcoin mining, whilst potentially encouraging further investment in greener blockchain technology solutions.
Audius is a project that is music to our ears, built to rebalance the music industry’s greedy problem of streaming platforms stealing the lion’s share of profits, instead of sharing them fairly (sounds good) with musicians. Wherever centralisation is the theme, unfairness is the score.
R/Evolution
Evolution evolves a revolution
nx generation implements solutions
gifted to the future
whose children dream past designs
walk new paths and hope truth to find
to learn their mind and mind their teachings
a conscious revelation reaching.
R/Evolution
Evolution evolves a revolution
nx generation implements solutions
gifted to the future
whose children dream past designs
walk new paths and hope truth to find
to learn their mind & mind their teachings
a conscious revelation reaching.
What do you believe?
Blockchain technology has unleashed a wave of innovation, similar to the dot.com boom of the world wide web (www), and the smartphone & app revolution called up by the iPhone. Decentralised blockchains are building a faster, greener, healthier and safer web, which will reshape companies, industries & societies. It promises to bank the unbanked and connect the unconnected (like World Mobile in Africa).
If the current madness and division is to end, we have to start believing there’s a better way. If you believe the current financial, political and other systems of the world are no longer fit for purpose, what will you choose to believe?
Perhaps, it’s believing in an incorruptible and trust-based technology built by some of the smartest minds on the planet to benefit the majority and the planet. If you believe a fairer system is possible; believing in decentralised blockchain technology isn’t as crazy as some would have you believe.
Maybe, the reason to believe a new narrative is because the current story has lost its way and happily ever after.
Insanity is doing the same thing over and over and expecting different results.
Generally attributed to Albert Einstein
Crypto dawn shines brighter daily,
buy and HODL or mine like crazy.
When a Shekel bought a bushel of wheat,
money was based on what to eat.
Now it’s debased by central bankers,
printing endless bits of paper;
the more they print, the less it’s worth,
they spend like Kings, as debts we serf.
Curse the system, twist the knife in,
poorest screaming, elites not caring.
Now, perhaps, the time has come:
what is worthy of attention?
Bitcoin? Altcoin? What coin, which?
Trust the blockchain, new school pitch:
Trustless crypto to count and measure
digital gold to protect our treasure.
Acknowledgement and gratitude
Thank you to all the websites linked to in this article for reference and further information.
Also, thank you to the creators of the videos which have been embedded in this blog.
Thank you to PxHere for all the royalty free image overlays for the videos.
Finally, a huge thank you to a number of crypto commentators who consistently produce high-quality content on a regular basis, which has helped educate and guide my journey in learning about blockchain technology and its numerous projects: Coin Bureau; Crypto Casey; Digital Asset News; Chico Crypto; JRNY Crypto; Crypto Jerome; Sheldon Evans; AltCoin Daily.
To keep the conversation going, please comment below or share this page, if you found it useful and think others will too. Thank you 🙂
2 Responses
Hi James – I’m possibly the least well qualified to comment on your piece, particularly as I still carry actual cash and prefer to use this in preference to any form of electronic transaction. Indeed, if a client offered to pay for my services in anything other than cash (generally received via BACS transfer to my traditional bank account) I would break a sweat, and I have absolutely no concept of paying for goods & services in any other way. Regarding the actual text, I confess that much of this is very new to me, hence a glossary might be helpful, and whilst you have endeavoured to enlighten us, the section on R/Evolution baffled me. Finally, I assumed the reference to fiat was in fact a typo relating to affordable Italian cars…..sorry!
To conclude, and in a vain attempt to preserve my reputation as a ‘modern kinda guy’ might I suggest that you invite my 38yr old nephew to comment – I suspect he might have more constructive observations!! Best wishes, Daniel
Hi Daniel.
Thank you for taking the time to read it, and I really appreciate the feedback. A glossary is a good idea, so I will endeavour to add one to the article.
As for fiat making you think of the Italians, perhaps we should let them rebuild the financial system, given their various successes this year!
As for being a lover of cash, you’re clearly a C.R.E.A.M man (Wu Tang, not Eric Clapton!) Therefore, you’ve successfully preserved your ‘modern kinda guy’ reputation 😉