The first principle of economics is: Everything has a cost. This applies equally well to financial, political and social economics. It’s the very foundation that the current form of our society is built on. It’s a common misconception that cost can only be paid with a monetary price, such as money. But ultimately cost can be paid with other things.
Most systems that we know in life are centralised. For example, systems like governments, banks and public transport are centralised. This means that all people in the system only need to trust the one central authority that run the system for you. The only drawback is that you really need to trust that central authority to take decisions for you (government), handle your money (banks) or transport you from point A to B (public transport). Trust is what run these systems. And companies create a false perception of trust by charging lots money along with marketing like “we are better and more secure”.
Nevertheless, this centralised system is simple because many people believe that trust cost money, and therefore are happy to pay for it. It’s also convenient because you only need to trust that one authority. But it’s been proven time upon time that we can not, and should not, trust these centralised systems. Continue reading “What’s a blockchain? Can they improve our world?”→