The process of removing the middleman
Blockchain technology represents a fundamental shift in how we add value to a system by removing the need for trusted third parties. This creates the opportunity to build organizations, governments, and social networks never thought of before. The internet allowed people around the world to connect digitally. Blockchain allows those people to transact and pass data back and forth in a decentralized, more transparent, more secure way.
"Disconnected from the digital currency, blockchain exists more like an intranet. Intranet was quite important, but the transformative value was only when all those intranets were connected into an Internet."
Glenn Hutchins, Federal Reserve Bank of New York board member
"I think the fact that within the bitcoin universe an algorithm replaces the functions of [the government] … is actually pretty cool. I am a big fan of Bitcoin"
Al Gore, 45th Vice President of the United States
On February 11th 2009, a post appeared on a peer-to-peer online forum site under the name, Satoshi Nakamoto.
I've developed a new open source P2P e-cash system called Bitcoin. It's completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust. Give it a try, or take a look at the screenshots and design paper
The release of Bitcoin does not mark the origination of digital money. What it is the origination of is digital money without a central organization. It is the first DECENTRALIZED digital money and one of its underlying features, BLOCKCHAIN, is now believed to be the true innovation. That Bitcoin is simply an application of blockchain technology. That blockchain technology combined with smart contracts will allow humans to create value networks that are still unimaginable. This type of potential could only be realized now because of a few key tools being available to be combined in a novel way.
DECENTRALIZED DATA STORES RUN BY CONSENSUS ALGORITHMS PROVIDING TRUST AND TRANSPARENCY ACROSS THE NETWORK.
PROGRAMMABLE CODE THAT AUTOMATES BUSINESS LOGIC. Allows dATA to INTERACT SEAMLESSLY WITHIN DATA SILOS AND NETWORKS.
DECENTRALIZED PROTOCOLS THAT ESTABLISH TRUST FOR DISTRUSTING PARTIES. SATOSHI's solved THE BYZANTINE GENERALS PROBLEM.
High level mathematical algorithms that Secure data through encryption. Multiple cryptographic principles are used.