Trust is an assumed reliance or the character, ability, and strength of someone or something. My definition of trust is someone who can do something without being checked up on or being able to depend on someone.Trust is a trait that humans develop when their confidence in someone does not need any proof. It is what makes us humans,humans.
When a person chooses to trust someone, he puts in his/her faith in that particular person with a mindset that he won’t regret his choice.Trust deficit leads to families breaking apart. Indian traditional family system that gives moral foundation to a person will no longer exist. Everyday we see our newspapers and feed with at least one issue related to fraud and cheating. Still, amidst this negativity, a new form of trust is forming.The trust between the internet and the people.I read this line somewhere and it sent me into a deep thought :”Technology can breed familiarity and enable strangers to trust one another.” Isn’t the world actually transforming in such a way that we are easily trusting new technologies that are knocking our doors? We are communicating with people online, performing online transactions, requesting for services, etc.
all with a piece of trust in mind that we won’t be cheated on. I started to research things like technologies that transformed how we trust people, ideas, things, companies. I felt that there was a paradigm shift happening. It is very hard to have a decentralized system because you always end up with a center or a monopoly of power. What I find really frightening is this denial. And then the lack of organizations completely rethinking how you build trust, what you do with trust when it’s destroyed, whether the basic principles are really changing.
So where does blockchain lie in this scenario?At its core, Blockchain Technology provides a method to make electronic payments without needing any financial institute as a go-between (banks, credit card companies, Paypal etc.).This is a bold assertion that runs counter to our current “trusted third-party” systems in place. How does blockchain technology accomplish this?Blockchain links directly the customer and supplier.Simply put, it is a digital public ledger that records every transaction.
Each transaction is timestamped. Once a transaction is entered in the blockchain, it cannot be erased or modified. Blockchain removes the need for using a trusted third party such as a bank to make a transaction by directly connecting the customers and suppliers. Each transaction is recorded to the ledger after verification by the network participants, mainly a chain of computers, called nodes. It is the backbone technology on which Bitcoin runs.
Use Cases:E-commerce: According to recent reports, consumer credit reporting agency Equifax is still reeling from a massive cybersecurity breach earlier this year. In the breach, which is believed to have occurred between mid-May and July 2017, cyber criminals accessed the personal data of approximately 143 million U.S. Equifax consumers.In May, Target was still dealing with the ramifications from its own security breach in 2013.
The retailer was forced to pay $18.5 million for a data breach that impacted 41 million customers.To tackle such issues, companies have been turning to blockchain technology where information is stored in blocks that are linked and secured using cryptography.
This technology keeps transactions extremely secure without the need for a central authority.Banking : Combining shared databases and cryptography, blockchain technology allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered.Banks are using it in many ways :Clearing and settlement of loans and securitiesManaging payments Verification of the identity of the customerSyndicate loansE-Governance : In a historic announcement, Andhra Pradesh CM N. Chandrababu Naidu has declared that they will use blockchain technology for e-Governance, thereby becoming the first such state in India to do so.To start with, blockchain technology will be used to encrypting documents in land records department and transport department; and very soon, it would be expanded to all other Govt. departments.
The CM also announced that Andhra Pradesh is the most progressive state when it comes to adoption of technology, as Andhra accounts for 60% of India’s Aadhaar usage.Countries like Sweden, Honduras and others are also developing such similar blockchain based systems, for enabling secured e Governance.In fact, European Union’s commercial research group, the European Innovation Council (EIC) has already launched a program to grant 2.7 billion euros to 1000 projects, who are developing systems and solutions using blockchain technology. It is called ‘Blockchain for Social Good’.Transportation : According to Morgan Stanley, blockchain “has the potential to join autonomous trucks, drones, and the ‘uberization’ of freight as a key disruptive technology that can bring operating and cost efficiency to supply chains—while also being a threat to existing asset-light business models.”The investment bank, in a research report, noted that blockchain usage was still in its “early days” with respect to freight transportation, but added there were numerous potential uses, particularly in areas related to security, automation, and supply-chain visibility.The dependency on blockchain is increasing gradually.
The benefits of using blockchain will vary from case to case. However, according to a Deloitte and Assocham report on the issue, blockchain becomes a good fit when there is a lot of data that is shared across multiple parties with no trust mechanism among the participants.Blockchain is expected to improve the efficiency of a transaction by eliminating the middlemen, while also reducing the cost of all transactions. It is also likely to increase transparency. and bring down fraud as every transaction would be recorded and distributed on a public ledger.Let’s hope the trust people have put in this new technology keeps up to their expectations.