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Blockchain Isn’t a Revolution
It’s two big innovations and one promising idea
These days it’s hard to avoid pronouncements about how cryptocurrencies and blockchain technology could change everything (or at least, create massive wealth). Yet there’s an equally loud chorus labeling them a massive scam, useless, and dangerous. And a surprisingly large audience still doesn’t understand what’s going on. One big reason for the confusion is that we’re not all talking about the same things.
The truth is that there isn’t a blockchain phenomenon to be for or against. There are three.
The three communities share a basic set of design principles and technological foundations — but the people, goals, and prospects are almost completely distinct. Those involved don’t help much by sniping constantly about which is the “real” movement. So, let me try to clarify things.
- There is cryptocurrency: the idea that networks can securely transfer value without central points of control.
- There is blockchain: the idea that networks can collectively reach consensus about information across trust boundaries.
- And there are cryptoassets: the idea that virtual currencies can be “financialized” into tradable assets.
