World Economic Forum’s (WEF) Head of Blockchain and Distributed ledger Technology, Sheila Warren has emphasized the growing need for blockchain technology to counter the global problem of ‘Trust’.
Speaking at a recent interview, Warren specifically stated that blockchain technology has become a necessity in combating the “worsening international trust crisis.” In Warren’s remarks, she explained that the lack of public trust in a host of institutions has never been this worse.
For example, governments, banks and media are major institutions subject to increasing questions by the public. According to Warren, this lack of trust can be handled by a simple solution: blockchain technology; which she describes as an effective tool to combat the trust crises.
In my opinion, the erosion of public trust is one of the biggest crises we face. Because you’re going to rapidly move towards anarchy and that is a deep, deep problem…This technology could provide access to information that could enable third parties or other groups to actually come in and conduct audits of what is happening. And I actually think that could build faith back in institutions.
As she points, blockchain’s transparent nature would allow public to audit institutional processes and their fairness.
Speaking further she opines that if the current distrust continues, there will be dire consequences; leading to one of the biggest crisis the world has ever faced.
On her crypto exploits and blockchain knowledge, she remarked: “It took about another three years from when we first bought Bitcoin for me to understand what blockchain was.”
In all, Warren says the World Economic Forum is currently attempting to promote blockchain trust as a way to handle the worsening trust crisis; while also hinting at the formation of six councils by WEF whose sole purpose is to bring about the fourth industrial revolution through use of blockchain technology.
See official articles by the WEF here: https://www.weforum.org/communities/blockchain-and-distributed-ledger-technology
What is Blockchain Technology?
Blockchain also called Distributed ledger Technology (DLT) is the technology behind cryptocurrency. It is the network on which cryptocurencies run and its first application was Bitcoin.
The Blockchain consists of a network of records/transactions of digital information stored in a public tamper-proof database. Blockchain allows digital information to be recorded and distributed, but not edited.
Why is Blockchain Important?
The use of blockchain in today’s world has become a necessity considering the need across various sectors for authenticity, trust, verification, efficiency and smoother transaction of processes.
Asides major use in finance, blockchain technology can be used in virtually all sectors including electoral processes, supply chains, energy sectors and many more.
The advantages of blockchain technology range from its:
- Provenance: Transactions on the blockchain are traceable. Just like your Bitcon transaction hash.
- Immutability: Blockchain information cannot be tampered. Blockchain technology makes it extremely difficult to alter any record or information once it is recorded on the ledger.
- Security through Decentralization: Blockchains do not store information in a single location. It gives access to all users to see and verify all transactions or dealings; hence reducing the tendency of corruption.
These needs breed the ‘Trust Crisis’ in today’s world; as cases of manipulation, corruption, failed institutions and lack of transparency have become common. Blockchain technology could solve these problems!