In his 2016 TED Talk “How the Blockchain Is Changing Money and Business,” digital strategist Don Tapscott discusses the impact new technology (specifically technology powered by the blockchain) will have on money, business, government and society.
Tapscott explains that while middlemen like banks, government, social media companies, and credit card companies may serve us in many positive ways, they are also vulnerable to being hacked and putting our data, privacy, and resources (in this case, our money) at risk. The reason why these intermediary companies are susceptible to hacking attacks is due to the fact that almost all of them run off of a centralized security server. This means that an attacker only needs to infiltrate one line of defense in order to gain access to core information. Juxtapose that with currency built using blockchain technology (a decentralized system), people are able to make peer-to-peer transactions based on an asset they equally trust in without the fear being vulnerable to a hack.
Tapscott explains that we all have created virtual avatars of ourselves. We leave behind digital crumbs which are reflective of and describe our behavior, interests, and purchasing habits. This has many benefits and can simplify our lives but it also means that we are vulnerable to privacy theft because of the virtual self we create. However, with the blockchain technology we will be able to secure our virtual personas in a ways that can only benefit us.
A blockchain financial industry, Tapscott argues, would bring people prosperity by securing economic mobility, distributing wealth and protecting our data, among other benefits.
“Technology doesn’t create prosperity, of course, people do,” Tapscott says. But quickly adds that the blockchain technology provides a better tool to provide a more prosperous future than the current systematic measures we are currently utilizing. Ultimately, people now have a chance to “rewrite the economic power grid and the old order of things” to “solve some of the world’s most difficult problems,” he added.