The underlying algorithms and Philosophy of Bitcoin has the potential to address real-world issues if adopted. Here are some key points.
Bitcoin Philosophy
Decentralization
The idea 💡that power and control should be distributed among a network of nodes, rather than concentrated in a single entity. This philosophy promotes autonomy, freedom ⛓️💥, and resilience. The modern Democracy is Centralized. We vote for a very few people. They then do some additional voting and arangements for the law making, executive power and the judicial system. These are layers of distance between you and the power.
Immutable Ledger
Blockchains embrace the concept that a record 💾 of transactions should be ⏱️tamper-proof ⌛ and unalterable, ensuring the integrity and trustworthiness of the data. There are multiple systems nowadays that work as black box for us, but, we cannot be 100% sure for the validity – beyond the say of some individual. We live in the digital age and our actions shoud be able to be verified – even digitally.
Transparency 📢
The principle that all transactions should be publicly visible, promoting accountability and trust among participants. Of course – implementing such software in more scenarios – the transactions may contain variety of types of information beyond money.
Autonomy
The concept that individuals should have control over their own assets and data, rather than relying on intermediaries or centralized authorities. The old world is full of middleman systems – even their digital implementations.
Free 🆓 Market
The idea that economic transactions should be free from government control and manipulation, allowing for voluntary exchange and innovation. Tarrif and taxes, government funded sectors and industries break the FREE side of the market.
Real-World Applications
Supply Chain ⛓️💥 Management
Blockchain technology can be used to track the origin, movement, and ownership of goods, reducing counterfeiting and improving efficiency. This is especially important for food, health and security related products.
Voting Systems 🗳️
Decentralized voting systems can ensure the integrity of elections and prevent tampering, promoting trust in democratic processes. So far – the voting machines are just printers. There is not timestamping nor digital-chaining on the voting paper – allowing counter-fitting.
Identity Verification ✅
Blockchain-based identity verification systems can provide secure and decentralized authentication, protecting individuals’ personal data and identity. Nowadays there are too many Identity Providers.
- The Governments
- The Separate Public or Private Institutions
- The Social Media Platforms and Sites.
All of them are different, many of them are private and suseptable of corruption, leaks and other issues.
Healthcare 👨⚕️
Blockchain technology can be used to securely store and manage medical records, ensuring that patients’ data is protected and up-to-date.
Environmental Sustainability
The decentralized, transparent nature of blockchain technology can facilitate the creation of sustainable, community-driven environmental projects. There is the saying thet the Blockchain Mining wastes too much Energy. But nobody says that – It is not economical to use the power 🔋grid in the cities or even in standard factories or energy sources. The search for free, renewable energy that is cheaper actually benefits Environmentalism.
Algorithms
Blockchain
In the Core of the Blockchain is the 🌲 Merkle tree, that links to each other the records, making the subsequent information invalid of a single node changes.
Public-Private Cryptography
The Public-private cryptographic algorithms may serve two purposes:
- Encrypting information by the public key – so only the one that has the private key will be able to read the message
- Signing 🖊️ and Verification ☑️ of Messages – Digital Signitures allow you to verify that the holder of the private key with certain public key – has trully signed a message. This in the context of emails may allow you to verify that the sender is correct and not some spammer or fishing individual
Consensus Mechanism
The proof-of-work 🛠️ (PoW) algorithm, which requires miners to solve complex mathematical puzzles to validate transactions and create new blocks. This mechanism ensures that all nodes on the network agree on the state of the blockchain.
Having an algorithm that requires hardware and energy links the blockchain to the Real World 🌐. This makes it impossible to for a network to be compromissed by infiltrating a system only in the running software.
Smart Contracts
Self-executing contracts with the terms of the agreement written directly into code. This algorithm enables trustless, automated transactions and can be used for various applications beyond Bitcoin. The most popular ideas are:
- NFTs (smart invoices)
- DeFi – Creating Deposits that generate money for the users that use the decentralized exchanges.
- Stable Coins – pegged to the dollar 💲or the euro
By embracing these algorithms and philosophical principles, we can create a more just, equitable, and sustainable world. The potential applications of Bitcoin’s underlying technology are vast and varied, and it will be exciting to see how and if they evolve in the future.
This article basically says most of the ideas I’ve shared some time ago in this booklet: https://programtom.com/dev/product/bitcoin-philosophy-strengths-weaknesses/