Hyderabad: While emails are part of the internet of information, the bitcoin is a part of internet of value, where assets are at stake. “Internet is entering the second era and it is much bigger than the internet of information. The underlying technology block-chain will reinvent banking, government and social problems,” said Don Tapscott, CEO of Canada-based Tapscott Group at World Congress of IT (WCIT) on Wednesday speaking on Evolution of Digital Economy and Block Chain.
With the blockchain technology becoming a new paradigm, leaders may find it difficult to embrace the change. “Politicians do what big funders want and trust is at all-time low. The blockchain technology can create a platform for smart voting with votes casted inside a smart document. This is key for release of funds can create second era of democracy,” said Mr Don.
Speaking about regulations, he said, “Governance needs to be smart in blockchain. There need to be red-flag laws. While existing laws are sufficient, new laws are needed for Initial Coin Offerings (ICO).” With the benefits of digital age being asymmetrical, Mr Don said the middlemen like banks are increasingly in trouble. Speaking about PNB fraud in the country, Mr Don said, “With blockc-hain, radical openness for institutions like banks can be achieved and it will provide a platform to check fraud using its distributed ledger capabilities. The decision-making will be transparent as all transactions will be recorded and this cannot be deleted or edited.”
This technology can be used to authenticate the transactions. While anon-ymous transactions are possible, it is the values and integrity that is key for transparency. “Trust is achieved by cryptography and is native to the medium. In the blockchain technology, highest level of cryptography is used. Miners mine 20 to 50 times better computing power than Google. So much that at a heartbeat a block gets created and has transactions of 10 minutes. Since the block is attached to previous block and digital waxed seal, it is infinitely more secure than computer system in office,” he said.