Distributed consensus is changing the future of business

Apr 22, 2016

I stumbled upon a video from the Institute for the Future that provides a nice overview of what the blockchain is. In just a few minutes it explains why distributed consensus is useful. In other words, how can we verify a fact when there isn't a trusted central authority? Check it out.

The video mentions that bitcoin is just the beginning for blockchain technology, and we'll start to see companies that are "run entirely by algorithms." This sounds great, but it is going to require a new way to think about how we keep networks secure and robust.

Incentivized Nodes

The Dash network is already putting this new way of thinking to practice. And it is a fantastic model for anybody thinking about starting a company that works on the blockchain. In short, Dash incentivizes people to operate nodes that provide a service for the network.

To insure bad actors don't take over the network with compromised nodes, each node must be associated with a locked collateral that is a sufficient dis-incentive to cheat the system. For the service of running a node, the network pays operators directly from the blockchain. That's right, the Dash network pays people to run its infrastructure.

Imagine the implications for new businesses running on the blockchain. Instead of investing in costly infrastructure to run your business, you can distribute the costs by incentivizing others to run the infrastructure for you. Your business will benefit from reduced infrastructure costs and a distributed network that removes the requirement to trust a centralized authority.

Stay tuned. The future of business is changing and its going to be fun to watch.