Cooperation is not a new idea. In agricultural societies, farmers typically ask for the help of their neighbors, whether for advice or manual labor. Cooperation solves many fundamental problems regarding productivity, distribution and consensus of a group. At the same time, this collaboration allows us to discover potential benefits of shared work and promotes institutional change.
So what does collaboration and consenus have to do with blockchain technology?
Simply put, blockchain is a shared, immutable ledger for recording the history of any transaction - including assets like diamonds, land, and intangibles like digital currencies, all manner of financial instruments, and government interaction with citizens.
In a blockchain enabled world, 'smart' contracts will be embedded with digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world blockchain technology is paired with the Internet of Things, allowing every agreement, every process, every task, and every payment to have a digital record and signature that could be identified, validated, stored, and shared.
Individuals, organizations, machines, and algorithms would freely transact and interact with one another with little friction. This is the immense potential of blockchain.
The Blockchain market size is estimated to reach $2.3 billion by 2021.