What is the Brutal Truth about Blockchain Technology?

There are probably more brutal truths about the distributed ledger technology (DLT). One of them is that it won’t necessarily improve our lives as they say. This is very subjective, and the true thing that influences our quality of life is how we use the technology rather the blockchain technology itself. The human factor makes the difference, remember that. There is no technology that can improve our life by itself. Think about the Internet – we can agree that it revolutionized our lives, but has it really improved it? There are many negative trends and personal tragedies that wouldn’t be possible without the internet. In other words, technology is always neutral and can be used for or against us. The artificial intelligence is probably the most eloquent example in this case.

Perhaps the most brutal truth about blockchain is that it will ultimately lead to centralization and globalization rather than vice versa. You heard that blockchain is the synonym for decentralization and control in the hands of people. Well, in reality, blockchain is the technology that will make a global centralization look more realistic, because without DLT – it’s hard to actually control people.

Before going any deeper, let’s analyze the situation of Bitcoin – the first decentralized, peer-to-peer blockchain network, right? Can you tell me where do you see peer-to-peer transactions carried out within the Bitcoin network? In reality, the greatest part of the transactions is conducted through crypto exchanges, many of which require KYC verification and track the circuit of the cryptos. Isn’t this the opposite of peer-to-peer transactions? Also, who mines Bitcoin? Is it the people or the huge mining pools like BTC com and Antpool, which dominate the market? Do you know that the five largest miners account for over 80% of the hashrate?

Bitcoin Mining Pools - Blockchain Technology

Source: Bitcoin Mining Pools

What about the Bitcoin distribution? If it were a digital currency for the people, its distribution should look fair and more or less equal, but it doesn’t look better than the distribution of the US dollar and the rest of the coins. Think about it, less than 0.6% of the digital wallets hold over 87% of Bitcoin – is that about decentralization?

Top 100 Richest Bitcoin Addresses and Bitcoin distribution - Blockchain Technology

Source: Top 100 Richest Bitcoin Addresses and Bitcoin distribution

Besides, there is always the risk of forks or the 51% attack since the control over mining is in the hands of the few. It’s not that Bitcoin is a bad concept – the problem is in how it has been used so far. Apparently, people are often good at making things worse, at least that’s what they did with the e=mc2 formula.

Now back to blockchain – it has been tested for many use cases, and many companies are ready to adopt it. While it is presented as the technology for decentralization, the permissioned blockchain version has become more popular among banking giants, and these types of versions will rule the world. Do you think JPMorgan and Goldman Sachs are adopting blockchain because it’s so decentralized and so helpful for the people? When was the last time when the banking giants cared about people?

In reality, there is a strong political and economic elite that is formed of various groups. While these groups might have different visions, one of their goals is common – to weaken states and operate with terms like regional and global, in order to rule things globally (including via multinationals). Blockchain might be their best tool to centralize the data and behaviour of people (who used to have very different traditions) under the same umbrella. That’s what the Internet has actually done. People wouldn’t accept anything that is known to have absolute control over them, which is why they’re sold a technology that gives them “freedom.” Initially, they were shown the best part of the technology – the public blockchain, and when they get familiar with the concept and adopt it en masse, everything will become permissioned blockchain (the centralized one).

Blockchain will be a tool to filter people by making sure they’re not spending money without the knowledge of the ruling groups (familiar with the anti-money laundering rules? – well, they’ll become absolute law everywhere – every of your cent will be counted, and yes, blockchain will contribute to that, because it can store all data forever, right?). The chances are that blockchain will store each of your movement, breath, thought, biometric data and intention, and you wouldn’t be able to remove it from the database. Do you know China’s social credit score system?

Something like this might be tested on a global level, and blockchain with the AI will help this. That’s the brutal truth about blockchain.

Again, the technology is revolutionary, but the chances are it won’t be used for our benefit at all. Don’t get surprised if the UN calls for an absolute compliance with a blockchain-based system to avoid wars, terrorism, and all these bad things.




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