Blockchain Enterprise: The Chain on the Spider Web

Distribuição Blockchain Bitcoin + 75% concentração em menos 10 players.

The graph can change over time (link at the end of the article); however, what I would like to call to mind is concentration. The volume of Blockchain transactions used for Bitcoin is +75% in less than ten players, the group miners (or pool mining). These new intermediaries buy computing power to earn the mining process and share part of these gains with those who provided computing power to the group.

Top 100 Exchange by Trade Volume — novos intermediários.

Another view of these intermediation scenarios occurs at the end-user end, where the largest volume of Bitcoin and other cryptocurrency transactions occur on exchanges. In these scenarios, there is not even the use of Blockchain. Cryptocurrency exchanges virtually exchange bitcoin ownership from one user to another, earning a commission each time they do this. These people do not own Bitcoins within the context of the public Blockchain. By the model, they have something, which they call "Bitcoin," registered in the name of the exchange, where they have confidence. Brokers are the ones who actually own (or so it is believed) Bitcoins equivalent to the amount they are circulating. It is worth mentioning that not even this is validated in most cases. A malicious exchange could be trading within its platform more Bitcoins than it owns registered on the Bitcoin Blockchain.

Internet and intermediation:

As for the internet, there is a much-discussed control over ICANN, which is headquartered in California and reports to the US Department of Commerce, but then you can read more about this subject. In a world that lives in the reality of Cloud Computing and things as a service (IaaS, PaaS, SaaS), have you ever stopped to think about what defines the boundary between the internet (“public” network) and intranet (a private network)? Can it just be a set of firewall rules and visibility of one or another network?

Internet as a means and not an end:

There are no significant discussions about the internet being the means of communication: branches A and B exchange information using technologies that allow security and privacy over a typical internet infrastructure, the network. However, some more complex cases may use concepts such as extranet or interconnected corporate networks. A good example is the SIAN Chain in the EU that interconnects "govs" and the financial sector while maintaining a proprietary structure. Of course, this structure does not exist because of Blockchain; however, Blockchain takes advantage of latency and private network throughput at scale.

In short, a network, whether internet or not, should be a means, not an end.

Here's my proposition, don't consider it something ready or a recipe. Instead, I share a little of what I've been discussing daily with the evolution of previous steps:

Blockchain in Public Networks:

• Your business case needs an indirect incentive model for processing transactions that take place on it;

• Does the computational capacity/complexity available on the public network meet your transaction completion time criteria? For example, is it okay to wait 10 minutes or a few minutes to close the transaction globally?

• Global-scale resilience to ledger corruption is a mandatory requirement;

• Any personnel may participate in this processing, including a person in any country with any computing capacity associated with a pool miner;

• If there's a fork or oversimplification break in the technology standard on the public Blockchain that you've built your use case on, which you have no control over, is that okay? Is your business case still standing? If yes, it's on the way.

• Super important, whatever your case, remember that the case's success is in the incentive model and not in technology.

• Consider the impact of changing prices of cryptocurrencies linked to your public network on your business. For example, translating a transaction can start the day at $0.10/transaction and end at $0.20/transaction, taking a 100% cost variance in days or hours (positive or negative).

Blockchain on Permissioned Networks:

•  Can you foster and create a network of common interest (generate critical mass)?
• Do the participants in the network have a medium or high level of trust sufficient to connect their businesses around shared interests and problems?
• Passions about platform/blockchain A or B are equalized or on track;
• You see more deals or joint issues that can be resolved after the first business case;
• Can this network grow organically? To validate this hypothesis, evaluate the following statements. “If all market participants are on the network…” against “… if three other participants and we start, we already have a good percentage of the market, and we can have benefits in common.”

not about Betamax (vs) VHS battle / Evolução Natural — Long run …

In summary, we are talking about a natural process of evolution that passes in the corporate world from an intranet of value [permissioned networks] to an internet of value [public networks] at the time of maturity of each market and organization.

André Carneiro

Links:

• Hashrate Distribution: https://www.blockchain.com/en/pools
• Top Cryptocurrenciy Spot Exchanges: https://coinmarketcap.com/rankings/exchanges/
• Who owns the internet?
  • Original article in Portuguese: https://super.abril.com.br/tecnologia/quem-e-o-dono-da-internet/
  • Google translated from Portuguese to English: https://super-abril-com-br.translate.goog/tecnologia/quem-e-o-dono-da-internet/?_x_tr_sl=pt&_x_tr_tl=en&_x_tr_hl=pt-BR&_x_tr_pto=wapp