Each participant holding their own document and records during each stage in supply chain, a single record for the item could be created on the blockchain with each organization then contributing their information to it to create a single source of truth that is accessible to always need it while at the same time being more secure than having separate records in each centralized database. The end results of this new institutional is much greater capacity for inter-organizational collaboration and powerful ecosystem that are greater than their sum of their parts.
Organization within society rarely operate in isolation they function as parts of ecosystems and the value for societies not created by anyone but instead by the flow of value across the ecosystem.
Blockchain optimizes for the value within the whole ecosystem and thus potentially a much greater value for society as a whole, the information revolution is changing the world from disconnected to connected, the hyper-connectivity is a popular term now, virtually all dimensions is proliferating daily as a consequence our systems of organizations from being based around fixed structure and boundaries to being coordinated via connections instead of the controller component through fixed hieratical structures. Organization would emerge out of the interaction and the exchange of value along those interactions, enabling that will require a build out of massive secure and frictionless networks. This global cloud computer of the blockchain.
Distributed ledger technology
A distributed ledger can be described as a ledger of any transactions or contracts supported by a decentralized network from across different locations and people, eliminating the need of a central authority. The ledgers enabled the formation of currencies, trade, lending and the evolution of banking. Over the last couple of decades though these records have moves into the digital realm as whole rooms of people to maintain accounts have been replaced by digital computers which have made possible the complex economic system we live in, this record keeping system is once again being revolutionized as these ledgers are shifting to a global network of computers which is cryptographically secure, fast and decentralized which is profoundly called distributed ledger technology (DLT). All the information on the ledger is securely and accurately stored using cryptography and can be accessed using keys and cryptographic signature. Any changes or addition made to the ledger are reflected are copied to all the participants in a matter of seconds or minutes. The participants at each node of the network can access the recording shared across the network and own an identical copy of it at the same time these networks are available for examination of a full audit trail of the information history which can be easily traced back. This can be used for record tracking, monitoring and transacting of all forms of assets, all asset registries, inventories and exchanges including every area of economics finance and currencies, physical assets such as cars and houses and intangible assets votes, ideas, health data, reputation etc. In this case blockchain can serve as a public repository for whole societies including the registration of all documents events, identity and assets in this system all the property could become smart property this is the notion of encoding every assets of the blockchain with the unique identifier such that the asset can be tracked controlled and exchanged on the blockchain.
In this quarter of the DLT platform which is a consortium more than 70 of the world’s largest financial institutions the sharing of individual ledger data is limited to parties with legitimate need to, which is not the case for public platforms. DLT technology can have a powerful Disintermediation effect as data can be put directly onto the shared database by the nodes in the network, there is no longer need of a centralized organization provide this service.
Transparent Data Structures
This would drastically reduce corruption and improve security while reducing the overhead costs of auditing, accounting and legal issues, currently records of value are hidden within the data bases with centralized organizations where largely they are uncacheable of there many possible uses within other systems, they are open to manipulation by members within those organizations which breeds corruption and because of that there has to be all sorts of regulation and legal requirements that create many overhead costs and this there is centralized point of failure for critical data, sources as large concentrations of valued data proved attractive for malicious attackers. By putting the information on the shared ledger it can be easily made accessible and visible on demand as needed because it is tamper proof we can revive many existing points of corruption and the associated need for regulation.
Smart contacts are computer code that are stored inside of a blockchain which encode contractual agreements, smart contracts are self-executing with the terms of the agreement or operation directly written into lines of code store and executed on the blockchain network. A multiplicity of different contractual agreements forms the institutional foundations to our modern society in economy which have evolved since ancient times. Contractual agreements that are currently crated and enforced by centralized organizations like insurance companies and banks which themselves are supported by the ultimate centralized authority in the system, the nation states institutions are societies and economies almost completely dependent upon third party organizations to maintain and enforce those contractual agreements. Smart contracts feature these same kind of agreements to act or not act but they removed the need for the trusted third party between members involved in the contract this is because a smart contract is both defined by the computer code and executed or enforced by the code itself automatically without discretion at such blockchains as smart contract technology can remove the reliance on centralized systems and enable people to create their own contractual agreements that can be automatically enforced and executed by the computer code. These smart contracts are decentralized in they do not subsist on a single centralized server but a distributed and self-executing across the network of nodes, this means that untrusted parties can transact with each other in a, much more fluid fashion without depending upon third parties to initiate and maintain the rules of the transaction. Smart contracts enable autonomy between members.