Scaling the World

"Our Economy's Lack of Scalability"

The modern economy, driven by rapid technological innovation and globalization, demands ever-increasing urgency, quality, and competitiveness. The pressure to perform faster, better, and cheaper has reached unprecedented levels. In response to these realities, businesses are compelled to become more data-driven, making swift and accurate decisions to thrive in the market. However, as this pressure intensifies, we are beginning to see cracks in the way we currently structure our economic activities.

A significant portion of business data remains uncaptured because it predominantly exists in an unstructured format. Astonishingly, over 80% of business operations data falls into this category [1]. This unstructured data is not only expensive to verify but also lacks essential context.

Even the data that is captured faces challenges. It is often compartmentalized, scattered across numerous applications within closed-garden ecosystems, making it difficult to verify and devoid of crucial context.

With the majority of the world's data uncaptured and the little that is captured fragmented, it becomes apparent that our current economic structure may not be scalable. The more we strive for growth, the more friction we introduce into the system, impeding our progress.

How Blockchain Technology Offers a Solution

Blockchain technology introduces two compelling assurances for externally-generated data, which is data not native to the blockchain itself:

1. Data Provenance: Blockchain guarantees data provenance through straightforward signature verifications, ensuring the traceability of responsibility.

2. Data Immutability: It ensures data immutability by employing decentralized redundancy and a Byzantine fault-tolerant consensus algorithm.

These assurances pave the way for a fascinating application known as data anchoring, enabling the creation of independently verifiable and entirely transparent audit logs. Audit logs enhance the verifiability and trustworthiness of operational data, bridging the gap between unstructured data and data residing in silos.

Public ledgers, being open-source and decentralized, eliminate commercial or proprietary barriers to transparency. By making operational data verifiable, whether generated by machines or humans, we gain a critical data source that adds localized context to the vast sea of unstructured data through snapshots and milestones that stakeholders can endorse.

This seemingly simple application of decentralized ledgers holds immense potential to significantly reduce business friction and, ultimately, render our global economy far more scalable.