The ethical and societal implications of blockchain technology and its potential impact on governance and society as a whole.

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Recently, I made a post on my LinkedIn page about the importance of Blockchain education and received a lot of questions from people asking me to explain what Blockchain technology is. This highlights that there are still many people who are not familiar with the concept of Blockchain or have even heard of it, despite their digital literacy. As much as we may want to blame them for not paying enough attention online, it is not fair to blame these people. Rather, the blame should be placed on those in the industry who have made it appear as though only highly technical people can understand and participate in the space. This is not the case, and it's important to educate more people about the reality of Blockchain technology.

Blockchain technology is for everyone, but without understanding how it can be applied to our everyday lives, it may be difficult to fully grasp the significance of this revolutionary innovation. This is why I am writing this article, to help you understand the concept of blockchain technology, its relevance to you, and its impact on society as a whole. If this sounds like what you would love to read, then scroll further else; it's a good place to stop.

If you made it down here, I am pretty sure you have decided to read through; and I welcome you onboard. However, before we move to discuss the implications and impacts, I would not want to assume everyone knows what Blockchain is. As such, I will start with a brief explanation of Blockchain Technology, where we are coming from and where we are.

What is Blockchain Technology: Definition, History and Evolution.

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Blockchain technology is a digital ledger system that allows for secure, decentralized and tamper-proof record-keeping of transactions. The information is stored across a network of computers, and each block in the chain contains multiple transactions. So, every time a new transaction occurs, it is recorded on all participants' ledgers, making it highly secure and eliminating the need for a third-party intermediary. It is a continuously growing list of ordered records linked using cryptography and contains a timestamp, cryptographic hash of the previous block, and transaction data.

It is important to note that Blockchain Technology is not Cryptocurrency; neither is it a new innovation.

Now, let’s talk a bit about history. Although most people believe that Blockchain Technology's history started in 1991 when two scientists by the name of Stuart Haber and W. Scott Stornetta wanted to create a fully functional system where document timestamps could not be altered (Meaning you would not be able to backdate a document or manipulate it in any form). However, it dates back to 1982 when David Chaum, a Cryptographer, first presented his dissertation titled Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups. This was the foundation for the knowledge Stuart Haber and W. Scott Stornetta built on.

By 1992, David Bayer joined the two scientists in incorporating Merkle tree (or Hash Tree) into the design. The definition or explanation of Merkle Tree may sound like a lot, but you don’t need to know the key details just know that it introduced an efficient verification process and an added layer of security, as any tampering with the data in the block would be immediately apparent due to changes in the hash values stored in the Merkle tree. By introducing the Merkle tree, there was a reduction in the amount of data that had to be transmitted, stored, and processed, which makes the blockchain more scalable.

The concept then evolved through several innovators, from Wei Dai, Hal Finney, Nick Szabo, and Adam Back to Satoshi Nakamoto (pseudonym), who proposed the concept of blockchain as a decentralized and distributed ledger in the Bitcoin whitepaper in 2008. It was implemented as the backbone of the Bitcoin network, and since then, the use cases for blockchain technology have expanded to include many other industries.

You will agree with me that Blockchain technology has a long evolution history, and we are still early.

I almost got carried away writing about the history of Blockchain technology and how the technology has evolved, but I had to pinch myself and remind myself that it's not a historical novel or a boring old research paper. Well, that is that.

Now back to the topic of the ethical and societal implications of this revolutionary technology, to fully dive into each, I will be taking them as individual sub-topics. First, we discuss the ethical and societal implications and, then, the potential impact of Blockchain Technology on governance and society.

The ethical and societal implications of blockchain technology and its potential impact on governance and society.

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This refers to the considerations arising from the impact of Blockchain technology. Since its first use in cryptocurrency, Blockchain technology has brought to light several long-standing ethical, societal and governmental issues previously thought impossible to address. Now, the bar has been raised, and the technology's impact has resulted in significant changes across several areas. These implications cover many aspects and can include privacy, security, and decentralization, amongst others.

To help you understand the different implications better, I will be discussing them below:

• Transparency:

Transparency is considered as one of the greatest properties of blockchain technology because it allows transactions to be recorded, traceable and unchangeable. This feature can be employed in various fields to increase transparency, accountability and reduce corruption. One such example is in supply chain management. By using a blockchain system, each step in the supply chain can be recorded and tracked, allowing for greater transparency and visibility. This is particularly useful in the agriculture industry, where consumers desire to know where their food comes from. Another application of this technology is in voting systems. Blockchain technology can be used to create tamper-proof digital voting systems, enabling transparent and verifiable election results. Additionally, in the real estate industry, blockchain technology can make property ownership records more transparent, making it easier to track the history of a property and ensure that all transactions are accurately recorded.

• Anonymity and privacy:

Blockchain technology has the potential to greatly enhance privacy and security, particularly in light of the growing concerns about data breaches and privacy violations on the web. With the emergence of Web 2.0 platforms, privacy has become a critical issue for many individuals, and blockchain technology offers a powerful solution for protecting personal information and ensuring anonymity.

An example of how blockchain technology can protect privacy is in the healthcare industry. By using blockchain to store patient medical records, individuals have the ability to control access to their information and share it with healthcare providers only when necessary while also ensuring that their personal information is not shared with third parties. Similarly, blockchain technology can also be used to establish decentralized marketplaces for anonymous and secure transactions, providing a safe space for individuals to buy and sell goods and services without revealing their identities. Additionally, blockchain technology can be applied to create decentralized social networking platforms where users can communicate and share information anonymously without fear of censorship or retaliation.

The examples made are just a few ways in which these can apply to different industries.

• Impact on financial systems and the potential for financial inclusion:

Blockchain technology can be used to create several decentralized structures that allow individuals to access financial services, such as small loans, without the need for traditional financial institutions and help to increase financial inclusion for those who may not have access to conventional banking services. These services can be in form of secure and efficient remittance services that allow individuals to send money to family and friends in other countries without the need for intermediaries. This reduces the cost of remittances and increases access to financial services for individuals in developing countries.

Personally, as someone who has experienced the high bank charges when sending money abroad, I am thrilled to see how blockchain technology has made global transactions seamless and cost-effective through the use of cryptocurrency. Growing up, my elder sister studied in Europe while we lived in Africa, and I saw firsthand the prohibitive costs of international money transfers. However, now, as a writer for foreign companies, I am able to receive payments with minimal fees thanks to the use of cryptocurrency. This not only makes global transactions easy but also eliminates the need for exorbitant third-party interference.

Another way Blockchain technology impacts the financial system is through decentralized finance platforms that allow businesses to access financing and other financial services without the need for traditional financial institutions, increasing financial inclusion for small and medium-sized businesses that may not have access to traditional banking services.

• Smart contracts and their potential impact on all walks of life:

Smart contracts are self-executing digital contracts stored and replicated on a blockchain network. They are terms of the agreement between parties written directly into lines of code, and when certain conditions are met, the smart contract automatically executes. Additionally, smart contracts are stored on a blockchain network; therefore, they are transparent, secure, and tamper-proof, making them useful for various industries and applications.

An illustration of the use of Smart contracts is in the buying and selling of property. It automates and streamlines the process by executing the transaction and transferring ownership and funds once all conditions are met. In Supply chain management, businesses can use smart contracts to track inventory, manage logistics, and automatically execute payments based on predefined conditions. Also, Insurance companies can use smart contracts to automate the claims process for insurance policies, where policyholders can submit claims on a blockchain platform, and the smart contract can automatically verify the claim and process the payment. Additionally, governments can use smart contracts to automate the delivery of government services, such as issuing licenses and permits and to execute charges for taxes and fees automatically. Last but not least, Smart contracts can be used in human resources to automate the management of employee benefits and compensation, where employers can use smart contracts to manage employee records, manage benefits, and automatically execute payments for salaries and bonuses.

• Impact on the economy and job market:

Blockchain technology has brought about a new wave of job opportunities that were unimaginable just a few years ago. As the technology continues to evolve, we will likely see even more job opportunities arise in the near future. For example, the emergence of the metaverse and NFTs has led to the creation of new job roles, such as metaverse art directors, metaverse architects, and NFT creators. Similarly, the growth of decentralized finance (DeFi) has led to the creation of new roles, such as DeFi analysts, DeFi market makers, and DeFi traders.

Other job opportunities that have been created by blockchain technology include blockchain developers, blockchain consultants, cryptocurrency traders, blockchain analysts, and community moderators for blockchain-based platforms such as Discord. These jobs not only offer a new set of opportunities for people to explore but also have a major impact on the economy and job market as a whole. Blockchain technology has opened up new avenues for innovation, efficiency and has created numerous job opportunities for people with different skill sets.

Overall, blockchain technology is driving an economic and job market revolution, and it’s exciting to see how it will continue to shape the future of work. The possibilities are endless, and it’s an exciting time to be a part of this industry.

• Impact on democracy and political systems:

While mentioning almost every point earlier discussed, I have touched a bit on governance. The influence of blockchain technology on governance is far-reaching, and it can significantly improve the quality of our political systems.

For instance, blockchain technology can provide secure, transparent, and tamper-proof voting systems that guarantee every vote is counted and the results are not manipulated. This can increase voter turnout and public confidence in the electoral process, especially in countries like Nigeria(where I am from), where voter apathy is high due to a lack of trust in the voting system.

Another key benefit of blockchain technology in governance is accessibility. By using blockchain-based systems, governments can create decentralized platforms that enable citizens to access government services and information without the need for intermediaries. This can reduce costs and increase efficiency for government institutions.

Furthermore, blockchain technology can be used to create decentralized platforms for decision-making and governance. This can enhance citizens' participation in the political process and result in more democratic and transparent governance systems. Overall, blockchain technology has the potential to revolutionize governance and political systems by improving transparency, accessibility, and security.

Conclusion

Finally, you made it to the end. I had to remove some of the points I wanted to discuss so as to keep the article concise and easy to understand.

By reading this article, you have gained a comprehensive understanding of the various applications of blockchain technology and its impact on society. Throughout the article, I have discussed the different properties of blockchain technology, such as decentralization, security, and transparency, and how they can be applied in different industries. I have also explained how blockchain technology can impact governance and political systems by providing a more secure, transparent and accessible way of conducting activities.

It is clear that blockchain technology has the potential to revolutionize the way we live, work, and interact with one another. From improving transparency and security in voting systems to creating new opportunities in e-commerce and finance, blockchain technology has the potential to change the way we conduct business, make transactions, and manage our personal data.

As the technology continues to evolve, we must stay informed and adapt to the changes it brings. With this knowledge, we can better understand how blockchain technology can be used to improve our lives and create new opportunities for growth and development.