The first generations of blockchains launched the idea of cryptocurrency but did not really make any significant move towards capturing the enormous underlying global market for transaction logging––in some sense it was as if all the hype surrounding the idea of cryptocurrencies and the suggestions that they would and could replace central banking and fiat currency obscured the underlying potential.
On top of that, these early generations of blockchains did not and still do not have the features and functionality required to become a truly global backbone for transaction logging. They lack flexibility and feature richness but most of all the idea of anonymous transactors, while perhaps appealing to a fringe crowd of anarcho-capitalists, is not, at the end of the day, in line with what businesses or regulators require.
However, once networks that can deliver on key business requirements start to get off the ground there is little doubt that the overall potential is staggering––Gartner Group believes the value of this nascent market will be around $3.1 trillion just 12 years from now in 2030. In many ways this outlook corresponds to the development of the Internet––from a slow start in the early 1990s with little clarity on what it could be used for to the emergence of the massive juggernaut that today, some 30 years later, dominates and pervades pretty much every aspect of how we do business and has wrought enormous amounts of disruption and transformation on industries that had no idea of the tsunami that was about to hit them when the transformation began.
We believe blockchain networks will deliver the next big business transformation and that it could potentially be as large and as important as the advent of the Internet.
What drives this potential for change is not, however, what media has dubbed “the disintermediation of the middleman,” but rather the opportunity to instigate what could in essence be the greatest technology and infrastructure outsourcing project the world has ever seen. Think of how cloud computing has already begun changing the landscape of how businesses think about storage and servers and the savings this has led to. Then imagine a world, where businesses large and small begin to realize that a cheap, ubiquitous, secure, robust, unbreakable and fully decentralized infrastructure can in fact deliver on most of their needs for record-keeping and transaction logging and can do so at a fraction of the cost of the systems these functions are being run on today!
This is the true power of blockchains and the vision for the Concordium Network: to become a global and publicly accessible backbone for transaction logging––an open infrastructure that any individual, company or public sector agency can use to run their applications on, which provides a number of benefits not achievable today. Not least in terms of robustness (a truly global decentralized network would be much more stable than the bespoke solutions used today) and in terms of running costs, where the large infrastructure costs we see today could be replaced by minuscule transaction fee payments.