In recent discussions around blockchain technology, an interesting perspective has emerged from Japan, viewing blockchain not merely as a technology but as a “state” of assured data integrity and security. This concept prompts a reassessment of the traditional understanding of blockchain as primarily a decentralized network. This article explores this nuanced perspective, comparing it with conventional definitions and highlighting its implications within the broader technological landscape.
Traditional Understanding of Blockchain
According to Investopedia, a blockchain is fundamentally “a distributed database that is shared among the nodes of a computer network.” It stores information electronically in digital format and is best known for its crucial role in cryptocurrency systems such as Bitcoin for maintaining a secure and decentralized record of transactions. The security of this technology is inherent in its features: the data entered is immutable, and cannot be altered without altering all subsequent blocks and the consensus of the network.
Some New Perspectives in Japan on Blockchain as a “State” Attributing to Trustlessness
The Japanese Blockchain Association introduces a more expansive definition of blockchain, distinguishing it between broad and narrow terms. In its broader sense, blockchain technology is described as using digital signatures and hash pointers to make data structures easily auditable and spreading this data across multiple nodes on a network to ensure high availability and data uniformity.
However, the intriguing conceptual shift proposed is viewing blockchain as a “state” where the relationships between blocks (or data sets, and this part is ‘block’) are secured or linked through some technique (this part is ‘chain’) in some communities. The cryptographic techniques are being used for the efficiency to manage the digital information, but linkage between blocks can be email or some signature on a paper, as long as the requirement of the trustless meets the actual degree of the trustless. This perspective emphasizes the outcome or the condition achieved by blockchain technology rather than the technology itself. It suggests that the essence of blockchain is the state of interconnected and secured data through some guarantee (yet, usually cryptographic guarantees in the recent cases), much like links in a chain ensure the relationship between each connection.
The common perception of blockchain as a database does not capture its full breadth and potential. Much like understanding a car by its engine alone, defining blockchain strictly as a database overlooks its broader functionality and utility. This analogy helps clarify why blockchain, while utilizing data management techniques, is fundamentally distinct from traditional databases.
But why do we do such tedious process just to achieve the ‘state’? The only benefit of the blockchain is the trustlessness. If the cost of managing the trust is higher than the management of the blockchain state, such as salaries of developers and servers; it would be beneficial.
Understanding Blockchain Beyond Databases
Blockchain as a Protocol: At its core, blockchain is being managed by a protocol, a set of rules governing how data is communicated and verified across a network. In the case of Bitcoin, the blockchain protocol aligns the participants as a public ledger for transactions but operates through a decentralized network that follows a protocol for adding and verifying new data blocks. This system ensures consistency and security across distributed nodes without the need for a central authority, distinguishing it fundamentally from traditional, centralized databases.
Misconceptions and Clarifications
The Misleading Database Analogy: Just as a car is more than just its engine, blockchain is more than a database. While a database is a component within the broader blockchain ecosystem, essential for storing blocks of information securely, it is not the sole or even primary purpose of blockchain. This misconception can limit the understanding and innovation potential of blockchain technology. It would be misconceptions about an automobile if the one says the utomobiles is an engine. Yet the engines plays the major role in the automobile, it can be motor for the electric one or a electric vibrator or actuator to torque propellers to float. If the automobile is defined as an engine, it could have limited the development of electric cars: and so the blockchain.
Blockchain and Bitcoin: Often, the confusion stems from the association of blockchain with Bitcoin, where the blockchain acts as the ledger for Bitcoin transactions. However, this is just one application of blockchain technology. The blockchain in Bitcoin uses cryptographic techniques to maintain a secure and decentralized record of transactions, but it is not a database in the traditional sense. It does not merely store data; it ensures the fidelity and security of data distribution across a vast network.
Broader Implications for Technology and Innovation
Innovation in Blockchain Applications: By understanding blockchain as a protocol and a system for ensuring data integrity and process automation, developers and innovators can explore its applications beyond conventional boundaries. For example, blockchain can be instrumental in creating decentralized digital identity solutions, where the focus is not just on storing identity data but on creating a secure, user-controlled access system that spans across various platforms and services.
Educational and Conceptual Shifts: To harness the full potential of blockchain, there is a need for educational efforts that clarify its functions and capabilities. Just as understanding the broader functionality of a car can lead to innovations like autonomous vehicles, understanding blockchain beyond the database paradigm can lead to new applications that could transform industries.
Practical Implications of Viewing Blockchain as a “State”
This reconceptualization leads to an interesting discourse on the practical applications of blockchain beyond its decentralized nature. For instance:
- Enhanced Data Integrity and Security: By viewing blockchain as a state, it underscores the primary purpose of blockchain to secure information in the trustless way, which is crucial for fields like healthcare, finance, and legal industries where data integrity is paramount. The key is the state of being ‘trustless’.
- Operational Efficiency: It shifts the focus from the technology to what it achieves — a streamlined, secure way to handle data operations, potentially simplifying and strengthening the integration of blockchain into existing IT systems. But again, the efficiency can only be achieved when the cost of managing the trust is higher than the management of the blockchain state, such as salaries of developers and servers.
- Beyond Decentralization: While decentralization is a significant advantage of blockchain, viewing it as a state highlights that the technological benefits of blockchain (like immutability and auditability) can be applied even in centralized systems to enhance security and trust.
Comparative Analysis with Major Blockchain Definitions
Comparing this concept with traditional definitions shows a shift from viewing blockchain as a mechanism to a result or condition — a secured, trustworthy state of data management. Traditional definitions focus on the structural and operational aspects, such as decentralization and peer-to-peer network reliance. In contrast, the Japanese view encapsulates the essence of what blockchain achieves, regardless of the network’s architecture.
Conclusion
The redefinition of blockchain as a “state” rather than merely a decentralized network opens new avenues for understanding and applying this technology. It emphasizes the end result — a secure, transparent, and reliable state of data that blockchain technology facilitates. This perspective could broaden blockchain’s applicability in various sectors by focusing on its core deliverables rather than its structure, potentially leading to more innovative uses and integration strategies that harness the true power of blockchain technology.
This nuanced understanding encourages a broader adoption of blockchain technologies, ensuring that even organizations with centralized architectures can leverage blockchain’s benefits to secure and optimize their operations. Thus, while decentralization remains a transformative aspect of blockchain, the focus on the “state” of blockchain highlights its universal potential in securing digital interactions and transactions in an increasingly interconnected world.
