We can easily imagine how information was managed 100 years ago. It was written on a card and then organized in a box with other cards. The boxes were then stacked in a room and locked with a key. The key holder then would become the master keeper of all the information in the room with power and control relative to the value of information stored.
In this paradigm we can identify several issues with this approach. The master key holder must be well trusted to store and protect the information. Additionally, the information in the room must be maintained and synchronized with other rooms of information.
Today, we have powerful computer technology that can store and process many times the amount of information that could be stored in a room a hundred years ago. We have high speed servers and storage drives, advanced networks and cloud computing and powerful database software to manage our information but yet we are still stuck in the same paradigm of single silos of information.
Unfortunately, as we keep advancing technology to process and manage more and more information, we continually experience the same reoccurring issues:
- Massive security threats due to a single key holder
- Excessive complexities due to synchronizing information between silos
- User privacy issues with having to trust someone else with sensitive information
Information systems are continually advancing but because it’s within the same paradigm, we’re are unable to address these problematic issues at fundamental approach.
Distributed Systems and the Blockchain
It’s evident that we are seeing a major paradigm shift in information technology. Modern cryptography, peer to peer networks and blockchain technology are changing the paradigm of information technology and helping us to find solutions to these reoccurring issues.
In a distributed network, rather than having one master key holder, we find many, many key holders. This significantly limits the risks associated with hacking and loss. While a single key may be compromised, it is impossible to hack an entire network. This design is very resistant to attacks.
Second, Blockchain technology solved a really difficult problem in computer science: The double spending problem on a distributed network. If you have 100 euros in your account and you make two withdraws each of a 100 euros, only one should be accepted and the other rejected. Blockchain technology, through powerful consensus models and protocols, solves this problem from the bottom up.
Lastly, with powerful access to cryptography, we can preserve and protect the basic human right to privacy. By exchanging messages through a proof system users can share proofs of data without exposing the secret data.
By integrating blockchains and proof systems into the business workflows, companies and organizations can improve their relationships with their partners and customers.
At Stratumn, we are focused on helping enterprise companies make this paradigm shift. We are building tools and services that they can leverage to bring these solutions to their market, partners and customers.
By embracing this paradigm shift, companies can work together in a more transparent and secure way, which brings trust and credibility to their business.