Abstract
A recent development has provided us with a new computing paradigm: the blockchain. First described by Satoshi in 2008, it is the first example of a computer that has the functionality to remember and enforce past statements by participants, in a non-localized, resilient and auditable manner. Although the Internet has allowed us to create a global infrastructure for cheap and flexible communication, no strong statements can follow from its weak economic signals without resorting to a recognised authority. A global information system that has the properties of the Internet but also the functionality to enforce statements without a trusted intermediary is required: such a system is called trustless. The chapter follows the examples of the usage of blockchain technology as a system that provides guarantees over the rules of its operations in consumer goods, online dating and international trade, with no need of third party intervention for the creation of trust, unleashing new potential business opportunities.
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Notes
- 1.
Omni and Counterparty can be defined as algorithmic extensions of Bitcoin, while Ethereum represents an open-source fully decentralized platform for smart contracts. See http://www.omnilayer.org/, http://counterparty.io/ and https://www.ethereum.org/ for more information.
- 2.
For more information see: Wyman, Oliver, Anthemis Group and Santander Innoventures (2015), “The Fintech 2.0 Paper: rebting financial services”, available online: http://www.finextra.com/finextra-downloads/newsdocs/The%20Fintech%202%200%20Paper.PDF.
- 3.
Ibid, p 528.
- 4.
For more information see: SWIFT White Paper (2013) “The Bank Payment Obligation: a new start for Supply Chain Finance”, available online: http://corporates.swift.com/sites/sdccor/files/trade_bpo_white_paper_201304.pdf.
- 5.
For more information see: Hurtrez, Nicolas and Massimo Gesua’ sive Salvadori (2010), “Supply chain finance: From myth to reality”, available online: http://www.finyear.com/attachment/252360.
Acknowledgments
Dr. Sarah Meiklejohn’s and Raul Romanutti’s efforts at proof-reading and rephrasing some of the harder sentences are also very much appreciated!
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© 2016 Springer International Publishing Switzerland
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Wood, G., Steiner, J. (2016). Trustless Computing—The What Not the How. In: Tasca, P., Aste, T., Pelizzon, L., Perony, N. (eds) Banking Beyond Banks and Money. New Economic Windows. Springer, Cham. https://doi.org/10.1007/978-3-319-42448-4_8
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