Disruption. A much-overused business word. Every new product, service and start-up we are assured, is disruptive. It’s the game-changer, the holy grail. Well, the Blockchain probably is.
Firstly though, perhaps the majority of people who have heard of blockchain are starting with Bitcoin. No matter what do you think of Bitcoin, it has achieved enormous success and is increasingly accepted by commerce.In fact, cryptocurrency assets like Bitcoin are just a type of equity certificate under blockchain‘s token economy. It only represents a small part of blockchain technology. As the foundation technology, blockchain can achieve stronger functions and have even greater potential.
Blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous block, a timestamp and transaction data. By design, a blockchain is inherently resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way". For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. Blockchain has enormous practical value in many fields such as finance, credit, medical care, insurance, online payment, anti-counterfeit, and copyright protection. It is the most revolutionary technology after the Internet.
People see great value in the blockchain. It is extensively predicted by experts that the blockchain will eventually change our lives, and that business will be the first to be reinvented. Any industry is no exception. So, what is blockchain’s strength? What characteristics does it have and what kind of problems can it solve?
The biggest feature of the blockchain is decentralization. Any authority controlled by the central server before will now be shared by all nodes in the decentralized network. This feature is an important basis for us to solve the problem of trust, because it ensures that the data cannot be modified.
In the past, there was a serious crisis of trust under the centralized network because it was very difficult for us to find a way to guarantee the authenticity of information. Even if the data was kept by an authoritative organization, there was still the danger of being hacked or the possibility of being tampered with. In a decentralized world, such fears will no longer exist. Unless hackers can successfully hack more than half of the servers in the blockchain network (which is certainly impossible), otherwise no one will be able to modify any data. This cultivates a good soil of mutual trust and is a prerequisite for solving the crisis of trust.
In addition to great foundation, we still need a reasonable and efficient method to solve trust issues. The smart contract mechanism supported by the blockchain just provides a powerful means.
To better understand the concept of smart contract, here is an example. A is looking for someone to help him buy a pair of limited-edition sneakers. After searching for a long time, he finally finds B who is good at purchasing, but the problem came. B asked A to pay him first because he feared that he wouldn't get the money after he bought the sneakers. A also had concerns. After all, he didn't know B and what if B run away with the money. In this way, they are stagnated and could not reach a deal for a long time. But with the smart contract, everything becomes simple. All of the requirements and commitments of A are recorded in the form of code on the blockchain. As long as someone can meet A's needs, the system will automatically fulfill the contract. No one needs to worry about being cheated.
More importantly, smart contracts can help us cut out the middle cost. We no longer need to rely on authoritative large-scale intermediaries to guarantee us because we are no longer relying on trust between individuals and individuals. Our trust is determined and constrained by the code and technology.
The special economic model of blockchain enables all the elements within a specific ecosystem to participate in the process and maximize the contribution to the prosperity of the system. Under the token economy, we can allow the market itself to determine the value, so as to measure the value of the goods more rationally. This can solve the problem of price disorder in many industries.
At the same time, after the establishment of the value measurement standard, it can greatly promote the circulation of value, which can effectively activate many of the silent markets subject to various trade barriers and inject new vitality into the traditional market.
After understanding the specific issues that the blockchain can solve, many people will find that this totally coincides with the current problems in our global liquor industry.
In today's global liquor industry, whether it is wine, whisky or spirit market, there is a serious problem of trust. Counterfeit problems are common in the in any country. This has caused a serious lack of trust in the industry.
At the same time, the existing liquor industry relies too much on intermediaries. From winery, a bottle of fine wine has to go through a large number of middlemen before reaching the hands of consumers. Not only the prices are too high, but also it is extremely time-consuming and cumbersome.
It is also important to note that the liquor market is one of the largest traditional markets in the world. It has a large enough market size, but it has also lost innovation for quite a long time. While having an enormous fan base of the wine culture, it still did not reach the same success in business. This market desperately needs a new force to unite the resources in the industry perfectly and continuously stimulate the healthy circulation of these resources.
There is already many people who begun to use blockchain technology to reshape the global liquor market. Love Wine Chain is just the leader of blockchain applications in this area. It aims to use the power of blockchain to create a brand new world wine trade ecosystem and revive the wine culture.
The wave of blockchain will sweep across industries and completely change our lives. What we need to do now is to open our arms and enjoy all the surprises brought to us by future industry upgrades.