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Blockchain is a Virtual External Drive

The value of blockchain is shaping up: an infrastructure layer that enables companies to turn goods into tokens and then trade and settle them. All of this without changing any of the company’s current information management systems.

Blockchain becomes a shared “dropbox” in which all parties trust the validity of the data stored in this virtual drive. Data represent physical assets (e.g., goods, invoices, bills of lading, land). Data is then “tokenized”, and tokens can be exchanged as if they were physical currency (i.e., coins). The value of the coins is guaranteed by the value of the underlying asset.

Peer-to-peer exchange becomes then possible because the parties recognize the value of the underlying asset and are ready to trade and settle it by simple "drag and drop".

 

Comments: (2)

João Bohner
João Bohner - Independent Consultant - Carapicuiba 06 August, 2018, 13:34Be the first to give this comment the thumbs up 0 likes

@Enrico,

The best definition of blockchain I've encountered so far.

Simple, clear and straight.

Congrats.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 06 August, 2018, 15:54Be the first to give this comment the thumbs up 0 likes

Not only is Blockchain a virtual external drive, it's also a virtual external drive that costs a fraction of existing Dropboxes of the world. As I explained at the end of my blog post entitlted Flight Delay Insurance - Why Blockchain?, Blockchain dApps like Storj and SIA connect billions of underutilized hard disks in a Blockchain-managed storage mesh, thus promising to cut down storage costs drastically compared to centralized external virtual drives like Dropbox.