The blockchain, which is software, replaces the need for us to rely on the authorities to say things are what they are.

 

In terms of digital money, if the blockchain says that I have 10 bitcoins, and you have 20, it must be true.

 

But how can we trust the blockchain?

 

We can trust it because the blockchain software is open to the public to inspect and check.

 

So the blockchain software, once written by someone or some team, is uploaded to a place for open source software like the GitHub.com repository.

 

Any programmer, or teams of programmers, can download it, install it and execute the blockchain software.

 

They do this to try to find errors, or malicious codes, or vulnerabilities within its codes.

 

If those errors are found, they will be reported. Proposed changes by the programmer(s) who found them to fix the issues can be submitted for the blockchain project team’s consideration for implementation.

 

Because there are millions of programmers all over the world, open source software can be looked at by a large community of experts who contribute their time and effort for free, to make the blockchain software better and more robust before and after it is launched to the masses.

 

This large community of programmers all over the world collaborating with each other can also be more effective and efficient than a private team of developers that can only be as large and as bright as there is money for their salaries.

 

In addition, the blockchain team can also pay for professional code auditors to audit their codes and publish their findings to the public.

 

Finally, there will be a period of rigorous testing by volunteers before a public launch of the blockchain, to ensure all bugs are ironed out as much as possible.

 

Real-world implementation of the blockchain software then provides the additional “testing” for scalability and additional vulnerabilities that could not be done before the masses use it.

 

The transparency, openness and continuous monitoring and fixing of the open source software, PLUS its tamper/hacker proof design, enable ABSOLUTE TRUST to be established in a blockchain.

 

And so, when a blockchain says I have 10 bitcoins and you have 20…

 

…I really do have 10, and you really do have 20.

 

We don’t need any trusted authorities to tell us this is the case.

 

Because of this, if any party is transacting with another stranger somewhere else in the world on a blockchain, neither of them needs to trust the other party for the transaction to happen based on trust, because the BLOCKCHAIN itself gives us the trust we need.

 

This is also why the blockchain is called a “Trustless System”, which is in reference to us not having to trust anybody else as long as we’re transacting with them on a blockchain.

 

You can already see that traditional trusted parties like the authorities (banks, the land office, the ID department, etc) can be eliminated with the blockchain.

 

And the cost of running a blockchain can be far lower than the cost of operating the authorities.

 

On top of that, and far more important, corrupt practices that nobody can see, as well as huge inefficiencies can also be eliminated with the blockchain.

 

What’s not to like?

 

Can you now see how the world will change significantly with blockchain technology moving forward?