Blockchain, Trust and Efficiency

Currencies are interlinked with trust, and always have been. Trusted relationships are the most efficient relationships, and provide the best basis for prediction. When we have trust, we have predictability. Currency really is all about predicting the future. Currencies are fundamentally transferrable credit. That’s how currency starts. Someone accepts an IOU, and that person is able to pass on that IOU to someone else. In … Continue reading Blockchain, Trust and Efficiency

Specific Inventory, Time and Balances

Some ledgers track specific inventory, specific items. This is particularly true for high value assets, like the leasing business. In these instances, ledgers are used to track these specific assets. Much of the world of blockchain is focused on these kinds of applications, specific asset tracking. But the ledgers used to track these assets typically will also have balances tracked in some way. This is … Continue reading Specific Inventory, Time and Balances

What is Money?

This week’s episode debunks the idea that money is an exchangeable precious metal, or requires some type of mining per many virtual currency systems.  Certainly what money is has changed over the centuries, but what it is today is quite clear. Felix Martin’s in his book, “Money: The Unauthorized Biography” makes a convincing argument that money is purely transferrable credit.  A telling example was in … Continue reading What is Money?

Blockchain Gap: Reporting Integration

Today’s episode is in response to a question from Steven Ulmer about the challenges of reporting using Blockchain. The development of papyrus in ancient Egypt was a breakthrough technology, but today if one needs to write a contract or record transactions in a ledger, it’s not that expensive to buy a piece of paper. Deciding what to write down is much, much more expensive.  It … Continue reading Blockchain Gap: Reporting Integration

Blockchain Gap: Liquidity Management, the Core of Banking

Banking at its core is the process of matching illiquid loans against liquid deposits. Blockchain is very focused on tracking individual items, perhaps loans for example; probably less on tracking individual deposits. Yet this process of matching illiquid loans against liquid deposits does not start by matching loans and deposits individually; one has to assess what the problem looks like in total. Blockchain adds nearly … Continue reading Blockchain Gap: Liquidity Management, the Core of Banking

Consider the Punch Card

Today’s banking and financial systems were by and large automated in the 1970s and early 1980; the process began in the late 1950 and through the 1960s.  I find it helpful to reduce the problem of what the systems do down to the most basic elements in considering the financial patterns involved. And what might be the most basic element?  In many respects, to state … Continue reading Consider the Punch Card

Blockchain, Metric Engines and the Coming Social Commerce Platform

In many of my earliest videos (and actually in a monograph I’ve written) I’ve proposed that the next evolution in structured data analysis is like a search engine, but one which performs calculations, which creates metrics: a Metric Engine. Each URL in a search engine is more like a “transaction” than a balance. Search engines do not calculate balances. If they show a balance, it … Continue reading Blockchain, Metric Engines and the Coming Social Commerce Platform

Analytics, Blockchain and the Coming Social Commerce Platform

This week’s episode points out that Analytical processes start with balances. We don’t open a bank statement and look at transactions, and ATM’s don’t have menu options that show us the last 300 transactions: we start with a balance. Blockchain does not really solve posting problems, which are at the heart of analytical needs for the coming social banking/commerce platforms. Posting turns transactions into balances, … Continue reading Analytics, Blockchain and the Coming Social Commerce Platform

Blockchain and the Next Generation ERP Systems

This week’s episode of my vlog discusses how Blockchain functionality may help us envision what the next generation of ERP systems may look like. Blockchain can be applied to any type of transaction data that is shared by multiple parties. Many transactions today in ERP systems do not involve exchange of currency; they are steps preparing to exchange currency, like purchase orders, shipping bills of … Continue reading Blockchain and the Next Generation ERP Systems