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When we discuss the
blockchain applicability,
it is relevant to see
what are the mechanisms
that allow a more beneficial
usage of the technology.
Based on the DAO concept,
smart contracts emerged
as a disruptive mechanism
to enable blockchain
transactions.
This is because the normal
hierarchical models we know,
based on internet-driven
systems,
are all connected to
a central node point.
So one person or
department has to approve
or somehow control one part of the
process for the chain to continue,
as we can see in the figure.
With smart contracts,
flows of transactions and
information run automatically
among all members
of the process.
This is the idea of
a smart contract,
a contract that allows a
transaction to be preset
and run without human influence,
based on preset
protocols and rules.
Additionally, blockchain may serve as
a base for private or public purpose,
so there is a level of
transparency that can be regulated
according to the nature
of the process involved.
In this regard, the rules
and regulations can be set
in a consensus mode that allows
participants of the block
to make democratic decisions about
how smart contracts should run.
Thus, the control is not
centralised anymore,
but fairly distributed among
the nodes in the blockchain.
Another very known innovation of
the blockchain are the tokens.
We've all heard about
fan tokens or NFTs,
non-fungible tokens.
The token is a
representation of an asset,
be it fungible like
fan tokens or NFTs.
The difference between them is
the very nature of the asset.
A fungible one is when the
assets look all the same,
like money.
On the contrary, a non-fungible token
responds to a one-of-a-kind asset,
like the bored monkeys,
where no art is the same.
The tokenization
through the blockchain
makes the asset traceable
and impossible to falsify,
given the tamper-resistant and
transparency characteristics.
To see these dynamics
happening in real life,
my colleague will discuss some
following examples in the next slide.
We'll focus on understanding
what is blockchain.
