The Internet has changed our lives, but it's fundamentally limited...
You see, the Internet can send information back and forth, but that's about it.
To be more correct, the Internet can send copies of information. If I send you a report or a picture, now you've got a copy of it, and I still have my own copy of it.
That's great for sharing all kinds of information... but it's got limits.
However, a new technology that came bursting onto the scene about a decade ago – blockchain – will expand data-sharing capabilities to a whole new level.
When most folks hear "blockchain," they think of cryptocurrencies and just write it off. It all sounds too complex. Some think bitcoin is a scam. Whatever your feelings are, you have to understand one thing... Blockchain technology is a game changer.
The blockchain allows you to digitally send actual value. You don't send just a copy of information or a link to something... You can send the actual thing.
This may be a little head-spinning, but that's because it's such a fundamental difference in how things work.
When you use the blockchain to send some kind of digital dollar, the ownership of that digital dollar goes with it. It's not held by a bank or government somewhere (and the less the government meddles with our dollars, the better).
It now belongs to you... And you can prove it doesn't belong to anyone else and that the information is valid.
So what does this mean?
The implications of this slight change in how we can send things and track information across the Internet can change everything.
And I can say that without hyperbole or exaggeration.
The blockchain could upend our entire economy and nearly every industry within it.
Again, most folks won't take the time to understand this technology, its implications, or the investment potential. That will be their loss.
The blockchain solves a simple problem – how to verify transactions – with elegant and ingenious mathematics.
Without the blockchain, transactions can only occur with a trusted partner or intermediary. You can't simply verify a transaction on your own.
For instance, take the problem of digital money. If someone bought a product from you with a "digital dollar," how would you know it was real? More specifically, how would you know it really belonged to the person paying you and that it didn't belong to someone else?
Prior to the blockchain, someone somewhere had to keep a ledger. This could be a bank, a government, or some other trusted institution. It would know that Alice had $10. When she sends $10 to Bob, he checks with the trusted intermediary to see if she really has that money to spend. With digital transactions, you can't tell if that's already been spent without the intermediary. Alice can send $10 to Bob and $10 to Chris. This is known as the double-spending problem.
The blockchain does things differently. With a blockchain, everyone keeps the ledger. And the mathematics of adding to the ledger makes sure that everyone keeps the same ledger and no one can put in false information.
The ledger may serve as the basis for a new form of money (as is the case with bitcoin), or it could serve as the basis for contracts and documentation related to property ownership... it could track and store voting details in an election... or it could be a new app on your iPhone.
A blockchain is a shared record book.
Without getting too caught up in the specifics, one of blockchain's biggest benefits is that it's a decentralized distribution system. Take a look at the following graphic...
As you can see, because it is decentralized, it has no single point of failure because there are many copies of the database, which can verify each other's accuracy.
The network verifies that any new transactions in a blockchain are valid. That makes it tough to hijack the network... which is why blockchain is a secure and trustworthy accounting system.
I'll be the first to admit that trying to understand blockchain and all the different kinds of cryptocurrencies can make your head hurt. But once you really understand how revolutionary blockchain is, only then can you start to see the massive profit potential.
But folks love cryptos. Even though I've never formally recommended any before, I regularly receive e-mails from readers asking where they can put their money to work.
That's where our cryptocurrency expert Eric Wade comes in. Eric knows all the biggest players in the crypto industry, and he understands the scientific technicalities in a way that only angel investors, computer programmers, and software engineers do.
I've spent a lot of time talking to Eric about cryptos, asking him to explain all the ins and outs, as well as the latest news.
And just last week, Eric released some huge news in the digital currency world...
According to Eric, the U.S. government will take the first step toward creating its own cryptocurrency by releasing a new financial system called FedNow. If you get positioned before the release in July, you could make 3,050% on the U.S. dollar's biggest innovation in 51 years. Click here for the full details.
What We're Reading...
- In case you missed it: Eric's detailed explanation of how blockchain technology works.
- Something different: 109 years ago, Archduke Franz Ferdinand was assassinated. The legacy of the war it started lasts today.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
June 28, 2023