Consensus is a mechanism by which organizations of people decide upon unitary rational action. While not considered “technology” from a traditional standpoint, “consensus technology” is the foundation of democratic governance and the coordination of free market activity. This was first defined by Adam Smith as the “Invisible Hand.”
The process of consensus decision-making allows for all participants to weigh in on a determined course of action — even if the final determination is not necessarily the favored outcome for each individual participant. This is the fundamental basis of democracy.
Bitcoin was the first fully autonomous system to utilize distributed consensus technology to create a more efficient and reliable global payment network. The core innovation of Bitcoin is the blockchain, which is a cryptographically secured public ledger of all accounts on the Bitcoin network. This network facilitates the transfer of value from one individual directly to another on a peer-to-peer basis without any intermediary.
While public blockchains like Bitcoin bring significant risks and inherent flaws sufficient to keep enterprises from fully embracing these specific platforms, the technology itself has tremendous potential to revolutionize how we organize and transact in information, data, resources, assets, and money.
Consensus technology helps enterprises and individuals secure proofs of transactions by third party validation, reducing the possibility of fraudulent or unauthorized transactions. Once the proof of a transaction is written to the ledger, it becomes permanent and immutable, thus eliminating the possibility of alteration or deletion. In this way, a blockchain transaction becomes a permanent “public record” of a discreet transaction having occurred.
As a result, financial transactions over the internet no longer require the same kind of intermediary efforts to provide trustworthy, confidential fiduciary services. While intermediaries will likely still exist well into the future, they will be a function of regulatory and assurance requirements as opposed to a necessary function within the overall value chain of any transaction.
- XDEX will bring a significant advancement in efficiency, lowering costs of transactions and workflow.
- XDEX extends the innovation of the blockchain to all industries that rely upon the internet to provide their services. Whether its corporations, banking, investment firms, broker dealers, securities, stock exchanges, or many others, a public blockchain ledger allows for the creation of new automations that provide better quality services at a fraction of the cost incurred by their more traditional, centralized, intermediary-laden counterparts.
- XDEX has the power to achieve for economics and transactions what the internet revolutionized for information itself. It can ultimately leverage the combined power of all humanity to coordinate the discovery and aggregation of real-time knowledge. Previously this complete set of information has been unobtainable. But now, with significant technology advancements, this knowledge can be used to more effectively coordinate the allocation of resources toward their most productive and valuable uses for greater returns.
Because the technology now enables automation of organizational structures, companies can run with less human management and under the control of an incorruptible set of business rules. These rules are encoded in publicly auditable software that is distributed across the computers of the companies’ stakeholders, who effortlessly secure the company from arbitrary control and interference.