You may well have found this article through Facebook. An algorithm programmed by one of the world’s biggest companies now partially controls what news reaches 1.8 billion people. And this algorithm has come under attack for censorship, political bias and for creating bubbles that prevent people from encountering ideas they don’t already agree with.
Now a new kind of social network is emerging that has no centralised control like Facebook does. It’s based on blockchain, the technology behind Bitcoin and other cryptocurrencies, and promises a more democratic and secure way to share content. But a closer look at how these networks operate suggests they could be far less empowering than they first appear.
Blockchain has received an enormous amount of hype thanks to its use in online-only cryptocurrencies. It is essentially a ledger or a database where information is stored in “blocks” that are linked historically to form a chain, saved on every computer that uses it. What is revolutionary about it is that this ledger is built using cryptography by a network of users rather than a central authority such as a bank or government.
Every computer in the network has access to all the blocks and the information they contain, making the blockchain system more transparent, accurate and also robust since it does not have a single point of failure. The absence of a central authority controlling blockchain means it can be used to create more democratic organisations owned and controlled by their users. Very importantly, it also enables the use of smart contracts for payments. These are codes that automatically implement and execute the terms of a legal contract.