"The struggle between centralization and decentralization is at the core of American history. -- Anthony Gregory
About a decade ago when the global financial crisis struck the world, a mysterious inventor named Mr. Satoshi Nakamoto proposed and built an electronic cash system known as bitcoin. It allowed online payments to be sent directly from one party to another without the involvement of a financial institution. This was welcomed as a means to defend society against financial monopoly by a few “too big to fail '' financial institutions.
In the world of computing, more and more organizations and individuals are leveraging cloud computing to meet their information needs. This in turn has created a centrality of power in the processing and storage of data. This new trend toward computational monopoly is a great threat to the data-centric economy we are heading into.
Blockchain technology is a decentralized and distributed digital platform used to cultivate financial transactional transparency, enhance network security, improve data privacy, boost transaction speed and reduce an entity's operational costs. The technology is designed to protect from the risk of cyber-attack by running all transactions through a peer-to-peer computer network. Blockchain allows for communication networks that are transparent across multiple parties or locations, enhancing the ability of database systems to track records efficiently and securely. It also improves processing speeds so that transactions can be digitized in real time.
One example of blockchain technology application could be seen in its use as a way to track diamonds throughout the production cycle from mining through retailing using RFID tags at each stage of manufacturing. Not only are there data privacy benefits to the technology, it is also designed in such a way that one can easily check different stages of production against each other. As blockchain networks are decentralized over multiple computers or nodes on a network, security and integrity are enhanced as well.
Another potential benefit of using blockchain technology could be seen in its application as a distributed ledger for processing transactions with digital currencies like Bitcoin (BTC) and Ethereum (ETH). All transactions would be stored on the same public ledger that anyone could access at any time – just like how bank statements are publicly accessible, but without the need for centralized authority involvement. Keeping records transparent through the use of distributed ledgers may help regulators have clear oversight into activities taking place within any particular blockchain network. It can also improve the ability of law enforcement to track illegal activities and criminal perpetrators.
In this white paper, we explain TEA, a blockchain platform designed to deliver a new computational paradigm that is similar to what bitcoin has done for payments. It is about the decentralization of computation and storage of data. It is designed for the “little guys” to serve each other’s information processing needs, with anonymity, decentralization, and trust.
In the proposed ecosystem, people get rewarded by running nodes to maintain the security of the platform, providing computational resources to solve customers’ problems, developing applications to run on the platform, staking their tokens to help secure each computation node, and supporting application developers who need a jump-start.
In addition, the platform adopts the decentralized autonomous organization (DAO) model, in which decisions are made by pre-defined smart contracts and a governance token structure, to ensure that no individuals can steer the platform towards a direction that potentially can harm the overall community.