Chris’ note: Today, we hand the reins over to Doug Casey’s handpicked crypto and blockchain expert, Marco Wutzer.
As regular readers know, Marco is the senior analyst of Disruptive Profits – our elite newsletter in which Marco shows you how to take full advantage of the rise of blockchain technology.
He’s also a true crypto pioneer. He’s been involved with digital currencies since the late 1990s… and made so much money speculating on them that he dropped everything a few years ago to travel the world.
It pays to listen to him. Especially when he’s excited about a new project, like he is right now…
Marco says we’re seeing a revolution in the blockchain industry that will solve a massive problem affecting millions of people… and it will create a rare money-making opportunity.
He explains everything you need to know below…
By Marco Wutzer, senior analyst, Disruptive Profits
Data is the lifeblood of modern civilization.
Think about it… It doesn’t matter if you’re using your smartphone, searching or shopping online, paying with a card, hailing an Uber, or booking a flight – almost everything we do relies on data.
Most of us never even think about where all that information is stored… where it comes from… how it’s secured… or how it’s accessed.
The first answer is, it’s stored in databases.
In fact, every company keeps many databases. For customers, orders, supplies, inventory, employees, financial accounts, and many others.
Our modern world would hardly exist without a means to store the enormous amounts of data we collectively produce and rely upon for our daily lives.
The rise of data is a megatrend and its exponential growth phase has only just begun.
As I’ll show in today’s Dispatch, the rise of data is causing a big problem right now. But there is a solution – and smart investors who get in now stand to make a fortune.
I’ll explain in a moment. But to fully understand what to do now, it’s important to see how people got rich in the beginning…
The First Revolution in Data
When electronic databases first became available in the 1960s, data was stored in a flat file. A flat file is a simple text document in which data is separated, usually by commas.
Reading a flat file line by line is extremely inefficient. See for yourself:
That’s why in 1970, Edgar Codd, a hard disk system developer at IBM, proposed a new method for storing data… He invented relational databases, which store data in tables.
In his model, the database’s organization is separate from the storage of information.
In other words, the table’s structure, the definition of what data each column contains, and the actual information in the table are separate parts of the database.
This meant programs could quickly search specific columns, rows, and even data from multiple tables at once.
This is much faster than scanning the entire database line by line.
The Biggest Winner of the New Database Paradigm
Codd’s concept changed the way people thought about databases.
A company called Oracle became the first to market this new relational database technology in 1979… and it quickly became the dominant form of data storage for the nascent digital economy.
Meanwhile, early investors got rich:
Today, relational databases are still the most common type of database.
But the number of online applications that need to process huge amounts of data is growing. (Think about video streaming, social media, or online search and e-commerce.)
Which means the size of databases keeps growing along with it… leading to one of their biggest flaws…
Massive databases are hosted in big, centralized data centers. It’s a classic example of the outdated, centralized model that is flawed… because all of the data held in these databases is a prime target for cyberattacks.
You see, in the traditional data center model, a hacker only needs to find one vulnerability in any one of thousands of servers to potentially gain access to confidential data of millions of people.
Such data breaches happen on an almost daily basis.
Here is just a small sample of data breaches that happened this year alone:
Capital One – 100 million affected users
First American Financial – 885 million affected users
Facebook – 540 million affected users
Quest Diagnostics – almost 12 million affected users
Instagram – more than 49 million affected users
WhatsApp – 1.5 billion affected users
And these breaches not only expose sensitive data, but they also cause trillions of dollars in damages.
The global average cost of a data breach is $3.92 million. The total global cost of cybercrime is estimated at $2.1 trillion this year.
That’s a huge drag on the global economy… and of course, the victims of data breaches.
There are literally hundreds of other major hacks affecting government institutions and businesses across all industries.
And only the biggest ones are covered in the media. There are thousands more in which the victims don’t even know they have been hacked.
This is where blockchain technology comes in.
The Future: Decentralized and Distributed Databases
Blockchain technology is slowly decentralizing the entire data economy, including databases. As longtime readers know, blockchains are technologies for cryptocurrencies. They’re decentralized, meaning there is no central authority in control.
The future for anything related to data lies in decentralized solutions.
And it means that blockchain technology is the key to putting an end to cyberattacks and data breaches.
Here’s what I mean…
By definition, decentralized networks like blockchains have no central authority that can control or manipulate the flow of data across the network.
All the data is broken up into pieces. These pieces are then stored across multiple nodes – or computers – throughout the network.
This is what we call redundancy.
The data is backed by the entire network and not just a single server or data center. Availability is guaranteed, and you don’t have to trust or rely on any third party.
And once data is stored on a blockchain, it is immutable. Nobody can change the data, and nobody can gain unauthorized access.
In other words, it completely prevents cyberattacks and data breaches, because an attacker would have to hack the entire network instead of only a single server.
How to Take Advantage
This is game-changing technology. And just like early investors in Oracle, who are a testament to the gains that are possible when betting on the right technology before it becomes mainstream, you can stand to make a fortune.
I’ve already identified one project that will soar thanks to its innovative use of blockchain technology to prevent cyberattacks. My Disruptive Profits subscribers can access that pick here.
If you’re not a subscriber, the best way to start taking advantage of this trend is by buying bitcoin if you haven’t already.
This will give you some initial exposure to the crypto market. And you’ll need bitcoin to buy other blockchain projects that are solving the problems I mentioned above – ones that offer even bigger profit potential.
To disruptive profits,
Senior Analyst, Disruptive Profits