Blockchain brought the idea of digital scarcity to the internet… but how?
Well, for starters, what is Blockchain Technology? Blockchain is a method of recording data that makes it impossible or extremely difficult for said data to be changed, hacked, or manipulated.
Think of it as a giant record book that everyone can see but can’t tamper with.

Okay, but what makes it tamper proof?
In short: consensus (a system that brings the network into agreement to validate a record entry and mark it as authentic), cryptography (a means of securing data against unauthorised access) and decentralisation (decision making that happens through a distributed network as opposed to a centralised entity). The combination of these ideas makes record keeping on the blockchain secure, robust, transparent and immutable.
This is an oversimplification but think of it like this – if the record book was kept by a centralised entity, they could alter records to suit their interests and that of their partners; but if the record book was kept by thousands of independents all across the globe, all or most of the participants would have to be compromised in order for an alteration to even be possible to begin with – this gives even greater assurances than an audit from a reputable organisation.

Alright, but what does this have to do with digital scarcity?
Everything! Being able to record data in a way that cannot be changed is the foundation for limiting the abundance of the internet. Let’s take an example – if I am an artist and I say I am making a limited edition set of my digital illustrations, how can I prove that there is only “x” number of items? Before blockchain technology, you couldn’t – as the buyer, you would simply have to take the artists word for it, which is not good enough. But now, the creative would have to record how many pieces there are, and if the artwork is placed on what is known as a “locked policy”, they will never be able to produce more of the same work under the original Policy ID. This makes any reproduction of the work invalid/unoriginal/unauthentic.
So, you see, blockchain technology, through its properties, can bring scarcity to the internet. The question now is, what can be achieved with this technology and the idea of digital scarcity? We will address this in the next blog!