What The Ancient Sumerians Can Teach Us About Blockchain

The ancient Sumerians can teach us more than you think about blockchain.

The Sumerians did not have the blockchain’s distributed ledger, but what they did have was a tamper proof immutable object, a checksum that offered verifiability, and a unique signature system perfectly resembling our modern day document digital signature solution.

In 4000 BC the Sumerians had already figured out non-repudiation with tamper proof immutable objects and unique digital signatures WITHOUT COMPUTERS. The system they created was so effective it was in use for thousands of years.

This accounting system involved tokens, hollow spheres, and unique seals. Tokens signified the type and quantity of resources owed, and were put inside a hollow clay sphere called a bulla. While the clay was still wet, the participating parties would stamp their unique seals on the outside of the bulla so the contract parties could be identified.

Sumerian administrators would even etch the number of tokens and their shapes on the exterior of the sphere so the internal contents could be identified without breaking the bulla. This way if the contract payment amount was contested, the bulla could be broken to verify the amount of tokens, thus making the external etchings effectively a checksum.

Participants would stamp their seals all over the sphere making it nearly impossible to find blank space to puncture a hole and change the amount of tokens inside. Damaging the seals rendered the contract null, so the bulla was effectively tamper proof.

Like blockchain the bullae system had a checksum, and an immutable object, but not a distributed ledger.

Because of this the public could not verify the transactions, the power to verify was only in the hands of the administration. As amazing as the bullae system was, it still did not account for the human element on the side of power and therefore highlights the unique power of a distributed ledger.

The takeaway is not that the blockchain is an amazing technology that will solve all of our problems. The takeaway is that the reason blockchain solutions have not received widespread use by global institutions is that it speaks to a much larger truth we do not want to confront.

Believe it or not, Bitcoin is not private, transactions are completely public. The distributed ledger allows any node on the network to participate in verifying transactions, and each block has transaction IDs and wallet IDs of the participants. An institution willing to give up the sole power to verify transactions is an institution willingly giving up the power to conceal, go back on their word, or commit fraudulent activities.

Imagine comparing a governments fiscal budget to their spending on the blockchain, and identifying who the payments were made to. This is clearly not in any current governing body’s favour.

The Sumerians were just as smart as we are today, they might not have had the means to implement a distributed ledger with the bullae system, but I would venture to say even if they did, they would not have done it.

The bullae system was more successful than blockchain because it had widespread use, it lasted for thousands of years, it made distance trading efficient, and most importantly it kept power in the hands of the governing administration.