Think about a blockchain as a distributed database that maintains a shared list of records. These records are called blocks, and each encrypted block of code contains the history of every block that came before it with time stamped transaction data down to the second. In effect, you know, chaining those blocks together. Hence blockchain.
Blockchain is a distributed database that enables permanent, transparent, and secure storage of data. The blockchain technology is the backbone of CryptoCurrency — in fact, it’s the shared public ledger upon which the entire Bitcoin network relies — and it’s gaining popularity with people who work in finance, government, and the arts. Blockchain technology uses cryptography to keep data secure.
Blockchain has recently taken center stage in the conversation about management’s digital makeover. Many believe the impact of blockchain on the ways organizations function and produce value may be greater than other technologies that have grabbed most of our recent attention — data and analytics, the cloud, even artificial intelligence.
Blockchain is the technology behind Bitcoin, the revolutionary ‘virtual currency’ that’s changing the way people do business. While Bitcoin has enjoyed some well-deserved hype, Blockchain may be Bitcoin’s most vital legacy. Blockchain holds the promise to revolutionize a wide variety of businesses.
Blockchain is a decentralized ledger that maintains a continuously growing list of data records that are secured from tampering and revision. Every user is allowed to connect to the network, send new transactions to it, verify transactions, and create new blocks, making it permission-less.
The blockchain is the main technical innovation of bitcoin, where it serves as the public ledger for bitcoin transactions.
First up are the big banks and tech giants. Big business will always drive innovation, and the rise of blockchain-based smart contracts turns blockchain into a middleman to execute all manner of complex business deals, legal agreements, and automated exchanges of data.
A “trustless system” doesn’t mean it’s a system you can’t trust. Quite the opposite. Because the blockchain verifies each transaction through PoW, this means no trust is required between participants in a transaction. Where does the proof-of-work come from? The miners. A P2P network of BITCOIN “miners” generates PoW as they hash blocks together, verifying transactions that then go into the ledger.
Our Blockchain Future
The change blockchain represents to our digital world is tectonic. Blockchain is broad and coming to the fore on such a massive scale that explaining it often falls back on the abstract, rather than grounding it in the kind of foundational change the technology will have on the culture of how we interact online.