Blockchain Technology Explained
Most have heard of cryptocurrency, though few are aware of the revolutionary technology that cryptocurrency is built on known as blockchain. Those that know me will tell you that i’m passionate about blockchain and the world changing opportunities it offers, so here’s an explanation as to what it is.
Blockchain was first released in 2009 by an an anonymous individual or possibly even a group known only as Satoshi Nakamoto. Does that name sound familiar? It should, as he/she/they are responsible for Bitcoin, the first cryptocurrency to use blockchain technology.
Blockchain is a de-centralized, distributed digital ledger which contains a record of transactions ordered chronologically.
The transactions in a blockchain are recorded in ‘blocks’ and each block contains information which for property could be the details of the land owner, the deeds, the details of the land itself etc. If information needs to change, such as the land being sold to a new owner, instead of re-writing the blocks data, a new block is created to show who the new owner is along with any other updated information. The new block also contains a time-stamp showing the date and time it was created which is when the transaction occurred. Each time the ledger is updated, it is distributed over a large network of computers, so everyone has a copy of the digital ledger.
Imagine yourself and three friends have a blank piece of paper each and you all want to collect names of people who can attend a party you are hosting but you want to ensure all of you have the same list of names. The four of you all head out to collect names. When a name is collected, all four people meet up at the exact time the new name is collected, and all four of you update your pieces of paper together. You each write the time and date the name was collected, and the name itself.
This process is repeated which results in everyone having a copy of the data. If someone adds a name to the list, all of the other lists wouldn’t match so it would be obvious that the name was added and that copy of the list has been manipulated so it would be rejected by everyone. The same is true if any sort of change happens such as time, date or a change to the data (name) itself.
This may sound like a long process but this happens digitally and instantly and the transactions can be anything of value such financial transactions, property transactions etc.
This makes the transactions recorded secure and cannot be manipulated or backdated as any attempted changes would not be accepted by the other ledgers that do not match up. As this ledger is also public, it means transactions can be tracked all the way back to the first ever transaction.
The great thing about blockchain technology, is that there are different types of blockchain. Some that are fully public allowing all data to be viewed by all easily. Some can be completely private allowing access only to select members. Some are hybrids which are in part private to select individuals to view though some of the information is public. An example of a hybrid blockchain in land registry could be the details of the land itself are public so anyone can see the boundaries of the land and the name of the person who owns it, though the owners personal detail are private.
Here is the best blockchain explanation video I have seen to date which was created by the ‘Centre for International Governance Innovation’ though I saw it on my LinkedIn news feed after Jorge Rodriguez posted it.
Check it out!
We are utilizing blockchain technology at Agent Not Needed to revolutionize the property industry. Read our Three Pager or check out our Website for more info!
