The Five Foundations of Blockchain Technology

There is a very popular show on the Fox Channel, called “The Five.” The show is composed of 5 commentators who discuss the foundational issues, politicians ideological characteristics and the legislative machinations of the day. The show is a must for understanding both sides of every issue. It is my belief that there is “The Five” when it comes to Blockchain Technology as well. Without defining and understanding these 5 characteristics, we will never be able to implement Blockchain Technology’s fullest potential. For without basic facts and understanding by the larger public there will not be buy-in as to the technology itself. The 5 foundational beliefs of Blockchain Technology in my mind are:

1. Distributed Database

2. Decentralized Ledger

3. Transparency

4. Immutability

5. Business Adaptability

Let us define them:

Distributed Database: Databases are distributed when the storage devices are not all attached to a common processing unit, rather they are spread across a network.

Decentralized Ledger: is a database held and updated independently by each participant (or node) in a large network.

Transparency: holdings and transactions of each public address are open to viewing, time stamped and verified. Thus, in a public and distributed database information cannot be hidden

Immutability: Once information is written on the blockchain, it can’t be erased and thus all information is permanent and verifiable.

Business Adaptability: Blockchain can be used in varying areas of business for example: real estate, supply chain, accounting and many more. Smart Contracts allow for development in numerous manners.

Consequently, it is now up to us as blockchain educators to teach these foundations if we expect to bring the technology to the next stage of governmental and business adaptability.