Blockchain, in its simplest form, is a democratized system which stores information that is shared and available to anyone and everyone. Everything that is built is transparent and people are held accountable for their actions. It is a series of time-stamped record of data that is administered by a number of computers which do not belong to one identity in particular. This means that the records on the blockchain are public, certifiable, and accessible by anyone who has internet.[3]
Benefits
An important aspect of the technology is that it has infrastructure costs, but no transaction costs. It is a secure, automated and simplistic way to transfer information amongst parties.
Process
Principally, the transaction creates a block to initiate a process for transaction, which is approved by the computers distributed on the internet. A party instigates the transaction by creating and signing a transaction with a secret key. This is ratified by millions of computers that are distributed around the network — in which “miners” create anew blocks that include the transactions they have received. Once the block is approved, it is added to a chain that is stored across the internet, producing a distinctive record and history.
The instance of falsifying a record would equate to falsifying an entire chain in millions of instances which is ultimately impossible. Although it can be used in various circumstances, Bitcoin uses this model for monetary transactions.[3]
Origin
The word block originates from the blocks of data that is secured and connected to one another in the form of a chain, using cryptographic principles. Thus, the technology allows for a recorded incorruptible decentralized digital ledger of all kinds of transaction to be distributed on a network.
Investments
According to a report by an identity management firm based in San Francisco, Okta, in 2019, 61% of high profile digital companies are investing in blockchain. Okta released a survey, “Digital Enterprise Report”, consisting of 1,050 global companies with at least $1 billion in revenue.[1] 90% stated that they were investing in at least one of the technologies mentioned in the graph below and that they were putting effort into transforming the company in order to embrace a more digital platform.
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Very recently, International Data Corporation, a US-based market research firm estimated that the global blockchain spending will increase 88.7% from 2018 to 2019, accounting for approximately $2.9 billion in 2019.
Companies Involved
Although there are thousands of firms that are currently investing in blockchain, the most prominent companies that utilize its services are currently based in China and the US, including Industrial and Commercial Bank of China (ICBC), China Construction Bank Corporation (CCB), JPMorgan Chase & Co, Apple, Wells Fargo, Bank of America, among others.
ICBC utilizes blockchain technology through a patent it filed to ratify digital certificates of a reliable central authority. Moreover, in order to streamline the way in which insurance and banking companies sell their financial products together, CCB uses the IBM Blockchain platform. Many US banks such as Bank of America are leaders in prolific patenting of blockchain technology.[2]
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