What the F@ck is Blockchain
A stupid, simple way to explain it…without the jargon.
Blockchain is like rabies.
The infected are trying to aggressively infect others and the untouched are trying to stay far from it.
Whether you are infected or not, it seems that either way you probably don’t know exactly what the f@ck blockchain is or why people are talking about it.
So, from someone infected, let me help infect you by cutting the technical jargon and explaining it in a way we can actually understand.
🙃 Here we go.
What is blockchain?
Blockchain is a new-ish technology that allows people to share or trade things in an authentic, trustworthy way. It’s kind of like a database or text that can’t be altered once you have already written an entry or clicked ‘send’.
In effect, it has allowed people to share stuff like information, data, and files. Yes, we are currently already sharing and trading information like money and collector’s items like baseball cards. What blockchain does differently is allow people to trade these same items and information without needing a third party to verify that it is real. Blockchain provides a foolproof method and trace of the where, what, when, and how of an ‘item’.
I’ll explain more use cases later, but a simple example of where this would be practical is for educational diplomas. Any educational institution, such as a high school or college can issue diplomas using blockchain technology. This allows potential employers to easily verify within seconds that the diploma was issued by the university (where), without the candidate actually having to contact the university or use a third party to verify his or her credentials. It also allows employers to verify graduation date (when), what the diploma was for (Major), and how well the candidate performed, as well as other information.
I’ll explain more use cases later, but let’s circle back to cute puppies. If you are looking to get a new dog, you could use blockchain to see where the pup has been and who has owned it since it was born. Yah, for all of you who got your dog from a shelter or pound, this would help answer a lot of your questions. A ‘dog blockchain’ like this would work when shelter(s) submit information, such as when a dog is adopted, to a centralized place, instead of keeping that information for their own internal records that could get lost.
The advantage of this is that you don’t have to rely on the seller or pound to give you truthful information. And, they don’t own the information or keep it in their computer to be able to alter undesirable details. The whole story is visible and accessible on this dog blockchain to everyone.
Is Bitcoin, blockchain?
Well yes, but no. Bitcoin is virtual money made possible by the invention of blockchain technology. But, blockchain is a type of technology, not a company.
Bitcoin is a cryptocurrency (virtual money), and now one among many others like Ethereum and Ripple. Getting a little more technical, each cryptocurrency uses its own ‘ledger,’ essentially meaning they have their own blockchain system. In the same way, there are different internet browsers such as Chrome, Firefox, etc. they are all called internet browsers and are using the same technology. Cryptocurrencies like Bitcoin and Etherum are all called cryptocurrencies but are built using the same fundamental technology.
Same, same.
What makes virtual money a natural fit for blockchain technology is its ability to be transparent and self-regulated. Although, there are plenty of industries other than the financial industry that are utilizing blockchain now.
More importantly, relating Bitcoin and blockchain to puppies… blockchain is the mom birthing the puppies that have similar DNA, but like siblings, the puppies all look a little different.
How the Technology Works
Every piece of information shared using blockchain is traceable and has a path to the person that initially uploaded it and where it has been since then.
What allows us to trust that information hasn’t been altered within the ledger is through a stacking (block), fusion (through a coding system called ‘hashing’), and data record system. Each block (aka piece of information) that is submitted on a ledger will produce its own cryptographic hash (aka code) and also contain a cryptographic hash of the block before it. The information is recorded and sealed into the system once another block is stacked on top of it, which contains the previous block and its own cryptographic hash. And the process goes on. Within each block contains information, such as a timestamp of when the information was added to the ledger, as well as other specific information required by that ledger.
But…Why Blockchain?
How many times in the last year have you received an email from a company regretfully explaining that they have been hacked, and in turn, your privacy has been compromised? Think Facebook data scandal and those emails you get once a month from a company saying they have been hacked. (Like Macy’s, Marriott, Delta, Best Buy… and those are just a small few) Blockchain technology has arisen because of the increased need for security and safety.
We have trusted large and small companies with our personal information and we’ve reached a point where we are realizing that it is starting to backfire. Additionally, we trust and pay companies, organizations or third parties to verify things we have earned, such as diplomas and credentials or things we buy such as Super Bowl tickets.
When using blockchain, these problems are solved. We don’t have to share our data with any other company or person.
We don’t need to pay or contact a third party to verify…anything. Simply checking the item within its blockchain ledger will allow you to see the full story of the item you are checking; who issued it, the path/owners prior to you attaining the item, the dates of each transaction and whatever other information that might be stored within its ‘meta-data’. Blockchain allows us to verify other people’s information without actually having to give your information for another company to store in its internal database.
Using blockchain technology leads to:
✔️Higher accountability between multiple parties
✔️Less corruption
✔️Less verification fees from third parties
✔️Increased protection of privacy
Potential of Blockchain
It’s hard to say because we are at the beginning of imagining, creating and improving systems with blockchain technology. What I do know is that it will eliminate middlemen, which will eliminate fees and reduce processing times. I don’t know about you…but the thought of not having to wait on a lazy front desk person very much excites me!
Where and How blockchain is already being implemented…
And these are just a few…
Education — In 2012, the CEO of Yahoo “stepped down” from his position in the midst of being caught lying about attaining a computer science degree from a university. This could have all been prevented with blockchain issued credentials. Universities like MIT are starting to issue digital credentials with blockchain technology. Now, students can’t fake credentials and never have to rely on a university to verify them again, especially if the university goes out of business!
“Education systems are switching to blockchain credentials because with an increasingly global and mobile workforce, people need to be able to prove who they are and what they can do instantly to create the trust necessary to access jobs and training. For example, a growing percentage of students in the US higher education system is international. Currently, it’s very expensive to verify international records — you have to hire a verification service, call the issuing institution, or get a certified copy of a credential, which is often forged. The blockchain allows any educational institution to verify instantly whether an applicant is who they say they are and has the qualifications they claim.“ — Natalie Smolenski, SVP Business Development, Learning Machine
Transportation & Manufacturing — In November of 2018, people around California were scared of lettuce. Thankfully for Chipotle, they didn’t take the hit this time, but all of that could have been prevented with blockchain. Companies like Walmart are starting to use blockchain technology to track, with their suppliers, where every product originates from and goes from that point. Utilizing blockchain would have allowed producers to easily trace where infected lettuce, causing E. coli, came from without having to call a multi-statewide call-back, costing companies millions.
Retail & Supply Chain — The diamond industry is using blockchain to prevent fraud and end blood diamonds. Blockchain technology is being used to record and trace diamonds from initial mining to every move after. Check it out. This also allows for consumers to receive a fair price for their purchases and feel extra confident when getting down on one knee.
Music & Entertainment — Think Taylor Swift vs. Apple Music and Spotify. Using blockchain, the world wouldn’t have been deprived from Taylor’s music & albums. Now, artists can distribute their content without giving ownership and money to middle companies like Spotify by using what’s called ‘Smart Contracts’. This means that, potentially, costs could be lowered as there are less people (aka companies like Spotify and Apple Music) to split money with.
Real Estate & Legal Contracts — No need for paper anymore. Transferring and securely holding land titles, property deeds, liens and more can be done through blockchain to ensure all documents are accurate and verifiable.
Healthcare — Solving HIPAA (patient privacy and security) compliance issues. With blockchain, patients have ownership of their healthcare records and choose to share it whenever and with whomever without a company/hospital having ownership of the patient's data.
Finance — Of course, Bitcoin. With Bitcoin and other currencies distributed using blockchain (aka cryptocurrencies and digital currencies), you’re essentially your own bank. No one can freeze your account (unless you are using a 3rd part company to buy cryptocurrency) and there are lower transaction fees because there are no credit card companies to approve transactions.
Key takeaways of this puppy blockchain…
If this was still all jargon for you, at least leave knowing three things:
- Blockchain is a way to transfer stuff securely and verifiably…like information about puppies
- Blockchain has the potential to get rid of fees/processing times by cutting out the need for a 3rd party person or company to verify information
- Like any cute puppy, whether you like it or not, blockchain will one day win you over
