Since early 2017 their has been a huge hype bubble surrounding blockchain technology, what it can do and what it cannot do. As with all trends, they pass – then the serious contenders and workflow can truly begin. With huge amounts of information flying around the internet and media world we thought it appropriate to outline five things that people should familiarise themselves with about the technology.
A lot of people may only of heard about Bitcoin as it really has become the poster boy for this whole hype, when in reality the line between cryptocurrencies and blockchain technology needs to be drawn early, and distinctly. The story of Bitcoin and many cryptocurrencies is truly fascinating BUT there’s enough said about the currency itself, it’s time for readers to learn a few interesting facts about the technology that supports it and everything in between.
Here are the top five facts about blockchain you must know.
Blockchain is transparent and the design of the system is such as to make everyone accountable thus ensuring that there are no missed transactions or machine errors. The transactions are recorded on a connected system of registers which are connected through a secure system so even if an exchange takes place without the consent of the parties involved, it’s forever traceable. A blockchain network works in a state of consensus and checks itself automatically every 10 mins. This self auditing system means that the digital values are self-audited and then the network is updated with a transactions at short intervals. Because the overall network is so hard to override, any information on the blockchain remains safe at all times.
Records Stored on the Blockchain Cannot be Altered
Whenever a transaction is recorded, all the accounts are updated with the information and then these transactions are grouped together in blocks. These blocks are linked to every block that comes before it, the result being a record that is chronologically substantial and cannot be tampered with. This is because every block gets a reference to the hash of the previous block. The system ensures that the position of the block is static and it cannot be altered.
A Distributed Ledger
In simple words, blockchain is a real-time ledger of everything financial that can be recorded and there is no one person or group in charge. Working on a peer-to-peer network of computers called nodes means that when two parties enter a transaction, the information is broadcast to the nodes of the network.
The blockchain is designed as decentralised technology meaning in essence that it is owned by everyone using it not one single person or entity. Every transaction that happens is therefore a network function and this technology enables businesses to speed up commerce and gain access to data, facts and files even when perhaps their own network is down.
The Blockchain is Not Only Virtual Currencies!
For us this is one of the most important facts to get one’s head around — bitcoin and blockchain are not the same thing. They are mentioned in the same discussion only because blockchain is the tool that makes bitcoin viable – that is it, in regards to what they do and serve as they couldn’t be more different. Bitcoin simply happens to be the most popular use of the blockchain tech, there’s so much more to it. For example, through blockchain, artists can pay directly every time someone buys their song. This takes the commission by various purchasing platforms straight out. It’s about creating a direct relationship between a service provider and a customer. In 2019 we are witnessing a big move toward the tokenisation of assets, further pushing the boundaries of shared ownership and a new economic model.