Blockchain

What is a blockchain? 

A blockchain is a growing list of records, called blocks, which are linked and secured using cryptography. It can be programmed to record not just financial transactions, but essentially everything of value. Information held within a blockchain exists as a decentralized and shared database. The blockchain database isn’t stored in any single location in order to keep records publicly accessible and easily verifiable. 

Why use blockchain? 

Most people use a trusted middleman, such as a bank, to make a transaction. However, blockchain allows consumers and suppliers to connect directly by removing the need for a third party. This technology can work for almost every type of transaction involving value including money, goods and property and has no single point of failure. Additionally, cryptocurrencies cannot be ‘frozen’ in the case of an economic crisis. 

How does it work? 

In the case of Bitcoin, blockchain stores each detail of every transaction and stops the same Bitcoin from being spent more than once using the following steps: 

· The transaction is represented online as a block 

· The block is broadcast to every party in the network 

· Those in the network approve the transaction is valid 

· The block then can be added to the chain 

What is the benefit? 

The blockchain network is transparent and incorruptible. It lives in a state of consensus that automatically checks in with itself every ten minutes. This means all data is embedded within the network as a whole and by definition, is public. Therefore, it cannot alter any unit of information on the blockchain because it would require a significant amount of computing power to override the entire network. 

Who is using it? 

If blockchain goes mainstream, anyone with internet access would be able to use it. Currently, only a very small proportion of GDP is held in the blockchain according to a survey by the World Economic Forum’s Global Agenda Council. However, this will increase significantly within the next decade. 

References

https://blockgeeks.com/guides/what-is-blockchain-technology/ https://medium.com/totvslabs/blockchain-the-pros-and-con-s-of-a-technology-that-will-affect-our-future-f67037da7d64 https://en.wikipedia.org/wiki/Blockchain https://www.weforum.org/agenda/2016/06/blockchain-explained-simply