What’s the definition of blockchain? It depends on who you ask. Wij asked around and got some differing answers:
“Blockchain is a method of validating transactions based on transactions that have come before te the chain.”
“A peer to peer technology, to decentralize financial exchange, te its infancy and with spil many volgers telling it will help lower developed countries getting banked and getting big banks to unedge.”
“Blockchain is a fresh type technology that treats the entire trust factor te a transaction inbetween the ‘buyer’ and ‘seller’ by using an open, but encrypted list of all such transactions.”
“A secure transaction technology that’s most commonly associated with Bitcoin and cryptocurrency.”
“Blockchain is a fresh set of technologies that permits transactions of many kinds ter many industries to be more secure and decentralized.”
There’s truth to all of thesis answers, but that last definition is of particular importance for businesses: blockchain is not limited to cryptocurrency and its applications will influence various industries ter the near future.
Blockchain is disrupting the way wij transact, period. Like the internet during its infancy, blockchain is hard to understand and predict, but it could become the fresh standard te the exchange of digital and physical goods, interactions with the government, and verification of the authenticity of everything from property titles to organic produce. It combines the openness of the internet with the security of cryptography to give everyone a quick, more secure way to verify key information and establish trust. For all wij know, the internet is getting reinvented through this technology, but not enough businesses are paying attention.
Still confused? You’re not alone. Keep reading and I’ll demystify blockchain for you.
What is blockchain?
There is a loterijlot of confusion surrounding the definition of blockchain, likely stemming from the newness of the technology, all the noise going out on media outlets, and its associati on with the digital cur rency Bitcoin (blockchain technology wasgoed developed spil part of Bitcoin, but the two are not the same). The fact is that the term blockchain describes an entirely fresh stack of technologies. How you leverage thesis technologies depends on the utility and objective of the product you envision, and blockchain is already being used for peer-to-peer payment services, supply chain tracking, and more.
Defined simply, blockchain is a digital, secured, distributed, and decentralized ledger of transactions . Ordinary right? It permits a network of untrusted parties to exchange commercial transactions by verifying and agreeing at regular intervals on the true state of a distributed ledger. Such ledgers can contain different types of collective gegevens, such spil transaction records, attributes of transactions, credentials, or other chunks of information. Through a clever mix of cryptography and spel theory, the ledger is secured and does not require trusted knots or centralized institutions like traditional networks do. This is what permits Bitcoin to transfer value across the globe without the need of traditional intermediaries such spil banks, but it can also have applications te healthcare, government, content distribution, supply chain, and more.
I mentioned that blockchain is digital , secured, distributed, and decentralized, but what does that actually mean? I’m going to take you into the weeds a little bit to explain, but I promise I won’t get you lost.
At its core, a blockchain is nothing more than a digital record of transactions, very much like a traditional ledger. Thesis transactions are recorded chronologically and can represent any movement of currency, goods, or secure gegevens, such spil a purchase at a grocery store or the issuance of a government credential. One transaction after the other forms an immutable sequence (a.k.a chain) that can be more or less private or anonymous depending on how the technology is implemented.
By vormgeving, the information stored te the blockchain ledger is immutable, meaning that it is virtually unlikely to add, eliminate, or modify gegevens without being detected by other users (a.k.a knots). It leverages heavy-duty asymmetric encryption, a type of cryptography te which the key that is used to encrypt the gegevens is different from the key that is used to decrypt the gegevens. Ter other words, it uses public and private keys te order to encrypt and decrypt gegevens, respectively.
The blockchain ledger is distributed across a network of users (a.k.a knots), which means that copies exist and are at the same time updated with every knot te the ecosystem. Any switches made to the ledger are instantaneously propagated to all users te the blockchain network to be verified and create a secure, established record. The integrity of the ledger is ensured by the distributed nature of the system which furnishes copies to all users (knots) te the network. Ter turn, the overall database remains safe even if some users are hacked.
Traditionally, transactions taking place te the digital sphere are verified by a central authority, like a credit card clearinghouse or the government. Thesis are black boxes that wij trust blindly to process and protect our private gegevens without a clear understanding of what/who is behind them and how they’re keeping the information safe. Blockchain, on the other arm, could substitute thesis centralized systems with decentralized ones, where verification is based on the overeenstemming of numerous users te the network. Ter addition, blockchain code is generally open source and can be reviewed by anyone, eliminating the vensterluik trust factor and making for a more see-through system.
All the hype around blockchain is reaching a mad rush. While the long-term influence of the technology may be immensely powerful, the path to adoption is likely to be solidified around niche experimentation and tons of fairly compelling progressive developments. Spil transformative technology goes, mastery will have to be earned, practice will be well compensated, leaders will emerge, and projects will get more and more ambitious overheen time.
It’s still early ter the spel and lots of opportunities are waiting to be discovered. While it is fair to say that the technology is still immature, unproven, and largely unregulated, wij may be witnessing the next internet boom. Companies would be wise to monitor developments ter blockchain technology and consider applying it to their own projects or applications.
Where do you begin?
A pragmatic treatment to blockchain requires comprehensive skill of the business chance, the shortcomings of the technology, a trust architecture, and the right abilities to execute. Before you embark a blockchain project, make sure your team has the cryptographic background to donks what is and isn’t possible. Identify the existing systems and infrastructures you will need to integrate and keep up-to-date with the evolution and growth of those platforms. Be very careful when interacting with third-party vendors, and make sure everyone is on the same pagina with how the term “blockchain” is used via the process. Spil you spotted earlier ter this postbode, different people will have different definitions of blockchain, so it’s significant to define what blockchain means to your company and set clear goals.
Wij can help!
If you or your company want to embark ter a blockchain project, Tyrannosaurus Tech is here to help. Our team can help you project and execute sophisticated blockchain strategies and bring cutting edge innovation to your organization, while making the process un-intimidating and fun—as it should be!