What is Blockchain?

Not only the crypto world but these days big corporate player, like banks and other institutions are keen on the technology.

Let’s see what is the blockchain’s function within Bitcoin.

What is the Blockchain?

“a digital ledger in which transactions made in Bitcoin or another cryptocurrency are recorded chronologically and publicly.”

Surely Blockchain is more than just a one sentence description

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”

Don & Alex Tapscott, authors Blockchain Revolution (2016)

We are talking about Bitcoin Blockchain, as this is the most evolved blockchain in the world. Blockchain has many ways, it can be used in the different industries especially the internet. The blockchain is know as the “Internet of money” or “internet of transactions” or “Internet of value”.

Blockchain is an open-source software. This means this is free to use and make changes to the code.

Blockchain supports 3 main area’s

1.      Value – Enables a unique asset to be transferred over the Internet without a middle-centralised agent

2.      Trust – Creates a permanent, secure and unalterable record of who owns what. Use advanced Hash Cryptography, “information Integrity” is preserved

3.      Reliability – Decentralised network structure ensures that there is no single point of failure which could bring the entire system down.

So, it is an intrinsic to Bitcoin core just at look at the Bitcoin Whitepaper.  You would notice in my article What is Bitcoin?

Blockchain solves problems – Trust, Privacy, Proof-of-Work, Value, Reliability. You should take some time to learn more about this technology (https://www.linkedin.com/learning/blockchain-basics/welcome-and-introduction)

This is not an article to explain how the SHA-HASH is working and how the miner/s verify each block to validate the SHA-HASH. Why there is a block size limit and the scalability of a block chain. The aim of the article to show you, the possibilities the Blockchain brings and that it is disrupting the industry.

You have to know now, Bitcoin; is the only Decentralise blockchain and true Crypto currency. The rest of the Altcoin have a central point of decision and control over them.

Digital money is not something new

It is has been around for decades. Sounds unreal, as we only know Fiat currency which was born in 1971 after Nixon worked out the Gold standard.

Here is a Time Line of some cryptography Money system. (You can find the information and whitepapers online)

  1. –         1976     MDL- Mutual Distribution Ledgers know as “New Directions in Cryptography
  2. –         1983     Ecash
  3. –         1997      Hashcash Proof-of-Work
  4. –         1997      B-Money
  5. –         1998      Bitgold by Nick Szabo the father of Smart Contracts in today’s crypto world

Who are implementing the Blockchain?

Today the reserve banks (also know as federal banks or central banks). However, not shared on mainstream media – South Africa for instance have http://www.safbc.co.za/ a consortium of the major banks over seen by the central bank. While in the UK we now have the Royal Mint working on a digital currency called RMG using the Blockchain https://rmg.royalmint.com/ and more and more governments are using the Blockchain. Here is an article on CBNC ack in November 2017, that show us how governments across the globe looks at the Blockchain. (https://www.cnbc.com/2017/11/30/cryptocurrency-craze-springboards-government-backed-coin.html)

Blockchain is changing the way we are doing our transactions. (Remember a transaction is not just money but also the flow of information like your name, telephone number and address.)

IBM has been a leader in the field of implementing the blockchain in various projects across the world (https://www.ibm.com/blockchain/) You can google all the main leading business and see for yourself how many are implementing the blockchain. JP Morgan is leading the banking world into Blockchain. (https://www.jpmorgan.com/global/blockchain). The list is growing day by day for Blockchain across industries.

Think of copy rights on an artist Music, books or your own content that can be protected with the blockchain technology. If you are a blogger and using WordPress there are some rudimentary WP Blockhain plugins. Which can protect your content.

The summary

Even though that Blockchain are getting implemented in corporate and government arena’s. The content and management of these Blockchain’s will be more like trusted databases with a centralised control. This still leave the problem of Trust, Privacy and more open for control of miss management. Bitcoin on the other hand is the only true decentralise Blockchain in the world.

Get involved with Blockchain as soon; our information (transactions) will be captured and stored n blockchains.

Join me in Bitcoin Mining and learn more about Bitcoin, Blockchain’s and more click the link http://tcpros.co/i4Asn

by Shaun Schoeman

 

what is blockchain