Since its launch in 2008, Blockchain has been taking the world of technology by storm. You cannot turn on tech news without seeing at least a mention of the platform. But what exactly is this illustrious platform?
To the layman, this technology can be a bit befuddling. In the simplest terms possible, Blockchain is a digital ledger that arranges and codifies transactions. This is useful for a number of reasons as it can transparently and clearly show which physical assets ard currencies go where. Having a transparent ledger system allows for clarity and trust. This technology is especially important in the world of banking where money moves hands in indescribable ways.
For many people Blockchain technology is the answer they were looking for as questions about the nature of exchange became unbearably heavy. The Blockchain platform is an incredible tool that is entirely geared for the future and has the individual as its primary concern.
Companies such as IBM and JP Morgan Chase have all involved themselves in the Blockchain game by investing in, or creating, cryptocurrencies. Other businesses use it identify their financial movements. Programmers of all types use Blockchain to show off their mathematical skills and to make additions to the ever-growing Blockchain community. In essence, Blockchain is an open-source platform for programmers and businesses to use freely and to expand eternally. So, without further Ado, let’s dig into what you need to know to fully understand Blockchain.
You should know that Blockchain’s primarily used in the cryptocurrency market. Programs and services such as Bitcoin and Etherium Control the bulk of the cryptocurrency market and are now famous alternatives to traditional banking. What they are however, and what their purpose is, can be subject to confusion.
What is important to note is that these cryptocurrencies are incredibly advanced and have a much more complex and robust bookkeeping system. In fact the main advantage of Blockchain cryptocurrencies is that they are triple checked and their records are kept on many sides.
This doesn’t sound exciting, however, the impact of a transparent record-keeping system could revolutionize the finance industry. A little known fact is that the banking industry spends over 2 billion dollars a year on record keeping. This form of record-keeping is done primarily through handwritten accounting. As one might note, this is not exactly the safest nor is it the most accurate way to keep records. With the use of cryptocurrencies and the Blockchain we can keep records on 3 different sides as both participants record their transaction as well as third-party observers.
This is what really sets Blockchain apart. If you are involved in the community than you can see how much money, or what products, have moved from one source to another. This creates a larger point of reference for transparency and security. In this state, it is very difficult to get away with any type of financial crime.
As one might expect, the third party observational record-keeping has raised some concerns. Some have made their concerns known that this type of record-keeping, with the proper hacking, can be altered and misconstrued. Others have brought up that those with the majority ownership of the servers that Blockchain is hosted on can practically control the entire currency.
While these concerns are valid, and many missteps have occurred, these can all be attributed to growing pains. The use of Blockchain, and more specifically Bitcoin, has come to the very top of the financial food chain. They have seen great results and now have an idea of where the technology can take them.
What may not be understood right off the bat however, is their practical use in our everyday lives. The Blockchain platform is used, hopefully, to replace our traditional banking methods that are subject to so much fraudulent activity and imprecise record-keeping.
Cryptocurrencies are just one facet of what can be accomplished with the Blockchain platform. Ideally it is used in a number of different ways to secure information. The primary goal of Blockchain is to create a world as transparent as possible while still retaining personal value and wealth. It should be noted that even with the recent slides in cryptocurrency stock that this is not indicative of what the Blockchain platform can do.
Making inane and truly remarkable valuations of any intangible product is oftentimes a bad idea. The stock market futures on bitcoin, and the Bitcoins themself, are simply mined data points that offer a compelling alternative that is still very much in early days.
Truly, much of Blockchain is still in early days. The true origination of the program is embedded in the idea that the community would strengthen and lengthen these blocks of data. The only thing needed to make Blockchain successful is continued involvement and trust in the future.
In summary, Blockchain is a potentially revolutionary platform that could help strengthen the financial industry as well as make a more transparent and open transaction space. Companies like IBM have classes that can teach you the ins and outs of Blockchain and they cannot be recommended enough. There is no better time to learn about Blockchain and get involved than right now.
About the Author:
Dr. Diane Schleier-Keller is a business strategist and finance columnist. She has 3 years of experience in M&A and has been traveling the world to help train entrepreneurs to succeed in their business. You may also connect with her on Twitter.