Fasten Your Seat Belt For Blockchain
Ask yourself why is the press running with this, or why conservative financial institutions are starting to pay attention to the blockchain? Looking at what is going on on the blockchain in terms of technological development and who is paying attention, are good enough reasons to start paying attention to the blockchain. Also important are the applications that are being built on top of the blockchain that will impact your business or companies.
Currently, a lot of people all over the world are starting to hear about this word blockchain (a data container which holds millions of transactions) and many people are not completely sure what it is.
In 2009 Satoshi Nakamoto wrote a paper which explained a system to send money peer to peer (every computer, cellphone and printers is a server) without the middleman (the banker) being involved and shortly after that a white paper on Bitcoin was published.
No, Bitcoin is not the blockchain. Bitcoin is a digital currency to spend money on a blockchain.
Banks have their own databases for transactions and if I am sending money from my bank to your bank it’s being deducted from the database of my bank (centralized) and added to the database of your bank, which means sending money from one database to another database.
Sending money digitally created a problem of double spending and this is what Bitcoin solved. Money from one database is being deducted while added to another account, in other words, it’s decentralized because everything happens on the blockchain - not like a bank that is centralized - and the transaction is immediate and cheaper.
On the blockhain, there is one database for the transactions but everybody can view it and each transaction is linked by a miner solving the problem and securing it with a key. The open ledger or database becomes tamper-free when this happens and it means the transaction becomes irreversible and secure. You can’t delete this because of the one database or ledger that everybody can view and the fact that the blocks are linked, secured and tamper-free when a miner did his job to find the key to link the block.
(Blockchains can’t be deleted. The reason for that is that it works on a peer-to-peer network. Every computer serves as a server and nodes are been created and it is impossible to delete all these nodes on this big network of servers.)
Fasten your seat belt and enjoy a fast ride to things that will come and do not regret showing interest in these opportunities and the challenges.
Things are evolving on the blockchain, and they discovered that they can program the money in some way with what is called “business logic” a scenario where if this occurs, smart contracts (electronic contract) were developed on the Ethereum Blockchain. Ethereum was the first to implement the technology of smart contracts on the Ethereum blockchain.
Presently, what we are seeing is that not only money can be passed on the blockchain but basically any digital asset. Decentralized applications on the blockchain can be build for insurance companies healthcare and even the motor industry.