WHAT’S THE BLOCKCHAIN
By Teddy Cleps
For centuries we have always relied on 3rd parties like banks and governments for monetary and asset transactions – as they offered trust and certainty. These 3rd parties have always been essential within transactional processes because they authenticated and recorded every transaction that occurred.
However these parties that act as middleman are often slow, expensive, mistaken and can be victim of corruption in exchange for a ‘manipulation’ of past/future transactions.
So what’s the Blockchain?
And how can it help? What is unique about Blockchain technology is that it allows people to trust each other without the need of any 3rd party
The Blockchain is a new way to store and record transactions – It’s technology allows individuals to move digital currencies or assets whilst being recorded on a decentralised database. Every transaction is verified, timestamped and linked to the previous one, creating a chronological chain of transactions.
This record is continuously synchronised and updated across all devices part of the Blockchain – allowing every transaction ever occurred to be seen by anyone. Imagine an Excel spreadsheet with a long list of permanent transactions, which is shared across millions of devices and automatically updated every 10 minutes. Everyone who is part of this network will be able to verify whether a transactions actually happened or not.
If I bought a house from Mr. White for 100 dollars I could avoid having to hire lawyers and notaries – as I could simply register the transaction of the blockchain and make it public. “On this date and time Mr. White agreed to sell his house for 100 dollars to Mike” The moment the transaction is approved – it becomes transparent and available to anyone in the world to see! So in 10 years time Mr White can’t go back and say that the house sold for 200 dollars but I only paid him 100 dollars – as anyone could see the original transaction.
Additionally unlike most 3rd parties the Blockchain is incredibly safe because it is virtually impossible to hack or manipulate. Due to the fact that you can’t hack a computer and change information – as you would have to hack millions of computers at the same time and modify every single transaction that ever happened.
The Blockchain technology will disrupt 100s of industries who currently rely on 3rd parties like banking, finance, real estate, insurance, legal, health care and more – causing a huge wave of job losses and complete transformation on how those industries will work