What is Blockchain?
Table of Content:
What is Blockchain?
A quick introduction to Blockchain, a disruptive new transactional storage mechanism that enables decentralised trust mechanisms that can transform everything from banking, healthcare and government systems in the near future.
How does Blockchain work?
Blockchain uses a combination of cryptography and consensus building protocols to enable systems of decentralised trust.
A Collection of Technologies
Blockchain is a collection of open source technologies originally created to enable crypto currencies like Bitcoin to work.
It is :
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Distributed transactional store
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Replicates across multiple systems in near real time
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Uses cryptography & digital signatures to establish identity & authenticity
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Has mechanisms that make it very hard to change historical record
Public vs Private Blockchains
A public blockchain allows all users to both write and read to the transactional record. Bitcoinis an example of a blockchain powered public ledger. A private blockchain allows only trusted and authenticated users to write or read. The trust mechanisms could be legal contracts between companies.
Blockchain Use Cases
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Smart Contracts - Blockchain can help companies to enforce contracts with customers and other third parties.
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Online Identity Management -Rights management for music/video is an example where Blockchain can help create scalable, distributed identity resolution as opposed to risky, centralized trust mechanisms that are vulnerable to hacking.
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Medical Records - Blockchain can help create secure, globally available medical records that cut across healthcare providers.
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Asset management - Blockchain can enable better ways to manage asset ownership, like land records or share trades.
Hands-on Exercise: Visualise Blockchain
Head over to Daily Blockchain and see Bitcoin transactions being visualised in real time
Summary: Unchain the Blockchain
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Blockchain is a distributed transactional ledger that was originally created to enable cryptocurrencies like Bitcoin
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Its design enables decentralized trust mechanisms that now see use cases in financial services, healthcare, education and legal services