What Is Blockchain Technology

Blockchain created a new type of internet by allowing digital information to be shared and distributed but not copied. At first this was used only for cryptocurrency, or digital currency, like Bitcoin in order to the currency retain value instead of being copied to the point it becomes null and void. However, now the technology community is finding other use and value for this technology. The information held on a blockchain exists solely as a shared and continually reconciled database, meaning that it uses the database as a whole and isn’t stored in any single location. This is important because it makes the records truly public and easily verifiable as well as making it hack proof because there is no centralized version to be corrupted.

Like the internet, blockchain technology has the durability and the robustness to store blocks of information that are identical for everyone across the network. However, blockchain can not be controlled by a single entity no does it have a single point of failure. This is especially important when looking at digital finance because it needs to operate without significant disruption. Take Bitcoin for example, it was invented in 2008 and the only sort of disruption it experienced was due to mismanagement or hacking. Meaning these problems where from bad intention not human error, meaning that there are no flaws in the underlying concepts.

Blockchain has a self-auditing system in which it checks in with itself every 10 minutes to reconciles every transaction that happens. Each group of these ten-minute intervals and transactions is considered a block which is important for transparency of data and the inability for it to be corrupted. The use of blockchain basically solves the problem of manipulation and destroys the possibility of corruption allowing it to keep its value.

Blockchain can be used for multiple purposes including as a system of record and as a platform. As a system of record, blockchain can be used as a digital identity where it can manage identity within the digital world while preventing the potential exposure of the user’s vulnerable personal information. This is because blockchain is not based on account and permissions rather an ownership of private keys and the digital asset. Blockchain usage for tokenization allows an authentication of a unique physical item with a corresponding digital token. As a platform blockchains can be used for smart contracting, allowing digital relationships to be formed and secured. Information and documents that are stored in blockchains can be used to support complex legal agreement using smart contracts and building a platform to establish these digital relationships. Blockchain technology can also be applied to the automated regulatory compliance world by the blocks that are made and turning them into digital code for reporting and authorization processes.

All this work being into blockchain allows people to secure digital information and relationships that were not possible in the past. Data is being shared and disclosed in a way that has never been possible before. Lastly, the information used can be both transparent and secured with little potential for corruption or alteration. Blockchain is changing the way we access the internet and build digital relationships throughout the business world.

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