BLOCKCHAIN
BLOCKCHAIN Technology continues to grab the headlines as we pass through 2017 and though it may be a complex technology for most to understand, it is actually quite simple in terms of concept.
What is Blockchain Technology?
Blockchain Technology is simply a incorruptible Distributed Digital Ledger of Transactions that is programmed to record the transfer of anything of value..!!
It is no different than any other digital technology that stores information accept that the information is not stored in a central database but is distributed identically across a network of computers.
On other words not one server holds the data, but instead the data is mirrored across multiple servers.
Who owns the DATA?
In theory no one owns the data and that is what makes Blockchain Technology so unique.
The data is shared across multiple servers and is only accessible to read/change with passkeys. Effectively therefore there is no central administrator.
Without a central administrator the data is shared on trust and can only be changed by cryptography and then distributed across the network for validation and agreement.
Replacing the Human ADMINISTRATION
Unlike conventional and existing systems that are centralised with a human administration, Blockchain is decentralised and does not have a human administration.
Administration of the Blockchain is effectively overseen by the system itself and in essence is "self-regulating".
It is this "self-regulation" that unleashes the sheer brute force of the system.
No need for BACKUP
One huge benefit of Blockchain Technology is that unlike conventional centralised databases that require a back up and disaster recovery system to be in place in the event of a failure, as the data is distributed in mirror copies across the network there will always be a "hard copy" available.
Effectively what happens in reality is that every time a change is made to the data bases each and every server on the network has to update their record and each has to agree with the update.
Think of it as just a BIG SPREADSHEET
To break it down to a very simple explanation, think of Blockchain as a big spreadsheet that is synchronised on a network of PCs.
Every time a change is made to the spreadsheet ALL PCs get a copy of the change and automatically update and save the latest version on their hard drive.
All Blockchain is therefore, is nothing more than a data base of transactions like a spreadsheet that is spread across the internet on multiple servers.
Internet of VALUE
As the adoption of Blockchain Technology grows the Internet as we know it will grow from being the "Internet of Information" to the "Internet of VALUE".
This transformation of the Internet will be achieved over time as data is valuated, verified, validated and registered on the Internet.
It is this validation of registered transactions that will effective put a true value on the Internet.
In the future the movement of all goods and services will be digitally recorded on a network of distributed ledgers and it is these ledgers that will effectively for once give a true value of the Global movement and valuation of ASSETS.
Future of Banks, Clearing House and Central Banks
In the future; Banks, Clearing House and Central Banks will play a totally different role as they are playing right now.
Blockchain will dramatically revolutionise they way these entities operate and exist.
As Blockchain evolves and is integrated into the fabric of the Global System this will drastically reduce the need for Banks, Clearing Houses and Central Banks with their roles reducing over time.
Blockchain is set to be the beating heart fuelled on Nitro
Blockchain is very much here to stay and will become the beating heart of the new Global Trade and Finance System as well as the fabric of the future of the Internet.
If you thought the invention of the Internet in the 1970's was an achievement, Blockchain is set to totally re-invent the Internet and bring it back turbo charged and fuelled on NITRO..!!
Thanks again for reading.
Stephen
I think a similar technology was being used to launch the first rockets. There were 4 or 5 synchonized computers. Large companies and banks have systems synchronized with centralized administration.
Yup, Yup, Yup...to all of the above, thanks for the enthusiasm for and of it.
Thank you. Stephen
Nicely put ;)
Thank you. Stephen
What about proof of work?
What about it? Stephen