Blockchain - What’s all the fuss and why should you care?
By the end of 2017, the price of a Bitcoin has rocketed to new heights. Its fairly new nomenclature has created an ever-growing bubble of interest across multiple countries and industries. Nowhere has there been such a skyrocketing adoption rate for any digital technology since the Dot.com era…even so, some perceive such sudden surge as “still in the early adopter stage”.
So…What is a Blockchain?
It’s a distributed digital ledger that provides an incredibly secure way to record agreements, contracts and transactions: simply anything that needs to be verified and recorded. The difference here is that the ledger is not kept in a single place but rather in a database shared across a network of computers. These networks can be made up of a few users to hundreds of thousands of people. Note: The exponentially growing transactional ledger keeps record since its inception.
How is it used?
There's a plethora of specialized software for Blockchain to run on and automatically distribute new transactions to the database. This process is obscure from most individual users and because of its forthwith nature, there’s a very little gap in time for anyone to tamper with the ledger before the transaction is recorded. Today Blockchain software is still in the R&D stage, however, VC’s are jumping all over Blockchain instead of Bitcoin.
Can it be hacked?
Blockchain lexicon is the compilation of the word Block, as in a block of transactions, and Chain, in a manner how those transaction blocks are hashed then encoded and connected. Each block encloses the hash from the previous block thus creating a chain of connected blocks of transactions. This process validates each individual block, all the way back to the Blockchain point of origin. This validation is critical to database security.
At the point of a transaction, its details are encrypted and an exclusive multiple-character transaction number is created. This number is a placeholder in the ledger so no other users in the Blockchain can see the exact details of the transaction. The rest of the network can see that a transaction has taken place but only the contract holders (Parties involved) can access and view the details. The benefit to this process is that fraudulent activity is easier and more quickly tosspot. To make things worse to a potential hacker, they would need to access every computer that contains a copy of the Blockchain database at the same time of the transaction is created in order to tamper with it. Let’s just say they’d have a better chance at winning the lottery.
What’s its Potential?
Most recently, we (Framework Science) started to research this technology for the IOT space, however, as an emerging technology, the evangelists are betting on its disruptive nature to potentially remove corruption and provide unseen levels of accountability and transparency. Imagine that…huh?
Thinking about developing a new idea for your business or venturing out on your own?