Menu
The technology used to record the transactions related to cryptocurrencies is called a blockchain. In other words it is a universal online database that anybody no matter where they are provided they have access to internet can use. They are different from conventional databases that are either government-owned or owned by central figures such as regulatory banks. The distinguishing feature of Blockchain is that it is not owned by anyone. Ido Fishman notes that cheating the system by faking documents, transactions and other information becomes near impossible since an entire system is looking after it.
We shall start by first understanding how blockchain works and what are its key features. What Blockchain does is that it stores data permanently across a network of personal computers. This assures not only the decentralization of the information but also distributes it. According to Ido Fishman blockchain’s millions of users make it difficult for any one person to hack into the database, take down the network or corrupt it. People on the running the system use their own personal computers to hold bundles of record offered by other users.
These records are called blocks with each block having a timestamp and a link to a previous block which allows formation of a chronological chain. It is like a giant google doc, however with one crucial difference. The difference is that users can view it and add to it but can’t change the information that is already on it.
Counterfeiting can have very negative consequences which may lead to legal disputes, consumer injuries, loss of sales and loss of consumer trust. Blockchain prevents this by using a form of math called cryptography meaning that records cannot be forged, distorted or changed by someone else. Blockchain identifies proof-of-origin of a product which helps tackle counterfeiting by providing a secure and trusted tracking system.
Blockchain’s most famous application is Bitcoin and without a doubt is also the network’s claim to fame. It is a digital currency that is created and held electronically that can be sent to anyone whether you know them or not. As per Ido Fishman Bitcoin provides the kind of anonymity that is not seen in modern times. Indeed, unlike credit cards and PayPal payments, there are no intermediaries such as banks and financial institutions that ask for confidential personal information. Users from all around the world move the digital currency by validating other users’ Bitcoin transactions and while doing so earn a small fee. Verifying the ownership of the crypto is where blockchain comes in and ensures that only one person is claiming ownership to it.
In today’s world it would be a crime to not adopt the blockchain database technology, therefore, banks and businesses alike are jumping on the bandwagon. We have recorded in a survey of eight of the largest investment banks that blockchain could save $8 to $12 billion every year. Blockchain lowers the barrier to enter banking and that means fintech startups are popping up in virtually every market. Banks and companies have to keep up with the trend otherwise their survival will be at risk in this very competitive tech world. For the consumer the future seems brighter with more security less cost and better experience.
Blockchain has the tendency to become the biggest game changer even for the poorest in society. The technology is open to people living in low income or fragile states of economic collapse.
Blockchain prevents all kinds of risks including speeding up the flow of cash and providing a secure place to keep records. The possibilities of blockchain technology seem endless varying from protecting user’s identities to running autonomous vehicles. The varying possibilities also include managing a world that is increasingly dependent on the internet of things,. But whether it lives to its promise will be seen when you start making use of the technology.
We are always sharing Ido Fishman’s insights on crypto industry, blockchains and how the most can be made from the latest technology. For more information other pages on our website may be visited which shall prove to be very informative and keep you up-to-date.
Ⓒ All Rights Reserved