Understanding the
Blockchain can be complicating; even for one that has been in the Bitcoin
sphere for over 5 years, I tell you, it can puzzle. However, after a lot of
reading, researching and patience, I will try to simplify the technology called
Blockchain. Yeah, don’t mention.
Blockchain is the technology behind
the Bitcoin phenomenon. The technology, however, can be behind a lot of
transactions. Everyone who once fought it, is now embracing it.
Central banks, banks, insurers, tech
companies are all trying to integrate the technology into their operations.
So what exactly is this Blockchain Technology and
why is everyone jumping into it?
Blockchain, according
to Wikipedia is a distributed database that maintains a continuously-growing
list of records called blocks.
Each block contains a timestamp and a link to a previous block. The
data in a block cannot be altered retrospectively. Blockchains are an example
of a distributed computing system with high byzantine
fault tolerance.
We can
just stop here… right?
Okay, here is a more
perplexing definition - Blockchain is a crowd-managed distributed secure
database.
See, what Blockchain
does is to remove the third party you regularly depend on to make a
transaction. In the current popular system, Peter can’t send monetary assets to
Ibrahim without a bank or a money transfer merchant. Let’s kindly not get into
how much these parties charge for a transaction. So with Blockchain, there is a
direct transaction between sender and receiver.
In practice, the
exchange is concealed using cryptography. The Blockchain, like we acquired from
the Wikipedia definition, is a distributed database that maintains a
continuously growing list of records called blocks. That’s telling us that every
transaction is verified and recorded, recorded publicly on what have been
termed a ‘digital ledger’. Everyone on the network can see every transaction,
anonymity is not present, which I think is a major worry for financial
institutions. But I am certain it can be worked at.
Now, having been in the digital currency sphere for
a while, with Nigeria’s Premier Bitcoin Wallet Provider, Jostpay.com, I have
gazed at the beauty of this technology up close and I continuously keep getting
swept off my feet. Let’s understand that, in every transaction, value is what
is being exchanged, not the paper/nylon nor is it the metal coloured in gold,
ironically also called gold. The Blockchain can work for almost every type of
transaction involving value.
The promise is massive; anyone with access to the
internet would be able to use it to make transactions. It will enable migrants
send money back home in countries where banking is difficult. That’s putting
two billion people who don’t have enough money to justify a bank account on a
platform that will enable them receive and send.
Everyone sees this promise. 14 of the top 30 Banks
in the world are engaging in the Blockchain. Central banks, insurers, stock
exchanges have publicly voiced enthusiasm for the benefits of Blockchain. The
1,000-Year-Old - The Royal Mint, UBS, Microsoft,
IBM and PwC are all racing to adapt the technology into their operations.
Something is clear here for even a day old baby to
see, the Blockchain will take over the world. It’s only a matter of light.
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