Blockchain

Blockchain is a public ledger (data base) with a perfect memory that is shared and updated across a network of many computers.

Blockchain technology was originally designed to safely transfer digital assets (like cryptocurrency) without a middle man or third party. Very strong computer code keeps a permanent record of all the transactions that happen on the blockchain, and once that information is recorded it can’t be removed or changed.

The blockchain system and Bitcoin were created together in 2008 by Satoshi Nakamoto. No one know who this person is. Satoshi Nakamoto is a pseudonym. He, she, or they could be anyone, or even a group of people.

Blockchain makes accounts and transactions public without revealing any personal information. It’s this combination of public and private that makes it so secure.

You can imagine that everyone using the blockchain system has their own notebook. When a transfer of digital property is made the transaction is recorded automatically in all the notebooks. Then all the notebooks are compared to see if they match. If they all match up the transaction is approved, but if even one notebook doesn’t match with the rest the transaction is rejected. That’s blockchain in a nutshell. This system prevents fraud and makes it practically impossible to scam or manipulate the system. It also removes the need for a third party like a bank to keep track of all the transactions.

Blockchain was invented with Bitcoin but supporting digital currency is just one of its many uses. Blockchain technology will remove the middlemen from hundreds of industries in the future. Making transactions and trades of all kinds cheaper, faster, and more secure. The business of voting, entertainment, file storage, sharing economies, charities, ownership records, finance, and many, many more will all change with the use of this powerful technology.

Blockchain technology has created a system that can be trusted, is private and secure, and doesn’t need any middlemen. It’s changing how we deal with and think about property, and it’s just getting started.

Switzerland ushers in new era as blockchain law takes effect (coingeek.com, February 3, 2021)