It’s a digital world, and we’re all throwing around terms like “bitcoin” and “cloud computing” without really understanding what’s going on behind the scenes. But these background details are exactly what’s revolutionizing modern industry. Blockchain is one of these critical background features.
What is Blockchain?
Blockchain is a technology that has arrived to shake up digital records as we know them. A type of database, blockchain contains each record, transaction or dataset within a single block, linking all of these blocks to each other with a peer-to-peer network. Each block is dependent on the one before it, and therefore no block can be retroactively edited without drastically editing the rest of the chain, an impossible task.
This is critical because the ledger is both public and completely secure, making it ideal for storage of medical records, monetary transactions or account details. Bitcoin was the first to successfully integrate a blockchain and triumphantly solved the double spending problem (in which a digital currency file is duplicated and counterfeited).
Currently, the most promising applications of the blockchain are finance applications such as digital wallets and identities. Banks and digital transaction providers would benefit from cutting out middle men, and users would place greater trust in a system that can’t be corrupted.
The beauty of blockchain lies in this: imagine a stock payment. The money can change hands within seconds, but the actual ownership takes longer to determine since the two parties are unable to access each other’s ledger and must instead rely on a middle man to confirm the existence of the stock and update the individual ledgers. But with blockchain, each involved party is part of a larger ledger and confirms ownership immediately. It opens the door to a world of possibilities.
IBM is one of many companies stepping into the world of public ledgers. It currently offers the ability to form an IBM Blockchain network and create ways to take advantage of its offerings through business solutions.