A Block chain, which was originally spelled as two words, block chain, is a distributed ledger/database. It contains a growing list of records called blocks. Every block is time-stamped and is linked to the previous block. Block chains are designed to record data in a manner impervious to alteration once it is created.
It cannot be changed or manipulated in retrospect. In general a Block chain is a distributed ledger that is open. This ledger keeps track of transactions between parties in a permanent fashion. Some transactions may be automatic. Block chains are well suited for financial transactions, medical and legal records, property rights, identity security, deeds, etc. Block chains have the potential to change the world.
In 2008 Satoshi Naka motto developed the first Block chain which led to the creation of the digital currency called Bit coin. Naka motto’s experiment with the Block chain protocol solved the riddle of the “double spend” problem (without using a middleman) which had plagued programmers for years. The history of Block chain technology dates back to the 1990’s but cryptographers were still searching for secure solutions.
But the Block chain used for Bit coin has now become the gold standard and has inspired others that are being called Block chain 2.0, which go beyond the internet of money and include smart contracts that create invoices that execute them. They also can be used for intellectual property rights, musical and artistic creations, legal records, property rights management, scientific discoveries, votes, deeds, etc.
The Block chain allows for secure online transactions. Block chains allow for the internet of value rather than the internet of information. They allow for peer-to-peer transactions. A decentralized Block chain tends to lead to more of a secure network. Open Block chains are user-friendly.
So some people think the Block chain is a foundation technology… while others feel it’s a disruptive technology. In any case, the genie is out of the bottle and it all depends on how you look at it. I believe that the Block chain and the new internet of value are here to stay. The Harvard Business Review describes the Block chain as a distributed database or ledger that is open to all. There are now over 700 digital currencies that relay on Block chain technology. Some of them will come and go.
But banks do not want to lose the upper hand when it comes to financial matters. Therefore many banks are exploring their own Block chains and digital currencies because they don’t want to lose customers. On the other hand, there are millions of UN banked people in the world. They often do not have enough money to open up a bank account or may live too far away from a bank. Digital currencies like Bit coin has proved very popular in these countries.
In a time when internet hacking, identity theft, spam, and phishing are major issues (not to mention a regular thief who robs your house or a pickpocket who lifts your wallet in a crowd)… Satoshi’s Bit coin Block chain is the safest and most secure because it is the longest. It is protected by users and miners. The miners have a huge stake in protecting that particular Block chain because they are rewarded when they figure out and solve the secret puzzle of each block.
They also have huge electric bills to mine the coins and they invested in very expensive software to do it. So those miners are very committed to the Bit coin Block chain in particular. It would take a tremendous amount of electricity to even attempt to hack the Bit coin Block chain. Therefore, hackers are more likely to go after smaller and less secure Block chains. That’s why I stake my claim on Bit coin and the Bit coin Block chain!!