What is BlockChain?
In my Grandfathers day most (small) business was done on a handshake. Obviously a handshake involves two people. It is rare, and strange, to see three people shaking hands together.
So if I agreed with Joe to plow his field in return for a bag of potatoes we shook on it, & that was that. There was no third party.
Then along came the bureaucrats.
Actually wars were fought over this very principal! They fought with the idea in mind that one day WE could grow up in a world free from tyrannical regimes. Since then we have allowed things to get out of hand.
What has this got to do with Block Chain Technology?
BlockChain, by design is a technology which enables us to put the power back into our own hands. It is a contract enabler which can negate the need for third party involvement.
So in the case of Bitcoin. The Bitcoin Block Chain is an Open Source, Peer to Peer distributed ledger. It is the ‘engine’ or the coding, that makes Bitcoin function the way it does. It is the ledger that contains all of the Bitcoin transactions ever performed. Peer to Peer refers to the fact that the ledger is distributed among all of the peers – meaning that it is not held on a central server, (computer). This means that no one owns it and no one controls it!
Open Source refers to the fact that anyone can take that code, tweak it, change it, build on it and develop their own applications for its use. So Block Chain Technology is not just limited to Cryptocurrencies.
You can develop your own applications based on this tech.*
The implications here are truly staggering. It will change the world in fundamental ways that we are only just beginning to conceive of. It is so disruptive to the status quo because it can negate the need for a middle man.
As just one example: In international trade….I might have a contract with ABC to supply potatoes. In the past, to execute that contract I would need to complete an enormous amount of paperwork and employ many intermediaries to satisfy everyone that the deal was proceeding as planned. (Banks, finance, insurance, customs, port authorities, carriers, trusted agents to verify and stamp the paperwork along the way….). NOW however, all of those processes can be completed – in a fraction of the time and at a fraction of the cost – using ‘smart’ blockchain based contracts. Deal done.
It truly is the way of the future. There is no turning back now.
You can see a better explanation: here
*Indeed you could create block chain (coding) that is NOT open source, that you own, and that is NOT Peer to Peer.
Some Potential Applications:
- Smart Contracts
- Asset Registeries
- Social Media
- Tendering Contracts
- Labor Hire
- Sales Platforms
- Payroll Services
- P2P Mortgages
- P2P Business Financing
- Identity Verification
- Document Storage and Verification
Dare I say it. Goodbye Lawyers, Goodbye Politicains, Hoo Bloody Ray.
Some Example Applications for BlockChain:
International Trade Paper Load: https://techcentral.co.za/blockchain-will-free-international-trade-paper-nightmare/76109/
The Ultimate 3500 Plain English Guide to Blockchain.