Blockchain is a technology for storing and transmitting the information. It makes it possible to exchange value online without a trusted third party. Blockchain technology, or chain of blocks, is a transparent database, with a high level of security and operating without a central control body. Each data entered in it cannot be modified. All exchanges between users can be publicly viewed. All of these features make it possible to exchange valuable files online without an intermediary.
Nothing beats a good example to realize the technological breakthrough: whereas until now the online file exchange was limited to copying (by sending a photo you keep the original on your disk), we can now transfer ownership. This is very convenient for sending a file based on scarcity, such as electronic money.
Bitcoin and blockchain
The first blockchain introduced/showed up in 2009 with the digital currency named Bitcoin. It bears this name because transactions between users are grouped into blocks. Each block is validated by network nodes represented by “miners” (people who use the computing power of their computer hardware to verify transactions). Once the validation of this block is done, it is time-stamped(added a time entry to the block) and added to the blockchain. The transmission is then visible to the person who received the bitcoins as well as the entire network.
The decentralized nature of the blockchain, coupled with its security and transparency, promises much wider applications than the monetary field:
- Applications for the transfer of assets: real estate title deeds, votes, stocks, bonds, etc.
- Blockchain applications as a register: thus ensure better traceability of products and assets.
- Smart contracts: these are autonomous programs that automatically execute the conditions and terms of a contract, without requiring human intervention once started (very useful for the insurance sector).
Public blockchain and private blockchain
There is no “the” blockchain, but “some” blockchains. Some may be completely open and decentralized (like that of Bitcoin), but others contain an actor who exercises, directly or indirectly, authority over the other members. Conversely, in a public blockchain, there is an absence of a link of authority between the actors.
As above (a “public blockchain”), there are multiple “nodes” like you on the network that simultaneously act as transaction executors and miners. Transactions are grouped into blocks before being added to a blockchain. Miners receive a reward in Bitcoins based on the computation time required to determine a) whether the transaction is valid and b) the mathematical key that should be linked to the block of transactions in the open ledger, in the appropriate location. The greater the number of transactions executed, the more Bitcoins increase the supply of virtual currency bank. The “bounty” that miners receive will shrink every four years until bitcoin production eventually ceases. Of course, if the blockchain was originally intended to work with Bitcoins, other virtual currencies can be used, like Ether.
Just as the Internet has revolutionized the way we interact, blockchain technology leads to completely rethinking the management of a transaction and its verification. This technology, on which Emo coin bank and other cryptocurrencies are based, has a high disruptive potential for many business processes.
Is your business ready for Blockchain?
Imagine shared computer access to all, a single source of reliable information in which it is possible to store events, holdings, and activities, and to execute workflows involving a multitude of parties without using separate systems and databases, and without the need for reconciliation.
This approach will revolutionize the way digital services are delivered across industries globally. The “Blockchain” modifies the rules, prepares to face disturbances, or, conversely, creates upheavals.
Financial institutions such as banks have long embodied the position of “trusted third party” validating the authenticity and accuracy of transactions. Blockchain technology makes it possible to overcome this trusted third party.
The opportunities of the blockchain lie in the guarantee of agreement on the part of all parties to a transaction. This is made possible thanks to the recording at all stages of its realization of the origin and ownership of the transaction. It is precise because the blockchain makes it possible to record and authenticate each step that it could be used to secure and verify any type of transaction, without interaction with a third party.
However, there are some obstacles to the development of blockchains: there is currently no coordinated and exhaustive regulatory framework around blockchains, which delays their adoption by a certain number of companies and institutions. Moreover, the technology is nascent and has not yet been tested on a large scale.
