What’s all the hype about when it comes to Bitcoin, blockchain and cryptocurrency? Simply stated, blockchain is a technology that stores a registry of assets and transactions in a decentralized database. It’s a public registry of transactions that are secured through cryptography. Over time, the history of the transactions that are recorded in the database are locked in blocks of data that are then cryptographically linked together and secured.
This creates a permanent record of all of the transactions across the network. This record is reproduced on a ledger that is accessed by every computer that uses the network. This registry stores the history of ownership for digital assets like a title of ownership, such as:
Blockchain technology is not just an economic evolution, it’s also an innovation in computer science. Blockchains record human interactions using the exchange of currency and all kinds of digital and physical assets in a totally new way. Blockchain technology is in its infancy, we don’t yet fully understand all of the potential uses for our economy, nor do we fully comprehend all of the possible problems that may accompany a shift to comprehensive adoption of blockchain and cryptocurrency. There are many people working on this, from financial institutions to technology companies, start-ups and universities.
Businesses need to start preparing because we are about to face a world where distributed, autonomous institutions will have a significant role. Blockchain technology is coming; it offers a lot of potential, and in many ways it offers a more cost effective platform than current technology. Don’t be surprised to see progressively more businesses accepting bitcoins and other cryptocurrencies, though the price volatility will likely need to stabilize before this type of currency becomes pervasive.
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