What is the Blockchain Definition Anyway?
A brief definition of the Blockchain: The underlying principle of the Blockchains are the same as with the concept of Distributed Ledger Technology (DLT), however, the delivery method is different and more superior, as it relies on a public ledger (a ledger) instead of a private ledger.
The Blockchains allow for the safe transfer of money in real time, at high volumes, with no third party involved. For this reason, the term comes from the idea that a person could construct a public ledger and then transfer his / her wealth over that ledger. In contrast to Distributed Ledger Technology which has been around since the 1980’s, the Blockchains bring together the concepts of ledger technology and smart contract technology. This makes for an enhanced form of money transfer, with smart contracts ideally being used in order to facilitate the transfer of money without the need for a third party.
The main reason as to why the Blockchain is so incredibly useful comes from its ability to provide near-ubiquitous real-time transfer of value with no additional fees or intermediary costs. In this regard, the aforementioned use cases can be easily brought into play, with the simple example of the Internet.
Why the Blockchain is so incredibly useful
If we look at how social media is used today, then we will see that they are generally free to join and that you can post almost anything you want, almost at any time! As a result, there is an increased level of transparency and accountability that users are looking for. The same thing can be said for the Blockchains, where users have the ability to define the exact nature of their transaction, as well as the transfer of value itself.
In addition to providing near-ubiquitous real-time transfer of value, the Blockchains also provide users with the ability to control their own identity and profile. As a result, the next logical step would be to use the Blockchains in order to control their own finances. The bottom line is that if we are to secure our monetary future, then the use of the Blockchains is going to be very important indeed! However, a quick look at the functionality of the ledger itself will illustrate why this is the case:
Explain how the Blockchain works
By definition, the Blockchain is a distributed ledger controlled by its participants, which allows instant “transaction” to take place. In order to explain how the Blockchain works, it is important to first take a look at what this type of ledger is used for in the actual real world. A ledger like the Bank of America’s current accounts ledger, for example, is nothing more than a highly organized system of recording and tracking the trillions of dollars in consumer credit card transactions every year. In this sense, the Blockchains are nothing more than a standardized, digitized version of the Bank of America’s system.T
But in the virtual world, where many uses for the ledger can be imagined, it is clear that the Blockchains are much more than simple record keeping devices. It is also clear that the Blockchains, due to their nature, are highly susceptible to abuse, hacking, and fraud. Because of this, the core mission of the open source consortium ConsensUS is to develop tools and technology to ensure the integrity and privacy of the Blockchains, while also ensuring that these tools work well together and work with one another.
To this end, ConsensUS develops the reference implementation protocol (RIPS), which is used to govern the development and implementation of the various components of the Blockchains. The goal of ConsensUS is to provide a standard model for the governance and maintenance of the distributed ledger technologies used across the community.
By developing the RIP, the developers of ConsensUS ensured that it is easy for everyone to use the ledger. Because of this, many entrepreneurs are eager to use the technology to increase their company’s transparency and reduce the opportunities for fraud and corruption in the industry.
While the use of the technology may seem overly complicated at first, anyone with the slightest understanding of how the computer works will be able to get down to the basics and start using the technology. The goal of ConsensUS, and any other organization working on a similar goal, is to ensure that the technology really does improve things for everyone. The fact that this effort takes place at a foundation level makes the effort all the more important for everyone.
PS: I am working on a great Blockchain project here:
David InghamFollow Dgingham