#blockchainsimplified

Bit Coin and Blockchain how they linkup

Bitcoin first appeared as a concept in 2008 as a white paper authored by a person, or persons under the name of Satoshi Nakamoto. Bitcoin was basically thought as an innovative peer to peer electronic cash system that enabled online payments to be transferred directly, without the need of an intermediary.

While the proposed bitcoin payment system was exciting and innovative, it was the mechanics of how it worked that was truly revolutionary. Shortly after the introduction of the concept, it became evident that the main technical innovation was not the digital currency itself but the technology that lay behind it, known today as blockchain.

Although commonly associated with Bitcoin, blockchain technology has many other applications. Bitcoin is merely the first and most well-known uses. In fact, Bitcoin is only one of about seven hundred applications that use the blockchain operating system today.

So essentially what exactly is Blockchain?

A subject which garners every ones attention whenever taken in any technical forums or discussion, however limited no of people have fair understanding about it because Blockchain as a concept is still in stage of refinement and evolution.

To make it simple to understand, Blockchain is a type of distributed ledger or decentralized database that keeps records of digital transactions, additionally it also allows any participant in the business network to see the system of record.

Blockchain allows consumers and suppliers to connect directly, removing the need for a third party. Essentially Blockchain is an information database, but what makes it exceptional is the ability to share, collaborate and democratize its usage. There is no single “central” repository for a Blockchain. It is everywhere and with every authorized participant in the network. Everybody’s copy is ORIGINAL, well, at least up to the time it was last updated. Blockchain brings about the Finality of data and information once entered cannot be modified. You can only enter a new block to the blockchain, but cannot modify existing closed blocks. This brings in assurance, auditability and trust. To sum it up Blockchain:

·       Records all transactions across business network

·       Shared the information / data between authorized participants on the network

·       Each participants have own copy through replication

·       Information is permissioned, so participants see only appropriate and legitimate transactions.