Blockchain 101

Blockchain is a new buzzword in technology. It’s the basis of all the excitement about Bitcoin, cryptocurrencies, and Fintech. If you’re unfamiliar with blockchain technology, think of it is as a trustless decentralized general ledger. What that means is – everything written to this ledger is considered the “truth” only after consensus is supplied by a significant majority of participants hosting the blockchain. This makes the blockchain “trustless” because no party can manipulate the results without conspiring with that large majority. Imagine a card game where everybody had to show their hands. There would be no bluffing (though it wouldn’t be a very interesting card game).

Participants of the blockchain are often “anonymous” so understanding who you would potentially conspire with is also challenging and quite impractical. (On tuka the parties to an exchange would not be anonymous, so you would know exactly who you were dealing with.) Furthermore, the blockchain leaves an audit trail of all previous transactions for transparent traceability and the continual lengthening of the block structure makes it difficulty to create a forgery. On tuka this means a user can trace his or her own peer network that can yield significant value.

The blockchain is physically decentralized like a large distributed peer-to-peer database. The single source of truth information it holds is virtually centralized and all data is publicly accessible. Information written to that blockchain can be verified without understanding what the contents are because of how blockchain works in trustless mode.

In plain English, blockchain technology eliminates the need for a 3rd party middleman to insure trust in the system. This applies to banks and insurance companies as financial intermediaries, lawyers and politicians as legal intermediaries, and, in the creative industries, online middlemen like centralized retailers and distributors (Apple, Amazon, Google). This has broad and deep implications for the business models of these industries. Such 3rd parties are quite costly to transactions and in the case of digital content, often take the lion’s share of the value.

We’re learning here as we go, but this should provide some food for thought…(to be continued)


What is the Blockchain?



708 thoughts on “Blockchain 101

  1. Pingback: ivermectin 200 mcg
  2. Pingback: ivermectin mexico
  3. Pingback: what is cialis
  4. Pingback: tadalafil cvs
  5. Pingback: ivermectin 12
  6. Pingback: liquid ivermectin
  7. Pingback: cialis coupon
  8. Pingback: cialis price
  9. Pingback: buy sildenafil usa
  10. Pingback: ivermectin usa
  11. Pingback: generic cialis
  12. Pingback: cialis wirkung
  13. Pingback: buy cialis online
  14. Pingback: cialis medication
  15. Pingback: ivermectin 50 mg
  16. Pingback: Anonymous
  17. Pingback: baricitinib fda
  18. Pingback: aralen tablets
  19. Pingback: Anonymous
  20. Pingback: 12mg tizanidine
  21. Pingback: can you buy clomid
  22. Pingback: zanaflex tablet
  23. Pingback: clomid 50mg pills
  24. Pingback: merck covid
  25. Pingback: ivermectin 0.5%
  26. Pingback: natural viagra

Comments are closed.