The bank that I'm using just became the first bank to use blockchain technology for a global transaction. I think that's awesom and I'm so excited to see how we can utilize the blockchain technology in the future. Blockchain is going to be used in a lot of exciting innovation in the next years, we've only seen the beginning.
Read more about Commonwealth's transaction here.
I think companies can use blockchain for archives and record keeping, I also think the uniqe technology can be used for safe filesharing and cloud storage. Some comapnies are even looking at using blockchain as a way to handle stuff like ID and birth certificates in a secure manner.
What is blockchain?
It took me some time to fully understand what blockchain was. All I knew in the beginning was that it was the techonology that was used for Bitcoin and other crypto currencies. I was fortunate enough to attend an event where Jon Ramvi, a Norwegian blockchain expert, spoke about blockchain. That made it so much clearer for me. I really like this explanation too:
A blockchain is a type of distributed ledger, comprised of unchangable, digitally recorded data in packages calledblocks.
These digitally recorded "blocks" of data is stored in a linear chain. Each block in the chain contains data (e.g. bitcoin transaction), is cryptographically hashed. The blocks of hashed data draw upon the previous-block (which came before it) in the chain, ensuring all data in the overall "blockchain" has not been tampered with and remains unchanged.
(Source)
Susanne
Yes, and note there are several types of blockchains:-
Most likely the bank's on a consortium blockchain. It's not open for public participation, but I imagine a group of banks running the blockchain, passing off transactions when a percentage blockchain nodes (the many different banks) provide their signatures. It reduces their transaction costs because there's no need for manual administrative works.
However, note that private / consortium blockchains , which are not open for public participation (in signing off blocks, etc) are susceptible to gaming / collusion. In this case, banks and governmental offices like land registry understandbly needs to be on non-public blockchains so they could edit information if there are mistakes, or perform critical rollbacks. So what I'm trying to say is - banks are using blockchains to make their internal machinations cheaper, but their database can still be manipulated, in a way easier than before. And to add, the security of your funds still remain the same - in 3rd party's hands. But i think they'll add better value back into their customers as more banks get onboard with the blockchain game :)
Hi @kevinwong. I completely agree with you, and I think that a lot more banks will get onboard with blockchain very soon. Thanks for leaving a comment.
Thank you so much for explaining what a blockchain is. Its a little challenging for me to fully understand this. I can get a little picture, which help tremendously. Well said.
No problem :) I think it also took me some time to understand blockchain because it was always explained to me in English (not my native language).