You might be hearing a lot about Blockchain lately. Lets explore what is Blockchain & Bitcoin.

One calls Blockchain as a blockchain because you have millions or billions of blocks forming a chain of blocks connected using the signature (Digest) of the previous block. Each block is a record of one or more transactions that took place between two people or computers. Blockchain technology forms the base of the cryptocurrency Bitcoin. The latter is a sort of digital currency that is virtual and electronic. An anonymous Satoshi Nakamoto was the one who invented bitcoin.

Understanding Bitcoin—What is a bitcoin?

On October 31, 2008, Satoshi published the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System”, which became an open source code in January 2009. Since then, internet users have been using Bitcoins to perform peer-to-peer transactions.

Use of Bitcoins

Bitcoin eliminates the need for any sort of intermediary like banks or centralized governments. Thus, the transaction between two individuals or companies happens using bitcoins and each transaction forms a block. And all the transactions between X and Y that happen all over the world form the blockchain.

Understanding Blockchain—What is a blockchain?

The blockchain is a public ledger, which all users who carry out bitcoin transactions across the world can see. Each node (computer or user) verifies and confirms the transaction using a consensus algorithm. That is, all the billion Bitcoin users in the world will confirm and verify the transaction.

Benefits of a Blockchain

While users will know that a transaction has taken place, the identity of the two individuals who performed the transaction will remain anonymous. The owners of the block or transaction can then claim the transaction as theirs. Only then will other users come to know of the parties of the transaction.

So, with both Bitcoin and Blockchain, companies need not go through intermediaries as banking channels to perform a transaction. They can carry out the transaction through, and in the form of, bitcoins. It is open source and is available for all.

Some believe that just like the internet revolutionized the 90s and became a huge entity in the next twenty years, both Bitcoin and Blockchain too will. They are far more likely to become an inseparable part of human lives across the world.

Just like money is today inseparable from each individual, Blockchain is also likely to become an inseparable part of human lives in the next few years. Some of the leading financial institutions across the world have already begun testing Blockchain technology via distributed ledgers.

The primary benefits of using Blockchain technology are the elimination of intermediaries and centralized authority. Ease of use, ease in verification of transactions, improved security and transparency with the lower cost.

Record keeping is one of the strong use case of Blockchain. Record keeping solution built on top of Blockchain can help businesses in:

  • Maintaining the same copy of records/docs throughout the business
  • Verifying the authenticity of the records/docs within seconds with more confidence
  • Creating Immutability of records/docs at low cost
  • Managing the structure of records/docs in a very strict way
  • Incorporating a decentralized trust mechanism while sharing the data

Please try RecordsKeeper to know how it works.