What is Blockchain?
- A decentralized or distributed ledger that verifies transactions
- These ledgers are shared and synchronized among participants of the blockchain network
- All participants in the network have a copy of the blockchain
- Blockchains can be Public or Permissioned
Public vs. Permissioned
- Analogous to the global internet, open to anyone
- No privacy but fully immutable
- No single point of failure
- Analogous to corporate intranets, permissioned access
- Provides privacy at cost of security
- Easier to scale
A Chain of Blocks
- Blockchains consist of a chain of "blocks"
- These blocks store transaction data that are in a specific order
- Transactions can represent money, assets, information, etc.
- Each new block contains a summary or "hash" of the previous block
- Blocks are validated by participants in the network through computational power
- Hashes link the next block
- Conflicting transactions within a block create a different hash
- Different hashes are kicked off the main chain by validators through consensus
What Does Blockchain Solve?
Double-spend problem is solved in a decentralized way
- Opens the door for P2P transactions and distributed asset transfer systems
Transactions are immutable
- Guarantees that transaction data can't change once submitted to the blockchain, increasing security of data
Transactions are verifiable
- Anyone in the network can validate a transaction which prevents fraud
Trust Between Parties
- Blockchains add the dimension of trust to data
- Data that others can trust
- This trust can create new value networks and break down information silos internally and externally
What Does Blockchain Mean for Business?
- Saves time by eliminating reconciliation processes
- Saves money by reducing or eliminating middleman
- Reduces risk by providing immutable and verifiable data
- Creates opportunities for new business models
- 6 out of 10 large enterprises expect the technology to be integrated into their systems by Q4 2018
- $1.2 Billion raised YTD by startups through blockchain token sales (August 2017)
Where Do You Go from Here?
- Find niche use-cases
- Build prototypes
- Keep learning
- Be blockchain agnostic
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