Albert Einstein once said, “If you can’t explain it simply, you don’t understand it well.”
This is evident and seems to be the case more often with Blockchain technology. Everybody talks about it. Everybody wants to know more about it. But everyone seems to have a bit of confusion with the concept of Blockchain. This confusion emerges as a result of the tendency to think bitcoin and blockchain to be the same thing. The reason behind the reliance on this wrongful assumption lies in history where Blockchain was originally developed as a part of bitcoin and to Bitcoin to be successful blockchain was the key. Thus a question arises, is Bitcoin the sole purpose of blockchain technology? So this article is an attempt to make the reader understand the basics of Blockchain.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
To put it simply, Blockchain technology is changing the way we trust. Specifically, the way we trust in business transactions. Trust is the fundamental currency of commerce which could often be subjected to a breach. When a person engages in a transaction there is an inherent mindset which carries the assumption that counter party or on whom the trust is reposed cannot be trusted. Blockchain is thus a mechanism for changing that assumption and filling the trust gap.
A real life example could be drawn from an instance where you are going to buy a vehicle. Yes, after checking all the features and the looks yet before you finalize the decision you ask the most important question. “Can I have a look at the registration certificate/log book?”, mainly because it contains comprehensive details regarding first registration, registration of transfers/ ownership, change of attributes and all other important things. That is the single ledger which carries detailed information about the history of the vehicle. So as the buyer, you have to trust the content in it. What if there are records which are not included? What if some of the records are erased? And we all know such manipulations, misleading happen in Sri Lankan context. So clearly there is a trust gap. In here the trusted third party is the Department of Motor traffic, the authority responsible for maintaining logs.
Written By : Ranula Liyadipita, Trainee Software Engineer, 99X Technology <