Blockchain and Bitcoin!

 

Podcast Link:

http://techstory.libsyn.com/blockchain-the-future-of-commerce-ep-05

What is it?

  • Blockchain is, simplified, a database of a growing list of records.1
    These records are knows as Blocks.
  • In cryptocurrencies these blocks represent the transfer of currency.
     

History

  • A whitepaper that was published in 2008 detailed a method of creating a cryptocurrency using a distributed database architecture.2
  • Blockchain tech comprised of 3 technologies used together:3
  • Public key cryptography
    • Method of encrypting communications where the sender uses a public “key” to send a message, and the only way to decrypt the message is with the recipients private key. Also known as asymmetric keys.
  • P2P Network
    • “Peer-to Peer” is when two computers share information without passing through a third party computer.5
    • This is like me handing you cash vs. depositing it into the bank, then writing you a check which you later cash.
  • And Protocol
    Basically rules or the program that runs the blockchain.

     

Cryptocurrencies

  • As of December 2017 Bitcoin is valued at TEN times the value it had at the start of the year.
  • Trading cryptocurrencies has become the new investment frontier.
  • While cryptocurrencies can be used to purchase good, they are also considered property in and of themselves.
  • Many people trade the currencies much like you would with stocks or the Forex Market.
  • These currencies work using blockchain, or a ledger of every transaction ever that are registered and maintained my miners who get rewarded in bitcoin for doing the work.
     

Contracts and Business

  • There is a newer concept of “Smart Contracts” which use blockchain to execute contracts, in that payment is dependent on the completion of deliverables or objectives.
    • These contracts execute on their own, which is far more efficient than a team of lawyers faxing documents.6
  • Healthcare:
    • Data Security7
      • Decentralizing health records and ability to prove identity.
      • Verified users could ADD data, but not remove or edit.
      • Automation
        • See Smart contracts.
      • Health Records
        • Researcher could gain access to literally every patients records without any identifying information, and patients could be selected for trails, again, without ever having their identity disclosed.

References

  1. https://hbr.org/2017/02/a-brief-history-of-blockchain
  2. https://www.techbullion.com/blockchain-definition-origin-history/
  3. https://www.coindesk.com/information/how-does-blockchain-technology-work/
  4. https://www.techopedia.com/definition/9021/public-key-cryptography-pkc
  5. https://www.computerworld.com/article/2588287/networking/peer-to-peer-network.html
  6. https://www.bizjournals.com/bizjournals/how-to/technology/2017/09/business-advantages-of-blockchain-smart-contracts.html
  7. http://www.healthcareitnews.com/news/how-does-blockchain-actually-work-healthcare

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