Blockchain = Bitcoin ?
No. It is not.
The Harvard Business Review describes it as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”
By using math and cryptography, Blockchain is challenging the status quo in a radical way. Will governments and financial institutions embrace it?
A blockchain is managed autonomously using a peer-to-peer network and a distributed timestamping server.
With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information. Or BitTorrent. This systems used ”parts” to make a puzzle – if you want to download a movie, you send a request to BitTorrent by clicking ”Download” – what happens next is that Torrent’s system make a puzzle (movie) for you by collecting all parts (which are published by wide range of users – for example, the first 5 minutes I have, the subtitle is on my friend’s computer, the last 15 minutes are on computer in Budapest..and so on).
The same principle – different puzzle.
Descending to ground level, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), BitTorrent/Wikipedia is built into the World Wide Web (WWW) using a client-server network model. A user (client) with permissions associated with its account is able to change BitTorrent/Wikipedia entries stored on a centralized server.
Whenever a user accesses the page where the base are, they will get the updated version of the ‘master copy’ and can changed detailes they put there. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.
The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and important feature of blockchain technology.