Since people on this forum purport to care about business and the economy... Time to move on from resources and get resourceful...
How blockchain tech could change the way we do business
But how does it work exactly?
Digital records are lumped together into "blocks" then bound together cryptographically and chronologically into a "chain" using complex mathematical algorithms.
This encryption process, known as "hashing" is carried out by lots of different computers. If they all agree on the answer, each block receives a unique digital signature.
What's so clever about that?
Well, the distributed nature of a blockchain database means that it's harder for hackers to attack it - they would have to get access to every copy of the database simultaneously to be successful.
It also keeps data secure and private because the hash cannot be converted back into the original data - it's a one-way process.
So if the original document or transaction were subsequently altered, it would produce a different digital signature, alerting the network to the mismatch.
In theory then, the blockchain method makes fraud and error less likely and easier to spot.
What's in it for me?
If banks and other financial institutions are able to speed up transactions and take costs out of the system, it should mean cheaper, more efficient services for us. For example, sending money abroad could become almost instantaneous.
You mentioned diamonds?
Ah, yes. It's not all about banking. Tech company Everledger is using blockchain to develop a system of warranties that enable mining companies to verify that their rough-cut diamonds are not being used by militias to fund conflicts, and that they comply with the Kimberley Process - a government and community-backed certification scheme for diamonds.
..more...
http://www.bbc.com/news/business-35370304
How blockchain tech could change the way we do business
But how does it work exactly?
Digital records are lumped together into "blocks" then bound together cryptographically and chronologically into a "chain" using complex mathematical algorithms.
This encryption process, known as "hashing" is carried out by lots of different computers. If they all agree on the answer, each block receives a unique digital signature.
What's so clever about that?
Well, the distributed nature of a blockchain database means that it's harder for hackers to attack it - they would have to get access to every copy of the database simultaneously to be successful.
It also keeps data secure and private because the hash cannot be converted back into the original data - it's a one-way process.
So if the original document or transaction were subsequently altered, it would produce a different digital signature, alerting the network to the mismatch.
In theory then, the blockchain method makes fraud and error less likely and easier to spot.
What's in it for me?
If banks and other financial institutions are able to speed up transactions and take costs out of the system, it should mean cheaper, more efficient services for us. For example, sending money abroad could become almost instantaneous.
You mentioned diamonds?
Ah, yes. It's not all about banking. Tech company Everledger is using blockchain to develop a system of warranties that enable mining companies to verify that their rough-cut diamonds are not being used by militias to fund conflicts, and that they comply with the Kimberley Process - a government and community-backed certification scheme for diamonds.
..more...
http://www.bbc.com/news/business-35370304