Blockchain, the revolutionary technology behind Bitcoin, is the talk of the town in recent years. So, what exactly is blockchain?
The Birth Of Blockchain
One can’t mention the creation of blockchain without linking it to bitcoin. The brainchild of Satoshi Nakamoto—the pseudonymous creator(s)—bitcoin is a form of digital currency whereas blockchain is the technology behind it.
Implemented in 2009, blockchain is a decentralized, digital public ledger for all cryptocurrency (digital currency) transactions. All information are recorded in chronological order and stored in blocks. Any prior information stored cannot be erased or edited. In layman’s terms, blockchain is a computerised system for tracking data and transactions between two parties without an intermediary. All data is accessible to all network users within the blockchain.
The Evolution of Blockchain
Although blockchain is designed for Bitcoin transactions initially, it can actually be used to record any other information of value such as personal data or ownership rights.
It is gaining popularity in recent years and many sectors such as finance, healthcare, media and goverment are adopting blockchain into their businesses. According to a study by Juniper Research, two-thirds of the companies surveyed are expected to integrate blockchain into their processes by end of 2018. Some notable companies using blockchain are IBM, Kodak and Barclays.
In Singapore, the Monetary Authority of Singapore (MAS) spearheaded Project Ubin; a collaborative project with R3, Distributed Ledger Technology company, and a consortium of financial institutions. The aim of the project is to explore on how to make financial transactions and processes more efficient and transparent at a low cost and to develop digital central bank issued tokens for cross-border payments.
The Future of Blockchain
Although blockchain technology for businesses is still in the infancy stage, it does have the potential to revolutionize the processes of business transactions. More and more companies around the world will use blockchain as part of their operations in the near future.
All information in this article is correct to the best of our knowledge and belief at the time at which the article was originally published.
This article was written in the author’s personal capacity. Any opinion expressed in this article are the author’s own and
do not reflect the view of Vivaz Capital Pte Ltd.
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