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Blockchain

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Blockchain

Blockchain Potential

A blockchain is a digital ledger of transactions duplicated and distributed across the

entire computer systems network (Nofer et al., 2017). The blockchain system records

information in a manner that makes it hard to change. The most known use of blockchain is in

the field of cryptocurrencies like Bitcoin, Dogecoin, Etherium among others. Blockchain can

also be used in securing medical data, NFT marketplaces, tracking of music royalties, personal

identity security, and anti-money laundering tracking system.

Source: The European Business Review

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Source: Euromoney Learning

How Bitcoin Uses the Technology

Blockchain technology allows people to request transactions that are later broadcasted to

a P2P network that comprises computers ad nodes. The network of nodes offers validation to the

transaction and the status of the user with aid of familiar algorithms. After validation, the

transaction is considered verified and is then combined with other transactions to form a data

block for the ledger. A new block is then formed and added to the blockchain. The block cannot

be altered and this forms the completion of the transaction (Böhme et al., 2015).
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Source: PWC.com

Bitcoin is the most successful cryptocurrency using blockchain technology. Blockchain

spreads operations across a network of computers hence enabling bitcoin to operate without

requiring a central authority. Bitcoin miners run complex computer rigs in the process of solving

complicated computer puzzles to confirm group transactions known as blocks. After successfully

forming the blocks, the blocks are added to the blockchain record, and those who participate in

their mining receive several bitcoins. Bitcoin has been used to complete financial transactions

online without the necessary monitoring of traditional central banks as in fiat currency. Other

companies like Etherium have borrowed the concept of cryptocurrencies from Bitcoin and used

them to complete financial transactions online.

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Source: Aljazeera
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References

A. (2021, January 6). The Reliance on Blockchain Technology Will Increase as Businesses

Become Knowledgeable on How to Leverage It. The European Business Review.

https://www.europeanbusinessreview.com/the-reliance-on-blockchain-technology-will-

increase-as-businesses-become-knowledgeable-on-how-to-leverage-it/

Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and

governance. Journal of economic Perspectives, 29(2), 213-38.

Blockchain Explained: What is blockchain? | Euromoney Learning

Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business & Information

Systems Engineering, 59(3), 183-187.