“We are in a world where humans have learnt to co-exist with both simple and sophisticated technologies, some of which have threatened to outdo us in our workplaces”-Understanding Block chain by Benjamin Arunda.
Man has always found a means to make work easier, be it machines for industries or phones for communication helping in business product production and business transactions, and one crucial thing everyone undergoing any business transactions can tell you is TRUST, trust that any deal you make, any product that you purchase is valid or of quality.
Since human beings are flawed in nature and are to an extent always easily manipulated either by being bribed or coursed to change business records, contracts for someone else’s benefit and to the loss of another, it has not always provided a secure means of trust worthiness in business.
Hence comes in Block chain that works on computers and phones since that work that unlike human beings are not “corruptible”.
Ok, so less talk, what is block chain really?
For anyone with a bit of computer knowledge, Block chain simply put is a distributed and shared database that is stored on every system connected to the network, or take is a global spreadsheet which eliminates the need for third parties like banks that charge huge fees to validate money transactions or store data like companies like Dropbox that charge you for server space to store your important files on the cloud. It is through this system that Satoshi Nakamoto proposed of a digital currency- Bitcoin, well look into this in a different article.
Block chain is a peer-to-peer network that collectively adheres to a set protocol for validating new blocks, it uses cryptography to offer all participants on the network ability to govern it collectively. To mean that everyone has a say in validating transactions done on the system and once a transaction has been done and validated by everyone it cannot be changed(immutable), if anyone tries to change something without the acceptance of everyone then change is easily found.
Briefly I’ll give two examples of where the block chain is affecting and why you should jump in the block train-
Apart from block chain being the backbone on which crypto money bitcoin is built on – the system was built to circumnavigate traditional financial institutions, at the start banks were in fair of it but 2017 saw a some of world’s largest banks like Barclays and HSBC forming a consortium called Unity Settlement Coin (U.S.C), a digital currency created by Switzerland’s UBS bank. They expect to make it faster and faster for central banks to settle transactions.
2. SMART CONTRACTS.
I’ve been talking about trust, and actually it’s by smart contracts that trust is built in business, in brief they are mini-programs that automatically execute agreements between various parties when certain set conditions are met, hence any business can create their own smart contracts suited to there needs, for example,
- Medical records can be secured by smart contracts so that only certain people can access the data and only in predefined conditions can they be accessed.
- Property titles like Title deeds can be automatically managed and transferred.
- Loans can be processed automatically.
From this we can see that block chain is growing to be game changer, in every and any business it can get its claws on. The book ‘UNDERSTANDING BLOCK CHAIN’ by Benjamin Arunda gives a comprehensive take through on which industries it will affect and how you can get yourself in the game.