A grouping of transactions is called a Block. Each block chains on to the next, thus the term “Blockchain”. Once a block is added, it cannot be removed or changed. Because of this distributed verification system, the blockchain is continuously growing, up to date and error free.

Think of the blockchain as one massive Excel spreadsheet. This spreadsheet updates simultaneously across the global network of computers every time a new grouping of transactions is made.

In a nutshell, blockchain is a record of transactions verified by a global network of computers. These transactions can be any movement of money, goods, or secure data, Ie: a purchase at the supermarket, the sale of real estate, or sending an employer a full past employment history.

HOW THE BLOCKCHAIN WORKS

Today, transactions are verified by a central authority—like a government or a credit card clearinghouse. Blockchain applications could replace these centralized systems with decentralized ones, where verification comes from the consensus of multiple users.

It combines the openness of the internet with the security of cryptography to give everyone a faster, safer way to verify key information and establish trust.

SO WHAT IS SO REVOLUTIONARY ABOUT THIS?

In today’s world transactions are carried out by a centralized authorities like a banks, credit card companies, uber, spotify, amazon, etc. They act as an unnecessary middleman, charging high fees, slow service, have downtimes and are susceptible to being hacked.

Blockchain removes the middleman by using a distributed, decentralized system ( Seen below right ). By doing this, transaction fees become next to nothing and happen exponentially faster. Currently, banks charge $30-$40 for a wire transfer that takes 5-7 business days to complete. With blockchain, the fees are negligible and even overseas transactions usually take less than a minute to process. There is no way to have errors or “bounce cheques”. It is an infallible system.

Spotify, Uber, Amazon & Airbnb all replaced outdated tech such as physically storing music, hiring taxis, and purchasing goods from brick and mortar stores, and renting hotel rooms. Blockchain will replace these services, allowing purchasers to go straight to the service provider, bypassing these middlemen platforms and saving money on fees.

The applications for blockchain are literally endless. Self driving cars will become self-sustaining taxi services, using the blockchain to accept purchases, fuel themselves up, pay for repairs and even purchase more cars themselves, to expand their robotic fleet. Humans will not need to even be a part of the system.

You’ll be able to track your food, from the farm to your grocery store, the entire journey will be able to be seen on blockchain, ensuring you are getting the quality of food you are paying for.

The “Internet of Things” will all run on blockchain, every piece of technology will be able to communicate together on a global scale, creating a “smart-world”. We are on the cusp of a blockchain revolution that will completely revolutionize change the world we live in.

COULD THE BLOCKCHAIN EVER BE

“DELETED” BY THE GOVERNMENT?

The blockchain is a distributed ledger that is stored across a global network of computers, this means that the transaction list and “state” of the blockchain is held by an immensely large number of computers. To “delete” the blockchain, you would literally have to delete it off every single computer in the world that has a copy. Even if one computer backed the blockchain onto an external hard drive, the blockchain would be saved. The only way to “pause” the blockchain is to globally turn off the internet, it can not be deleted. The moment the internet resumes, the blockchain can start back up as if nothing had happened.

IS IT SAFE TO USE?

Blockchain is exponentially safer than any system we currently have in place. Currently our centralized systems have one point of failure, making them easily susceptible to hackers.

Blockchain is designed to store information in a way that makes it virtually impossible to add, remove or change data without being detected by other users.

“Hacking” the blockchain would mean changing the records on the ledger in your favor. For example, the hacker would create a “false” block in the blockchain. That false block could state that a large number of accounts have all sent a transfer into theirs. The blockchain is an irreversible ledger. To do this is next to impossible. You would have to hack over 51% of computers on the global network, simultaneously. Or, put out 51% of the confirmations yourself, all at once. On a global scale… Good luck.

WHAT ABOUT MY PRIVACY?

The blockchain offers a massive level of privacy and protection. Your identity is kept secret and all that appears as your “account info” is a public key of numbers and letters ( g7av898sa90…).

No corporation owns your personal info, can sell it, or have it compromised if they are hacked. You remain 100% secure and anonymous. Even if you are receiving payments on the blockchain in the form of cryptocurrency, there is no way to be taxed, as long as you do not withdraw back into a government currency

IN SUMMARY

Blockchain could be a revolution for the way individuals, businesses, organizations and individuals work together. It provides a simple, secure way to establish trust for virtually any kind of transaction, helping simplify the movement of money, products or sensitive information worldwide