An oversimplification that will help you explain the concept to anyone so you will, henceforth, be known to be the go-to guy for C-level jargons.
Blockchain, Blockchain technology, Cybersecurity
The blockchain is a shared online ledger where transactions are signed digitally ensuring the authenticity of the data. New information can be added on to the old ones forming a chain. However, data already entered cannot be edited or adjusted. The blocks are linked through a technology called cryptography.
Blockchain – How it works?
When a new transaction is added on to the chain, it is evaluated using algorithms to verify its authenticity. If it is found to be valid, it is added to the chain of transactions. If not, it gets rejected. This ability of the blockchain to run without any unifying authority makes it an efficient and reliable source.
What is a smart contract in Blockchain?
A smart contract is basically a software that has stored rules, which assist in negotiating the terms and conditions of an agreement. Once the agreement is reached, a smart contract is able to verify it and then execute it as per the agreed terms. There is no need for any third party intervention as it enables the parties to transact directly with each other.
What can blockchain be used for?
Blockchains can be used for a wide variety of applications other than for Bitcoins, such as tracking ownership or the provenance of documents, digital assets, physical assets or voting rights.
Below are potential everyday uses of how blockchains work for us:
Decentralized internet – The algorithm that helps blockchain decide the authenticity of data and reject data that doesn’t match may potentially lead to the internet is more resilient.
Decentralized Markets- Since smart contracts do not need a third party to carry our terms, markets can be decentralized.
Distributed Cloud Storage- It eliminates the need to rely on companies offering data storage and helps cut down cost.
Decentralized Social Networking Sites – Will eliminate the need for censorship of content and content contributors can be financially rewarded for their work
Encrypt Messages – Messaging platforms can make use of blockchain to encrypt their messages as data gets stored on different computers and can be accessed using only the private key.
Proof of Ownership- It will help reduce the sale of stolen goods since blockchain enables tracking of product owners.
While blockchain may be far from perfect, it certainly has plenty of real-world applications