Blockchain is set to take the tech world by storm - here's why
Updated 16 November 2016: The UK government could use the blockchain to track money, including student loan and international aid money, according to MP Matt Hancock. Read on to find out more.
Bitcoin has made plenty of headlines since the cryptocurrency first emerged in 2009, but more recently attention has turned to its underlying technology: the blockchain.
Blockchains are a way of storing information (transactions, in Bitcoin’s case) in a distributed way: sharing it between many parties, thus doing away with the need for a trusted central server. See also: what is Blockchain?
The blockchain can only be updated with the consent of the majority of participants and, once entered, information can never be erased, meaning it can provide a definite, verifiable record of ‘digital events’.
The decentralised, distributed nature of blockchains brings a number of benefits: stronger security as the ledger is shared by thousands of computers, transparency as all transactions are publicly recorded and decreased risk. No single authority has control, so if there is a glitch and one of the nodes in the network goes down, the system can still function. See also: Blockchain has its benefits, but can it live up to the hype?
As a result a number of banks, including Deutsche Bank, Barclays and Santander, have started exploring blockchain’s potential to make payments faster, cheaper and more transparent.
However its potential use is vast. It could be applied to almost any form of record-keeping, agreement, contract or register. The UK government is to start exploring how it could use the blockchain for public services. Here are just a few of the ways blockchains are being used or could be used in future.
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