Thursday 11 May 2017

Bitcoin & Block Chain for Dummies

Any launch of new technology brings in amalgamation of curiosity (which enables us to try it) and caution (which make us slow in taking steps). The third invisible factor in this equation is our inability to deal with it. When the internet came into realization nobody knew what to do with it. Only few geeky minded people could relate to it and were using it. 

No one knew how ground breaking internet was and no one would have guessed how much impact it would make since then. Bitcoin and Block chain is such groundbreaking idea since the invention of Internet.

Simply put Bitcoin is a peer to peer electronic cash system which can be used as online payment and sent directly without a financial institution or a middle man.  And Block Chain facilities this transaction with utmost security and freedom. 
You lost me there. Are they same ?
Bitcoin uses Block Chain like the way email uses Internet. At its core the block chain is a database. 

1. A database that is public, so it’s not owned by anybody. 

2. Distributed across many computers around the globe and constantly synchronized with latest information.  

3. The technology is secured by the state of art cryptography making it tamper proof and attacker proof. 

4. Overall more than 1 billion$ has been invested in the Bitcoin and Block chain technology.

Wait whats the big deal ?
Bitcoin has been around for 7 years now and block chain is evolving. While many are skeptical about the regulatory factors, Giants like JPMorgan Chase & Co, Microsoft, Intel Corp and more than two dozen other companies have teamed up to develop standards & technology. The effort is aimed to make it easier for enterprises to use blockchain code to move toward distributed ledger systems. The latest addition to this list is EEA, The European Economic Area.

So what now?
The technology has gained significant momentum now. Amongst the new development is Ethereum. It is a type of blockchain that can be used to develop decentralized applications. 

Several banks have already adapted Ethereum to develop and test blockchain trading applications. At this rate of synergy and growth, it is going to be much simpler to do personal and official transaction in a much more efficient way.

Its all about finances right ?

Block chain technology is not just for financial transaction. Since it is a database at its core, it can be used to save all information about you. 

For example, all your assets, and documents like passports, driver’s license or marriage certificates can be tied to your Block Chain ID. Even voting can be done using Block Chain ID securely from the comfort of your living room. 

Fiction or Fact ?
True! We are not quite there yet, but we are on our way. It is vital for busines owners start preparing for this massive change in the industry. In no time we would be developing apps for Block chain enabled businesses. 

I just created my onename id, a place where you can save all your identity information securely, and created my account with Xapo a bitcoin wallet.  I invite you to explore the Block chain and Bitcoin world! 

   Srivatsan Aravamudan

   Telephone:+65 62689551
   Fax:+65 62689858
   Business Analyst - Snr Software Consultant.

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