Blockchain: A Misunderstood Digital Revolution. Things You Need To Know About Blockchain


JOHN TASKINSOY

VIEWS
1392
INFO
more
  • Category : Business
  • Size : 1207120
  • By : JOHN TASKINSOY
Abstract
Blockchain and distributed ledger technology (DLT) are used interchangeably. In the aftermath of the 2008 global financial crisis, Bitcoin gave birth to blockchain, or vice versa. A decade has passed since the launch of the first successful cryptocurrency in January 2009 by a mysterious creator under the alias Satoshi Nakamoto. Now along with Bitcoin, 2,915 altcoins are trading with a combined market cap of $222 billion, Bitcoin’s market cap alone is $150 billion (67.6% of the market). Blockchain’s potential is much bigger than Bitcoin; if regulatory uncertainty alleviates, the blockchain’s value can easily increase by hundred-fold to $3 to $4 trillion dollars by 2030. Although financial sector leads blockchain adoption, blockchain’s opportunities in non-financial sectors are immense. In the simplest terms, blockchain is a distributed ledger made up of two parts, blocks containing of data and a chain that holds them together. Blocks are like storage units that store anything of value related to minting coins (i.e. Bitcoin) via a mining process and keeps a chronology of transactions (e-commerce); chain can be metaphorically viewed as a string that holds all the blocks together, created using a consensus algorithm based on proof-of-work (PoW) or proof-of-stake (PoS). Blockchains are often organized into three most common forms; as such, public blockchain (purely peer-to-peer, decentralized and permissionless; any miner (i.e. node) at any time can access the network to add, verify or validate data without restrictions), private blockchain (permissioned, it is controlled by a central authority which grants permission to pre-selected people who can add and verify records), and consortium blockchain (also formed as permissioned, a group of nodes governs all transactions). It is true that blockchain provides anonymity making identities of its users pseudonymous; but contrary to popular belief, blockchain will not possibly solve all our problems and a permissionless blockchain will not guarantee complete privacy since all transactions become visible to all nodes of the network.
Recommended Papers

Blockchain: Moving Beyond Bitcoin into a Digi...

Added by JOHN TASKINSOY
1344 views

Minor sleep loss can put your job at risk, st...

Added by Andy Hudson
1277 views

Malaysia: “Crouching Tiger, Hidden Dragon...

Added by JOHN TASKINSOY
1485 views

Widening Development Gaps between ASEAN-5 and...

Added by JOHN TASKINSOY
1358 views

We Need No Dime from the IMF: Is This a Tempo...

Added by JOHN TASKINSOY
1405 views

Turkish Lira – A Fiat Currency that Resembl...

Added by JOHN TASKINSOY
1390 views

Turkey’s Unravelling Economy Resembles the ...

Added by JOHN TASKINSOY
1214 views

The Transition from Barter Trade to Impedimen...

Added by JOHN TASKINSOY
1261 views

Typology of Stress Testing: Microprudential v...

Added by JOHN TASKINSOY
1588 views

Typology of Stress Testing: Microprudential v...

Added by JOHN TASKINSOY
1615 views

Stress Testing Made Easy: No More US Banks St...

Added by JOHN TASKINSOY
1284 views

Pure Gold for Economic Freedom: A Supranation...

Added by JOHN TASKINSOY
1352 views

Higher Capital and Liquidity Regulations of B...

Added by JOHN TASKINSOY
1598 views

The Global Competitiveness Index: A Comparati...

Added by JOHN TASKINSOY
1275 views

Facebook’s Project Libra: Will Libra Sputte...

Added by JOHN TASKINSOY
1356 views

Is Facebook’s Libra Project Already a Misca...

Added by JOHN TASKINSOY
1320 views

Facebook’s Libra: Why Does US Government Fe...

Added by JOHN TASKINSOY
1300 views

Facebook’s Libra: Big Bang or Big Crunch? A...

Added by JOHN TASKINSOY
1273 views

Ever More Financial Instability notwithstandi...

Added by JOHN TASKINSOY
1196 views

Bitcoin: The Longest Running Mania – Tulips...

Added by JOHN TASKINSOY
1394 views

Bitcoin and Turkey: A Good Match or a Perfect...

Added by JOHN TASKINSOY
1862 views

Asian Miracle, Asian Tiger, or Asian Myth? Fi...

Added by JOHN TASKINSOY
1337 views

A Delicate Moment in Turkey’s Economic Tran...

Added by JOHN TASKINSOY
1266 views

This Time is Different: Facebook’s Libra Ca...

Added by JOHN TASKINSOY
1351 views

A Hiccup in Turkey’s Prolonged Credit Fuele...

Added by JOHN TASKINSOY
1374 views

Bitcoin Mania: An End to the US Dollar’s He...

Added by JOHN TASKINSOY
1342 views

A Macro Stress Testing Framework for Assessin...

Added by JOHN TASKINSOY
1411 views

Effects of Basel III Higher Capital and Liqui...

Added by JOHN TASKINSOY
1315 views

Rigorous Capital Requirements under Basel III...

Added by JOHN TASKINSOY
1429 views

Relevance of Corporate Financial Policies and...

Added by JOHN TASKINSOY
1264 views

Sustainability Reporting in the Airline Indus...

Added by JOHN TASKINSOY
1469 views