Guest post this Friday by a senior at Penn State! Read on to see what he has to say about blockchain.
At this point, you’ve probably heard the term ‘blockchain’ thrown around a time or two. In reality, you’ve probably been in a conversation where it’s been brought up, people start to discuss topics related to it, and you find yourself nodding along to everything they say, pretending to understand what they’re talking about and giving them the satisfaction of knowing they have an engaged audience. Before I say anything else, don’t hate yourself for it! We’ve all been there. What’s important is learning what they were talking about after the fact, so the next time you see this person, you can really nod your head to a familiar topic, not just words going in one ear and out the other.
So what is ‘blockchain’ exactly? No, it’s not bitcoin, and no it’s not illegal. I know at least a few of you were thinking that. Blockchain is in fact a system of measurement. Just as banks keep ledgers of every transaction within their clientele and partnering banks, blockchain does this for cryptocurrency as well. The key difference between a traditional bank ledgering system and the blockchain is that every transaction that happens in the blockchain is public. Every transaction and its respective amounts and included parties are all recorded on this public interface. Transactions are sorted into blocks along this chain and published online, while remaining well encrypted. These blocks are mathematically solved with a certain amount of transactions, depending on the solution, and then placed on the chain. The blocks themselves are solved by miners; the individuals who actually derive each coin. They then take each transaction, and through a series of complex mathematical procedures, systematically solve each block; adding onto the chain. I know, mind blown. Now before any questions, I have to disclaim the hobby of mining by saying that not everyone can do this, even if you claim to be a mathematical savant. Crypto-mining takes a heavy set of expensive computer machinery, and a lot of time that most people don’t have. However, with that being said, it’s not impossible!
So aside from avoiding a confusing conversation, why is this subject important to our generation? Simple. The blockchain is going to become the most disruptive technology of our modern world. Aside from all that it has already done, the public ledgering system allows for instant data and information dissemination across multiple platforms, and business templates. In other words, people can share sensitive information instantly, with whoever they want to, in a very safe manor. In the next 20 years, the blockchain will revolutionize the ways in which businesses process data. Prospectively, this system will be replicated across every business and multi media platform, allowing for easier spread and analysis of data.
So there you have it, the blockchain in a nutshell. Before you go buying all the mining rigs and cryptocurrencies you can find, it is important to have at least a base knowledge of the blockchainand the way it operates today. Something about .001% of the world could really explain well. Tell that to your IST and market trends professor.