Let’s get started with a broad definition in the words of Don & Alex Tapscott (Authors of blockchain revolution) The blockchain is defined as “ An incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Putting up in simple terms, Blockchain is a digital recording of transaction history which is managed and distributed across peer to peer networks that includes numerous computing devices.
The data in Blockchain exist as shared and it isn’t stored in any particular location and the transaction is transparent and available to all participants. This means it is decentralized and difficult to hack and that’s what makes blockchain technology unique. We have a classic use case for you to ponder and relate with blockchain technology in a simpler manner.
How to relate the working model of Blockchain with Google Docs?
The regular way of sharing a doc is to send a word document to a recipient and ask them to make a revision and wait until they send us the revised copy. The problem here is that we have to wait until the changes are to be done. This is exactly how our centralized databases work today and this is how bank maintains our money transactions. They lock access while they make a transfer, then update the other side, then re-open access.
On the other hand Google Docs as a concept of the blockchain, parties have access to the same document. The single version of the document is always visible and accessible to both of them. It is like a shared ledger of a transaction. Just Imagine, now the legal documents are used and shared in the traditional method, why not such documents are shared like how google docs works instead of transferred back and forth?
We needn’t want a blockchain tech to share documents, but the shared documents analogy will be a powerful one.”.
Blockchain mechanism brings out the degree of accountability, there would be no missed transaction, human or machine errors. The transaction history is transparent and whoever has access over it can view it. The blockchain network works on an agreement – a kind of self-auditing method which happens at every ten-minute interval. This transaction is referred to as a block and the combination of all individual block together is called a blockchain.
The blockchain technology is categorised as permissioned and permissionless, which is Public blockchain and Private blockchain where this will be elaborated in our upcoming blogs, Stay tuned.
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