Bitcoin Blockchains are digital ledgers

Bitcoin

Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency, as the system works without a central repository or single administrator. It was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.

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Blockchain

Blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.

Inside every block is a complete history of everything that has ever happened on that chain, as well as the rules that all of the blocks follow.

There are an estimated 700 Bitcoin-like cryptocurrencies (exchangeable value tokens) already available. As well, a range of other potential adaptations of the original blockchain concept are currently active, or in development.

Explain Blockchain Using MS Word Vs Google Doc

“The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient, and ask them to make revisions to it. The problem with that scenario is that you need to wait until receiving a return copy before you can see or make other changes because you are locked out of editing it until the other person is done with it. That’s how databases work today. Two owners can’t be messing with the same record at once.That’s how banks maintain money balances and transfers; they briefly lock access (or decrease the balance) while they make a transfer, then update the other side, then re-open access (or update again).With Google Docs (or Google Sheets), both parties have access to the same document at the same time, and the single version of that document is always visible to both of them. It is like a shared ledger, but it is a shared document. The distributed part comes into play when sharing involves a number of people.
Imagine the number of legal documents that should be used that way. Instead of passing them to each other, losing track of versions, and not being in sync with the other version, why can’t *all* business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow.You don’t need a blockchain to share documents, but the shared documents analogy is a powerful one.”

-William Mougayar, Venture advisor, 4x entrepreneur, marketer, strategist and blockchain specialist 

The idea of decentralization

By design, the blockchain is a decentralized technology.

Anything that happens on it is a function of the network as a whole. Some important implications stem from this. By creating a new way to verify transactions aspects of traditional commerce could become unnecessary. Stock market trades become almost simultaneous on the blockchain, for instance — or it could make types of record keeping, like a land registry, fully public. And decentralization is already a reality.

A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.

“I think decentralized networks will be the next huge wave in technology.”
-Melanie Swan, author Blockchain: Blueprint for a New Economy (2015)

Advantages of Blockchains

Efficiencies resulting from distributed ledger technology (DLT) can add up to some serious cost savings.  distributed ledger technology (DLT) systems make it possible for businesses and banks to streamline internal operations, dramatically reducing the expense, mistakes, and delays caused by traditional methods for reconciliation of records.

The widespread adoption of distributed ledger technology (DLT) will bring enormous cost savings in three areas, advocates say:

Electronic ledgers are much cheaper to maintain than traditional accounting systems; the employee headcount in back offices can be greatly reduced.
Nearly fully automated distributed ledger technology (DLT) systems result in far fewer errors and the elimination of repetitive confirmation steps.
Minimizing the processing delay also means less capital being held against the risks of pending transactions.

Investing in Blockchains

Investors interested in getting on the blockchain technology bandwagon will find it is now easier than ever to do so. In 2015, the venture capital concern Digital Currency Group launched, intending to build what it refers to as "the largest early-stage investment portfolio in the digital currency and blockchain ecosystem." Additionally, according to a report published by the American Software-as-a-Service (SaaS) company NASDAQ Private Market, the amount of venture capital being funneled into cryptocurrency-using firms was anticipated to exceed $1 billion. Companies have even become so interested in the technology that many have begun to play around with the idea of creating their own private blockchains.


Nevertheless, blockchain startups are not without challenges. Among the most significant is the fact that most consumers simply do not understand the extremely complicated concept of blockchain technology. In order to overcome this challenge, companies will need to find ways to precisely explain what they do in easily understandable language – and how they intend to deal with issues like secure online transactions and consumer privacy.