What is Blockchain Technology?

What is Blockchain Technology?

“The practical consequence […is…] for the very first time, a way for one Internet user to transfer a unique lump of digital property to another Internet user, such that the transfer is assured to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Broad Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to switch Wikipedia entries stored on a centralized server.

Wikipedia’s digital backbone is similar to the very protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and significant feature of blockchain technology.

Wikipedia’s ‘master copy’ is edited on a server and all users see the fresh version. In the case of a blockchain, every knot in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every knot is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a fresh technology.

Rather, it is a combination of proven technologies applied in a fresh way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, ordinary, yet sturdy network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement inbetween different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

Authored by Nolan Bauerle; photos by Maria Kuznetsov

What is Blockchain Technology?

What is Blockchain Technology?

“The practical consequence […is…] for the very first time, a way for one Internet user to transfer a unique chunk of digital property to another Internet user, such that the transfer is ensured to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Broad Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to switch Wikipedia entries stored on a centralized server.

Wikipedia’s digital backbone is similar to the very protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and significant feature of blockchain technology.

Wikipedia’s ‘master copy’ is edited on a server and all users see the fresh version. In the case of a blockchain, every knot in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every knot is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a fresh technology.

Rather, it is a combination of proven technologies applied in a fresh way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, plain, yet sturdy network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement inbetween different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

Authored by Nolan Bauerle; pics by Maria Kuznetsov

What is Blockchain Technology?

What is Blockchain Technology?

“The practical consequence […is…] for the very first time, a way for one Internet user to transfer a unique chunk of digital property to another Internet user, such that the transfer is ensured to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Broad Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to switch Wikipedia entries stored on a centralized server.

Wikipedia’s digital backbone is similar to the very protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and significant feature of blockchain technology.

Wikipedia’s ‘master copy’ is edited on a server and all users see the fresh version. In the case of a blockchain, every knot in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every knot is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a fresh technology.

Rather, it is a combination of proven technologies applied in a fresh way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, elementary, yet sturdy network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement inbetween different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

Authored by Nolan Bauerle; photos by Maria Kuznetsov

What is Blockchain Technology?

What is Blockchain Technology?

“The practical consequence […is…] for the very first time, a way for one Internet user to transfer a unique lump of digital property to another Internet user, such that the transfer is assured to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Broad Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to switch Wikipedia entries stored on a centralized server.

Wikipedia’s digital backbone is similar to the very protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and significant feature of blockchain technology.

Wikipedia’s ‘master copy’ is edited on a server and all users see the fresh version. In the case of a blockchain, every knot in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every knot is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a fresh technology.

Rather, it is a combination of proven technologies applied in a fresh way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, ordinary, yet sturdy network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement inbetween different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

Authored by Nolan Bauerle; pictures by Maria Kuznetsov

What is Blockchain Technology?

What is Blockchain Technology?

“The practical consequence […is…] for the very first time, a way for one Internet user to transfer a unique lump of digital property to another Internet user, such that the transfer is ensured to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

From a cruising altitude, a blockchain might not look that different from things you’re familiar with, say Wikipedia.

With a blockchain, many people can write entries into a record of information, and a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

Descending to ground level, however, the differences that make blockchain technology unique become more clear. While both run on distributed networks (the internet), Wikipedia is built into the World Broad Web (WWW) using a client-server network model.

A user (client) with permissions associated with its account is able to switch Wikipedia entries stored on a centralized server.

Wikipedia’s digital backbone is similar to the very protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.

The distributed database created by blockchain technology has a fundamentally different digital backbone. This is also the most distinct and significant feature of blockchain technology.

Wikipedia’s ‘master copy’ is edited on a server and all users see the fresh version. In the case of a blockchain, every knot in the network is coming to the same conclusion, each updating the record independently, with the most popular record becoming the de-facto official record in lieu of there being a master copy.

Transactions are broadcast, and every knot is creating their own updated version of events.

It is this difference that makes blockchain technology so useful – It represents an innovation in information registration and distribution that eliminates the need for a trusted party to facilitate digital relationships.

Yet, blockchain technology, for all its merits, is not a fresh technology.

Rather, it is a combination of proven technologies applied in a fresh way. It was the particular orchestration of three technologies (the Internet, private key cryptography and a protocol governing incentivization) that made bitcoin creator Satoshi Nakamoto’s idea so useful.

The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, ordinary, yet sturdy network architecture of blockchain technology itself.

Defining digital trust

Trust is a risk judgement inbetween different parties, and in the digital world, determining trust often boils down to proving identity (authentication) and proving permissions (authorization).

Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.

The idea can be applied to any need for a trustworthy system of record.

Authored by Nolan Bauerle; pictures by Maria Kuznetsov

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