Putting it in simple terms a blockchain is an anonymous, decentralized block of records. It's used to conduct transactions in a simple and safe way. The Brainchild of the elusive billionaire Satoshi Nakamoto, the founder of Bitcoin.
The applications of this technology are endless and right now it's being tested by banks, the need for blockchain reduces dependency on 3rd parties like intermediaries and transaction verifiers. This technology only allows storage of data and distribution but can’t be copied making it safe.
This technology has the potential to disrupt the entire financial system. The way it works is it takes inputs and stores them in a decentralized block. The blocks are secured using a cryptographic signature. The block acts as a ledger and can be accessed by those who have the permission.
Recently many banks have started experimenting with the blockchain technology for money transfers and information storage.NASDAQ and the Australian securities exchange have implemented this technology for faster execution of trades and to represent digital ownership.ICICI Bank had just recently conducted experiments with the blockchain.
The advantages are countless so to start with blockchain is transparent which means that all information is public. Also, the chances of data corruption are zero percent.
In other words, the blockchain is the Internet of things which are constantly creating new applications as it matures.
But, there’s also a dark side to this technology because there’s too much anonymity. Websites like Silk Road or Alpha bay use this technology to sell drugs, weapons and other explicit stuff. The transactions stay private and cannot be traced.
ICO’s or Initial coin offerings are similar to IPO's.
Startups are using this method to raise capital which has contributed to the crypto bubble, causing prices of Bitcoin and Ether to soar.
ICO’s have zero regulation and are easy to set up. ICO can be used to scam unwary investors who don't have knowledge about the working of the blockchain. Various Government agencies are calling for strict regulations on the technology and its use. China has recently issued a ban on cryptocurrency trading which uses blockchain technology.
Is the emergence of blockchain working for or against mankind? Your views...