What is Blockchain Technology?
David Kasteler

What is Blockchain Technology?

Everybody comes to new technology from a different place. And no technology since the invention of the internet, in my opinion, is more important to understand than the blockchain. 

You’ve probably heard of “The Blockchain” before, but what exactly is it? And how does it work? 

Short answer: It’s all about secure transactions.

Blockchain is, simply put, a digital public ledger of transactions. Think: record book. 

But instead of a single accountant with a pencil and paper, imagine multiple users with identical copies of a shared ledger across a network of computers. This multiplicity is part of the value, as transparency leads to more accurate transactions, among many other things. 

How it began

Blockchain was first used to record transactions with the cryptocurrency Bitcoin. The tech has since spread to a wide array of industries including health, transportation, and property. 

At Element United we’re using blockchain technology, and the economies that can be built with the blockchain, to revolutionize the mining of precious metals. But before I get into that, I want to hit on a few more key characteristics of blockchain technology. 

Here’s what makes Blockchain technology so valuable 

So much of the conversation about blockchain, from those who don’t understand, focuses on hype - they present the blockchain as a form of mass hysteria. But the blockchain is actually an absolutely necessary technology for the digital age. Here’s why

  • It’s safe
  • It’s immutable
  • It’s consensus-based

Blockchain is safe

Blockchain technology utilizes multiple identical ledgers on separate networks that independently update themselves. Individual networks are called nodes. These nodes are a big step away from traditional centralized databases, which are high value targets to bad actors because they have a single point of failure. In comparison, the blockchain is virtually impervious to attack or shut-down because it’s distributed across multiple nodes.

Blockchain is immutable

Data can’t really be changed once it’s been added and confirmed to the blockchain. Here’s why: Each block in the blockchain is like a page of data in the record book analogy. Blocks have unique identifiers made up of numbers and letters called a hash. Each block stores their own hash along with the hash from the block before it. This creates an ever growing chain of data. I.e. blockchain. 

Even a tiny change to the data on one block creates an entirely new hash for it, breaking the chain. This setup makes data durable. As more and more data is created and stored over longer time frames, the durability of data will become increasingly indispensable for commerce, and even for national security. 

Blockchain is consensus-based

A block can only be added to the chain if the nodes on the network reach agreement to approve it. This is achieved through consensus mechanisms, which are basically a variety of algorithms and protocols written into the blockchain. Nodes are in constant communication with each other and their consensus mechanisms ensure blocks are valid before they’re added. Ledgers update independently and remain identical without a central authority. With Bitcoin, this effectively democratized finance.

The takeaway here is that blockchain technology creates and maintains data that is secure, durable, immutable, transparent, and democratized. Blockchain has already revolutionized the financial sector. Now Element United is going to take that same technology and revolutionize the mining industry. 

More on that to come in my next post! 

Chris Williams

Driving Global Growth in Regenerative Health

2y

Good info!

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