Beyond Bitcoins - How Blockchain Technology Can Transform Businesses

Blockchain - the
technology behind the virtual currency bitcoin - might sound new to you today,
but it has all the potential to transform your world once it is widely adopted. 

In this blog, we will get familiar with the widely used bitcoins and blockchain
technology, how they have evolved together to create a disruption in finance
markets and the unanticipated impact of blockchain technology on businesses.

Beyond Bitcoins - How Blockchain
Technology Can Transform Businesses?

Blockchain - the
technology behind the virtual currency bitcoin - might sound new to you today,
but it has all the potential to transform your world once it is widely adopted.

In this blog, we will get familiar with the widely used bitcoins and blockchain
technology, how they have evolved together to create a disruption in finance
markets and the unanticipated impact of blockchain technology on businesses.

But wait, to start with, what are Bitcoins?

Simplifying bitcoins

Bitcoins are
digital currency created and held electronically. They serve as the backbone of
digital value transfer. According to a public survey by one of the block
explorer services, “There are over 10 million bitcoin wallets in the world.”

transaction system is like a "trustless" system that implements its
own credit. It is not subject to any laws or regulations and is implemented
through machine languages. Credit is insulated from user influences during
system runtime and cannot be damaged.

Sounds amazing?
Yes? Then, the technology behind it will blow your mind!

Blockchain - Technology[1] [2]  that Powers up
the Ubiquitous Bitcoins

Blockchain is a
distributed, decentralized database or data structure that makes it possible to
create a digital collection of accounts and share it among a distributed
network of computers. Information or records are stored in blocks and chained
to the next one using cipher signatures. These blockchains have full copies on
each of the nodes in the system, and all the information is timestamped and

Thanks to the Internet, the blockchain
system is easy to use and can now cover every corner of the world.

Features of Blockchain

DACT refers to the four major elements of the blockchain concept:

1.   Decentralization
of Blockchain: Refers to the
fact that the nodes on the entire system are equivalent, and every node can
join or leave freely without any impact on the system operation.

2..   Autonomous (No
need for Management Organizations): All nodes follow a standard rule and reach a

Contractual (No third-party arbitration
needed): All transactions
and processes in the system observe a certain rule or contract.

Trackable: All transactions are traceable and irreversible.

look at the benefits of Blockchain:

The following
benefits make blockchain-based systems stand out from other similar systems:


Blockchain nodes
are available around the globe through open source communities to ensure
independent execution efficiency. This is due to the distributed design of the
system that means applications don't need to connect to all the nodes, but to
the nearest node to obtain required information.


Blockchain nodes
don’t allow any data tampering as any addition of transaction information
requires system consensus. Furthermore, blockchain-based systems have strict
permission settings. After a protocol is written into code, the encrypted data
of the system is made accessible to only a few users with appropriate
permissions. Even nodes participating in system operation cannot access the
data, which ensures maximum security in blockchain-based systems.

3)Open and

Changes to public
blockchains can be publicly viewed by all parties to ensure transparency. In
fact, once data is stored in the blockchain system, all transactions are
traceable with complete copies of timestamped transactions available on each
node in the system. This ensures no loss or incorrect transaction results.

All transactions
are immutable, which means they cannot be altered or deleted.

5)Faster Processing
and Transactions

completed using blockchain systems are significantly faster and processed 24x7. 

While blockchain
technology application is best known in the financial services world, it can be
used in other industries as well to enable faster transactions that would be
impossible otherwise. It is believed that all transactions that require
authenticity identification, multiple-party involvement, source tracing, and
compliance must adopt well-known term of art - ‘smart contract’.

Understanding Smart Contract: An Advanced Concept

Many blockchain
researchers and practitioners consider an interconnection between blockchain
technology and smart contract. Though the early articles by Satoshi Nakamoto
never mentioned any such relationship, it is believed that blockchain
technology is the best choice when implementing the smart contract. Based on
trusted sources, the first person to propose the term, "smart
contract" was Nick Szabo, a computer scientist. He intended to realize
e-commerce relationships between strangers as being similar to legal contracts.  Szabo defined smart contract as a
computerized transaction protocol that executes the terms of a contract. The
objectives of designing the smart contract are to: 

1.Satisfy contract terms

2.Exclude possibility of unexpected
situations, whether malicious or unintentional

3.Avoid need for any intermediate third

Szabo believes
that through cryptology protocol and digital safety technology, smart contract
can be effectively implemented on the Internet to reduce fraud and lower
arbitration and transaction costs.

Let’s understand this smart contract concept
using an example of shared transactions:

Assume that Peter
has 100 Facebook shares in his account, with each share valued at about $100.
Jeff has $4,000 in his savings account. The status of their accounts look
something like below:

Account Name




100 Facebook shares





Let’s say; Jeff bought 40 Facebook shares from Peter at $100 per share. When
the $4,000 is transferred from Jeff's account to Peter's account, the smart
contract will find the condition met and transfer 40 shares from Peter's
account to Jeff's account. After the smart contract is executed, their account
status become:

Account Name




60 Facebook shares



40 Facebook shares


This shows the
smooth execution of the smart contract. If the smart contract had not existed,
an intermediate third party would have been required for the transaction.

Why Smart Contract?

If you want to utilize the cryptography principle and electronic contract to
protect data from third-party tampering in a blockchain system, it will require
smart contract.
All transactions that require authenticity identification, multiple-party
involvement, source tracing, and compliance must adopt smart contract to
maintain reliability and ensure the security of data. Smart contract is
entirely based on blockchain technology.

While we have seen the transformation that Bitcoin has brought to the finance
industry, innovators are now more interested in the design philosophy of
blockchain technology and its application in various fields. Blockchain
technology is surely going to lead the wave of information technology in the
upcoming decades.

of Blockchain

technology has the capability to optimize global infrastructure and efficiently
deal with issues when compared with current systems.

It can bridge the
gap between borders with shared ledgers of transactions and goods. It can be
used to develop a new bond trading system or to provide common platforms for
deposits across multiple banks. In fact, World Economic Forum estimates that
‘80 percent of banks are actively working on blockchain projects’.

Blockchain can
even be used to increase efficiency in the process of buying a house by
simplifying multiple processes related to banks, attorneys, title companies,
insurers, regulators, tax agencies, and inspectors.

It is already being used by a ride-sharing app, allowing drivers and customers
to connect without the need for a third-party ride-sharing company.

The Economic Times predicts,
“Blockchain technology is one of the crucial technologies that can even boost
replacements of bank staff and intermediaries of financial transaction system
by robots in the near future.” 

Exciting, right?

Is your company
also utilizing blockchain technology? Share your experiences with us and let
the world know!

时间: 2016-12-06

Beyond Bitcoins - How Blockchain Technology Can Transform Businesses的相关文章

How Bitcoins and Blockchain Technology Are Reshaping Our World

The blockchain technology plays different roles on many occasions, and its value has been unquestionably far beyond the concept of "crypto currency." From making a bet with friends while watching World Cup, to buying a house, the blockchain tech

Learn Blockchain and Smart Contract in 10 Minutes

So what is blockchain exactly?  In general, a blockchain implements a brand new credit system.  Another synonymous saying goes like this: the blockchain system is a "trustless" system that implements its own credit.  The credit system is not sub

Blockchain and its Impact on Various Sectors

Introduction to Blockchain Many industry experts have labeled Blockchain as the next techno-financial revolution. Don & Alex Tapscott, authors of Blockchain Revolution (2016), describe Blockchain as "an incorruptible digital ledger of economic tr

The Evolution of Blockchain Development

Introduction Blockchain is a distributed peer-to-peer network without any central control points. It uses distributed unified operation to achieve a set of tamper-resistant and trusted database technical solutions. It also features decentralized stor

从理想到现实, 你不知道的区块链

区块链究竟是什么? 说得笼统一点,区块链实现的是一种全新的信用系统. 另外一个同义的说法是,区块链系统是一个"Trustless"(无须信用)的系统,无须信用的系统本身就实现了自己的信用. 这个信用系统不基于任何法律法规,是用机器语言来实现的.在系统运作时,这种信用不受使用者的影响,也无法被破坏.借助互联网的传播,这个区块链系统能覆盖全球任何一个角落,并且是简单易用的. 简而言之,区块链(blockchain)说的是由区块(block)用某种方式组织起来的链条(chain). 在本文中


本文根据DBAplus社群第81期线上分享整理而成 讲师介绍  邢有涛 菜根科技技术总监   负责Docker.Microservices.Swagger.Ethereum和Decent相关开发:精通Linux系统.驱动.网络协议和并行编程技术,专注研究C.NodeJS和Go语言. 七年电信设备开发和三年互联网开发经历,南京邮电大学电子信息工程专业硕士.   大家好,近年来,"区块链"技术迅速走红,其去中心化.去信任的机制得到全球市场的认同, 并有望成为下一代"价值互联网&q


关于区块链如何具有划时代意义及其潜在的巨大影响,相信很多人都已经略有耳闻.略知一二,这一点已经逐渐没了异议.而关于区块链何时才能真正改变世界,大多数人则莫衷一是,一些人看到或参与了区块链的初级商用实验而变得乐观,一些人则关注区块链的潜在制约条件而愈发悲观.问题来了,2009年至今,在近8年的时间内,区块链如何一步步进化并趋于壮大的?取得了哪些突破?距离规模化商用,还存在哪些限制性条件?下面笔者做些抛砖引玉的思考,一家之言,欢迎大家留言交流. 区块链的由来及其演进逻辑区块链(blockchain)


1.算法(Algorithms)的崛起 大数据已过时,算法正当道.数据已经成为一种商品,每个组织都能够收集和存储大量的数据.分析大数据也不再那么引人注目了.每个组织都可以聘用或培训大数据分析人员来了解数据模式. 2016年,人们更加关注对已接触数据采取什么行动.算法将大行其道.算法能够定义行为,它们是非常专业的软件,能够很好地执行专业的指令,远比人类做的要好.例如,当你访问一个网站时,根据你手上的资料,快速确定最合适的广告.或者在大量的交易数据中找出异常值来甄别欺诈行为. 这些算法是非常专业的人

Linux 基金会将联合20多家企业打造统一的区块链技术

Linux基金会刚刚宣布,和20多家企业共同合作研究,统一并开发数据区块链技术(blockchain technology)--这种技术是现如今许多数字加密货币的核心,比如比特币.2014年的时候,在纽约时报的一篇文章中,硅谷顶级投资者Marc Andreessen就谈到了比特币的区块链技术,将比特币及区块链技术称作继1975年个人计算机和1993年互联网之后的三大重要发明之一. 区块链可以理解为一个交易的公共账簿,通过加密算法保证安全性,在所有参与设备上进行共享,具备防篡改的特性,即便是服务器