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Blockchain Intoduction


Blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole.


In financial markets there’s always a mechanism to correct an attack. In a blockchain there is no mechanism to correct it — people have to accept it.


Blockchain technology has the ability to optimize the global infrastructure to deal with global issues in this space much more efficiently than current systems.


Everyone is talking about blockchain, the new technology in the FinTech Industry. The concept of blockchain has energised the financial services industry globally. The concept has already brought a disruption in the financial industry. 



What is blockchain?


A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database.


Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block. To use conventional banking as an analogy, the blockchain is like a full history of banking transactions.


Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Meanwhile, blocks, are like individual bank statements. The full copy of the blockchain has records of every bitcoin transaction ever executed. It can thus provide insight about facts like how much value belonged to a particular address at any point in the past.


Some developers have begun looking at the creation of other different blockchains as they do not believe on depending on a single blockchain. Parallel blockchains and sidechains allow for tradeoffs and improved scalability using alternative, completely independent blockchains, thus, allowing for more innovation.



Benefits of blockchain technology:


As a public ledger system, blockchain rec

ords and validate each and every transaction made, which makes it secure and reliable.

  1. All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
  2. Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
  3. Decentralization of the technology.

 


Banks and other financial institutions have also been active in investing (time and/or money) in this space.


 

 

 

  

  • Will Banks – CFO

  • Challenger Capital

  • April 2016