Tuesday 24 October 2017

Two aspects of the blockchain technology

The blockchain technology enables the synchronisation of distributed ledgers without the involvement of a trusted intermediary. For this reason, it is often called "distributed ledger technology.” It helps enhance the security and integrity of data. Those benefits accrue in both public and private blockchains. Most of the recent initiatives of using blockchains in financial sectors tap into this aspect of the technology.

The blockchain technology is, however, not just about generating ledgers or a special way of doing it. Its greater potential for disrupting the society lies in the fact that it creates an online platform which enables the trustless P2P (peer-to-peer) trading of cryptocurrencies and other tokens. The core innovation of the Bitcoin's blockchain relates to this aspect of the technology. This feature is less conspicuous with private blockchains. Although the recent trend seems to lean in favour of private blockchains, the full potential of the blockchain technology would not be exploited if this aspect were neglected.

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