Blockchain Characteristics

Blockchain has many interpretations, so one definition may not be sufficient. To start with a broad definition, Blockchain as a solution is a distributed computing network that enables peer-to-peer management of transactions and assets. This means an intermediary is not required to facilitate the transaction.

For example, in today's banking system there is almost always an intermediary, in the form of a central bank, that facilitates and regulates transactions between banks. A Blockchain solution would not require the existence of a central bank, the banks participating in the transactions would be able to self-regulate and ensure all aspects of the transaction were executed correctly.

While distributed and peer-to-peer computing is not new, there are certain characteristics of Blockchain solutions that provide a mechanism that makes peer-to-peer business transactions and disintermediation possible. Blockchain shows the potential to build efficient solutions and transform business and transaction models.

Disintermediation is the removal of intermediaries from a supply chain or, in colloquial terms, "cutting out the middlemen" in connection with a transaction or a series of transactions.

The characteristics of Blockchain solutions that make them a promising option for the future are:

• Decentralisation

• Transparency

• Immutability

• Traceability

• Distributed Security

Blockchain and Cryptocurrencies

Blockchain solutions require high-powered computing devices, complex software algorithms, a highly customized and efficient database, and high bandwidth networks, all working together to execute transactions and manage data in a fully synchronized manner.

The first widely known and public implementation of a Blockchain solution is Bitcoins - the first of the many cryptocurrencies available today. There is a general misconception that Bitcoins and Blockchain are synonymous. In reality, Bitcoins are just one implementation of a Blockchain. There are many other applications of Blockchain technology.