What is Blockchain

 Blockchain system

The original purpose blockchain is

 capable of so much more despite

 the sound of the word there's  not

 just one blockchain blockchain is shorthand

 for a whole suite of distributed

 ledger technologies that can be

 programmed to record and track anything

 of value from financial transactions

 to medical records or even 

land titles you might be thinking we already

 have processes in place to track data

 what's so special about blockchain let's

 break down the reasons why blockchain

 technology stands to revolutionize

 the way we interact with each

 other reason number one the way it tracks

 and stores data block chain stores

 information in batches called blocks

 that are linked together in a chronological

 fashion to form a continuous

 line metaphorically a chain of

 blocks if you make a change to the information

 recorded in a particular block

 you don't rewrite it instead the 

change is stored in a new block showing that

 X changed to Y at a particular date and

 time sound familiar that's

 because blockchain is based on the

 centuries-old method of the general financial

 ledger it's

 a non-destructive way to track data changes

 over time here's one example let's

 say there was a dispute between Ann

 and her brother Steve over who owns a

 piece of land that's been in the family

 for years because

 blockchain technology uses the ledger

 method there is an entry in the ledger

 showing that Adam first owned the property

 in 1900 when Adam sold the property

 to Dave in 1930 a new entry was made

 in the ledger and so on every change

 of ownership of this property is represented

 by a new entry in the ledger right

 up until Ann bought it from their father

 in 2007 and is the current owner and

 we can see that history in the ledger

 now here's where things get really

 interesting unlike

 the age old ledger method.

originally a book then a database files stored

 on a single system blockchain was designed

 to be decentralized and distributed

 across a large network of computers

 this decentralizing of information

 reduces the ability for data tampering

 and brings us to the second factor

 that makes blockchain unique it creates

 trust in the data before a block can

 be added to the chain a few things have

 to happen first a cryptographic puzzle

 must be solved thus creating the block

 the computer that solves the puzzle

 shares the solution to all of the other

 computers on the network this is called

 proof of work the network will then

 verify this proof of work and if correct

 the block will be added to the chain

 the combination of these complex math

 puzzles and verification by many computers

 ensures that we can trust each 

and every block on the chain because the network

 does the trust-building for us 

we now have the opportunity to interact directly

 with our data in real time and that

 brings us to the third reason blockchain

 technology is such a game-changer

 no

 more intermediaries currently when doing

 business with one another we don't show

 the other person our financial or business

 records instead we rely on trusted

 intermediaries such as a bank or lawyer

 to view our records and keep that information

 confidential these intermediaries

 build trust between the parties

 and are able to verify for example

 that yes and is the rightful owner

 of this land this

 approach limits exposure and risk but

 also adds another step to the exchange

 which means more time and money spent

 if

 anne's land title information was stored

 in a blockchain she

 could cut out the middleman her lawyer

 who would ordinarily confirm her information

 with Steve as we now know all

 blocks added to the chain have been verified

 to be true and can't be tampered

 with so an can simply show Steve

 her land title information secured on

 the blockchain and

 would save considerable time and money

 by cutting out the middleman this

 type of trusted peer-to-peer interaction

 with our data can revolutionize

 the way we access verify and

 transact with one another and because

 blockchain is a type of 

technology and not a single network it can

 be implemented in many different ways

 some block chains can be completely public

 and open to everyone to view and access

 others can be closed to a select group

 of authorized users such as your company

 a group of banks or government agencies

 and there are hybrid public private

 blockchains too in some those with

 private access can see all the data while

 the public can see only selections in

 others everyone can see all the data but

 only some people have access to add new

 data a government for example could use

 a hybrid system to record the boundaries

 of Anne's property and the fact

 that she owns it while keeping her personal

 information private or it could allow

 everyone to view property records but

 reserved to itself the exclusive right

 to update them it is the combination

 of all these factors decentralizing

 of the data building trust

 in the data and allowing us to interact

 directly with one another and 

the data that gives blockchain technology

 the potential to underpin many

 of the ways we interact with one another

 but much like the rise of the Internet

 this technology will bring with it

 all kinds of complex policy questions around

 governance international law security

 and economics here at the Center

 for international governance innovation

 we seek to bring trusted research

 that will equip policymakers with

 the information they need to advance

 blockchain innovations enabling economies

 to flourish in this new digital

 economy. 

(Shakeel khan)