Blockchain TV: Blockchain Demystified – Ten Minutes of Blockchain Video

1625
ADVERTISEMENTSSpectre Token SaleParagon ICO Atlant ICO Ties

Share with:


The world’s first easy-to-understand explanation of Blockchain.

Most people agree we do not need to know how a television works to enjoy using one. This is true of many existing and emerging technologies. Most of us happily drive cars, use mobile phones and send emails without knowing how they work. With this in mind, here is a tech-free user guide to the Blockchain – the technology infrastructure behind bitcoin, and many other emerging platforms.

What does the Blockchain do?

The Blockchain is software that stores and transfers value or data across the internet.

What can I store and transfer using the Blockchain?

To use the Blockchain, you will need to set up an account or address (a virtual wallet). At this time, the most popular use for the Blockchain is to make micro-payments with virtual currencies. For example, you can buy bitcoin with real money and then spend it on the internet using the Blockchain.

Authorising a payment using the Blockchain is similar to using a credit card to buy something online. Instead of a 16-digit credit card number, you provide the vendor with a unique string of numbers and letters generated for each transaction. With this unique identifier, the Blockchain can verify and authenticate the transaction.

Can I use the Blockchain to transfer real money?

Not yet. Some companies are using the Blockchain to make international financial transfers, but most of these transactions are enabled by bitcoin or other digital currencies. Exchanging real money for bitcoin incurs fees for the sender, but the benefit is speed, security and convenience.

How is transferring value or virtual currency on the Blockchain different from transferring money from my bank account?

Depending on the amount and the destination, when you transfer money from your bank account, your bank will limit the amount you can transfer. Most banks impose daily limits for all transactions. When you use virtual money on the Blockchain, there are no limits.

When you transfer value or currency from your bank account to an account with a different bank or other financial institution, the transfer can take days. When you use the Blockchain, the transfer is immediate. If a transfer from your bank account puts your account into debit, your bank will charge you a fee. The Blockchain will not allow a transfer in excess of your balance and so your virtual wallet will never be in debit.

How is storing value using the Blockchain different from keeping my money in a bank account?

Bank accounts and credit cards are vulnerable to attack from fraudsters and hackers. The Blockchain is a more secure way to store and transfer funds, particularly if you keep a modest value in your virtual wallet. Hacking the Blockchain is difficult, time-consuming and expensive. No one breaks into Fort Knox for just $500. Of course, value stored on the Blockchain will not earn you interest or improve your credit rating; and the Blockchain will not lend you money to buy a house or car. The Blockchain does not replace your bank, but very soon banks will be using the Blockchain too.

How is transferring data using the Blockchain different to attaching a file to an email?

Unlike emails with attachments, the Blockchain enables the immediate transfer of data no matter how big the file. Also, there is less danger of spam or viruses and no need for firewalls or junk folders.

How is storing data using the Blockchain different to storing my files on my computer?

If you lose or break your computer or if it is attacked by a hacker or virus, you could lose that data. The Blockchain resides in the cloud. Like any web-based storage, you just need your username and password to access your data from anywhere anytime.

What else can I use the Blockchain for?

Very soon the Blockchain will be used for online transactions. It will enable smart contracts, crowdfunding and auctions. It will verify the provenance of artworks and diamonds; transfer title to real estate and other assets; and store information about people, products and property. Apps for music distribution, sports betting and a new type of financial auditing are also being tested.

Why is the Blockchain described as “riskless”?

The Blockchain verifies and authenticates both ends of each transaction. It will not release a purchaser’s funds until it has checked that the vendor will deliver as promised.

Is the Blockchain safe?

Standards and regulations are needed so that the technology can be readily used across different organisations, industries and jurisdictions. Blockchains can be private (like an email) or public (like Facebook), so users need to know which type is being operated before joining a new Blockchain.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

Visit Website
View All Articles
advertisement