{"id":560,"date":"2017-12-13T05:23:11","date_gmt":"2017-12-13T05:23:11","guid":{"rendered":"http:\/\/kusuaks7\/?p=165"},"modified":"2025-04-18T10:25:05","modified_gmt":"2025-04-18T10:25:05","slug":"so-what-is-this-blockchain-thing","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/so-what-is-this-blockchain-thing\/","title":{"rendered":"So, What is This Blockchain Thing?"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tReady to learn Blockchain?\u00a0Browse courses<\/a>\u00a0like\u00a0Blockchain for Finance Professionals<\/a> developed by industry thought leaders and Experfy in Harvard Innovation Lab.<\/em><\/strong>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tFirst in a series of blogs about blockchain technology and\u00a0<\/strong>its impact on business practices, corporate governance, and cybersecurity<\/strong><\/strong>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIt\u2019s hard to avoid articles, white papers, blog pieces and presentations that promote the almost magical use of blockchain \u2013 it seems that blockchain, a form of distributed ledger technology, can be applied to virtually any situation, and best of all, it is entirely secure.\u00a0 As Don and Alex Tapscott wrote in\u00a0Blockchain Revolution<\/em>, \u201cThe blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOne aspect of blockchain technology has become highly debated \u2013 whether it is as secure as its proponents claim. Since it seems inevitable that blockchain technology will be used to drive a variety of transactions, and not simply cryptocurrency, the JMBM Cybersecurity and Privacy Group has examined the technology and its impact on data security and corporate governance.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\nBut before we can discuss the benefits and pitfalls of the technology, we have to answer a threshold question: what is a blockchain?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Evolution, not Revolution<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWith all the promotion, most blogs, articles, and presentations don\u2019t spend a lot of time describing blockchain, with the explanation that it is simply too difficult to understand.\u00a0 That is certainly true for the actual programming of a blockchain system.\u00a0 However, the concept behind blockchain is straightforward: Instead of relying on a central, trusted third party to validate transactions, validation is spread through multiple record holders.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe basis for this technology is a peer-to-peer network, which is not a new concept and has been used by file sharing systems for upwards of 20 years.\u00a0 Peer-to-peer networks allow different computers to share files directly, instead of through a central clearinghouse.\u00a0 Many readers may remember as far back as 1999 when Napster was introduced, and despite the copyright and other issues, it lives on, allowing for sharing of music and other files.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBlockchain adds some important elements to the peer-to-peer network.\u00a0 One is including shared and synchronized data throughout the network, so that all computers, or \u201cnodes,\u201d on the network have the same data at the same time.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe other key addition is a means of ensuring that the data can only be changed by consensus so that no record can be altered after its original acceptance without the alteration of all subsequent blocks and the consensus of the network.\u00a0 This allows the participants to verify and audit transactions.\u00a0 The network relies on mass collaboration driven by the shared interests of the participants, and the result is (or should be) a shared data set where there is little if any, uncertainty regarding data security. As a result, it solves a common problem of shared networks:\u00a0 confirming that each unit of value was transferred only once. Moreover, a blockchain can assign property rights because it provides a record that compels verifiable offer and acceptance.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBlockchain databases achieve these goals through the use of two kinds of records: transactions and blocks. Blocks hold batches of validated transactions that are \u201chashed\u201d and \u201cencoded\u201d into a chain.\u00a0 Hashing and encoding are technical terms for creating an encrypted set of records.\u00a0The blocks consist of a transaction linked to the hash (the encrypted set of records) of the prior block.\u00a0 In order to add a block to the chain, it has to be connected to the prior block, which is ultimately connected to the original block that began the chain.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThere are many more details associated with blockchains \u2013 how blockchains evolve, whether they are \u201cprivate\u201d or \u201cpublic\u201d (which have different meanings from what we commonly think of), but that\u2019s generally how blockchain technology works. Rather than a completely new and disruptive technology, it is an extension of prior technologies with some key variations that create new opportunities.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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What\u2019s Next<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIn coming articles, we will explore the uses of blockchain technology, beyond cryptocurrencies and into mainstream uses, whether the hype over blockchain security is matched in reality, and how it might change corporate governance and business practices.\u00a0 Until then, for those who are concerned about the security of blockchain, we have an observation: blockchain technology was created by humans, and no system created by humans has proved to be entirely secure.\u00a0 Will blockchain be the exception to the rule?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Ready to learn Blockchain?\u00a0Browse courses\u00a0like\u00a0Blockchain for Finance Professionals developed by industry thought leaders and Experfy in Harvard Innovation Lab.First in a series of blogs about blockchain technology and\u00a0its impact on business practices, corporate governance, and cybersecurityIt\u2019s hard to avoid articles, white papers, blog pieces and presentations that promote the almost magical use of blockchain \u2013<\/p>\n","protected":false},"author":124,"featured_media":3099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[98],"ppma_author":[1661],"class_list":["post-560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain"],"authors":[{"term_id":1661,"user_id":124,"is_guest":0,"slug":"robert-braun","display_name":"Robert Braun","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Braun","first_name":"Robert","job_title":"","description":"Robert Braun is a partner of Jeffer Mangels Butler & Mitchell LLP and the co-chair of the firm's Cybersecurity and Privacy Group. He specializes in transactions with an emphasis on data security, privacy and information technology. Bob is experienced in the full range of cybersecurity and privacy matters, including data breach issues, development of security incident response plans, crisis management, development of data security and retention policies, forensic investigations of information systems, internal investigations and audits, and internet privacy matters. "}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/124"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=560"}],"version-history":[{"count":5,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/560\/revisions"}],"predecessor-version":[{"id":37648,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/560\/revisions\/37648"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3099"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=560"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}