As Don & Alex Tapscott, authors of the book “Blockchain Revolution” explain:

The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. 

Originally created as a way to help Bitcoin function as a currency, many describe Blockchain as a type of Google doc spreadsheet, which can be shared with anyone, across a network of computers. Each record in this Google doc analogy is a ‘block’ and each of these encrypted blocks contains a time-stamped, audit log history of all data that came before it.

As Blockgeeks explain in their valuable Guide to Blockchain Technology, “Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.” Their infographic of the process is detailed below.

Blockchain allows for information to be constantly shared, so the data you’re looking at is always the most up-to-date and accurate version; it’s not saved in a single file which can only be accessed by one person at a time. This also means the blockchain cannot be controlled or owned by one single entity as it’s on a decentralized database, meaning transactions can be conducted without the use of a middleman, but still in a secure format. To help you understand the security of the technology, we’ll quote Blockchain Revolution again:

Every ten minutes, like the heartbeat of the Bitcoin network, all the transactions conducted are verified, cleared, and stored in a block which is linked to the preceding block, thereby creating a chain. Each block must refer to the preceding block to be valid. The structure permanently time-stamps and stores exchanges of value, preventing anyone from altering the ledger… so the blockchain is a distributed ledger representing a network consensus of every transaction that has ever occurred. Like the World Wide Web of information, it’s the World Wide Ledger of value… This new digital ledger can be programmed to record virtually everything of value and importance to humankind: birth and death certificates, marriage licenses, deeds and titles of ownership, educational degrees, financial accounts, medical procedures, insurance claims, votes, provenance of food, or anything else that can be expressed in code.

This quote explains why the blockchain is so strong; the more and more ‘blocks’ that are added make the chain stronger and more secure, as the data is constantly being validated and re-validated as it’s distributed across computing nodes (which are computers that validate and relay transactions through the network).

What are some uses blockchain technology may have in our everyday world?

Blockchain has the ability to impact our everyday worlds in a multitude of ways. Here are some initial ways it’s already being implemented:

• Smart contracts: Smart contracts may replace the work that lawyers and notaries currently do. With Smart contracts, you essentially exchange an asset or currency (Bitcoin) into a program, and that program runs a code to automatically validate a condition or set of conditions, and determine who the asset should be transferred to.
• Buying and selling without third parties: OpenBazaar is an example of an online marketplace where no third parties (like eBay or Etsy) exist to take a cut of the sales or charge platform or selling fees.
• Governance: Run secure governance over elections, votes or other types of poll taking. The Boardroom app runs this type of governance framework for both Individuals and Companies to manage their Smart Contract Systems.
• IP protection: Smart contracts can help to protect copyright and automate the tracking of and sale of intellectual property online, which will eliminate the risk of file copying and redistribution of pirated content.
• File storage: Blockchain allows for decentralized file storage across the internet, which can help to protect important and secure files from being hacked or lost.
• Stock trading: With peer-to-peer stock trading, the need for intermediaries in trade will be eliminated.

These are only a handful of examples of how blockchain technology can help to tackle previously complex, costly or insecure transactions.

As new custom blockchains are developed and the process of blockchain technology is more widely adopted by innovative players in the game, we’ll continue to pay close attention to see how the digital marketing world may be impacted.