Want to learn more about blockchain? Get started with this primer
What on Earth is blockchain?
You’ve probably heard of blockchain for cryptocurrency, but did you know it could soon be the key to verifying yourself based on all of your connected activity? Smart contracts, decentralized finance and more. The Sum is diving into the elements of blockchain, from how it works to data protection to environmental impact.
Get started learning about blockchain with this primer.
To Sum It Up
- At its simplest, a blockchain is a decentralized database across a wide network.
- Think of it as a very complex virtual filing cabinet that stores billions, even trillions, of records.
- While we often hear about blockchain with cryptocurrencies, there are millions of uses in fields like supply-chain and insurance.
The Background
- Blockchain was first introduced in October 2008. It was created as the backbone of the cryptocurrency Bitcoin that would keep track of digital financial transactions.
- It was proposed by an entity known as Satoshi Nakamoto. To this day, no one is sure if Satoshi Nakamoto is a single individual or a group of people. (Mysterious!)
How It Works
- Each “block” of information is incredibly complicated and can be filled with all different sorts of “records.”
- Moreover, some blockchains are public while others are private. There are also “hybrid” models.
- AKA “distributed ledger technology” because the data cannot be edited; other uses include contracts and even verification.
Why It Matters
- Many experts are looking at blockchain as the future of authentication. However, there are questions about security.
- Not only are there concerns about breaches, but there can be cataclysmic effects if they experience upheaval.
- There are also environmental implications based on energy consumption that are only just beginning to be discussed.
Sources
- Columbia University: What Is Blockchain? A Beginner’s Guide for 2021
- Reuters: Blockchain explained
- Forbes: A Complete Beginner’s Guide To Blockchain
- The Verge: Blocks? Chains? How does this whole thing work?
- MIT: Blockchain, explained
- Harvard Business Review: The Truth About Blockchain
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This story was originally published July 15, 2022 at 2:00 AM with the headline "Want to learn more about blockchain? Get started with this primer."
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