Arquivo para June 14th, 2017

MIT explain blockchain

14 Jun

The famous American Institute MIT explained on its website, objectively a BlockChain2set of technologies for digital money, objectively and clearly, here is a summary of the questions answered, the first of course is what the term means.

At a high level, blockchain technology allows a network of computers to agree at regular intervals on the true state of a distributed ledger,” says MIT Sloan Assistant Professor Christian Catalini, an expert in blockchain technologies and cryptocurrency. “Such ledgers can contain different types of shared data, such as transaction records, attributes of transactions, credentials, or other pieces of information. The ledger is often secured through a clever mix of cryptography and game theory, and does not require trusted nodes like traditional networks. This is what allows bitcoin to transfer value across the globe without resorting to traditional intermediaries such as banks.”

The prof. Christian Catalani of the Institute added: “The technology is particularly useful when you combine a distributed ledger together with a cryptotoken,”

The second obvious question is relation between BitCoin and BlockChain, in a recent paper, Catalini explains why business leaders should be excited about blockchain, it can save them money and could upend how business is conducted.

Every business and organization engages in many types of transactions every day. Each of those transactions requires verification. In many cases, that verification is easy. You know your customers, your clients, your colleagues, and your business partners. Having worked with them and their products, data, or information, you have a pretty good idea of their value and trustworthiness.

“But every so often, there’s a problem, and when a problem arises, we often have to perform some sort of audit,” Catalini says. “It could be actual auditors coming into a firm. But in many other cases, you’re running some sort of process to make sure the person claiming to have those credentials did have those credentials, or the firm selling you the goods did have the certification. When we do that, it’s a costly, labor-intensive process for society. The marketplace slows down and you have to incur additional costs to match demand and supply.”

“The reason distributed ledgers become so useful in these cases is because if you recorded those attributes you now need to verify securely on a blockchain, you can always go back and refer back to them at no cost.”

The paper and the paper are longer and clearer of course, but the purpose here was to reduce the technical issues a bit and explain the BlockChain tools.