Our last post provided you with a brief introduction into Bitcoin, a cryptocurrency that is powered by Blockchain technology. To be clear, investing in Bitcoin is not an investment in blockchain – rather it is the technology that allows the cryptocurrency to facilitate transactions.
Are you familiar with Google Documents?
It’s an innovative tool that allows multiple users to share and edit a single document. It makes it easier for sharing and collaboration – you no longer have to send a document back and forth between users to make changes. More importantly, all changes are live and reflected in the document that is being shared. Blockchain is similar to Google Documents – it is transparent and the transactions are public and visible to all members1.
Check out this video below that provides a concise and brief explanation into Blockchain.
In a nut shell, Blockchain technology eliminates a middle man to process a transaction. For example, if you need to send money to a relative or pay for property, you would no longer need to use a bank as an intermediary to facilitate the transaction.
The security of Blockchain uses a public record of all transactions to create a seamless exchange of goods without having to use an intermediary.