1.2 What is a blockchain

Simply put, a blockchain is a big distributed database. Think of it as a huge spreadsheet runned simultaneously on millions of worldwide computers. It’s a peer to peer network where, using state-of-the-art cryptography, you can settle transactions without the need of any trusted third party intermediaries.

From a technical perspective, blockchain is nothing fundamentally new, but rather a combination of three existing technologies that combined together, are able to secure trust between people or parties who do not trust each other:

The three technologies are:

• Software a write-only database to store information which is agreed through a pre-defined consensus protocol, and a peer2peer networking layer to exchange information.

• Strong Cryptography to sign and verify all process and transactions among the network participants.

• Cryptoeconomics to provide by using a token that has a value, the economic incentives (Carrot 🥕) to run the network and provide the dis-incentives (Stick 🏑) to behave in a way that cost less to be honest than to be dishonest.

Blockchain has the potential to be the next decade technology and have huge transformational impact on the functioning of a wide range of business processes. This technology can increase the transparency and traceability of goods, data and digital assets, facilitate access and improve the efficiency of transactions.

The blockchain technology can potentially disrupt any market where intermediaries have strong power, collect high fees, slow economic activity and are selfish keepers of personal information.

IMPORTANT NOTICE

If you take the time to learn all the material on this guide, not only you will add the Blockchain skill verified credential, but also (if your company join our consortium) you will get €100 of FREE cash credits on your main-net wallet.