Blockchain - is it disruptive or constructive?
- January 22, 2016
- Posted by: admin
- Category: Uncategorized
Blockchain promises to be one of the biggest disruptor in the IT landscape since possibly the internet.
The IT industry is awash with talk about BlockChain but what we hear mostly is the focus on BitCoin and its derivatives in the form of cryptocurrencies and tokens that will act like cryptocurrencies.
However, if we look at BlockChain as just a means to start using or creating CryptoCurrencies, then we will be missing quite a lot.
BlockChain is a shared or distributed ledger technology and the fundamental promises that it gives are consensus, provenance and immutability. Consensus is nothing but everyone in the network agreeing that a transaction is valid (ok, that is a text book definition of consensus. but in real life scenarios there are bound to be differences. So consensus can be rephrased to say that in case of differences, the network will have means to sort out the differences and will implement the decision of the majority players in a network). Provenance is the ability to track the transaction to its pristine state. Any transaction which cannot be tracked to its original state loses meaning in the context of veracity and traceability. And finally, the immutability. Immutability is the ability of the network to robustly disallow any change to a transaction. There may be ways to overcome some limited use cases where a transaction is bogus and has inadvertently crept into the network. But that is more an exception than a rule.
Open IT is actively working on this technology and developing proof of concept implementations to leverage its application in solving real life problems.