BlockChain Fundamentals

 

 

Q.) What is ... a BlockChain?

A.) A Blockchain is an Immutable Distributed Ledger, that implements strict encryption and verification standards.  The distributed ledger technology allows for the peer to peer transfer of digital assets without intermediaries, thus effectively replacing centralized institutions for decentralized, trusted networks.  Note the use of both of the terms "Distributed" and "Decentralized".  Distributed refers to location;  Decentralized refers to control.  Blockchains have both of the characteristics of Distributed and Decentralized.  

Q.) What are ... Digital Assets?

A.) A digital asset is anything that can be represented and stored on computing devices and has intrinsic or derived value.  Examples of digital assets are: cryptocurrencies, media files, videos, documents, contracts, intellectual property, licenses, educational artifacts and copyrights, just to name a few.

 

Q.)  What are...Some Key Characteristics of A Blockchain?

A. )  Within practical reason, A Blockchain can not be corrupted or hacked

       A Blockchain has no reliance on a central authority

       A Blockchain exhibits transparency

       Blockchains allow for the automated execution of software instructions across a peer-to-peer network

       Blockchains use consensus algorithms to achieve agreement across the peer-to-peer network

       Blockchains allow information to be verified and value to be exchanged

 

Q.) What are...Some BlockChain challenges?

A.) The Blockchain Trilemma!  This unfortunate truth states that the 3 properties of scalability, security and decentralization can not all be optimized at once.  Two of the properties can be optimized simultaneously, but it will be at the expense of the 3rd property.  Multiple projects are working to solve this trilemma, but none (to date) have a demonstrated, proven solution.  In addition to the trilemma, other challenges are:

      Latency 

      Complexity

      Transaction Costs

      Regulatory Uncertainties

Q.) What are ... Some of the Domains of the BlockChain? -- Meaning what sectors and industries may the BlockChain be useful for?

A.) Example Domains

Q.) What are ... Some BlockChain Use-Cases and Example StartUp?

A.) Use-Cases

©2020 BUILDINGBLOCKSTECHNOLOGIES,LLC