The Australian legal system has started to take notice of the potential that the distributed ledger technology of the world over offers. It is a relatively young field, having been around for less than twenty years but already has profound ramifications on numerous industries, including finance and software development. With more companies looking to reap the rewards of the ledger, it is a field that is growing by the day.
What exactly is the Blockchain?
Simply put, it is a new form of technology that works much in the same way as the Internet or the World Wide Web. The basic principle is that money is created by a network of computers without the use of a third party intermediary. This is done via a process known as “cryptography”, which involves creating keys that only you, the owner of the key, can have access to. Anyone who wishes to make a transaction must be connected to the “blockchain” and they do this through a digital wallet, such as an online account or a credit card.
The aim behind the invention of the Blockchain was to create a safer method for the transfer of money. At the time, many saw this as a way to avoid money laundering. Transactions are recorded by the owner’s key and not the banker’s. They are encrypted and cannot be copied. As such, there is no fear of identity theft, which can be a huge deterrent against using any kind of financial system. All transactions are secure and quick because of the fast speed of the Internet and the secured nature of the ledger itself.
Because the Blockchain lacks the ledger technology that underpins the traditional financial system, it is vulnerable to attacks from hackers. However, this weakness can be counteracted quickly by the company that develops the application in question. If they can demonstrate that their technology is robust, then they stand a chance of convincing regulators and government authorities that their system is sound and safe. If they cannot, then they will probably have to consider withdrawing from the market.
Not all countries welcome the idea of regulating the use of Blockchain technology. China and the United Kingdom had filed lawsuits against each other over the past year because of their differences on how the Blockchain should be regulated. Both governments feel that the Blockschock technology is a security risk and a violation of their law. There is no legal binding on the companies involved in the Blockchain project, so it is up to the individual to decide whether he wants to subject himself or his company to government influence. If they do choose to sell off their holdings into some controlled institution, they must disclose all their shareholders information and must follow all of the applicable laws.
In a world where so many things are becoming digital, including papers, books, and videos, the Blockchain represents an exciting new frontier. Many applications are being dreamed up every day. Even those who have been involved in the development of the protocol and the Blockchain for years to look at it with excitement. A fundamental shift has taken place in how that the world conducts business and regulates itself.
Some people wonder how the technology behind the Blockchain can be used for bad purposes, when everyone is so excited about it. However, there are many uses for the Blockchain. Those who are in the know about how the technology works will tell you that the Blockchain is absolutely perfect for a wide range of use. Not only is it a great means of transport, but it is also perfect for recording and storing information and is expected to eventually replace all previous forms of record keeping.
The applications that are currently being considered for the Blockchain are endless.
The next few years will see many more applications being developed for the Blockchain. It could potentially replace national currencies, or just become another piece of technology that people use to make the world a more global community. Regardless of what the future holds for the Blockchain and the technology behind it, one thing is certain. Anyone who is not already using the Blockchain is going to soon.
The Blockchain is a technology that can be defined as the underlying technology on which blockchains are based, and the ledger of transactions that happen between various parties on that technology. Blockchains are used in distributed ledger technology. A Distributed Ledger is a ledger which is maintained by many different groups instead of being kept within a single company or organization and is used to keep track of the ownership history of assets. Some examples of Distributed Ledger Technology include banks, financial institutions, asset providers, stock markets, and even software applications.
As an asset owner, you will need to be able to control your asset inventory and assets using the ledger that corresponds to that asset ownership. The ledger acts like a public record, with everything that is held by the ledger being viewable by anyone who needs to see it. You can make changes to the ledger at any point in time, and these changes are generally synchronized with those of other ledger participants, if any. The basic purpose of the ledger is to provide for asset access and control, as well as a means to manage the ownership and transfer of that ownership. There are many uses for the Blockchain, such as real-time clearing and settlement of transactions and listing of transferable keys or asset ownership among various participants in the network.
The Blockchain is one of the most revolutionary developments in control and ownership because it provides users with greater functionality than could ever be imagined. Because the ledger is open to everyone for review, it provides an unprecedented level of efficiency, while opening up new doors for creativity and innovation. It is expected that within three years, the use of the Blockchain for asset control and ownership will be commonplace. This is a tremendous amount of time and money that can be saved by improving the security, speed, and efficiency of the ledger.