Blockchain technology offer us a revolutionary new way to do business using the same database — a shared ledger, in effect, that is available to anyone who knows how to use it and has access to the tools. A ‘world database’ (as suggested recently by Vinay Gupta in his highly recommended piece on Medium, ‘Programmable blockchains in context’) that is owned by everyone participating, and controlled by no-one. This is trust through computation. Nothing is ‘entered’ in this environment unless it is agreed by the many thousands of computers that make up the network. Once coded, the transactions are uncorruptible and immutable.
Blockchain technology also enables us to build smart contracts on a platform like Ethereum. What are smart contracts? Essentially they are programs that execute “if this happens then do that”, that are run and verified by all the participants in the blockchain network. The blockchain stores the data, but the smart contract plans, executes and records the business. Continue reading