‘Bitcoin’ is the current buzzword in the financial sector. It has exploded into the public news headlines and has banks and investors reassessing what the future of currency exchange looks like. But what is the technology behind bitcoin? Does it have real world-wide applications? How does it impact our lives, our businesses and our futures?
In a series of blog posts on the BlueRock website, we’ll explore these questions and take a glimpse at the future of business in a ‘crypto community’.
To start with, we’ll look at the blockchain.
What is the blockchain? The blockchain is the technology behind Bitcoin and is commonly referred to as the decentralised web. It’s the next generation of internet, built on a trusted, shared public ledger of transactions that is ‘chained’ in ‘blocks’ of information.
According to Don and Alex Tapscott, authors of Blockchain Revolution, “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Here are 4 things you should know about the blockchain.
The blockchain is a ‘spreadsheet in the sky’, which is duplicated and stored across a network of computers that is constantly reconciled. Records are public and easily verifiable and accessible to anyone on the internet.
Information isn’t stored at any one location but, rather, on a connected distribution system of registers (decentralised), which are secured via a validation mechanism. This means that the blockchain can’t be controlled by a single entity and has no single point of failure.
3. Peer-to-Peer Network
The decentralised nature of the blockchain allows for a direct peer-to-peer (user-to-user) exchange of value without the use of an intermediary such as a bank.
The blockchain utilises digital signatures and cryptography (protection of information using codes and ciphers) to prove a user’s identity and the authenticity of transactions.
With the ability to create a store of value and authenticate digital information on the internet, the blockchain will open international markets like never before, creating a world of opportunity for businesses and governments. It’s exciting to see what will unfold!
Stay tuned for our next instalment of the Blockchain Technology Series – where we’ll delve into the more specific implications of the blockchain on the health care sector.
In the meantime, if you require accounting or legal advice and support within the world of cryptocurrency, our BlueRock specialised blockchain accountants and lawyers can assist you with the following:
- Specialised tax and accounting services
- Whitepaper review from a legal and accounting perspective
- Review/development of AML/KYC procedures
- Australian regulatory advice and support
- Drafting of ICO documentation including Supply Agreement for Future Tokens (SAFT) Agreements
- ICO support, including campaign consultation
- Community engagement reviews