I am honest enough to share that I was not yet able to understand, let alone describe to others what “blockchain” is all about. In this article, Sean Williams was able to bring me upto speed. He formulates the basic principle in one sentence;
“It’s a brand-new way of transmitting money without the need for traditional banking networks, as well as a means to store data in a transparent and unalterable way.”
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Key elements from the full Motley Fool article by Sean Williams;
“It’s a brand-new way of transmitting money”Blockchain was developed in response to perceived flaws with the current banking system. Among them is the fact that payments sent from one party to another can take up to five business days to be validated and settle, especially if they’re being sent across borders. That’s simply not acceptable to some folks, and it’s a clear deterrent to businesses operating at optimal efficiency.
“Without the need for traditional banking networks”Blockchain also has the purpose of simplifying transactions.The way a remittance works today is that one person or business sends money to another person or business through a traditional bank network. The bank, despite doing virtually nothing other than supplying the infrastructure to allow this transfer to take place, usually gets to pilfer fees in the process. Blockchain developers didn’t like this, which is another reason blockchain was created.
“As well as a means to store data”This pivot is important, as it signifies that blockchain technology is about more than just offering a new way to send money. Blockchain has what seems to be an ever-growing list of non-currency applications. In effect, it provides a new and exciting way to log data.
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