A blockchain is a public ledger or distributed database of all digital events or transactions that have been shared or executed among two or more participating parties. Each transaction in the distributed database is reviewed and verified by a majority of the participating parties in the system. Additionally, once information is written, it can never be erased. The blockchain has a verifiable record of every transaction that was ever entered. As an elaboration consider that it is easier to steal a cookie from an isolated cookie jar as compared to taking a cookie from a jar stored in a marketplace, where it is being observed by many people. Bitcoin is the most common example that is tied to blockchain technology. It is also very controversial because it empowers a multibillion-dollar worldwide market of anonymous transactions without any form of governmental control. In this light, Bitcoins have to deal with numerous regulatory issues that involve financial institutions and state governments. However, the blockchain technology itself is not controversial. It has successfully worked well over the years, and is effectively applied in both non-financial and financial world applications. In 2017, Marc Andreessen, a respected Silicon Valley Capitalist, listed blockchain among the most vital inventions after the internet. Andreessen quoted that the blockchain ought to be held in same light as the combustion or steam engine since it has the power to impact the world of finance in a big way. The current digital economy relies on trusted authorities. All online transactions are based on one entity to tell us the truth.
- It might be an electronic mail service provider informing us that our mail has been delivered;
- it can be a certification agency that informs us that a particular digital certificate is verifiable;
- it might be a trusted social media site telling us that our photos have been shared successfully;
- it might also be a bank informing its client that his money has been deposited successfully.