How Bitcoin Works Under the Hood. A simple explanation of how money moves around the banking system. Twitter went mad last week because somebody had transferred almost $150m in a single Bitcoin transaction.
This tweet was typical: There was much comment about how expensive or difficult this would have been in the regular banking system – and this could well be true. But it also highlighted another point: in my expecience, almost nobody actually understands how payment systems work. That is: if you “wire” funds to a supplier or “make a payment” to a friend, how does the money get from your account to theirs?
In this article, I hope to change this situation by giving a very simple, but hopefully not oversimplified, survey of the landscape. Perhaps the most important thing we need to realise about bank deposits is that they are liabilities. Let’s start with the easy example. This is where it get more interesting. Who should this “somebody else” be? Here’s what you could do: It all balances out for Alice and Charlie… Alice has £10 less and Charlie has £10 more. Slow down…..
A Strategist’s Guide to Blockchain. An expensive work of art changes hands.
Neither the buyer nor the seller is named publicly, but the exchange is verified, the provenance of the painting travels with it, and the artwork is automatically insured against theft. A voting machine records votes in a frontier country known for past political corruption. Though there is no central government repository, each vote is tagged to an individual with no duplication. The individual identities remain anonymous, and the results of the election are undisputed.
A consortium of banks gain market share by settling trades in real time (instead of waiting three days for the trade to clear) and underwriting loans in a day (instead of waiting two weeks), all with minimal risk. The name of the technology that could make all this happen is blockchain. At its heart, blockchain is a self-sustaining, peer-to-peer database technology for managing and recording transactions with no central bank or clearinghouse involvement.
Gs 16 1 distributed ledger technology. Distributed ledger technology: Blackett review. This report sets out the findings of a review exploring how distributed ledger technology can revolutionise services, both in government and the private sector.
It covers the: technology governance and regulation security and privacy disruptive potential applications in government global perspectives It recommends 8 actions for government to maximise the opportunities and reduce the risks of this new technology. We have made a short video to accompany the report. Accessible Media Player by Nomensa The timeline slider below uses WAI ARIA.
Blockchain Technology And The Future Of Finance. Article written by Paula Newton and Maria Fonseca Bitcoin is one of the biggest changes to the financial sector that has happened for decades.
A great many businesses already accept Bitcoin for transactions. Some of the most well known of these include Expedia, PayPal and Microsoft. Yet what many don’t now is what Bitcoin brought to the world which is revolutionary: the Blockchain technology. Blockchain is so promising that very recently, the Giant Swiss bank UBS announced that it is going to investigate blockchain technology in a new innovation lab based in London. IT vendors may hamper blockchain adoption warns survey.
Harris: IT vendors need to take blockchain more seriously Major global IT vendors – including hardware, systems software, ecommerce, big data, cloud, network, telco and systems integrator companies – have little wisdom, advice or vision to offer their customers and prospects when it comes to blockchain technology, according to a new survey.
In the document, Searching in Vain for The Block Chain, enterprise IT specialist consulting firm Lighthouse Partners’ principal Peter Harris conducted a simple survey of 100 major global IT vendors, searching each company’s website for the “blockchain” term. Some 77% of those companies had no mention at all of the innovative technology, a figure that rose to 85% when management consultancies and IT analysts were removed from the results.
Interest in blockchain technology has taken off in recent months because of its promise to simplify the technology infrastructure needed to run financial services, healthcare, legal services and government. Eris Industries. Blockchain – the Power of Transparency. Bitcoin offers international payments, direct peer-to-peer, with zero (or very low) fees, and using military grade encryption technology.
For all its qualities, Bitcoin is yet to catch on as a mainstream method of payment and its value has fluctuated massively over the last 2 years since it won the attention of the general population. Whether or not Bitcoin makes ground as a widely accepted currency, there is a new opportunity emerging from the technology behind Bitcoin – the blockchain.
Blockchain offers a decentralised register of ownership by recording every transaction in the system, from creation of a block and through any number of transfers made. Every computer tapped into the system stores a copy of this blockchain, and before a transaction can be made the system checks that their version of the blockchain is in sync with all other versions in the network. By use of blockchain, all users know who owns every block, at any time. Written by Andrew Wood.