Beyond security and trust, this video discusses the idea of zero authority functioning systems and middleman elimination.
- As the origin story of blockchain describes,…this distributed ledger supports immutable transactions,…currency movements in the case of Bitcoin,…that are secure, frictionless, undisputed,…without central authority,…and only modifiable by agreement from all participants.…By extension, a whole range of financial transactions…can take place over a blockchain.…Following the same concepts as Bitcoin,…stock trades, bonds, and other financial assets…can be managed this way.…
Financial institutions are taking note,…and it's a business sector that is exploring…and experimenting with the blockchain.…However, with our knowledge of the advantages…of the blockchain as a backdrop,…what other situations beyond financial transactions…might this type of model be useful to support?…This is where it gets really interesting.…Let's take a simple example…of the challenges of proving ownership…of a digital product.…While digital products such as photos and music…have made it really easy to acquire, store,…and move across devices,…the same advantage makes it really easy to copy them,…
Jonathan begins by describing some of the current challenges with the Internet, including existing risks and security problems such as identity management. Next, he describes how traditional online databases function, so that you have a basis for how the blockchain redesigns this function. He then describes how the blockchain becomes a potential solution for many of the existing limitations of online databases. Since the blockchain has its genesis in Bitcoin—the digital currency—he provides some background on that too. He also discusses how blockchain technology actually offers new capabilities beyond simply solving old problems. To wrap up the course, Jonathan shares steps you can take in your organization to understand the implications of the blockchain.
- Explain what Captcha does.
- List the core benefits of a traditional database.
- Assess whether Bitcoin requires any intermediaries in a transaction or not.
- Explain why blockchain technology is useful beyond cryptocurrency.
- Identify some ways to reduce the risk of blockchain innovation.