Overview

Blockchain is an operating system like Microsoft Windows or MacOS. Blockchain is a shared ledger that enables the process of recording transactions and tracking assets. These assets can be tangible items such as a house or intangible item such as copyrighting and patents. Blockchain can enable any item of value to be tracked and traded. Bitcoin is just one example of the many applications that can be run through this operating system.

Improving Efficiencies in the Business Network 

The traditional method of recording transactions and tracking assets involved the participants of a network keeping their own ledger. This process was expensive as it needed the involvement of intermediaries, which in turn lead to fees being charged. Blockchain can alleviate this process as participants are able to share a ledger. Once the ledger is shared it can be updated through peer to peer replication. This means that each participant in the network acts as both publisher and a subscriber. Blockchain implements a consensus model to validate information, meaning transactions are secure and verifiable.

Key Characteristics of Blockchain

1. Consensus – All participants on the network must agree authenticity of the transactions.
2. Authentication – Participants must verify where the asset came from and track its ownership over time.
3. Unchangeable – Once a transaction has been recorded in a ledger it cannot be altered. If a transaction is posted in error; A new transaction must be posted to amend the error.
4. Completeness – The shared ledger is the one place to go to establish the ownership of an asset or the completion of a transaction.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie To keep in touch, connect with our friendly team on LinkedIn.

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