A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.A database usually structures its data into tables, whereas a blockchain, as its name implies, structures its data into chunks (blocks) that are strung together. This data structure inherently makes an irreversible timeline of data when implemented in a decentralized nature. When a block is filled, it is set in stone and becomes a part of this timeline. Each block in the chain is given an exact timestamp when it is added to the chain. Video here : Watch video. https://www.youtube.com/watch?v=SSo_EIwHSd4
Bitcoin was launched in January 2009. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency that is secured without any central authority, unlike government-issued currencies.4 There are no physical bitcoins, only balances associated with a cryptographically secured public ledger.
Although bitcoin was not the first attempt at an online currency of this type, it was the most successful in its early efforts, and it has come to be known as a predecessor in some way to virtually all cryptocurrencies that have been developed over the past decade.
Over the years, the concept of a virtual, decentralized currency has gained acceptance among regulators and government bodies. Although it isn’t a formally recognized medium of payment or store of value, cryptocurrency has managed to carve out a niche for itself and continues to co-exist with the financial system despite being regularly scrutinized and debated.
Video here : https://www.youtube.com/watch?v=s4g1XFU8Gto
Today's Best Real-World Blockchain Use Cases
Classic econometric models were demonstrated to be limited in explaining crowd phenomena such as economic cycles and crashes, partially since they do not explicitly account for the complex interactions within the economic system. Aiming to achieve a better understanding of such macroscopic effects, recent years have witnessed a rising interest in the application of network theory for analyzing the underlying networks of economic systems1,2,3,4,5,6,7,8,9,10. However the general lack of large-scale, fine-grained empirical financial data, due to regulatory limitations, intellectual property restrictions and privacy regulation, still hinders the full exploitation of such techniques for analyzing complex financial markets.
In this paper we study the complete financial activity of millions of participants in an economy comprising of thousands of different financial assets over a period of 2.5 years. To this end, we use the publicly available Ethereum blockchain transactional data11. This data encompasses the complete trading activity of 28 Million users trading over 11 thousand assets12,13,14 of aggregated market valuation peeking at 500 Billion USD with a daily trading volume of over 30B USD15. In contrast to traditional financial markets, all assets’ transactions over the Ethereum Blockchain are permanently recorded and publicly accessible. As a result, the Ethereum Blockchain constitutes the world’s largest publicly available financial dataset at an individual trader granularity. This dataset grants us for the first time the opportunity to analyze and model a dynamic large scale financial ecosystem, from its inception throughout its evolution.
Article here : https://www.nature.com/articles/s41598-020-61346-y
Blockchain technology is being used to create applications that go beyond just enabling a digital currency. Launched in July 2015, Ethereum is the largest and most well-established, open-ended decentralized software platform.6
Ethereum enables the deployment of smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party.7 Ethereum comes complete with its own programming language that runs on a blockchain, enabling developers to build and run distributed applications.
The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether (commonly abbreviated as ETH). In 2014, Ethereum launched a presale for ether, which received an overwhelming response.8 Ether is like the fuel for running commands on the Ethereum platform and is used by developers to build and run applications on the platform.
Ether is used mainly for two purposes: It is traded as a digital currency on exchanges in the same fashion as other cryptocurrencies, and it is used on the Ethereum network to run applications. According to Ethereum, “people all over the world use ETH to make payments, as a store of value, or as collateral.
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1. Creates new platforms for real estate
One of the most obvious ways that Bitcoin is bound to have an impact on the real estate market is by providing new platforms for sales. By passing the bank middlemen, buyers and sellers could potentially connect in real time, speeding up the process for transactions significantly. The blockchain enables transactions with new online marketplaces or trading platforms like ATLANT, which tokenises properties to permit asset trading online. Sweden’s land registry authority has been testing ways to record property transactions using this technology, which could theoretically save over €100 million each year by doing away with paperwork for speedier transactions.
2. Prevents fraud
One of the biggest benefits of the technology is built into how Bitcoin works, and it could have a far-reaching impact on the real estate industry. The blockchain can be used to prevent fraud by creating a private, fully certifiable digital ID. This offers a more current and reliable proof of funds than a bank’s letter. Digital IDs secured by the blockchain’s digital ledger can be used for deed transfers, mortgage payments, escrow or other financial scenarios.
3. Enables investment
By reducing real estate fees and enhancing online security, the blockchain helps encourage investment in real estate. Another way is through fractional ownership. Rather than saving a larger chunk of upfront funds to acquire a property, investors could buy and sell fractions of their real estate tokens instead. This would bring the property market closer in line to how the stock market works.
4. Boosts transparency
How Bitcoin works encourages greater transparency in the entire real estate purchasing process. With new online platforms, buyers and sellers can store their information securely and it would be instantly verifiable, which cuts out prolonged discussions with banks and lawyers (and thereby saves money). Individual properties could have their own digital identity, with a documented and verifiable chain of ownership. As the blockchain is decentralised, this information would be open, accessible and fully transparent.
A technology still in its infancy, the blockchain still has a long way to go before it becomes a significant real estate market disruptor. But with encrypted data and a high level of security, it could quickly become useful, particularly for transferring the large sums involved in luxury real estate.
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