Blockchain is a fascinating technology. However, it’s necessary to understand what it is – and what it is not. Here’s my short explanation for it, which of course can only scratch the surface.
For years people have been talking about the Bitcoin as an electronic means of payment. The technology on which the Bitcoin is based, the blockchain, offers far more applications than just the “Internet money.” There are already numerous concepts that could decisively influence the life of tomorrow. It is foreseeable that the public administration will also use this trend because the blockchain provides a framework for the simplification of work processes, which are still characterized by high administrative overhead.
The blockchain is a decentralized database, which is continuously being extended by the users. In the beginning, there was the first block (creation block). Each new block is checked for validity by a consensus principle, such as “proof-of-work” or “proof-of-stake,” and appended chronologically to the back. The result is a “blockchain.”