When you vote, have you ever wondered whether your ballot is actually counted
if you meet someone online how do you know they're who they say they are.
When you buy coffee that's labeled Fairtrade what makes you so certain of its origin
to be sure really sure about any of those questions you'd need a system
where records could be stored facts could be verified by anyone and security
is guaranteed that way no one could cheat the system by editing records
because everyone using the system would be watching systems like this are on the
horizon and the software that powers them is called a blockchain.
Block chains store information across a network of personal computers making them not just
decentralized but distributed this means no central company or person owns the
system yet everyone can use it and help run it this is important because it
means it's difficult for any one person to take down the network or corrupt it
the people who run the system use their computer to hold bundles of records
submitted by others known as blocks in a chronological chain the blockchain uses
a form of math called cryptography to ensure that records can't be
counterfeited or changed by anyone else you've probably heard of the block
chains first killer app a form of digital cash called Bitcoin.
That you can send to anyone even a complete stranger bitcoin is different from credit cards
PayPal or other ways to send money because there isn't a bank or financial middleman
involved instead people from all over the world help move the digital money by
validating others Bitcoin transactions with their personal computers earning a
small fee in the process bitcoin uses the blockchain by tracking records of
ownership over this digital cash so only one person can be the owner at a time
and the cash can't be spent twice like counterfeit money in the physical world
can but bitcoin is just the beginning for blockchains in the future block
chains that manage and verify online data could enable us to launch companies
that are entirely run by algorithms making self-driving cars safer helped us
protect our online identities and even track the billions of devices on the
internet of things these innovations will change our lives forever and it's
all just beginning...