Blockchain explained in plain English
Understanding how blockchain works and identifying myths about its powers are the first steps to developing blockchain technologies.
Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.
Blockchain is a special instance of Distributed Ledger Technologies (DLTs), almost all of which have emerged in Bitcoin’s wake.
HOW DOES BLOCKCHAIN WORK?
Blockchain is a Distributed Ledger Technology (DLT) that was invented to support the Bitcoin cryptocurrency. Bitcoin was motivated by an extreme rejection of government-guaranteed money and bank-controlled payments. The developer of Bitcoin, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties.
Technically, the original blockchain is separable from Bitcoin, but this report will show that the blockchain design is so specific to Bitcoin that it’s not a good fit for much else.
The central problem in electronic cash is Double Spend. Because pure electronic money is just data, nothing stops a currency holder from trying to spend it twice. Blockchain solves the Double Spend problem without a digital reserve fund or similar form of umpire.
Blockchain monitors and verifies Bitcoin transactions by calling upon a decentralized network of volunteer-run nodes to, in effect, vote on the order in which transactions occur. The network’s algorithm ensures that each transaction is unique.
Video created by the Centre of International Governance Innovation.
What will be the engine of the next financial revolution? Mauro Casellini speaks in his TEDx talk about the potential that he sees in blockchain technology. He explains how complicated today’s financial infrastructure is based on the use case of payments and talks about the opportunity which this newer technology will deliver. In his talk he simplifies the functionality of the blockchain technology which clearly highlight its benefits compared to the traditional, heavily centralized financial infrastructure. Thanks to the distributed ledger technology, peer-to-peer transactions without any single intermediary will be possible. Today we just share information through the internet, but thanks to blockchain, we have finally the opportunity to share money and other asset with each other in a fully decentralized and digital way.
Mauro is working in the financial sector since 2006 and in the blockchain space since 2016. Thanks to his background in financial services and his technical affinity, he clearly understands the potential which the blockchain technology delivers for the financial industry nowadays. He has successfully implemented a corporate strategy in the field of blockchain banking for his former employer in Liechtenstein and works now as Head of Europe for a major blockchain financial service provider.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx Mauro Casellini is experienced in the field of Blockchain here in Liechtenstein. He is a Board Member of the Crypto Country Association and the CEO of Bitcoin Suisse Liechtenstein. Born and raised in Chur (Switzerland), he has been working in Liechtenstein since 2013. His first job in Liechtenstein was at Bank Frick where he developed a big knowhow in the areas of Banking, Fintech and Payment. This combination inevitably led to the topic of blockchain, where he recognized early that this technology will be the future technology for the financial industry. In his final role, he was Head of Blockchain and PSP, where he implemented the bank’s corporate strategy in the field of blockchain banking and payment services. In 2019 he joined Bitcoin Suisse, the leading blockchain financial services provider from Switzerland, where he is now responsible for the European business and driving the company towards obtaining a banking license in Liechtenstein. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx