Grow VC Group
  • Home
  • Group
  • Team
  • FAQ
  • Join Us
  • Trainee Program
  • Contact
  • News

Blockchain Immutability and Its Inherent Problems

2/22/2017

Comments

 

There’s a lot of excitement about blockchain and the opportunities it offers the financial services ecosystem, but a lot of work is still needed on bridging the learning curve around actual applications and implications. The very fabric of blockchain, it is distributed, is what makes it both interesting and at the same time, difficult to fit into current structures.

Blockchain is technology that lets people ‘sign contracts’ electronically — without the requirement of a trusted third party (such as a government or a lawyer or a bank) to verify the contract as valid and legal. "Signing a contract" could be interpreted pretty broadly. For instance it could mean performing a trade of shares, transferring Bitcoin between accounts, Signing a will, purchasing a coke from a vendor machine, moving a train ticket to your phone and being able to prove you have it or essentially any interaction between people or entities, regardless of industry or action. In the blockchain, every time a transaction occurs, a block of data is added to a digital chain. 

For example, if person (A) transfers money or information to person (B) this transaction will be logged in the blockchain with a certain code. The blockchain creates trust because a complete copy of the chain, which shows every transaction, is held by the entire network. If someone attempts to cheat the system or steal, they can be easily identified.

The concept of distributed presented by blockchain is inherently difficult to grasp. The fact that an online application is distributed between a network of machines, powers technical redundancy and works in its own right to protect the entire system, i.e. the blockchain. However, fitting this into current mandates around central control and governance in the stakeholder ecosystem is complex to say the least. Policy is created on the basis of governance and special access, if needed, to ensure that policy enforcers (for example regulators) can fulfill their own capacity and function. 


The blockchain offers an unencumbered transparency previously impossible, and a comparable ledgering of transactions to that of the exchange traded assets on public markets. The concept of having a universal timeline of sorts, to companies, transactions and even individuals is an interesting thought process, allowing to trace transactions back to their origin and find the entire value chain that led to a certain transaction.

There are clever ways of attempting to harness the positive and mitigate the risks, for example with sophisticated access rights and different layers of information accessible by different stakeholders, yet the ultimate transaction remaining public record. 


Read the whole article on Crowd Valley News.

Photo: blockchain data transaction model (Wikipedia).

Picture
Comments

    About

    Est. 2009 Grow VC Group is building truly global digital businesses. The focus is especially on digitization, data and fintech services. We have very hands-on approach to build businesses and we always want to make them global, scale-up and have the real entrepreneurial spirit.​

    Read the latest Grow VC Group  FinTech, distributed and crypto finance, and blockchain report
    Read the AI, Asia and FinTech report - including comments about potential trade wars.
    Download

    Research Report 1/2018: Distributed Technologies - Changing Finance and the Internet 


    ​Research Report 1/2017: Machines, Asia And Fintech:
    Rise of Globalization and
    Protectionism as a
    Consequence


    Fintech Hybrid Finance Whitepaper

    ​Fintech And Digital Finance Insight & Vision Whitepaper


    Learn More About Our Companies:
    • Difitek
    • Prifina​
    • RE Bearing
    • Token Index Fund
    • Startup Commons
    • Lost in Translations
    • Robocorp
    • Nodi Liber​

    Archives

    January 2023
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    September 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016

    Categories

    All
    Difitek
    Grow VC Group
    Robocorp

    RSS Feed

Digital Intelligence Globally
Picture
© 2009-2023 Grow VC Operations Ltd. All Rights Reserved.
  • Home
  • Group
  • Team
  • FAQ
  • Join Us
  • Trainee Program
  • Contact
  • News