What is Blockchain?

The promise of blockchain is its potential as a solution to the so-called „double-spending“ problem. If you do a physical transaction in the real world (say, if A hands over a bill to B), then we have the laws of physics to ensure that the bill, after the transaction, is with B and not A. Thus A cannot spend it a second time (double spending).

The Digital Problem: Unlimited Proliferation

Until now, the digital world has not had a similar tool for preventing double spending. For example, an image that is sent as an attachment via e-mail exists as often as you like; at the receiver, at the sender even after sending, at various servers and other active network components in between, it can be copied and sent as often as you like. A digital image of a bill would therefore be worthless, because of the potential for unlimited proliferation.

For this reason, digital transactions of monetary values have always required a trusted third party to confirm the transaction and manage account balances. Blockchain elegantly solves this problem. The technology acts as a kind of „physics“ for the digital world in which each participant can always determine whether he or she owns a copy, or the original, of a digital good without the need for a third party mediator. This works because all transactions are decentralized and stored in many places around the world as identical copies.

A digital transaction that has already been made cannot be reversed because it is virtually impossible to pay for it, and its copies, in all locations at the same time. With a digital transaction, ownership of the digital asset has also been transferred to the recipient, which can be seen by all participants in the blockchain infrastructure. If the original owner were to attempt a retransmission of the same asset, it would be seen as invalid by all participants and discarded. The network is also protected against manipulation by strong cryptography.

Decentralization, anonymity, and secure cryptography make blockchain technology extremely valuable. Secure, direct transactions are now possible between individuals and do not require a middleman.

With blockchain, a digital value can be ascribed to virtually anything, not only a cryptocurrency such as Bitcoin, Ether or Litecoin. Virtually any good or service, along with property rights, deeds, profit participation, or other contractually fixable things of value can all be given digital values in the blockchain, opening up a wealth of new business applications. CoreLedger makes these exciting new opportunities easy to find, manage, and use.