The concept of blockchain has been out for a while. There's a popular example I'm sure you've heard of
"Bitcoin is blockchain" but "blockchain is not bitcoin".
That is, bitcoin uses blockchain technology, but blockchain technology can be used for more than just bitcoin。
In a nutshell: Internet technology solves the "communication problem". Blockchain technology is the solution to the "trust problem"
So it's still cloudy, so let's take an example.
A bet between two people.
Let's say it's the World Cup tonight and there's a ball, China vs. the Netherlands. A and B make a bet to see who will win the title today, the two uncrowned kings. 20 per person.
AB is afraid that the other side will renege , so he gave the money to C to watch the game and give the 40 to whoever won the bet. And C absconded with the money.。
Blockchain technology, which solves this problem of "C running away".
The blockchain is a reliable "C".
How can we fix it?
Start by contributing $20 each to a blockchain account. This account is smart and is written in code that
Once written, it is not controlled by anyone and will only be executed according to the code . That means this account, the only action that It's when he gets the results of the contest and pays the winner according to the rules.
Of course, this code is uploaded before the
Mutually confirmed by both parties The. "No one is in trust" and no one can renege on it. I can't trust you when I can't trust you, and I can safely bet against you here. And, this bet (code), is not placed in the custody of a particular person that Instead, hundreds of people, handfuls of people. Trying to cheat? It's not going to happen. It's not going to change at all. This is how blockchain solves the trust problem.
The financial industry, probably, needs this technology the most.
Before the advent of blockchain, this task was
managed "Trust Enterprises" to do so. Both parties put the money into the trust's account, then the trust goes out and does the deal, the trust reviews it, and the deal has to be distributed to both parties according to the contract. Here's the process, which is time-consuming and labor-intensive, with the trust company charging a three-thousand percent fee, for now. They don't all do risk-free business. What if the trust itself goes wrong?