Browse Definitions:
Definition

blockchain economy

Contributor(s): Ivy Wigmore

The blockchain economy is a scenario and potential future environment in which the technology replaces current monetary systems, potentially on a global basis.

Blockchain is a distributed ledger, essentially a type of decentralized database that stores a secure and permanent record of transaction data. Mechanisms in the technology ensure that the records of assets and transactions cannot be tampered with. Distributed ledgers have no central data store and are managed through a peer-to-peer (P2P) architecture. Blockchain is most commonly associated with the Bitcoin cryptocurrency but it has many other potential applications, including distributed software and storage systems. Blockchain can also be used to securely store and exchange data about individuals, including their identities, assets, financial and professional histories, medical records, tax-related data and consumer preferences, among many other possibilities.

For financial institutions, blockchain and similar digital ledgers can reduce the costs associated with transactions. Because the system is decentralized and distributed, it doesn’t require the intermediaries that add overhead and processing requirements. Mathematical functions in the system add a layer of protection to each transaction, drastically reducing the possibility that anyone could tamper with a record. The security of transactions within the system makes it much less vulnerable to fraud and cybercrime than conventional banking systems.

Blockchain could revolutionize the burgeoning sharing economy by facilitating the secure exchange of value among participants in a given system. The peer-to-peer (P2P) system of exchange is inherently democratic, based on shared ownership and equality among participants rather than owners seeking to profit from users of the system. Such a P2P system is sometimes referred to as a platform cooperative.

See also: collaborative consumption

Bettina Warburg explains how blockchain will radically transform the economy:

This was last updated in May 2017

Continue Reading About blockchain economy

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • black hat

    Black hat refers to a hacker who breaks into a computer system or network with malicious intent.

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

SearchHealthIT

  • population health management (PHM)

    Population health management (PHM) is a discipline within the healthcare industry that studies and facilitates care delivery ...

  • ICD-10-PCS

    The International Classification of Diseases, 10th Revision, Procedure Coding System (ICD-10-PCS) is a U.S. cataloging system for...

  • U.S. National Library of Medicine (NLM)

    The U.S. National Library of Medicine (NLM) is the largest biomedical library in the world.

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • open source storage

    Open source storage is data storage software developed in a public, collaborative manner that permits the free use, distribution ...

  • CompactFlash card (CF card)

    A CompactFlash card (CF card) is a memory card format developed by SanDisk in 1994 that uses flash memory technology to store ...

  • email archiving

    Email archiving (also spelled e-mail archiving) is a systematic approach to saving and protecting the data contained in email ...

SearchSolidStateStorage

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close