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

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • audit program (audit plan)

    An audit program, also called an audit plan, is an action plan that documents what procedures an auditor will follow to validate ...

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • 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 ...

SearchStorage

  • nearline storage

    Nearline storage is the on-site storage of data on removable media.

  • application-aware storage

    Application-aware storage is a storage system with built-in intelligence about relevant applications and their utilization ...

  • Remote Direct Memory Access (RDMA)

    Remote Direct Memory Access (RDMA) is a technology that allows computers in a network to exchange data in main memory without ...

SearchSolidStateStorage

  • 3D XPoint

    3D XPoint is memory storage technology jointly developed by Intel and Micron Technology Inc.

  • 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.

SearchCloudStorage

  • Google Cloud Storage

    Google Cloud Storage is an enterprise public cloud storage platform that can house large unstructured data sets.

  • 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 ...

Close