Browse Definitions :
Definition

blockchain economy

Contributor(s): Ivy Wigmore

The blockchain economy is a scenario and potential future environment in which cryptocurrency replaces current monetary systems, potentially on a global basis. Although blockchain is most commonly associated with the Bitcoin cryptocurrency, the technology is actually a distributed ledger that keeps track of transactional data in a secure, verifiable and permanent manner. No central authority is required to validate the accuracy of transactional records; instead, trust is established and maintained through consensus within a peer-to-peer (P2P) network.

This has profound implications for the future of banking and the exchange of value. Blockchain's peer-to-peer system of exchange is inherently self-governing; based on shared ownership and equality among participants. Because P2P transactions through blockchain don't require the help of an intermediary, it lowers the cost of each transaction. Additionally, the consensus algorithms used to validate the accuracy of the distributed ledger make blockchain much less vulnerable to fraud and cybercrime than conventional banking systems.

Blockchain's autonomy is also expected to foster another emerging aspect of the blockchain economy, machine-to-machine (M2M) transactions. In this scenario, machines will use blockchain to become autonomous market participants with their own bank accounts. Before long, it's expected that advances in artificial intelligence (AI) will allow machines in the Internet of Things (IoT) to be able to lease themselves out, schedule and pay for their own maintenance, purchase their own replacement parts and keep their own transactional records, using blockchain.

Bettina Warburg explains how blockchain will radically transform the economy:

This was last updated in April 2018

Continue Reading About blockchain economy

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

It's a very interesting article and very important subject. Totally agree with the author and thanks for the video. A lot of people do confuse Blockchain and Bitcoin, they are relevant to each other, but totally different conceptions, just like you've said.
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance framework

    A compliance framework is a structured set of guidelines that details an organization's processes for maintaining accordance with...

SearchSecurity

  • Trojan horse (computing)

    In computing, a Trojan horse is a program downloaded and installed on a computer that appears harmless, but is, in fact, ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • DNS over HTTPS (DoH)

    DNS over HTTPS (DoH) is a relatively new protocol that encrypts domain name system traffic by passing DNS queries through a ...

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification and is used in internally mounted ...

  • kilobyte (KB or Kbyte)

    A kilobyte (KB or Kbyte) is a unit of measurement for computer memory or data storage used by mathematics and computer science ...

  • virtual memory

    Virtual memory is a memory management capability of an operating system (OS) that uses hardware and software to allow a computer ...

Close