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

  • California Consumer Privacy Act (CCPA)

    The California Consumer Privacy Act (CCPA) is legislation in the state of California that supports an individual's right to ...

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

SearchSecurity

  • privilege creep

    Privilege creep is the gradual accumulation of access rights beyond what an individual needs to do his job. In IT, a privilege is...

  • BlueKeep (CVE-2019-0708)

    BlueKeep (CVE-2019-0708) is a vulnerability in the Remote Desktop (RDP) protocol that affects Windows 7, Windows XP, Server 2003 ...

  • endpoint detection and response (EDR)

    Endpoint detection and response (EDR) is a category of tools and technology used for protecting computer hardware devices–called ...

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

SearchStorage

  • Hadoop as a service (HaaS)

    Hadoop as a service (HaaS), also known as Hadoop in the cloud, is a big data analytics framework that stores and analyzes data in...

  • blockchain storage

    Blockchain storage is a way of saving data in a decentralized network which utilizes the unused hard disk space of users across ...

  • disk mirroring (RAID 1)

    RAID 1 is one of the most common RAID levels and the most reliable. Data is written to two places simultaneously, so if one disk ...

Close