Blockchain: What It Is And Why It Matters

When I say that I work in a blockchain startup, I get a lot of funny looks.

Admiration. Interest. But mainly…curiosity.

Because the truth is, not many people understand what blockchain is or how it works.

And that’s too bad, because in the current financial climate, it’s one of the best investments you can make.

Do you want to know more about blockchain and the opportunities it holds?

Here are the four things you need to know.

Some of the brightest minds work in the field.

Take cryptocurrencies for example — it is an exciting field to work in because it attracts some of the brightest, most innovative minds out there. A variety of talented technology and finance gurus are embracing the challenge. More importantly, everyone who works in a blockchain startup, at least that I have met so far, is on their best game, making it a thrilling place to be. Because things change so quickly in this business, people in the field must be flexible and adaptable. They are also fearless when it comes to initiating bold new ideas…because in this business, you must be. This can feel chaotic at times, but mostly it’s just fun.

Blockchain is a decentralized database.

Blockchain differs from a typical database in the way it stores and owns information; data is stored in blocks that are then chained together and is owned by a large group of users, all working in different places. This is different from most other types of storage systems, as usually the computers that store the information are all under one roof, and each computer or group of computers is operated by a unique individual or group of individuals, having full control of each of these computers and all the information contained within them.
Blockchain is a more equitable system in this way, because all members have ownership, rather than just one person or group of people retaining the locus of control. And as with a Google Doc, any changes are immediately transparent to everyone in real time. This removes any potential trust issues among stakeholders and makes the system completely transparent, a new and welcome change in the world of finance, healthcare, voting, property records, supply chain, smart contracts, you name it.

Data is constructed by a series of “blocks.”

As its name suggests, and briefly mentioned above, units of data are stored in the form of groups of information called “blocks.” Each block, once filled, links itself to the previous block, thus creating a “chain.” Each finished block creates an irreversible unit. So essentially, Blockchain is an immutable timeline of stored data. Each block also contains a timestamp, showing when it was made.

Each block is made up of three parts: the data, the nonce, and the hash. The data resides within the block, while the nonce and the hash hitch themselves together to link the block to the chain.

Different types of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions.

Now, we have several terms above which to me at least initially were not self explanatory, so let me shed some further light onto this explanation:

• Ledger: a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people
• Node: The computers that hold the data that makes up the blockchain, meaning each node has a full record of the data that has been stored on the blockchain. For example, for Bitcoin, the data is the entire history of all transactions. If one node has an error in its data it can use the thousands of other nodes as a reference point to correct itself. This way, no one node within the network can alter information. In order to change any information, the majority of the decentralized network’s computing power would need to agree on the changes.
• Nonce: abbreviation for “number only used once,” which, in the context of cryptocurrency mining, is a number added to a hashed — or encrypted — block in a blockchain that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for.
• Hash: A hash is a function that meets the encrypted demands needed to solve for a blockchain computation. A hash, like a nonce, is the backbone of the blockchain network.

Integrity matters.

Contrary to popular belief, blockchain startups truly care about integrity. They are constantly working to ensure that this technology enters the e.g. financial mainstream with maximum legitimacy and a due respect for safety and laws.

If you’re interested in taking part in the exciting world of blockchain technology, you should check out Nuri (ex Bitwala), a blockchain-banking service.

We are a new kind of bank for a new millennium, offering all the opportunity of cryptocurrency alongside the security of a German bank account.

Take a look at our website to find out about investment and employment opportunities available today.