When you vote have you ever wondered whether your ballot is actually counted
if you meet someone online how do you know they're who they say they are
when you buy coffee that's labeled Fairtrade what makes you so certain of its origin
to be sure really sure about any of those questions you'd need a system where records could be stored facts could be verified by anyone and security is guaranteed
that way no one could cheat the system by editing records
because everyone using the system would be watching systems
like this are on the horizon and the software that powers them is called a blockchain
block chains store information across a network of personal computers making them not just decentralized but distributed
this means no central company
or person owns the system
yet everyone can use it and help run it this is important because it means it's difficult for any one person to take down the network or corrupt it the people who run the system use their computer to hold bundles of records submitted by others known as blocks in a
chronological chain the blockchain uses a form of math called cryptography to ensure that records can't be counterfeited or changed by anyone else
you've probably heard of the block chains first killer app a form of digital cash
called Bitcoin
that you can send to anyone even a complete stranger bitcoin is different from credit cards PayPal or
other ways to send money
because there isn't a bank or financial middleman involved instead people from all over
the world
help move the digital money by validating others Bitcoin transactions with their personal computers earning a small fee in the process
bitcoin uses the blockchain by tracking records of ownership over this digital cash
so only one person can be the owner at a time
and the cash can't be spent twice like counterfeit money in the physical world can but bitcoin is just the beginning for blockchains in the future block chains that manage and verify online data could enable us to launch companies
that are entirely run by algorithms making self-driving car
and even track the billions of devices
on the internet of things these innovations will change our lives forever
and it's all just beginning to learn more about the urgent future of the blockchain