Blockchains are gaining an enormous amount of popularity in the last few months. Every media outlet has been heavily documenting the historic rise in the price of Bitcoin. But most people don't seem to know about the basic facts which everybody should know about blockchains. The following list serves to briefly list the important things to know about blockchains for beginners.
Bitcoin is not the only Blockchain - I've talked to many beginners who seem to be under the impression that bitcoin ad blockchain are the same thing. Which is not true at all. Blockchain is a new revolutionary technology and bitcoin just happens to be the first and most popular one. But there is so much more to blockchains that the features offered by Bitcoin.
Blockchains are not only for currencies - Another popular misconception revolves around blockchains only being used as digital currencies. Again, this is false. The applicability and usability of blockchains stretch far beyond just the world of currencies or even finance. Blockchains can be used in fields from health care to even the cooking industry.
Blockchains can be used for Public and Private Transactions - Their can be two types of blockchains: first, where anyone can access information publicly with full transparency; second, where the information can be kept private by encryption which could only be accessed through a private key. Though a blockchain could also have a combination of the two.
Self-Enforceable Contracts - Smart Contracts are computer protocols that enforce and facilitate performance of the system. The contract makes sure that all the listed conditions are met for the transaction to take place.
Regulation for Blockchains - The regulation of blockchain would depend of their use. Blockchains that are used as a store of value either in the form of bonds, equities or currency tokens would come under the jurisdiction of the appropriate agency.
Blockchains used for gambling purposes will also have applicable gambling laws, so that the user will be protected from any fraudulent activity. Canada is laying out plans for regulating digital currencies under the 'Proceeds of Crime and Terrorist Financing Act which would be subject to both individuals and businesses.
Blockchains have tremendous Potential Regarding Personal Privacy Protection - Blockchains are being used yo establish a decentralized database management system that would give each individual the platform to manage his own personal information without anyone spying on him.
Canada is a Leading User of Blockchains - Canada is home to the largest network of Bitcoin ATM's with several leading startups in the blockchains industry. The Bank of Canada is also currently exploring possibilities to integrate the technology into their existing infrastructure.
