How do blockchains securely record, store and share data?
At its most basic level, Blockchain technologies use Public - Private Key cryptography, which is a way of locking data so that only those with the private key can open it.
- May 22, 2018,
- Updated May 22, 2018 5:23 PM IST
Up until recently, all computer data, anything you can store in a computer, was treated the same way. You copied it to your computer from a floppy disk, a CD, a USB flash drive, or an external hard drive. Then came the internet and you could send and receive files over the network, and cloud storage services. Whichever way you sent or received data, it was all stored in the same way, and so could be shared in any way.
Neither you nor anybody else could know if they were the only person holding that same piece of data, that same document, picture or movie, or if there were two or ten thousand other copies being stored somewhere else. If your computer crashed and you didn't have a backup, you may have been worried that you lost all your data. If you work as a team sharing one document, you couldn't be sure if the file you were using was the most updated one, and so you kept several revisions of the document in your folder, just to be sure.
Computer files then, could be copied, sent and stored by anyone without anyone having a record of where that document came from, where it was stored, what the latest version was and if there were multiple copies being stored somewhere.
Then in early 2009 an invention launched an era in how data is recorded, stored and shared, and although it was simply known as "Bitcoin" at first, the two main branches of the technology became known as "Blockchain" technology and "Cryptocurrency" technology.
Some have tried to create private blockchains, ones where only their trusted friends can ensure the security of the network, who do not receive cryptocurrency as a reward. This is similar to the current system of inter-bank money transfer, SWIFT, which used to be quite secure but in recent years has seen some spectacular break-ins. Private networks are much less secure than public ones, which is why we haven't seen any private networks being used to store significant amounts of financial wealth.
So being able to securely record, store and share data, we have entered a new era where some forms of less-important data can be shared freely with anyone, while more important data, usually data related to money and assets, can be shared only with those we want to share them with. Blockchain and cryptocurrency technologies work together to keep this new network safe and secure.
The writer is Blockchain Evangelist, Pundi X.
Up until recently, all computer data, anything you can store in a computer, was treated the same way. You copied it to your computer from a floppy disk, a CD, a USB flash drive, or an external hard drive. Then came the internet and you could send and receive files over the network, and cloud storage services. Whichever way you sent or received data, it was all stored in the same way, and so could be shared in any way.
Neither you nor anybody else could know if they were the only person holding that same piece of data, that same document, picture or movie, or if there were two or ten thousand other copies being stored somewhere else. If your computer crashed and you didn't have a backup, you may have been worried that you lost all your data. If you work as a team sharing one document, you couldn't be sure if the file you were using was the most updated one, and so you kept several revisions of the document in your folder, just to be sure.
Computer files then, could be copied, sent and stored by anyone without anyone having a record of where that document came from, where it was stored, what the latest version was and if there were multiple copies being stored somewhere.
Then in early 2009 an invention launched an era in how data is recorded, stored and shared, and although it was simply known as "Bitcoin" at first, the two main branches of the technology became known as "Blockchain" technology and "Cryptocurrency" technology.
Some have tried to create private blockchains, ones where only their trusted friends can ensure the security of the network, who do not receive cryptocurrency as a reward. This is similar to the current system of inter-bank money transfer, SWIFT, which used to be quite secure but in recent years has seen some spectacular break-ins. Private networks are much less secure than public ones, which is why we haven't seen any private networks being used to store significant amounts of financial wealth.
So being able to securely record, store and share data, we have entered a new era where some forms of less-important data can be shared freely with anyone, while more important data, usually data related to money and assets, can be shared only with those we want to share them with. Blockchain and cryptocurrency technologies work together to keep this new network safe and secure.
The writer is Blockchain Evangelist, Pundi X.