What is a "BLOCK CHAIN" & "CRYPTOCURRENCY"? & It's effect on CHARTERED ACCOUNTANTS Jobs

The Future of Blockchain Technology

T

he World Economic Forum lists blockchain as one of the top ten emerging technologies of 2016. This growth will be underpinned by new technologies. One of these is distributed ledger technology and its most common application –blockchain. Distributed ledger technology (of which blockchain is an example) uses cryptographic tools and a distributed consensus process to create a significant innovation in traditional record keeping. It has three main features:

 • Veracity – multiple copies (as opposed to a single copy) of the complete historical record of ledger entries are each verified by consensus. (Bogus entries are identified and eliminated by failure to reach consensus.)

• Transparency – it is a public record of activity that can be seen by all market participants.

• Disintermediation – it operates using a peer-to-peer network, rather than requiring a specific central organisation.

How a BLOCKCHAIN works 

For businesses, it could mean significant operational simplifications, reductions in fraud, and greater transparency, with less need to duplicate and verify records across and within organisations.

And these benefits could translate to regulators, who may have more timely and transparent access to data, enabling more informed decision making. But these benefits will only be realised when the costs associated with maintaining and updating a distributed ledger can be contained. Ensuring that governance is appropriate will be important to each distributed ledger’s success.

          In 2008, Bitcoin (a cryptocurrency and payment plateform) was introduced.Blockchain and distributed ledger technology underpin Bitcoin. But blockchain and distributed ledger technology have much broader applications and implications.

We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.

Don’t let yourself be lulled into inaction.

– Bill Gates, The Road Ahead

-SATYAM GUPTA