The processing power of blockchain hashing is greater than the power of the 1,000 largest supercomputers in the world combined, and continues to increase
When most people think of blockchain, they immediately think of cryptocurrency, specifically bitcoin. While this may conjure images of shady hackers wearing “Anonymous” masks, dangerous criminals digitally laundering money, or teenage tech-nerds-turned-asset-traders who made it big allegedly shorting digital currencies, blockchain is an innovative technology that can be used for much more than cryptocurrencies. In fact, it is changing the real estate world as we know it.
What is Blockchain Technology?
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)
Protected by cryptography, blockchain allows information to be distributed without the disruption third party interests. Each document is a “block” with its own unique “hash”- or identification code. When data is altered, a new block with a different hash is created and linked to the previous document, causing a chain of blocks that can be traced all the way back to the original- or “parent block”- which cannot be altered without making a new block. These chains are stored on various computers(“nodes”), in a global network and are easily accessible digitally. People called “Miners” continuously verify blocks to further ensure accuracy. The use of encryption, peer-to-peer networking, and miners create an easy-to-access system that is virtually unhackable.
So, how does it affect us?
Blockchain technology can:
– Eliminate fraud
– Significantly reduce time lags
– Increase the accuracy and accessibility of important documents
– Create smart contracts
– Solve Illiquidity and more…
Stay tuned for the next Tuesday Tech Tip from World Wide to receive the latest tech updates and learn more about blockchain: the future of real estate.
Kejriwal, Surabhi, and Saurabh Mahajan. “Blockchain in Commercial Real Estate.”
Deloitte.com, Deloitte Center for Financial Services, 2017, www2.deloitte.com/us/en/pages/financial-services/articles/blockchain-in-commercial-real-estate.html.
Tapscott, Alex, and Don Tapscott. Blockchain Revolution: How the Technology
Behind Bitcoin Is Changing Money, Business, and the World. New York,
Penguin Random House, 2016.