The Ledger has Gone Digital
The book keeping ledger has significantly evolved throughout the ages. Starting from clay tablets, migrating to the introduction of paper, and now enterprise resource planning systems, our book keeping strategies have significantly progressed into the digital era.
Today, businesses utilize a digital ledger known as blockchain, which is a collection of transactions issued on a distributed network. This collection of transactions are cryptographically chained together in a digital signature, distributed across a network of computers sharing the same ledger.
In Video One of our four part series, Director Matthew DiBona guides us through the fundamental concepts of blockchain technology.
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What is Blockchain?
Over the course of human history, we’ve gotten better and better at keeping track of what has exchanged hands. From clay tablets at the very beginning of book keeping, through to the introduction of paper, double entry book keeping, and now enterprise resource planning systems. We now have a distributed ledger, which is a ledger of transactions distributed across a network, which also goes by another name, blockchain.
Breaking down Blockchain:
There’s a level of transparency that exists in the blockchain chronological listing of transactions, which lists all ins and outs from one account to another. Whether it’s Bitcoin or another asset, anything that is changing hands can be represented on this blockchain. As mentioned before, blockchain is cryptographic, and therefore encrypted within the embedding of other blocks. This prevents one from changing any of the previous transactions, without simultaneously changing records across all of the computers in a distributed Network. This results in immutability, meaning these transactions cannot be changed under any circumstances.