On this episode of A Wiser Retirement™ Podcast, Casey Smith is joined by Robert Swarthout, Founder, CEO, and Portfolio Manager of Teton Crypto Capital, to talk about how Blockchain will change the world. Beyond just a database, we examine how Blockchain is set to redefine security features, smart contracts, and the potential for digital voting.
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What is a Blockchain?
A Blockchain is a form of database, also known as distributed ledger technology. It consists of a sequential recording history that’s not editable. Each block refers to the previous block and it goes forward in that manner. This allows for a system that people can rely on because there isn’t somebody altering values in the database.
Understanding Blockchain Technology
A simple example of a Blockchain application would be using it in banks for bank accounts. These are not yet in Blockchain, but we can expect them to be sooner than later. Since you can’t go back and change something that happened in the past in the world of Blockchain, an account balance becomes more than just a number. For example, if you at a determined point in time have an account balance of $1,000, that’d be a summation of all the history that had happened in your account up to that point. Then, you would add a positive or negative entry to that to affect your balance.
What makes Blockchain more secure?
The way the systems work ensures the safety of the process. It uses computers that together come to a consensus through complex math operations to prove that the transaction did what it was supposed to do. In a lot of cases, that process is called confirmation. It also helps to think of a block in Blockchain as a subset of time. Some Blockchains are measured in minutes, some in seconds, some are even down to under a second. During that block of time, it collects all the different things that happened.
It’s Still the Beginning for Blockchain and Crypto
We are just now starting to see the capabilities of Blockchain and crypto. People are still often confused about crypto and how it works. Currently, some people think they know how Blockchain and crypto can be used in the finance world, but it is still too early to fully understand the different ways it can be used down the road.
Daily Uses for Blockchain
Identities are currently on different electronic databases, but certainly not a Blockchain. Digitalizing state-issued IDs in a blockchain would help citizens in so many areas, such as avoiding identity theft, avoiding unnecessary exposure of personal information, and avoiding misplacements of ID cards.
Another way that Blockchain could be used would be for titles, deeds, and ownership tracking. It could have the use of tracking car history, real estate titles, and even something as specific as horse titles.
The medical world can also benefit from the use of Blockchain, which could turn medical records and patient history into something that’s available to doctors nationally, instead of a PDF printout or a portal that belongs to one practice.
Finally, the uses for Blockchain are endless and its application to daily life has the potential of simplifying life as we know it in another whole new level that we have yet to discover.
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