TECH TALK
FIGURE 1: HOW BLOCKCHAIN WORKS
such blocks in the blockchain. These blocks are linked to each other in chronological order with each block containing a hash (an algorithm that creates a unique record that cannot be readily duplicated) of the previous block.
Bitcoin builds upon the existing
payment systems off ered by the credit card companies and banks, but due to its decentralized nature, it is not dependent upon one single entity to formalize a transaction. Since no one owns or controls the Bitcoin network, it depends upon a peer-to-peer system (similar to Napster, a successful global peer-to- peer mechanism for sharing music, and worked on a related concept), with hundreds of computers globally interacting together to process Bitcoin transactions via the Internet.
20
DOMmagazine.com | dec 2016 jan 2017
This distributed architecture makes Bitcoin the world’s fi rst completely open fi nancial network. To create a new fi nancial service in the conventional banking system, you need to partner with an existing bank and comply with a variety of complex rules. The Bitcoin network has no such restrictions. People don’t need anyone’s permission or assistance to create new Bitcoin-based fi nancial services, they simply need to create a Bitcoin-compliant mechanism and set up shop. (OK, it is a bit more complicated to create the needed secure, software-based system and become part of the trusted network, but there are lots of resources to help anyone who wants to tackle this.) Bitcoin does not use any national currencies, but, is a ‘currency not controlled by borders’, and hence,
is controlled by its users and not by governments. The value of a Bitcoin fl uctuates quickly and erratically, which might be its downfall at some point. (If you would like to see the market value of a Bitcoin, visit
https://markets.blockchain.info/) The end result of blockchain is that it provides a mechanism which removes the middleman out of any process which uses this technology. This dramatically reduces costs and time while increasing the security of transactions and records, and makes them open and transparent.
SO WHAT DOES BLOCKCHAIN DO FOR AVIATION OR OTHER
INDUSTRIES? Let’s toss out some recent examples of blockchain use, which are either
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
