Over 90 central banks discuss it, more than 24 countries are investing in it, and over 2,500 patents concerning it have been filed in the last three years.
The figures above relate to distributed ledger technology (DLT) — the blockchain.
You’ve probably heard a lot about this emerging technology. But if you’re not sure about the particulars here’s how Blockgeeks defines it:
‘Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
‘Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.’
According to a 2016 World Economic Forum report, DLT will be one of the foundational technologies for financial services infrastructure. And to disagree is actually pretty tough.
DLT is secure, more transparent and faster than traditional payment systems we have today. And that’s just to start. DLT could also form the basis for smart contacts and digital agreements attached to financial assets.
It’s why there’s so much buzz around bitcoin and other digital currencies. While you can make a quick profit by buying and holding cryptocurrencies, the infrastructure they’re built on could solve future billion-dollar problems.
If you want to learn more about the secret world of bitcoin and other digital coins, click here.
Junior Analyst, Money Morning