Block Chain Technology

The Premium information evening of the 12^th of May 2016 was focused on explaining Block Chain technology to Premium colleagues. Robert Jan Vrolijk was invited to be the speaker.

Blockchain technology has become famous as the backing technology of  the Bitcoin. There are far more uses in society than just virtual money. The essence is formed by realising a fully transparent general ledger of all transactions that need registration. Trust parties like notaries and accountants for stating that an administration is well set-up and performed may become superfluous. In a similar way Bitcoin may make banks unneeded for financial transactions.

Robert Jan explains the technology that a lot of people find hard to understand fully. The first block that is made is called the Genesis block. After that in the case of Bitcoin “miners” start to combine transactions (whereby bookings are maid from one Bitcoin account to another)  that need to be registered with a corresponding hash to make a next block. Finding the right hashvalue costs computing power. The first that succeeds in this quest may add the next block to the chain. That only happens of the other miners have validated the hash produced by the lucky finder. If more than fifty per cent of the minders have made the validation the block is added and the quest starts again for a new hash for a next set of transactions based on the new blockchain that includes the new block. There are maximum amounts for the amount of new blocks per time. If more time is required between the generation of new blocks it can be decided to increase the length of the hashvalue. Then it becomes more time-consuming to find a fitting hash.

Besides the Bitcoin there are other blockchain initiatives, e.g. Litecoin, Fitcoins and Ripple.

Ripple is a distributed financial technology that enables banks around the world to exchange transactions directly between the banks instead of via a central party.

Concluding: blockchain technology makes the “trusted middle man” superfluous and is therefore a disruptive technology.

Robert Jan fascinated us with his story and knew to clearly lay out the importance of the blockchain technology.