As we explore the technology behind blockchain it is important to understand what role bitcoin plays
Bitcoin is a digital currency launched in
2009 with the intention of simplifying online transactions by bypassing government control of currency
It does this by storing and transacting the currency over a peer-to-peer network, a blockchain
rather than using a central monetary repository. It's important to make the distinction that bitcoin is not a blockchain itself
Bitcoin is transacted over an open public
anonymous blockchain network. In many ways you can think of blockchain as the operating system and bitcoin is one of the many applications
that run on that system. The blockchain that underlies Bitcoin has some fundamental similarities
but also key differences to a blockchain built for business such as the Linux Foundation's Hyperledger Fabric
Both are cost effective as they increase speed of transactions and reduce overhead costs
Both are highly efficient as the transaction is recorded once and is then visible to all parties through the distributed network
Both are Tamper Evident.The transaction cannot be changed
It can only be reversed with another transaction in which case both transactions are visible
However a bitcoin blockchain is limited in a few ways
It is primarily designed to transact cryptocurrency and is also open and public
meaning anyone can join and view every transaction that's ever happened on the network. It is anonymous meaning it is nearly impossible to know the
identity of who is involved in a transaction
Because of this it requires heavyweight cryptography to deter fraudulent activity which requires significant computing power. These
characteristics leads to many issues around efficiency
confidentiality
security and trust when conducting business
especially around regulated industries. On the other hand a blockchain built for business enables you to exchange anything of value whether
tangible like a car or house
intangible like a patent or copyright or digital like videos or photos. It is private so the invited members
know exactly who they are doing business with. It is permissioned so participants are only given access to data relevant to them and
it runs on smart contracts, business logic embedded into the network reducing disputes and
increasing trust. The blockchain for business also utilizes selective endorsement which allows participants to control exactly who verifies
transactions. All of these qualities make a blockchain for business more efficient more secure and more effective across your business networks
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