2  Blockchain

Blockchain objectives

Blockchain can be used to create value for multiple industries. The follow-

ing is a summary of what blockchain can do:

• Establish digital identity: Cryptography is an important force behind the

blockchain as it provides a platform to digitally verify a person’s identity.

• Serve as a system of record: Blockchains are an innovation in informa-

tion registration and distribution. It can store data in an unencrypted,

encrypted and hashed format.

• Prove immutability: Blockchain provides a system of record as the

transaction cannot be reversed (immutable).

• Serve as a platform: Blockchain technology provides a platform

with three technologies: Private key cryptography, P2P network and

Protocol to exchange an asset globally through smart contracts.

Blockchain benefits and limitations

The following table provides an overview of Blockchain benefits and

limitations.

Crypto (Bitcoin) evolution

Who created Bitcoin?

Bitcoin was created by a pseudonymous software developer named Satoshi

Nakamoto who proposed Bitcoin in 2008. The idea was to produce a

means of exchange, independent of any central authority, which could be

transferred electronically in a secure, verifiable, and immutable way. To this

day, no one knows who Satoshi Nakamoto really is.

Benefits

Current limitations

• Provides a simple, secure way to

establish trust for any kind of

transactions

• Quick and simple movement of money

internationally

• The transparency of blockchain has real

value for regulators. The regulators and

lawmakers are still working to resolve

questions about standardisation, stability

and other legal issues.

• Use of blockchain can automate and

simplify the manual processes within

Business. However, companies might be

reluctant to bear the costs and risks of

new technology like blockchain.

• Although blockchain is protected by

business-grade cryptography, no

technology is 100% secure.

• When large sums of money are

involved, hackers will try to follow

• Limitation on the speed of transaction

processing – blockchain (Public

blockchain used for Bitcoin) can only

process five to eight transactions a

second. Emerging blockchain software

companies are working on solutions

for credit card networks that already

process nearly 10,000 times the

volume processed by existing

blockchain networks.