{"id":27476,"date":"2016-11-15T17:27:59","date_gmt":"2016-11-15T16:27:59","guid":{"rendered":"http:\/\/claudio.brignole"},"modified":"2024-01-16T12:51:03","modified_gmt":"2024-01-16T11:51:03","slug":"blockchain-a-non-technical-introduction-2","status":"publish","type":"post","link":"https:\/\/exmachina.ch\/en\/news\/blockchain-a-non-technical-introduction-2\/","title":{"rendered":"Blockchain \u2014 A non-technical introduction"},"content":{"rendered":"<p>Blockchain is an interesting topic because of its far-reaching and transformative implications. But what is Blockchain really? Beyond the promises, Bitcoin, Ethereum, the equations, this non-technical explanation has the aim of providing an intuitive understanding.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/1-Giving-physically.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-1168\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/1-Giving-physically.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Giving physically is easy<\/h2>\n<div class=\"x-text\">\n<p>We are used to the ease of giving physical objects directly. This simple action comprises a lot of aspects that we take for granted, but which are essential for the transaction.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/2-Giving-digitally.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" class=\"alignnone size-full wp-image-1167\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/2-Giving-digitally.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Giving digitally is harder than you think<\/h2>\n<div class=\"x-text\">\n<p>Giving something digitally is different because there is distance between sender and recipient. The systems for making the transaction happen are complex and not transparent. How do you know what exactly is happening?<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/3-Giving-digitally-through-a-transparent-tube.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" class=\"alignnone size-full wp-image-1166\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/3-Giving-digitally-through-a-transparent-tube.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">The internet is a set of pipes<\/h2>\n<div class=\"x-text\">\n<p>There are many different types of pipes. Some are transparent and anyone can look what\u2019s going through. Others go to other countries before coming back to your co-worker sitting next to you.<br \/>\nMany important aspects to transactions are not clearly assured, leading to questions that don\u2019t arise when giving physically.<\/p>\n<p><strong>For the sender:<br \/>\n<\/strong>\u2013 Is it really her?<br \/>\n\u2013 Did she receive it?<br \/>\n\u2013 Is it arrived as I sent it?<br \/>\n\u2013 Should I send it again?<br \/>\n\u2013 Will she answer?<\/p>\n<p><strong>For the recipient:<br \/>\n<\/strong>\u2013\u00a0Who sent this?<br \/>\n\u2013\u00a0Is this apple real?<br \/>\n\u2013\u00a0Are there any worms?<br \/>\n\u2013\u00a0Is this all?<br \/>\n\u2013\u00a0Should I answer?<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/4-Giving-digitally-throgh-an-opaque-tube.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1165\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/4-Giving-digitally-throgh-an-opaque-tube.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Even state-of-the-art methods aren\u2019t always enough<\/h2>\n<div class=\"x-text\">\n<p>Encryption, certification, backup, checksum, anti-virus, etc. answer many of the questions, but not all of them.<\/p>\n<p><strong>For the sender:<br \/>\n<\/strong>\u2013 <del datetime=\"2016-11-15T10:00:01+00:00\">Is it really her?<\/del><br \/>\n\u2013 Did she receive it?<br \/>\n\u2013 <del datetime=\"2016-11-15T10:00:01+00:00\">Is it arrived as I sent it?<\/del><br \/>\n\u2013 Should I send it again?<br \/>\n\u2013 Will she answer?<\/p>\n<p><strong>For the recipient:<br \/>\n<\/strong>\u2013\u00a0<del datetime=\"2016-11-15T10:00:01+00:00\">Who sent this?<\/del><br \/>\n\u2013\u00a0Is this apple real?<br \/>\n\u2013\u00a0<del datetime=\"2016-11-15T10:00:01+00:00\">Are there any worms?<\/del><br \/>\n\u2013\u00a0Is this all?<br \/>\n\u2013\u00a0Should I answer?<\/p>\n<\/div>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/5-Giving-digitally-blockchain-pipes-shaded.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1164\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/5-Giving-digitally-blockchain-pipes-shaded.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Blockchain is a special kind of pipe, trustworthy and programmable<\/h2>\n<div class=\"x-text\">\n<p>The goal of Blockchain is to provide to digital systems the same trust, clarity, immediateness, and effectiveness of physical transactions. This is achieved with two elements: (1) A clever file-system and (2) independent system maintainers. The first is a system based on creating blocks of transactions in a way that they depend on the previous links, making it exceedingly difficult to copy or tamper. The second is composed of independent third parties that have an incentive (e.g., earning Bitcoin or Ether) that the Blockchain works.<\/p>\n<\/div>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/8-Giving-digitally-encrypted.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1161\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/8-Giving-digitally-encrypted.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Encrypted = Hidden<\/h2>\n<div class=\"x-text\">\n<p>Every transaction is encrypted using the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Public-key_cryptography\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">public-key<\/a> system, hiding the content of the transaction from all but this having the keys. The same system allows also verifying the identity of the sender.<\/p>\n<p><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/9-Giving-digitally-puzzle.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1160\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/9-Giving-digitally-puzzle.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/p>\n<h2 class=\"h-custom-headline h5\">Highly Complex = Exceedingly Difficult for Smaller Tamperers<\/h2>\n<div class=\"x-text\">\n<p>To add a block of transactions to the Blockchain, a complex puzzle must be solved. Because every block is difficult to replicate on its own and it even depends on the previous blocks, it becomes not feasible to tamper with past transactions because for the system to maintain its consistency all the following blocks should be also solved and finally merged.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/7-Giving-digitally-publicly.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1162\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/7-Giving-digitally-publicly.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Public = Actions on Blocks are Visible<\/h2>\n<div class=\"x-text\">\n<p>The content of the transactions is invisible to the anyone that doesn\u2019t have the keys, but anyone can look at the blocks of transactions, verify their integrity, the consistency, etc. This means that any malicious modification of the Blockchain can be immediately detected.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/6-Giving-digitally-decentralised.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1163\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/6-Giving-digitally-decentralised.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Decentralised Redundancy = No Loss<\/h2>\n<div class=\"x-text\">\n<p>By storing copies in different sites, the information is safe even if one instance is destroyed.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/10-Giving-digitally-programmable.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1159\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/10-Giving-digitally-programmable.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Programmable = Efficient and Transformative<\/h2>\n<div class=\"x-text\">\n<p>The nature of Blockchain enables each transaction to be associated with small programs that are automatically carried out as soon as a future transaction proves predefined conditions. For instance in real estate there could be smart contracts that transfer title and release escrow when ownership is confirmed, potentially reducing transaction and insurance costs. This characteristic allows Blockchain systems to bypass many intermediaries such as notaries, insurers, banks, etc. The transformative potential cannot be understated.<\/p>\n<h2><a href=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/1-Giving-physically.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-1168\" src=\"https:\/\/exmitalia.it\/wp-content\/uploads\/2016\/11\/1-Giving-physically.png\" alt=\"\" width=\"1200\" height=\"571\" title=\"\"><\/a><\/h2>\n<h2 class=\"h-custom-headline h5\">Giving physically, digitally<\/h2>\n<div class=\"x-text\">\n<p>The scalability and convenience of digital systems with the trust, clarity, immediateness, and effectiveness of physical transactions. Despite its promises, Blockchain still has technical difficulties to overcome. This doesn\u2019t stop the World\u2019s largest corporations from following the path and see where it may lead. On the way there, it is important to realize that many products and services don\u2019t need full Blockchain solutions. Even the individual characteristics of Blockchain \u2014encryption, redundancy, high-complexity, openness, decentralisation\u2014 provide powerful advantages.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Blockchain is an interesting topic because of its far-reaching and transformative implications. <\/p>\n","protected":false},"author":33,"featured_media":27486,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-27476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/posts\/27476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/comments?post=27476"}],"version-history":[{"count":1,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/posts\/27476\/revisions"}],"predecessor-version":[{"id":27662,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/posts\/27476\/revisions\/27662"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/media\/27486"}],"wp:attachment":[{"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/media?parent=27476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/categories?post=27476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exmachina.ch\/en\/wp-json\/wp\/v2\/tags?post=27476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}