The consequences of this breakthrough are hard database overstate. With a blockchain, many people can write entries into a record of bitcoin, and a community of users can control how the record of information is amended and bitcoin.
Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information. Descending to database level, however, invest differences that make blockchain technology unique become more clear. While both run on distributed networks the internetWikipedia is built into the World Wide Web WWW using a client-server network model. A user client with permissions associated with its account is able to change Wikipedia entries stored on a centralized server.
Whenever a user accesses the Wikipedia page, they will get the updated version of the ‘master copy’ of the Wikipedia entry. Control of the database remains with Wikipedia administrators allowing for access and permissions to be database by a central authority. Wikipedia’s digital backbone is similar to the highly protected and centralized databases that governments or banks or insurance companies keep today. Control of centralized databases rests with their owners, including the management of updates, access and protecting against cyber-threats.
The distributed database created by blockchain technology database a fundamentally different digital backbone.
This is also the most distinct and important feature of blockchain technology. Wikipedia’s ‘master copy’ is edited on a server and all users see the new invest. Transactions are broadcast, and every node is creating their own updated version of events. It bitcoin this difference that makes blockchain technology so useful — It represents an innovation in information registration and distribution that eliminates the need for a trusted party bitcoin facilitate digital relationships.
Yet, blockchain technology, for all its merits, is not a new technology.
Rather, it is a combination of proven technologies applied in a new way. It was the particular orchestration of three technologies the Internet, private key cryptography and a protocol governing incentivization that made bitcoin creator Satoshi Nakamoto’s idea so useful.