We have all heard so much about “Blockchain” over the past months perhaps it is time to define our terms.
Basically, “Blockchain” is a term used to describe a process whereby information is recorded in a computer-based spreadsheet. These spreadsheets are often referred to as a “Digital Ledger.” The record is known as a “Block.” The Block, is then time marked and linked to a prior Block. This is considered to be highly secure because information in one Block cannot be changed without changing all of the information in all of the prior Blocks.
Think of it like the process of recording a deed to a house. A deed is recorded at the County Administrative building and is assigned a “Book” and “Page Number.” The information in each Deed adds to the information on the prior Deed for that property. You can add information like a new owner, but you cannot change the past information without going back and changing all of the Deeds going back to the King of England (or other relevant King or Queen as the case may be).
Blockchain is being considered as a useful and secure way to keep track of all kinds of information.
“Cryptocurrencies” are digital devices used to exchange things of value, however, there is no trusted authority or regulatory agency to oversee them. Cryptocurrencies use Blockchain to permanently record transactions to avoid fraud as Cryptocurrencies can be copied or duplicated and then used again. . While useful for digital currencies, Blockchain is a process that can be utilized for a variety of many different uses.
Many individuals, employers and industries are exploring ways to utilize the Blockchain process and to tailor it to their needs. This is a dynamic time as we all innovate and utilize Blockchain to address and solve issues that confront our world.
It may be interesting to see how or in what way Blockchain becomes gradually introduced. For example, Blockchain could be utilized to defeat any allegations in litigation of alteration of documents or to dispute timelines. Blockchain could also be utilized to track information which is submitted to any local, state, or federal regulators in the event there is an audit. Blockchain may also be used to record transactions between parties in an efficient, verifiable way
Stay tuned.
By Thomas C. Martin, Esq. To contact the author, click here.
Partner – Price, Meese, Shulman & D’Arminio, P.C.
With lawyers admitted in New Jersey, Pennsylvania, New York, Connecticut and Washington, D.C.
