Bitcoin might not change the world, but the blockchain that makes it work, might

Digital cryptocurrencies like Bitcoin may have failed to unseat their more traditional rivals, but the technology that underpins Bitcoin may yet bring about a revolution in finance and other industries. This technology is called the “blockhain“.
The blockchain acts as a public database or ledger, and is the technology that stores the details of every exchange of bitcoins. What makes it particularly clever is that it is designed to stop the same bitcoin being spent twice, without the need for a third party (like a bank).
The promise of the blockchain
Even from the early days of Bitcoin, it was believed that the blockchain could be used for much more than recording Bitcoin transactions. What the blockchain does is record a set of details that include a time, a cryptographic signature linking back to the sender and some data that can represent almost anything. In the case of Bitcoin, it is the number of bitcoins being sent but it could be a digital cryptographic signature, called a “hash”, of any electronic document.
One of the earliest demonstrations of the potential of using the blockchain in this way was “proof of existence“, a website that allows a user to upload any document and have its signature recorded for ever on the Bitcoin blockchain.
What this does is prove that the person who uploaded the document had that specific document in their possession at a specific time. It can also be used to prove that the document had not been altered in any way from that time.
The blockchain realised
Proof of existence was intended as a demonstration of the potential of the blockchain technology. Startup Stampery has turned this service into a business that allows other companies to “digitally stamp” any of their electronic documents or emails in order to prove ownership and integrity.

This post was published at Phys.Org on December 18, 2015.