It is a trendy subject that is likely to be registered in the long term. Blockchain, the use of which has long been limited to cryptocurrencies, is arousing the enthusiasm of professionals as a viable solution for issues related to traceability, contract execution, and transactions. For the most enthusiastic, it is an innovative and revolutionary tool that is about to turn our lives upside down as the printing press and the Internet did before it. For others, we are in a flash in the pan that will not change our daily lives. IPI is interested in the question!
WHAT IS THE BLOCKCHAIN
The Blockchain (literally chain of blocks ) is a technology for storing and transmitting information that is transparent, secure, without a central control body. It is a distributed, reliable, and tamper-proof public database. It can be compared to a ledger of accounts, public and anonymous, tamper-proof, and indestructible. The first Blockchain saw the light of day in 2008 with Bitcoin, now a famous cryptocurrency. It was allegedly set up by a stranger by the name of Satoshi Nakamoto. This technology is indeed the basis of encrypted currencies, their originality, their safety, and their independence vis-à-vis central banks.
HOW DOES IT WORK?
Any public Blockchain necessarily works with a programmable currency, Token. To better understand how it works, two main areas should be studied:
1. THE PRINCIPLE OF DISTRIBUTION
The main peculiarity of the Blockchain is that it operates without a main body of control. Indeed, the transactions are not centralized in a single place but distributed among all the members of a network via their computer (or any other terminal).
2. STEPS OF A BLOCKCHAIN
Transactions between users of a network are grouped together in blocks. Each block is validated by individuals or companies that are then called “miners”, paid to solve the calculations and algorithms using cryptographic techniques. Once the blocks have been validated and added to the blockchain which, let’s remember, is accessible to all users, nothing can be modified or deleted.
BLOCKCHAIN BEYOND BITCOIN
The Blockchain, used so far in the world of finance, promises to revolutionize many other fields such as:
the pharmaceutical industry;
the IT professions;
the music industry;
politics (via voting).
On December 8, Finance Minister Bruno Le Maire thus presented President Emmanuel Macron with an ordinance relating to “ the use of an electronic recording device shared by the representation and transmission of financial securities ”.
As of July 2018, this will probably have a legal framework and can be used officially to transfer properties and financial titles.
It also makes it possible to develop programmable and autonomous contracts and can be used as a “trusted third party” when signing a contract, by securing and authenticating the transaction, without recourse to a notary or business lawyer…
WHAT ARE THE LIMITS OF THE BLOCKCHAIN SYSTEM?
Decentralized, the Blockchain prevents the establishment of superior and centralized control, which allows it to be used for illegal purposes. It also has a significant environmental impact. The operation of this technology requires enormous computing power. In 2016, the Bitcoin Blockchain consumed more energy than some countries. Additionally, it can be slow and tedious to operate given the complexity of encryption and distribution. The processing of Bitcoin transactions can take several hours, which may make certain immediate settlement transactions impossible.