About this video
This introduction separates cryptocurrencies like Bitcoin from the technology behind them, blockchain. A blockchain is a decentralised, distributed database or ledger that records transactions across many computers, which could remove the need to trust intermediaries. The video previews possible uses in art, social media, medical and property records.
You'll be able to
- explain the difference between a cryptocurrency and blockchain.
- describe a blockchain as a distributed, decentralised database.
- name some possible uses of blockchain beyond currency.
Key words
- Cryptocurrency
- A digital currency, like Bitcoin, that runs on blockchain technology.
- Blockchain
- A database of transactions copied and stored across many computers instead of in one place.
- Decentralized
- Not controlled by one central person, company or computer.
- Distributed ledger
- A record of transactions shared across a network of computers.
- Intermediary
- A third party, like a bank, that sits between two people in a transaction.
Transcript
So when people first hear about blockchain, they often find it to be a little bit confusing or it's daunting to understand it, and that's totally understandable. We've all heard a lot about cryptocurrencies like Bitcoin. The digital currency has exploded in popularity this year.
Unbelievable how much this has taken off. Well bitcoin has been plummeting, cryptocurrencies basically have no value. There's the currency like bitcoin and then there's the technology, like blockchain. To really understand crypto, you have to understand the technology that makes it possible.
Blockchain. What's blockchain? Blockchain is a distributed database that is supported by remote validators that enable security and replication of the information on the blockchain so it's never lost. Huh? Blockchains are decentralized databases. It records transactions.
When you change the information on one computer, it changes the information on all the other computers at exactly the same time. Blockchain is a new technological innovation that stores transactions on a distributed ledger of computers. It has the potential to enable significant societal and political change by removing the trust that's needed in intermediaries or third parties.
What can blockchains be used for? Blockchain technology can disrupt the art world. It can disrupt social media. For medical records, for property records, for property rights, for creating a stream of income, whether it's a song or a picture. We won't really know what its future is until it gets properly regulated.
If you know nothing about blockchain, don't worry. This series breaks down the technology into simple to understand steps. We'll talk about what impact it's having on the world today and on the future.
Video © Khan Academy, used under CC BY-NC-SA. Watch on Khan Academy. Puzzicle is not affiliated with Khan Academy.