What is Blockchain?
Blockchain is a technology that manages digital assets via a database in which all the nodes in a network possess the same information at all times.
How does Blockchain work?
Blockchain technology does not allow information to be changed without the majority of network participants agreeing on the change. The changes are controlled by predefined rules/algorithms applicable to a type of transaction. All elements in a blockchain establish their own individual blocks that contain copies of the data in all the other blocks (copies of joint accounts/ledgers). Any change made must coincide with a corresponding change elsewhere. This means that the data cannot be manipulated.
Opportunities when using Blockchain
Blockchain provides the opportunity to verify transactions without a third party such as a bank/broker, using cryptography. For example, blockchains can be set up with predefined rules indicating that an individual must not be able to transfer NOK x unless he has more than NOK x in his account. The security and transaction-based approach mean that Blockchain is well-suited to banking and financial solutions.
Who is affected by Blockchain
Blockchain is designed to manage digital assets and is considered to have major potential in sectors such as finance, media, entertainment and commerce. Blockchain technology can also be used by anyone wishing to share data but who also wants to be absolutely certain that all parties have the same data at all times, and that all changes are visible to all.
Relevant terms to Blockchain: Virtual currency, Bitcoin