Blockchain for Attorneys is yet another installment in a series to help busy executives take a dive into the new world of crypto. The purpose of this week's entry is to give the reader a basic understanding of blockchain technology, how it is currently being used, and where thought leaders project it going.
Here is this entry’s bulleted list of nuggets for Blockchain for Attorneys:
- The first decentralized blockchain was implemented in 2008 by the same entity that invented Bitcoin. The technology existed previously in separate components, but was never applied together, and to currency until then.
- The mass appeal of popular blockchains is their decentralization and transparency to the public. This means that anyone with a computer can track or confirm any transaction.
- Blockchains such as Bitcoin and Etherium are trusted and considered ‘unhackable’ because they are decentralized and transparent.
- The term decentralization is used because segments are stored on the computers of volunteers throughout the world. The segments are referred to as “blocks”, and the volunteers’ computers are called “nodes.” And, of course, there is no central server.
- Blockchain is poised to become the new type of payment rail, potentially making centralized electronic payment systems such as credit card companies, PayPal, Venmo and Zelle obsolete.
- Mining cryptocurrency is fun and can be done using your own PC during off hours. It is not only a way to earn money, but also to participate on the chain as a “node.” However, most folks who mine use a dedicated computer for it.
- Most NFT transactions occur on the Etherium or Solana blockchains. Digital art is the most frequent media traded as NFT’s currently. This is where Intellectual Property will explode.