Blockchain Value System
Published 2017 · Computer Science
Long before the advent of the blockchain, digital cash had been conceptualized in a setting with a central server trusted to prevent double-spending with the help of public-key cryptography, whereby each agent is assigned a private key (kept secret like a password) and a public key shared with all other agents. In spite of major cryptographic advances, failure to ensure compatibility between centralization, anonymity and double-spending prevention, eventually put the viability of this new form of money into question. Recently, Bitcoin’s blockchain model has been proposed as the backbone for a wide range of applications, from asset trading to real estate transactions, from escrow services to even a national income distribution system. A value system is a coherent set of values adopted by an organization, or society as a standard to guide its behavior in preferences in all situations. This chapter discusses blockchain as a value system and expounds the main fundamental principles behind blockchain technology, the way it works, advantages, limitations and challenges of blockchain and finally, some of its cutting-edge applications.