3.5 The Value of Blockchain - Video Tutorials & Practice Problems

In this lesson, I'm gonna be talking to you about the value of blockchain. To do so, I want to focus on three key areas where blockchain adds value to the internet. So as I go through these, I want to give you some key pointers as to why blockchain is such a powerful and revolutionary innovation and the value that it adds on top of the internet. To do so the first thing I wanna focus on, is exactly that. Value. Through blockchain, you're able to transfer a digital asset of value over the internet. We specified that in the case of Bitcoin, you can transfer a Bitcoin directly over the internet, peer-to-peer without needing the services of a third party. The reason why you're able to do that is through the use of blockchain technology. This being able to transfer a digital asset of value over the internet is one of the reasons why many refer to blockchain as, the internet of value or the internet of transactions. That's because through the use of blockchain you're able to do transfers of value directly over the internet. So, the first point I want to point out to you is, value when it comes to blockchain. The next area we need to focus on is trust. Blockchain enables you to have a single source of truth of what's actually going on. A perfect example is when you're looking at Bitcoin. In Bitcoin, you have a single source of truth of where every single Bitcoin value is, because it's recorded permanently and immediately on the blockchain. There's no doubt, there's only one version of the blockchain and you have multiply copies of it. So you have a single source of truth that's tamper-proof, permanent, and immutable, because of this, you can trust that the information that's recorded on the blockchain is the accurate truth and because it's the same truth that everybody agrees on, you actually have trust in that information. The next area where I want to focus is on is reliability. Blockchain enables you to have multiple copies of that blockchain. So instead of having all the information recorded in a centralized database that you can hack, and as a result, have a single point of failure. Instead, you can take a blockchain and you can have multiple copies and spread it across a decentralized network. So you do not have a single point of failure. This whole focus of being able to have that single source of truth, multiple copies of them, spread across a decentralized network, gives you a much wider area and it doesn't give you that single point of failure that could bring down the entire system. So when you think about it. The three key areas where blockchain adds value, is value, trust, and reliability.