Challenges of blockchain muddle understanding of the technology Posted on : Jun 11 - 2018

There is a lot of hype about blockchain and how it might be used within networking operations. But just understanding the technology and what it actually does might be among the biggest challenges of blockchain.

I have read many articles and generalized argle-barg on the topic of blockchain and cryptocurrencies, and a couple things stand out: Nobody has a great definition for either, and the two are often so thoroughly conflated that most attempts at cogent definitions are pointless..

Nobody seems to agree on what a blockchain is -- or isn't -- except in some loose, arm-flapping way. That lack of understanding represents one of the most significant challenges of blockchain. Cryptocurrencies are mostly understood in that "I'll know it when I see it" way, where we agree on a vague idea without understanding the core of the idea. If you ask the average person about blockchain or cryptocurrencies, and to the extent that she is aware of either, the answer you'll probably get is simple: bitcoin.

Conceptually, of course, the idea of a blockchain is like the idea of one of its main components: cryptography. Cryptography is understood as a monolithic thing in only the most abstracted macro sense possible, where different types of cryptography -- among them symmetrical, asymmetrical or public key -- are all implemented in vastly different manners.

Blockchains are the same: The bitcoin blockchain underpinning the popular currency bearing its name is not the same as the Ethereum blockchain upon which the cryptocurrency Ether sits. And this is where not having good definitions of what we're talking about hurts the larger conversation around how this technology can add value outside of currency applications.

What are the challenges of blockchain in an evolving marketplace?

At its core, a blockchain is a distributed system of recording and storing transaction records. Think of it as a superdatabase -- one where each participant maintains, calculates and updates new entries. More importantly, nodes work together to verify the information is truthful, thus providing security and a permanent audit trail.

So, with that concept in mind, we can broaden our understanding of the technology. Ethereum wasn't designed as a one-trick pony to run a monetary application like its bitcoin cousin; rather, it's more of an application platform, using virtual tokens in the place of cash. Instead of simply trading currency, one might trade cat videos, for instance.

And if those cat videos were traded on a blockchain platform, everyone would be able to verify who first introduced a particular video into the system and each person who modified that video or reintroduced a bad copy. You could have the most distributed and verifiable cat video platform ever created. Luckily, there are many more use cases for this technology than just a cat video distribution platform. View More