The blockchain explained for non-

engineers
What is blockchain? Is blockchain tech limited to Bitcoin? What is blockchain's
relationship to cryptocurrency? What are blockchain-related jobs? We answer these
questions about blockchain and more.

By Dan Patterson | June 1, 2018 -- 15:01 GMT (20:31 IST) | Topic: How Blockchain Will Disrupt Business

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Blockchain buzz is inescapable. And while the technology has transformed some
companies and minted fresh millionaires in a dazzlingly short period of time,
blockchain is as confounding as it is powerful. If you're confused by the hype, you're
not alone.

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Special report: How blockchain will disrupt business (free PDF)

This ebook, based on the latest ZDNet/TechRepublic special feature, looks at how
blockchain is shaking up the economy and changing the way individuals and
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Read More

The blockchain is a decentralized, vettable, and secure technology that has, in less
than a decade, become a powerful driver of digital transformation poised to help
create a new employment economy. Evangelists claim blockchain tech will disrupt
industrial supply chains, streamline real estate transactions, and even redefine the
media industry. "Think of blockchain as the next layer of the internet," said Tom
Bollich, CTO of MadHive. "HTTP gave us websites ... now we have blockchain,
which is like a new layer of computing."

SEE: The executive's guide to implementing blockchain technology (PDF)

(TechRepublic)

Employment data seems to validate blockchain's current hype cycle. Google search
data indicates a cresting wave of interest in the tech, and according to Indeed.com
searches for blockchain-related jobs spiked nearly 1000 percent since 2015.
Enterprise organizations like Capital One, Deloitte, ESPN, and eBay are hiring
blockchain engineers, retraining project managers to facilitate integrations, and even
searching for specialized attorneys.
Image: Google Search Trends

But while the technology's applications seem nearly limitless, understanding how the
blockchain works and why it's important is challenging, even for technology and IT
professionals. The blockchain is, fundamentally, an ever-expanding database. Just
like a bank record, every transaction is logged and then made available to the public.
The database relies on a novel method of encryption, allowing developers to verify
the authenticity of each transaction.

The database is strengthened with each transaction, so to incentivize so-called

'miners' -- individuals or organizations that use powerful GPUs to solve algorithmic
challenges -- each chain releases a digital 'coin', commonly referred to as
cryptocurrency. The Bitcoin blockchain releases nodes -- or, blocks -- of transaction
data every 8 to 10 minutes. Miners receive a portion of a coin for their effort, and the
chain's encryption is strengthened. Because the code is open and viewable by
anyone with a computer, blockchain tech is often referred to as a 'public ledger' of
activity.

Although most often associated with Bitcoin, the blockchain can be stamped with a
vast spectrum of data, said Bollich's co-founder and Riot Blockchain's CEO John
O'Rourke in an interview with TechRepublic. "It's basically basing your faith in math
[as opposed to] faith in some other trusted party that could potentially be hacked," he
said. "The blockchain allows all of that [activity] to be digitized, and secured with
every single transaction on that ledger."

<span class="img
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Image: Satoshi Nakamoto

Blockchain tech is not limited to Bitcoin, and the code is easily forked. This has
resulted in the meteoric rise of the chain's by-product: cryptocurrency. Ethereum, for
example, is a blockchain for applications and produces a coin called Ether. The
chain is used by firms like Microsoft and Amazon to validate cloud data, by Google to
assist self-driving cars, and by game makers to validate the authenticity of digital
goods. The Monero chain emphasizes transaction privacy, and produces XMR, a
highly volatile currency.

Digital currency is attractive to some because the coins are algorithmically dispensed
and not controlled by a government. In the latter half of 2017 and first half of 2018
initial coin offerings -- ICOs -- raised billions in speculative funding.

SEE: What is blockchain? Understanding the technology and the revolution

(PDF) (TechRepublic)

However, a wise man once said, "Don't believe the hype." When it comes to
cryptocurrency and blockchain hype, we should all learn from Flavor Flav's
immutable wisdom. It's nearly impossible to accurately value cryptocurrency. Some
currencies are easy to hack. Most coins falter or never gain market traction, and
established coins like Bitcoin and Ether often fluctuate wildly in price. Government
regulation seems inevitable, and the SEC is cracking down on fraudulent traders.

Analysts at research firm Gartner, though still bullish on the long-term future of
blockchain tech, are quick to caution that enterprise integration is not as easy as the
hype might imply. According to a recent report, 14 percent of CSOs expressed
concern that the technology will require significant organizational and cultural
changes of the IT department. Another 77 percent of CIOs said their organization
has no short-term interest in blockchain technology.
 Alex Feinberg, a former Google exec and COO of Petram Security, remains
confident in the long-term future of blockchain tech. Blockchain startups are on the
rise, he noted, and the employment landscape is rosy for talented programmers and
integration experts.

"As I started understanding what investment banks did and as I started

understanding how the banking system was constructed, and as I understood how
money was created," Feinberg said, "it became apparent to me that the US
government, the US banking system was in a bind." The solution, he said, was
decentralization. And the technological key to innovative decentralization? "The
blockchain."

Also see

 Blockchain: An insider's guide (free PDF) (TechRepublic)

 Executive's guide to implementing blockchain technology (ZDNet)
 Blockchain: A cheat sheet (TechRepublic)
 Alibaba pilots blockchain supply chain initiative down under (ZDNet)
 5 companies using blockchain to drive their supply chain (TechRepublic)
 Quick glossary: Blockchain (Tech Pro Research)
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src="https://zdnet2.cbsistatic.com/hub/i/r/2018/05/30/0dc88930-4336-46b4-a717-
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Image: iStock/glock