The Evolution of Blockchain: Transformation of Business and the Internet (updated 7.4.16)

linkedin blockchain imageIf you are like me, you have some general knowledge about how your computer works and are just glad that when you turn it on and press the buttons, you get the correct response to connect with your family, friends, or colleagues and get your work done on a daily basis.

I write for a living and so I live on my browser while researching countless topics and an endless flow of material accessible within a few keystrokes. The technology that makes my Google searches respond accurately amazes me. The internet has transformed our lives in ways that seem nearly magical…and then I got wind of BigchainDB (Distributed Database) and nearly choked on my morning cereal.

I have a personal friend that connects channel partners in respective industries in order to develop relationships that are beneficial to all involved. You never know who he will meet and who he will connect, but ultimately the goal is to see the sparks of like-minds create a new concept or invent new techniques that improve an industry or several at a time. Recently, he stumbled on an individual bent on customizing the blockchain concept for supply chain applications and recognized the implications to the internet, not to mention the resulting global impact on industries across the board as electronic processes are literally reinvented. Am I being dramatic? Nope.

Block Chain to Bitcoin

bitcoin, blockchainI’m getting ahead of myself. Many people have heard of Bitcoin, which is an open source public ledger of all financial transactions between companies and individuals who choose to use it. The chain lengthens each time someone completes an action, creating blocks that are recorded in a linear and chronological order. Massive data centers called “miners” across the world participate in authenticating transactions for rewards including newly minted bitcoin.

Click here to see a larger version of the infographic.

Each computer connected to this ledger network gets a copy of the blockchain automatically which includes addresses and balances on transactions from the first block to the most recently added. New blocks are extending the chain by several hundred lines about every ten minutes making it currently “over 8,000 times the length of the Bible.”

Like many things that are a bit ahead of their time, the blockchain, published by Satoshi Nakamoto in 2008 and implemented into the source code of bitcoin  in 2009, became an incredible tool that never really caught on with the general public which continued operating quite happily with credit and debit card use. However, criminal minds immediately found a way to avoid regulations regarding the use of cash for illegal transactions such as gambling or drug dealing; proof that its use merely requires some creativity and ingenuity to involve the masses.

The financial industry has certainly used it to conduct securely recorded transactions in some segments and recently began to worry about a scalability problem that would prevent the ledger from accommodating, storing, and synchronizing larger volumes of data while still being able to protect records from tampering or revision. How can they make money flow as freely as data to purge the world of credit-card fees and foreign-exchange charges on the way to its much broader connotations and why must this technology be the answer?

The Best Features of Blockchain

block chain searchEvery block contains a hash of the block before it, a timestamp, and becomes a full financial history available to all users without the need for permissions. Chaining these blocks together consecutively prevents duplication of the same bitcoin making the system tamper-proof by any one party, such as individual users and government institutions, and there is no centralized organization; no “bank of bitcoin”.

The blockchain can’t be changed without overwriting all of the thousands of copies used by the miners (a large number of computers dedicated to keeping the system running) at the same time. This would require controlling “51% of the computing capacity of the 10,000 or so ‘miners’” which is highly unlikely. The cost alone to attempt to breach it would be phenomenal. The need for “unbreachable” data has inspired other attempts at cryptocurrencies with distributed databases as well. From financial institutions and department stores to personal music accounts and healthcare coverage, online data will be secure from cyber-attack, identity theft, fraud, and waste. There is an unbelievable savings potential here for literally any industry.

Blockchain Plus Big Data Equals New Companies Like BigChainDB

Now there are more than 80 crypto-ledgers out there and the blockchain concept has been continually advancing programming language to attach bitcoin-based sidechains and altchains to add assets for big data without creating more blocks on the transactional currency chain to solve the scalability issue; enter BigchainDB with the added benefit of protection by cryptography that is considered impenetrable. bigchaindb image

Take a quick look at the intended uses for Blockchain technology:

  • Variations are being tested in the music industry for royalty collection and management of copyrights globally.
  • The Harvard Business Review researched securely moving and storing “money, titles, deeds, music, art, scientific discoveries, intellectual property, and even votes”.
  • David Grace, Price Waterhouse (PwC) head of global finance, is looking at uses “to store validated ‘know your customer’ data on individuals or companies… a potentially global application that could provide more security over identity data and where that data [is] stored.”
  • Companies like IBM and JPMorgan Chase, and venture capitalist firm Andreessen Horowitz, are preparing a shift to blockchain and network-based approaches  to complement or rebuild the current centralized financial system.
  • CoinSpark, based in Tel Aviv, wants to add messages to the bitcoin blockchain as an inexpensive way to notarize information.
  • Lighthouse, developed by former Google engineer, Mike Hearn, is using it for a decentralized crowdfunding platform on bitcoin.
  • The Economist describes new progress that not only allows for smart contracts to be executed at delivery but also “creating invoices that pay themselves when a shipment arrives or share certificates which automatically send their owners dividends if profits reach a certain level.”

Decentralized Growth and Evolution

Blockchain architecture has the ability to unite a consensus of all transactions into a single version despite users running anonymously, having reduced interconnectivity, or attempting malicious cyber-attack. It provides a consistent history. Traditional financial business models are in for an overhaul and while some are still resisting, others conclude it is inevitable. Banking institutions are becoming an unnecessary middleman.

The world economy has long trusted this need for third-party intervention and recently that has led to global financial strife. But this “piece of innovation [is] on a par with the introduction of limited liability for corporations, or private property rights, or the internet itself. The blockchain is public and widely distributed so anyone can download a copy of it. Identities are protected by clever cryptography and the system is entirely transparent.”

All major banks have teams analyzing the impact of blockchain right now. In 2016, the National Settlement Depository (NSD) of the Russian Federation began its own pilot project based on this technology. A barrier to making this enormous change is the difficulty of finding staff who can get them up to speed on the technology. “The sort of people who understand blockchains don’t usually want to put on a suit and go work for a bank,” says Gideon Greenspan of CoinSpark.

Here is where my channel partner friend comes in to make an introduction to someone who can implement the software, integrate it into your existing system, customize it to your business, and train staff to use it effectively. The implications on return on investment are enormous and you can read the details on several presentations featured by Don Klos, Encrypted Labs consultant on LinkedIn. Charlotte, NC area has its own BigchainDB experts at Encrypted Labs, Ian Worrall and partner, Quincy Ruckert. chain abstract.pixabay

Block Chain Tech Companies

This new technology may not deal with currency at all. Encrypted Labs in Charlotte, NC has succeeded with solutions containing similar programming language and code source offered by other tech companies like RethinkDB, and adding assets onto blockchain to execute complicated tasks. These may include verifying fulfillment of contracts between participating parties with “smart contracts” and handling supply chain issues by watching over every invoice, order, or product entering and leaving the warehouse. Again, presentations created by Ian Worrall and Quincy Ruckert explaining this process can be found here.

The New York Stock Exchange purchased a stake in Coinbase at the beginning of 2016 to prepare for possible stock exchange decentralization. Banks agree that financial contracts could be decentralized through their own private blockchains as well and payment networks are enticed by the comparatively small transactions costs. New payment centers would likely begin with blockchains from the start such as Ripple Labs. This company wants to provide “secure, instant and nearly free global financial transactions” using decentralized ledgers on a platform called Prosper inspired by technology strides at Fintech. It believes the current financial system could be made more efficient. The way we transfer money has become antiquated and needs to be brought up to date the same way computer networks became a single internet.

The Bottom Line

linkedin supply chain imageBigchainDB took an existing scalable, queryable, low-latency, high-throughput distributed database (RethinkDB) and added blockchain characteristics: decentralization, immutability, and cryptographically-secure asset transfer. The result:

  1. Bitcoin transaction latency is about an hour (if you wait for six confirmations), while BigchainDB’s latency is hundreds of milliseconds or less.
  2. The small storage capacity of the Bitcoin blockchain (tens of gigabytes) is replaced with a database capable of growing to petabytes. The transaction rate can scale up to millions per second (Bitcoin handles only one per second).

The mining process of verifying blockchain transactions is what enables it to be undeniably secure proved by enduring untold numbers of cyber-attacks. While bitcoin itself requires going through exchanges to convert hard currency into crypto-currency and store it, new blockchain technology programming changes eliminated the need for this.

At the rate technology advances, blockchain will run its course and sprout other potential uses along the way. Technology companies have finally broken through to the next leap in business transactions of every kind along with a new concept of the “internet of value” and the rapidly advancing “internet of things”. I could go on and on, but I think I’ve made a point of sparking conversation. I invite you to comment on this article or act on it by checking the resources and clicking on the links I’ve provided. At the very least it is food for thought.

wavy blue color rbg stock Resources and Links:

Hepler, L.,, 2015. 9 Supply Chain Techs Companies You Should Know,

The Economist, 2015. The Next Big Thing,

The Network Revolution, Blockchain Technology Will Disrupt Financial Services Firms,,  Blockchain Definition,
Wikipedia, Definition of Block Chain Database,

Worrall, I., 2016. Encrypted Labs, POV Blockchain PDF and Intro PowerPoint

McConaghy, T., Developer at BigchainDB, 2016.


  1. #1 by Chris Montecalvo on July 14, 2017 - 4:12 am

    Hmm it seems like your website ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to everything. Do you have any suggestions for inexperienced blog writers? I’d genuinely appreciate it.|


  2. #2 by Kelly Wojciak on July 13, 2017 - 6:46 pm

    I delight in, cause I found just what I used to be looking for. You’ve ended my four day long hunt! God Bless you man. Have a nice day. Bye|


  3. #3 by Forest Kostis on February 19, 2017 - 5:42 am

    Does your site have a contact page? I’m having problems locating it but, I’d like to shoot you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.


  4. #5 by Justin Hoisl on February 14, 2017 - 8:31 am

    Great post and right to the point. I am not sure if this is truly the best place to ask but do you guys have any thoughts on where to get some professional writers? Thx 🙂


    • #6 by Jessica Headrick on February 24, 2017 - 7:36 am

      Yes it is the right place to look for writers! I am a freelance writer and have other friends in the field. Contact me at and let me know you needs. We can go from there.
      Thank you!


  5. #7 by pussy on February 12, 2017 - 11:09 pm

    I could not refrain from commenting. Very well written!


  6. #8 by home blog on January 30, 2017 - 6:32 am

    Hello there! I could have sworn I’ve been to this site before but after checking through
    some of the post I realized it’s new to me.

    Anyhow, I’m definitely delighted I found it and I’ll be bookmarking and
    checking back frequently!


  7. #9 by Armand Himmelwright on January 9, 2017 - 3:57 am

    Have you ever considered about including a little bit more than just your articles? I mean, what you say is fundamental and everything. However think of if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and clips, this site could definitely be one of the most beneficial in its field. Superb blog!


    • #10 by Jessica Headrick on January 11, 2017 - 3:08 pm

      My newer posts have many more images. Especially the one regarding a trip to Puerto Rico. My portfolio of works sometimes contains client topics that specifically looked at text only and I’ve been meaning to go back through an add images to spruce them up a little.


  8. #11 by BretSBaratto on December 18, 2016 - 4:52 am

    An outstanding share! I’ve just forwarded this onto a friend who was conducting a little research on this.
    And he actually ordered me breakfast because I found it
    for him… lol. So allow me to reword this…. Thank YOU for the meal!!

    But yeah, thanx for spending time to talk about this issue here on your
    internet site.


    • #12 by Jessica Headrick on December 29, 2016 - 12:21 pm

      Thank you for sharing the page and I am glad to hear you got a free meal!


  9. #13 by Mana Vieths on September 1, 2016 - 11:29 am

    Hello! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept chatting about this. I will forward this page to him. Pretty sure he will have a good read. Many thanks for sharing!


  10. #14 by Wilmer Ruballos on August 26, 2016 - 2:59 pm

    Great post. I was checking constantly this blog and I’m impressed! Very useful info specially the last part 🙂 I care for such information much. I was looking for this certain info for a very long time. Thank you and best of luck.


  11. #15 by Ouvrir compte bancaire en ligne on August 21, 2016 - 3:25 am

    Attractive section of content. I just stumbled upon your site and in accession capital to assert that I get actually enjoyed account your blog posts. Any way I’ll be subscribing to your feeds and even I achievement you access consistently rapidly.


  12. #16 by bank account on August 20, 2016 - 6:50 pm

    Great site! I am loving it!! Will be back later to read some more. I am taking your feeds also.


  13. #17 by banque on August 12, 2016 - 7:44 am

    Oh my goodness! Awesome article dude! Тhanks,
    Howеveг I am going through difficulties with yοur RSS.
    I ⅾon’t understand tɦе reason whу I can’t join it.
    Is there anyubody else ɦaving identical RSS pгoblems?
    Anyone thаt knows thhe ansԝеr can you kindlky respond?


    • #18 by Jessica Headrick on August 20, 2016 - 6:59 am

      My wordpress platform takes care of my RSS automatically. I will check to see if there is an issue, but it might be on your end. Thanks for letting me know!


  14. #19 by Jannie Aselage on July 8, 2016 - 2:00 pm

    Outstanding Experience!


  15. #20 by Man Vandagriff on July 5, 2016 - 2:29 am

    Great customer service – keeps trying till you are satisfied. Quick responses and turnaround.


  16. #21 by Deena Lehne on July 5, 2016 - 2:26 am

    Thank-you Again…Excellent Service!!!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: