Blockchain is a list of records, or “blocks,” linked by cryptography and invented in 2008 by a group or an individual under the pseudonym Satoshi Nakamoto
Individual blocks contain a mathematical algorithm or cryptographic hash of the previous block, as well as its transaction data and a timestamp. Blockchain is attractive because it offers a permanent ledger capable of capturing the transactions between two different parties. Once a record exists, it cannot be amended without altering all of the subsequent blocks.
Originally used for digital currencies, blockchain has many other applications, such as its use in smart contracts requiring little or no human involvement for their enforcement or execution. The financial industry is also implementing distributed ledgers for use in banking and for increasing the speed of back office settlement systems. Other banks are setting up blockchain laboratories to investigate its use. Blockchain is also used in certain video games. In his book, The Age of Blockchain, author Rahul Guhathakurta says, “The blockchain is all about bringing in transparency and efficiency into the existing systems which are running the upstream and downstream supply chains and making them more proactive and predictive.”
(The web story is the third in a series examining trends and developments in the international postal network for 2019).