Blockchain is “a distributed database, meaning that the storage devices for the database are not all connected to a common processor,” according to Bernard Marr, a writer at Forbes magazine. This database contains a list of transactions, called blocks, that are timestamped and linked to previous blocks, and ensures bitcoins maintain their integrity as a unit of currency. Also, through cryptography, users are only allowed to edit and change their portion of the blockchain. (For more details about blockchain please see my previous post: https://blogs.scu.edu/finis/2017/02/12/blockchain-and-the-many-uses-of-smart-contracts/)
We all knew blockchain would move into new industries, and this has started in private equity. IBM and Northern Trust’s implementation of block chain is the first commercial deployment of the system. They decided to set up the blockchain to add transparency to the private equity market and to allow auditors and investors to perform due diligence tests more easily.
I think this is a great idea because it protects investors in the private equity market without unnecessary regulations. Those who issue equity can track who is currently holding specific shares. Also, it will be easy to when private equity transactions occur. Overall I think this is a great use of blockchain in a commercial market.
http://www.bankingtech.com/742612/ibm-and-northern-trust-debut-blockchain-for-private-equity/
Are users really able to change their proportion of the block chain after new blocks are created after theirs? I thought block chains are not reversible.