Posted by Robert Vamosi on July 14, 2016
A former Google engineer has created an operating system for the financial service industry that uses blockchain, a component developed by BitCoin.
Known as Vault OS, the operating system creates a shared database in which participants can trace every transaction ever made. The ledger used is both tamper-proof and transparent. That means transactions can be processed without the need for third-party verification.
“Most of the banks are using systems that were written in the 80s and 90s, and they just are not ready for the security-conscious internet app age at all,” Taylor told Reuters. “What the blockchain does is provide a very secure way of storing transactions.”
Blockchain is a new technology that may yet be five to ten years away from worldwide adoption.
Investopedia defines blockchain as “the main technological innovation of Bitcoin, since it stands as proof of all the transactions on the network. A block is the ‘current’ part of a blockchain which records some or all of the recent transactions, and once completed goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. There is a countless number of such blocks in the blockchain. So are the blocks randomly placed in a blockchain? No, they are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.”