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 tamperproof 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 5 to 10 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.”