Introduced to the U.S. Congress on September 26th was a bill titled H.R.6913 - Blockchain Promotion Act of 2018. This legislation aims "to direct the Secretary of Commerce to establish a working group to recommend to Congress a definition of blockchain technology, and for other purposes."
The ever-expanding benefits of blockchain technology is becoming more aware to those in the government. It's exciting to know that their are individuals in Congress, like Representatives Doris Matsui and Brett Guthrie who proposed the bill, willing to embrace and leverage blockchain technology.
An agreed upon definition of "blockchain" is essential because it will help guide government regulation on the technology. More importantly, an established definition will aid the education process and spread awareness of blockchain's benefits.
I offer my definition of "blockchain" in hopes to generate discussion and be included in the consensus-based definition:
a blockchain is a digital mechanism capable of not only storing data and information, but also transferring it globally, securely, cheaply, immutably, and quickly without centralization.
Detailing the vocabulary used
- DIGITAL: a blockchain is not a physical entity. It exists in electronic form. The blockchain is created, maintained, and developed on computers. Put simply, the blockchain is programmable code.
- MECHANISM: other words could be used here. However, "mechanism" works best if we take its definition and incorporate aspects of the blockchain into it: "a mechanism (blockchain) is an assembly of moving parts (data and information compiled into a "block" that has a maximum storage limit) performing a complete functional motion, (when blocks are sequentially attached through the process of mining) often being part of a large machine (i.e. digital ledger)."
- the difference between DATA and INFORMATION: "data can be any character, text, word, number, and, if not put into context, means little or nothing to a human. However, information is data formatted in a manner that allows it to be utilized by human beings in some significant way. A good example would be a computer using formulas, programming scripts, or software applications to turn data into information."
- STORE: like traditional data bases and ledgers, the blockchain can simply store data and information.
- TRANSFER: the ability to transfer data and information without discretion is what makes the ledger aspect of a blockchain unique.
- GLOBAL: the blockchain operates on a global network of computers, i.e. nodes (connecting points in the peer-to-peer network). Storing and transferring of data and information can be done regardless of state borders.
- DECENTRALIZED: there isn't a single person or entity in control of the blockchain. It operates as it's programmed. The developers, miners, users, nodes, and beneficiaries are all authoritative components of a blockchain.
- IMMUTABLE: it's called a blockchain for a reason. Each block contains an X amount of data and information, and can only be added onto the previous block (through mining). Previous blocks cannot be deleted or altered in any way. The blockchain is quite literally a chain of digital blocks. "Upgrades" to a blockchain come in the form of a hard-fork or a soft-fork.
- SECURE: since the blockchain runs on a peer-to-peer network, is decentralized, and immutable, it is immensely impossible to hack. Although, private blockchains (where the nodes are controlled by a centralized authority) are susceptible to hacks.
- CHEAP: the blockchain is a cost effective way to store and transfer data and information because there is no central authority trying to make profit. The only fees that exist may be mining fees because it takes a high amount of computational power (needing energy) to mine the blockchain.
- QUICK: there's a global network of computers running 24/7 around the world to support the blockchain. Data and information can migrate effortlessly from location to location. The more a blockchain is used, the slower it becomes because of the limited storage size of each block. Scalability is known to be a problem facing blockchain, but improvements are constantly being made.
To my understanding, the word "blockchain" shouldn't be capitalized unless it's part of a company's name.
If there are any elements of this definition that are not clear, concise, or correct, please do let me know.
For a more in-depth explanation regarding certain terms used, click here to understand most of the jargon in relation to the blockchain world.