Blockchain is a distributed ledger technology that is most
widely known for its application with Bitcoin. Despite this claim
to fame, blockchain technology has potential far beyond Bitcoin or
other crypto-currencies. Some of its most attractive features
include high data accuracy and robust security at a relatively low
cost. As with any useful technology, it also presents unique legal
issues. This article will discuss what blockchain is and highlight
the major legal issues it presents.
What is Blockchain?
Blockchain is a distributed ledger upon which transactions are
anonymously recorded. The “distributed” aspect means
that the same data is recorded across a network of many computers
or servers, known as “nodes.” This means that if one
node were to record data differently from the others, either
through a mistake or a malicious act, the other nodes would easily
be able to locate the defective node and correct the ledger. This
provides high fidelity of the data.
