Blockchain has been a buzzword for over 5 years, but with the (currently) increasing value of bitcoin it doesn’t seem to fall in popularity. Consequently, we’ve had a number of users ask us about our view about blockchain and if we would incorporate it in our tool.

I can assure you: we won’t. Not now and not in the foreseeable future, as it holds no value to us. Nor should it in any other tool where privacy is paramount.

To know why, we would have to go over the principle of a basic blockchain implementation.

How does it work

In essence a blockchain is nothing more than a list of transactions or events ‘chained’ together in a set sequence, a ledger if you will. Playing this sequence of transactions from the very first entry to the last should give you the current state.

Take for example a bank account, the current sum of money is the result of all individual transactions combined.

With blockchain however, this list of transactions is not just logged by the bank, but sent to everyone involved. New members will get a full copy of the log, or at least access to it.

Is it the future (for transferring files)?

Not exactly. It has a limited number of proven applications, and for those it may play a vital role, but file sharing is not one of them.

Does it enhance your privacy?

It does not. Transactions can be traced back to you. Otherwise there’s no way for you to prove a certain transaction was made by you, or to you. In fact, everybody can see exactly what you did, because that’s the idea.

Is it a safe way to store data?

Yes and no. Blockchain makes it very difficult to commit fraud, but with great power comes great responsi.. erm risk. For instance, many people do not actually ‘own’ their bitcoins, but a third party service does. If this service would suddenly disappear, it would leave you without any proof you actually owned anything. Better regulation would help, but would also affect the freedom of the system. It also doesn’t protect you from hackers, who can easily expropriate you of your money, if they would get access to your machine.

Does it help with transparency of data?

It does. If implemented right, it should give you a very transparent way of doing business, and in turn enforces credibility of its peers.