Why blockchain is the biggest trending topic in business right now
If you’re up to date on global business or technology, you’ve likely
heard a lot of chatter lately about the blockchain—and for a good
reason. Just one-quarter into 2017, businesses have already invested
millions in blockchain projects, and by 2024, the global blockchain
market is expected to be worth $20 billion. In short, the blockchain is
an emerging technology that every global leader needs to have on their
radar.
Bitcoin, which was released in 2009, has taken a bit of time to catch on. But with the blockchain comes a tremendous opportunity to change the way entire industries operate, and global innovators are already diving in. Here’s what you need to know about the blockchain and how it could impact your business.
Global advocates sum up the advantages of the blockchain like this: Because no single company or party has control, the system should, in theory, reduce accountability issues between parties whose interests aren’t aligned. It also gives everyone in the network real-time visibility of all related activities, which can cut down on costly and timely supply chains errors. And by reshaping the way supply chains transmit products, goods and services, blockchains have major potential to boost the global economy.
Following the 2008 global financial collapse, there has been no shortage of calls for major financial system reform. Although the financial industry offers an obvious, immediate application for the blockchain, innovators in a wide array of industries are exploring new ways to utilise the blockchain to build a more secure, transparent business system.
The immediate impact of blockchain could bring disruption in the financial industry, but many other industries stand ready to transform into this emerging technology.
Many blockchain enthusiasts expect that this technology will change the world, and soon. Only time will tell how this emerging technology will disrupt industries outside of the financial realm, but one thing is for certain: In an increasingly competitive digital world, leaders who don’t take the blockchain seriously run the risk of getting left behind if these predictions hold true.
Via techrevolution contributed by Danielle Uskovic
Bitcoin, which was released in 2009, has taken a bit of time to catch on. But with the blockchain comes a tremendous opportunity to change the way entire industries operate, and global innovators are already diving in. Here’s what you need to know about the blockchain and how it could impact your business.
What is the blockchain?
In the simplest of terms, the blockchain is a way to organise and structure data. By using “blocks” of transactions, the blockchain creates a digital ledger of transactions made in Bitcoin or other cryptocurrencies across a computer network. There’s no central authority. It’s open-source, peer-to-peer and distributed, and transactions are recorded chronologically.Global advocates sum up the advantages of the blockchain like this: Because no single company or party has control, the system should, in theory, reduce accountability issues between parties whose interests aren’t aligned. It also gives everyone in the network real-time visibility of all related activities, which can cut down on costly and timely supply chains errors. And by reshaping the way supply chains transmit products, goods and services, blockchains have major potential to boost the global economy.
Following the 2008 global financial collapse, there has been no shortage of calls for major financial system reform. Although the financial industry offers an obvious, immediate application for the blockchain, innovators in a wide array of industries are exploring new ways to utilise the blockchain to build a more secure, transparent business system.
How does the blockchain work?
The intricacies of blockchain technology can quickly overwhelm even the most tech-savvy leader. However, understanding blockchain technology truly boils down to knowing its five key principles.- Accessibility
- Decentralisation
- Permanency and Trust
- Transparency
- Logic
Who’s leading in the age of blockchain?
Blockchain technology has the implication to transform a variety of industries, starting with finance. Because the blockchain challenges global financial institutions as the “central authority”, it presents an opportunity for banks to overhaul business as usual—transforming everything from their infrastructure to interactions with customers. Industry experts say it’s only a matter of time before the banking industry shifts to a blockchain approach.The immediate impact of blockchain could bring disruption in the financial industry, but many other industries stand ready to transform into this emerging technology.
- Sharing economy: Users who conduct economic activity online are becoming privy to more secure ways of running their businesses through the blockchain. By transmitting value directly between parties without an intermediary, users are able to take better control of their economies.
- Utilities: Around the world, energy conglomerates and startups are exploring how blockchain technology can optimise the power sector. There’s tremendous interest in decentralising the power industry so that utilities and consumers themselves can produce and sell electricity—thus eliminating the middleman and creating a more reliable, cost-effective system.
- Healthcare: Maintaining compliance with the Health Insurance Portability and Accountability Act (HIPPA) and other global healthcare privacy regulations makes it difficult to store patient records efficiently and securely. Plus, sharing records of medications and other data between hospitals is an inherently messy process. Health care innovators are betting that the encrypted technology of blockchains will provide both security and easy access to records for more consistent care.
- Tech giants like Google are looking to the future as they begin to explore and adopt blockchain systems for more transparent financial and manufacturing processes.
- Circle, once a sole bitcoin devotee, is now employing the Ethereum blockchain to meet the needs of its newest venture, “Spark.”
- Brave, a blockchain-enabled browser, will be paying users with Ethereum-based digital Basic Attention Tokens, to turn browser ads back on.
- Storj, a cloud storage platform, is shifting its bitcoin blockchain to the lower-cost, faster transmission of the Ethereum blockchain.
- Factom uses blockchain technology to keep data safe and decentralised.
- Blockchain Capital is a VC firm that invests in blockchain technology to create a more secure, transparent future.
The challenges of blockchains
Tech innovators are already singing the praises of the blockchain as a disruptor of massive proportions. However, as with any emerging technology, the blockchain brings key challenges.- Privatisation
- Lack of standards
Many blockchain enthusiasts expect that this technology will change the world, and soon. Only time will tell how this emerging technology will disrupt industries outside of the financial realm, but one thing is for certain: In an increasingly competitive digital world, leaders who don’t take the blockchain seriously run the risk of getting left behind if these predictions hold true.
Via techrevolution contributed by Danielle Uskovic
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