Make it Rain on the Blockchain
We all know the t-shirt slogan: “There are 10 types of people in the world: Those that understand binary and those who don’t.”
In almost every use case in technology at the moment, there are two types of strategic thinkers: those talking blockchain and those with "proof of work".
So what is all the fuss about?
For the uninitiated blockchain is an underlying infrastructure technology that stores information – it is how the information is stored that makes the rain.
You’ll have probably come across blockchain in the same context as Bitcoin, that’s because it is the underlying protocol that Bitcoin is built on. Blockchain however should not be confused and muddied by people’s perception of Bitcoin. The blockchain protocol has many, many varied uses.
Let’s leave the HOW of smart contracts and cryptograhy to later. Without going into a technical deep dive, what are the headlines? What is it that makes blockchain compulsive.
Trust
Because of the way information is stored, encrypted and updated (never edited or deleted) trust is built into the protocol. In fact because trust is native to the technology Don Tapscott (who has literally written the book) calls it The Trust Protocol. The data on a Blockchain is immutable – can we take a second to imaging how immutable data will revolutionise all the contracts and financial transactions that have ever been executed…
Cost savings
Because the infrastructure is mutual and decentralised, there is no need for a middleman to “clear” interactions or transaction. This cuts out both cost and also means….
Faster transactions
Now there are questions over the speed of transactions within a Blockchain environment, in fact it is probably the biggest feature where different platform compete. Regardless of transaction speed, without middlemen and settlements going from one org to another the clearance happens at a relative light speed. Once the transaction is processed, it is cleared. This also leads to….
Simplification
With a single ledger, any ecosystem with multiple parties interacting becomes greatly simplified from an infrastructure and business logic perspective.
Who is making moves?
Who are some of the companies that have invested in and leveraged the benefits of blockchain?
The Fintech use cases are vast and far reaching, from clearing cash across borders to trading, pensions and beyond. Anywhere multiple players with assets (cash or otherwise) enter into contracts then blockchain is a complete no brainer. Some of the high profile cases on the go at the moment include:
There are other interesting companies outside of Fintech.
Everledger a great company that tracks and ensures the provenance of diamonds. The immutability of the platform solves a massive problem in the insurance fraud sector.
Mycelium is created by the very talented Imogen Heap and decentralises music meaning more funds go to the artist as they have control over the contracts – the smart contracts easily managing the IP of each song.
Don Tapscott
Don Tapscott gives a great, accessible, overview in his TED Talk earlier this year. I’d recommend watching, he’s a great presenter. How the blockchain is changing money and business.
