Blockchain In Plain English

We hear a lot about Blockchain these days, but how many people know what it's really about? In an attempt to make this definition as simple as possible, blockchain automates trust.

It’s a software architecture that allows non-trusting parties to record transactions without requiring a trusted governing authority. In other words, it does away with middlemen. That directly affects banking, insurance, and distribution, as well as any industry that previously relied on a trusted third party.

There are many benefits of blockchain technology. The primary one is its ability to disintermediate. It allows non-trusting parties to record transactions without the need for a trusted governing authority.

This makes many administrative and compliance-based job functions unnecessary, streamlining operations and increasing efficiency. Blockchain saves money.

By making administrative and compliance-based job functions unnecessary, it eliminates salaries and reduces expenses.

Currently, the three leading use cases for blockchain protocol are:

1) supply chain management,

2) digital identity, and

3) digital payments.

The first two are only beginning to deploy in real-world applications, but the third has been used ever since Bitcoin launched in 2009.

Many more will emerge as creative businesses attempt to exploit this new technology for competitive advantage.

1. Supply chain applications allow all the stakeholders to a transaction to approve (or deny) orders in the form of smart contracts.

These contracts stipulate all the if-then permutations of a transaction, requiring nobody to manually execute the contract. It all executes itself. That allows transaction participants to eliminate order entry, order tracking, project management, audit, and compliance functions from their payroll. The blockchain contains all the details automatically and can be easily audited at any time.

Supply chain management is the most promising early use case for blockchain protocol. And since each participant to a transaction would maintain a “node” on the network, all participants will be swept into the blockchain paradigm as soon as the first major player deploys.

If Microsoft, for example, deployed blockchain, they would sweep in the entire Fortune 500 cohort in a single step.

2.  Digital identity is a second use case that is showing promise.

Accenture and Microsoft recently collaborated on the ID2020 project, providing proof of identity through a blockchain-based biometric database for undocumented refugees. This utility, or something similar to it, could be used to consolidate medical records or open financial accounts.

Sooner or later, a large-scale blockchain-based identity ledger will gain broad market adoption, and it will thereafter become the standard for identity verification.

3. Digital payments are a third use case for blockchain-based cryptocurrencies.

Digital payments are a third use case for blockchain-based cryptocurrencies. Of course, Bitcoin has been facilitating digital payments ever since it was launched in 2009, but there are many other applications that are only beginning to be developed.

Some hotels, for example, are introducing specific tokens for use on their properties, allowing them to avoid credit card charges while tracking all of the purchasing activity of their guests.

Other commercial ecosystems like movie theaters, retail chains, service providers (like Uber, for example), and theme parks may introduce their own tokens in the future.

It’s also feasible that such tokens may eventually partner with each other or merge entirely to expand their utility within customers’ lives.

Over time, one token or another may become so popular that it becomes accepted tender in other environments as well.

The ultimate measure of long-term success for cryptocurrencies is broad market adoption for regular commercial purchases by regular citizens. So far, very few people are using Bitcoin to buy a cup of coffee or a pair of boots, but that will likely change down the road.

It’s impossible to guess which cryptocurrency will hit that inflection point first, but one will undoubtedly get there soon.

CTO Vision

You Might Also Read: 

Cryptocurrency May Soon Underpin Cloud Storage:

What Does Blockchain Mean To The EU?:

Blockchain: What Business Executives Need To Know:

 

« Cybersecurity Jumps Up The Corporate Agenda
An Election Interference Alert System »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

Copenhagen FinTech

Copenhagen FinTech

Copenhagen FinTech is a centre for R&D and innovation in the Danish finance IT sector. Focus areas include cyber security and payments platforms.

Saviynt

Saviynt

Saviynt is a leading provider of Cloud Security and Identity Governance solutions.

Appvisory

Appvisory

Appvisory by MediaTest Digital is the leading Mobile Application Management-Software in Europe and enables enterprises to work secure on smartphones and tablets.

Certis

Certis

Certis is a leading advanced integrated security organisation that develops and delivers multi-disciplinary security and integrated services.

Resec Technologies

Resec Technologies

Resec provides total protection against all types of known and unknown malware threats including viruses, Trojans, ransomware and phishing, regardless of their delivery method.

Culinda

Culinda

Culinda secures medical IoT devices in hospitals with An Artificial Intelligence platform and security gateway.

International Data Sanitization Consortium (IDSC)

International Data Sanitization Consortium (IDSC)

IDSC is a group composed of individuals and companies dedicated to standardizing terminology and practices across the data sanitization industry.

u-blox

u-blox

u-blox deliver leading wireless technology to reliably and securely locate and connect people and devices.

Blockchain Firm

Blockchain Firm

Blockchain Firm is a leading Blockchain based software solutions and service provider with our roots of expertise running deep into the technology.

Fly Ventures

Fly Ventures

Fly Ventures is a seed-stage venture capital fund for outstanding teams building Enterprise and Deep Tech startups in Europe.

AaDya

AaDya

AaDya provide smart, simple, affordable and effective cybersecurity software solutions for small and medium businesses.

Melius Cyber Security

Melius Cyber Security

Melius Cyber Security has developed a world-leading SaaS platform, Cyber Safe Plus, built around continuous assessment and improvement through vulnerability scanning and penetration testing

Securolytics

Securolytics

Securolytics offers the simplest, most complete and affordable IoT security for all organizations. Securolytics quickly identifies unmanaged devices to reduce security and compliance risks.

CrossCountry Consulting

CrossCountry Consulting

CrossCountry Consulting is a trusted business advisory firm that provides customized finance, accounting, human capital management, risk, operations and technology consulting services.

Intigriti

Intigriti

Intigriti helps companies protect themselves from cybercrime. Our community of ethical hackers provides continuous, realistic security testing to protect our customer’s assets and brand.

Codenotary

Codenotary

Codenotary provide a comprehensive suite of verification and enforcement services to guarantee the integrity of your software throughout its entire lifecycle.