As I shared last week in my discussion about bitcoin, I wanted to take a moment this week and share with you details on a new technology called Blockchain. It’s the foundation for bitcoin and is helpful in business settings.
Many companies are adapting Blockchain technology for their own uses and we believe that this will continue. Large organizations use this technology to manage supply chains as well as a variety of other functions.
IBM, one of the leaders in the development of this technology, outlines on their website how Blockchain works and what it might be used for. I find it to be as simple as an explanation as I can find. With that being said, this is a confusing topic so do not despair if it seems a little complex; it is!
Understanding these concepts helps us in our research process to identify companies that are well positioned for the future. Take a read below in an excerpt from IBM’s website on this technology and see if this makes sense. We believe it’s going to be more and more prevalent in the business setting.
Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Why blockchain is important: Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities.
Key Elements of a Blockchain
Benefits of Blockchain
What needs to change: Operations often waste effort on duplicate record keeping and third-party validations. Record-keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. And with the arrival of IoT, transaction volumes have exploded. All of this slows business, drains the bottom line — and means we need a better way. Enter blockchain.
How Blockchain Works