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 »

CyberSecurity Jobsite
Check Point

Directory of Suppliers

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.

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 8,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

LockLizard

LockLizard

Locklizard provides PDF DRM software that protects PDF documents from unauthorized access and misuse. Share and sell documents securely - prevent document leakage, sharing and piracy.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.

Perforce Software

Perforce Software

Perforce helps companies build complex software products more collaboratively, securely, and efficiently.

SANS Institute

SANS Institute

SANS is the most trusted and by far the largest source for information security training and security certification in the world.

CloudHesive

CloudHesive

CloudHesive provides cloud solutions through consulting and managed services with a focus on security, reliability, availability and scalability.

Berwick Partners

Berwick Partners

Berwick Partners’ Cyber Security Practice is a leading recruiter of senior management positions in this field; we have an exceptional understanding of the constantly changing Cyber landscape.

Sonda

Sonda

SONDA is the leading systems integrator and IT service provider in Latin America.

SOOHO

SOOHO

SOOHO helps to detect security vulnerabilities earlier. Our blockchain security platform audits from smart contracts to on-chain transactions.

Epiphany Systems

Epiphany Systems

Epiphany enhances your defensive security controls by providing you with an offensive perspective. We expose the most likely attack paths to your most critical IT assets and users.

Debevoise & Plimpton

Debevoise & Plimpton

Debevoise & Plimpton LLP is a premier law firm with market-leading practices in areas including Data Strategy & Security.

Oregon Systems

Oregon Systems

Oregon Systems is a Regional Leader & Distributor with value added services for OT, IoT, IIoT & IT Cybersecurity products, Solutions & professional services throughout the middle-east region.

Curatrix Technologies

Curatrix Technologies

Curatrix Technologies is a Managed IT Service provider based in Hampshire, UK, providing high quality and reliable Managed IT Services since 2015.

ISO WISH

ISO WISH

Take your Business to the Next Level with ISO Certification in UAE.

Total Secure Technology

Total Secure Technology

Total Secure Technology provides trusted Managed IT Security and Managed IT Services for organizations looking to increase their cybersecurity defensive posture.

Deepware

Deepware

Deepware is an emerging AI research company dedicated to exploring the potential of GenAI in both generation and detection.

RealmOne

RealmOne

RealmOne addresses the most challenging issues in the realms of defense and cyberspace, adapting to the continuously changing demands of our national security customers.

Harmony Intelligence

Harmony Intelligence

Harmony builds cutting-edge defensive AI products that safeguard people and critical infrastructure around the world from AI-powered threats.

SECUREU

SECUREU

At SECUREU, we protect growing businesses against cyberattacks by proactively implementing best security practices, fixing existing security vulnerabilities, and increasing cyber awareness.