Blockchain Made Simple: What Your Business Should Know

Global spending on blockchain is expected to reach $19 billion by the end of this year.

https://connect.comptia.org/blog/blockchain-statistics#:~:text=Statista%20forecasts%20that%20worldwide%20spending,of%20the%20global%20economic%20infrastructure

Yet many business owners still don't understand what it is....or why they should care. Meanwhile, enterprise firms are rapidly going all-in.

Multi-nationals like Visa, Coldwell Banker, JP Morgan and Pfizer are using it daily.

From payment verification and managing wealth to asset trading and identity protection, blockchain is creating efficiency and cost-savings at scale inside the largest firms.

This article is intended to provide a very simple overview for the average business owner.

Because it's time to wrap your head around what's happening.

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Blockchain is a glorified database.

But this database is shared across multiple computers on a network. The records inside are called "blocks." These groups of records are all chained together in series, with fancy electronic code.

All this data is publicly viewable on the network.

And all the activity is verified through cryptography.

Thus, blockchain forms a decentralized record of transactions that is both transparent and secure.

Since every participant holds an identical copy of all information, nothing can be changed without everyone seeing it.

This creates an immutable and transparent register of all the actions that have happened. Additionally, all the information is secured with cryptographic features. That means things like hash functions and digital signatures.

All you need to know is that this is currently the world's best encryption.

WHY IT MATTERS

Technology now eliminates the need for authority and oversight in business.

? Transactions can be verified without a central firm's involvement.

? Records can't be easily altered because of the chaining of data.

? The network is resistant to hacking because all data is distributed.

In practical terms, banks and governments suddenly become unnecessary.

There is no longer any need for third-party to create trust in any transaction. Blockchain kills the need for middleman institutions in the money world.

Banks, brokers and technology firms aren't required for you to buy and sell things. And cutting-out the middleman reduces cost, time and risk in business.

So forget how the technology works.

What matters is that blockchain now creates ‘digital trust.’

And this will revolutionize how we exchange value over the internet.

BUT HOW DOES IT WORK?

When any transaction occurs, every computer on the network attempts to verify the transaction. The majority of these computers must agree that any transaction is valid.

The folks who do this verifications are rewarded for their work. They get cryptocurrency as compensation. This is called "mining."

The popular approach here is called "Proof-of-Stake."

Proof-of-Stake (PoS): Validators lock up a portion of their crypto for the chance to verify the transactions in a block. Those validators are chosen at random based on the amount of crypto they stake. Once a specific number of these validators verify a transaction, it is added to the blockchain.

In this manner, a blockchain continually grows in size.

Moreover, all these records may be inspected by all parties.

This growth of the database adds security to the ledger, over time.

Altered records show up immediately because changes will not align with all the other versions of that ledger.

THE 9 BENEFITS OF BLOCKCHAIN

This "distributed ledger" technology has 9 key benefits:

1. Trustworthy - Two parties who neither know nor trust each other can safely conduct business together. Because the coding creates the trust.

2. Decentralized - there is no longer any need for a central authority to be involved in every transaction.

3. Secure - all records are individually encrypted.

4. Cost-Effective - eliminates middlemen, vendors and third-party providers

5. Anonymous - identities of participants in transactions are anonymous.

6. Traceable - every transaction is visible, time-stamped and traceable.

7. Unanimous - all network participants agree on the validity of each record.

8. Immutable - all validated transactions are irreversible and cannot be changed or deleted. This means data accuracy.

9. Distributed - all network participants have a copy of the ledger for total transparency.

WHY THIS MATTERS TO YOU

This is much broader than just Finance.

Blockchain enables better management of any complex process.

Things like the storing of medical records, administering of government benefits and....voting. (As an American, that last one has special importance for me).

Essentially, blockchain improves any multi-step transaction.

All firms, customers and suppliers can now collaborate in a secure, auditable and virtual way.

That means blockchain will impact a range of industries, including:

? Real Estate: Blockchain can replace the paper records used in transferring deeds of homes and land. Property titles will soon be stored on the blockchain, creating an accessible, clear documentation of ownership. This also enables fractional ownership of real estate.

? Events: Industry events like conferences and gatherings can be more easily facilitated. Everything from venue sourcing and ticketing to the managing of sponsors and attendees becomes simple.

? Credentialing: In the education space, blockchain manages record-keeping and credentialing. Storing digital curriculums and the unlocking of progressive lessons by smart contract makes life easier for students.

Blockchains improve recordkeeping.

It speeds asset transfer.

It provides secure identity protection.

It enables faster reconciliation of anything.

Yet of all the many benefits, the key takeaway is the trust that blockchain creates.

WOKE AI

If the "woke AI" from Google's Gemini has taught us anything, it's that society has entered a world with no single source of truth.

The ability to source and verify information instantaneously becomes quite handy in a world where you never know what's true...and what's "fake news."

Blockchain revolutionizes services across all industries globally.

Not because it's snazzy. But because it saves companies money. And we are in economically challenging times right now.

The key takeaway is that disruption isn't coming.

It's here.

It's time to learn how you can benefit from this.

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BUSINESS ON THE BLOC PODCAST

If anyone wants to learn more, I run a weekly podcast with 2 colleagues that documents how blockchain is impacting the business world.

It's called "Business On The Bloc."

It's for smart people who enjoy business discussions...without the boring.

We do it LIVE, every Wednesday.

Come join us.