Embracing Digital Disruption Through Blockchain

What is a Blockchain?

Blockchains will revolutionize the world economy. Blockchain is a global online distributed ledger or database running on millions of devices. Blockchain is open to anyone, where anything of value – information, money, titles, deeds, music, art, scientific discoveries, intellectual property, and even votes – can be moved and stored securely and privately. No one person controls all the data.

Blockchain is a platform for trust.

 Blockchain has the following characteristics:

• Trust is established, not by powerful intermediaries like banks, governments and technology companies, but through mass collaboration and clever code.

• People participate in “trustless” transactions, eliminating the need for an intermediary between buyers and sellers
• Integrity and trust between strangers is ensured. Difficult to cheat. Provides consolidated audit trail.
• Faster clearing and settlement. Thus radically drop many transaction costs. 
• Provides a new platform for creators of intellectual property to get the value they create.
• Creates a better sharing economy.
• Cuts transaction costs while lowering the risk of fraud. Operational improvements by eliminating middle- and back-office processes.

The 21 Bitcoin Computer, is a small, bare bones, Linux-based piece of hardware with  a bitcoin protocol in its operating system.

Challenges

• All the network of participants must agree on a common network protocol and technology stack.
• New technology brings regulatory hurdles and potential cybersecurity threats.
• Privacy and security questions still exist.
• Similar to W3C Consortium as a governance body for web standards, there is no governance body for Blockchain.

Conclusion

Every industry will be driven by software. But the success lies in fostering industry-wide collaboration and aligning the technology with the core principles of mitigating risks, enhancing efficiencies and driving cost efficiencies.

For a successful blockchain revolution it will require cooperation among market participants, regulators and technologists.

Question How is Blockchain Technology impacting your industry? Ho do you get from today to tomorrow? What are the regulatory, policy and risk challenges you are facing? Please share your thoughts in the comments section below.

References

The Impact of the Blockchain Goes Beyond Financial Services

8 Tech Trends to Watch in 2016

How blockchains could change the world

Blockchain Revolution - By Don Tapscott

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ABOUT KHWAJA SHAIK:

Khwaja Shaik is the award-winning global IT Leader with 20+ years of business technology leadership with GE, PwC, IBM and Bank of America. Recognized for Cybersecurity, Innovation, Architecture, Cloud and Large-scale execution, He was instrumental in major IT transformations that have delivered cost reductions, efficiency gains, agility and competitive advantage to Fortune 500 companies. Khwaja holds an MBA (Global Management), Bachelors in Engineering & executive programs. HBR Advisory Council Member, McKinsey Global Institute's Executive Panel Member, University of North Florida's Computing Advisory Board Member, World Affairs Council of Jacksonville Member, Atlantic Institute's Advisory Board Member, "Night of Asia" Advisory board member (2015) and 2014 CIO IT & Security Forum - Speaker.