The potential in business and in different aspects of the blockchain’s daily life has not yet developed to its potential. But due to the possible associated disruptions it is important to follow up on their progress and prepare.
Perhaps the application of the most recognized blockchain technology is bitcoin cryptocurrency. However, this technology has been gaining space in different spheres with more and more applications and more actors becoming involved, and its impact can be quite significant and disruptive for current business models with potential for the whole world.
Melanie Swan, founder of the Institute for Blockchain Studies, explains in her book “Blockchain: Blue chain for a new economy”, published in 2015, how blockchain technology can be considered the fifth disruptive computational paradigm after central computers ( mainframes) in the seventies, personal computers (PC) in the eighties, the internet in the nineties, mobile social networks in the first decade of 2000, and the blockchain in the decade of 2010.
For this reason, Swan suggests thinking about the blockchain as an advanced information technology with technical levels of escalation sophistication, with multiple applications for any form of asset registration, inventory, and exchange, including all areas of the economy, tangible and intangible assets. (ideas and patents, climate change, health data, hotel reservations, contracts, etc.).
In fact, all public records (properties, civil status, car registrations, business licenses, birth and death certificates, etc.) could migrate to the blockchain. Moreover, the blockchain, Swan explains, is a new paradigm of organization for discovery, valuation, and transfer.
The author analyzes that the potential benefits of the blockchain go far beyond financial transactions, and extend to face political, humanitarian, scientific and social issues of the real world.
For example, its application for the management and coordination of public data repositories and the irretrievability of transactions can be a fundamental step to advance and perhaps reconfigure different aspects of humanity.
At the United Nations conference on climate change in 2017, a group of experts identified the potential of the blockchain to face climate change, since it allows greater transparency and participation of different interest groups to find solutions to this challenge.
The open global initiative Climate Chain Coalition (CCC) (created in December 2017 and with more than 100 organizations around the world) seeks to advance blockchain technology and other digital solutions such as internet of things and big data to support the mobilization of climate finance and improve measurement, reporting and verification (MRV) to scale climatic actions for mitigation and adaptation.
The work ” Bitcoin: a peer-to-peer electronic cash system ” that dates from the year 2008 of Satoshi Nakamoto, was the one that popularized the applicability of blockchain for the development of a cryptocurrency (blockchain). A Google Scholar search on blockchain in September 2018 results in more than 44,500 publications of studies on this technology in the last decade.
The blockchain or blockchain consists of a ledger or ledger where all operations are recorded, whose control is dispersed between different computers in the network, each of these with a copy of the chain and with this it eliminates the trust in a single administrator.
Additionally, being a public ledger, transactions can be consulted using a block browser such as https://blockchain.info/. This technology, which uses self-monitored and self-controlled algorithms, has the power to reject malicious manipulation attempts in the system.
In 2016, Deloitte defined blockchain as another type of database to record transactions that are copied to all the computers that participate in a network.
The blockchain technology makes absolutely each of the transactions create a block that is added to the chain and is registered in a linear and chronological way with the day and time of this, and it is assigned by the system a unique hash ( hash function ).
Blockchain blocks manipulated transaction attempts and describe them with an alphanumeric string resulting from data encoding using cryptography.
Because of this, any attempt to falsify one of the blocks in the chain would imply manipulating the previous blocks and this guarantees the authentication, transparency, and efficiency of each transaction, and increases the security of the mechanism for attempts to modify transactions.
The massive adoption and full development of blockchain’s potential will depend, according to Fredrik Voss, vice president of Blockchain Innovation on Nasdaq, to have a complete ecosystem.
According to the OCDE policy forum of the blockchain, in order to reach its potential it is necessary to guarantee the integrity of the processes and requires adequate policies and measures, and also to face the possible risks of its misuse.
For this, governments and the international community will play a significant role in the creation of policies and the regulatory environment of the blockchain bases that are aligned with the challenges to promoting transparent, fair and stable markets.
In an article published in the magazine ” Entrepreneurial Business and Economics Review ” by the authors Witold Nowinski (Poland) and Miklos Kozma (Hungary), it is identified that blockchain technology creates value to companies in different ways.
First via transaction authentication mechanisms; second, by reducing costs, since it eliminates intermediaries that were necessary for operations and transactions; third, improving operational efficiency, decreasing times.