Everytime we read the news the headlines are filled with articles on bitcoin and cryptocurrency valuations but it is the platform they operate from that is actually drawing a lot of attention – the blockchain.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Tapscott, Author of “Blockchain Revolution”, 2016
When it comes to using the blockchain to advance our growing companies, it’s still regarded as unchartered territory, but the nature of the platform is undeniably an impressive piece of technology originally built to transfer crypto currencies between parties. In reality it is a ledger, timestamped that can never be altered, edited or deleted. So what else can we use it for?
We invited Paul Gordon, founder of Quantave, who runs Coinscrum, one of the largest digital currency networking groups in the world, to tell us how blockchain is used today but also how it is being shaped for the future. Watch this video where Russell Lerman and Paul Gordon talk about the world of Blockchain and the direction it’s going.
How it could work in the future
ICO – Initial Coin Offering
For privately held companies this is an exciting space to watch as developers work towards creating a decentralised register for share allocation and distribution in other words “cashing out”. However, the immediate focus in using ICO is for the alternative fund raising mechanisms it presents.
Digital Rights / IP Ownership
Disputes on ownership of rights and use of IP could be a thing of the past by using blockchain technology for registration it may provide clarity on copyright authors, owners and users. Registering original work to a blockchain could provide a tamper-proof evidence of ownership.
Hacking could disappear altogether where Companies in the future could utilise blockchain technology to massively mitigate cyber security risks. Traditional systems are often seen as vulnerable due to their centralised architectures, a weakness which is not present in the distributed nature of a blockchain technology. Destroying or corrupting would be virtually impossible where a hacker would have to manipulate the data stored in every node across the global network. This could be millions of computers, with each one storing a copy of some or all the data; taking away the risk of a single point of failure.
Blockchain technology could also prove useful in the democratic process. Casting votes as ‘transactions’ in a blockchain removes questions of voter fraud, missing records or manipulation of results. The blockchain would distribute the voting records with each voter, making it incredibly difficult for voter fraud by removing the single point of failure. Voters can agree on the final count because the voting information is distributed across the blockchain providing rigorous audit trail.
Blockchain offers plenty of opportunities for growing companies to expand their technology stack. With potential for use from Fintech to the music industry it’s hard to predict the impact it will ultimately have. As with all new technology its development and success will depend on the vision of the companies backing it and making sure resources are available to help it meet its potential.
Fuse Three are the UK’s only specialist technology debt brokers. We can help ambitious technology companies get access to the funding they need. If you’re looking for money to expand your technology stack, enter new markets or bridge to profitability please get in touch.
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