The introduction of Blockchain technology into today’s industries heralds a wave of disruption across all types of business. The Blockchain system functions by creating blocks formed from transaction data every ten minutes. The newly created blocks possess traces of the previous block’s code, forming a line of blocks containing all transaction data. As stated in the Forbes article “Bitcoin Is Only the Beginning for Blockchain Technology”, the Blockchain system allows for a wide variety of new possibilities.
The creation of “Bitcoin Mining” represents some of the initial entrepreneurial innovations that are coming in the wake of the Blockchain system. These “miners” verify and secure the transaction blocks by solving complex mathematical equations.
Recently, according to the Forbes article “Bitcoin Blockchain Technology In Financial Services: How The DisruptionWill Play Out”, companies such as Visa, Citi, and Nasdaq have all invested in the website Chain.com. This website provides the services necessary for managing blockchain systems. This would include said mining. This investment supports the idea that this system will shake the status quo and that entrepreneurs can capitalize on this disruption.
The wave of innovation coming from the introduction of the Blockchain system also carries innovation for the system itself. As stated in the primary article, people are already finding ways to re-purpose the system. Services such as Proof of Existence and OneName have popped up because the Blockchain system contains the capable of verifying I.D. and ownership.
The idea to innovate this emerging technology has also spread to companies anticipating the oncoming popularity of the system. According to an article on ftseglobalmarkets.com, a collaboration has formed between nine of the world’s largest banks, with R3 in charge, to create finance related technologies. This collaboration plans to utilize a lab environment to create and test new types of ledgers for finance companies.
Due all the positives brought forth by the introduction of the Blockchain system, the primary article only skimmed the shady deals performed with the same system. As mentioned early and briefly in the primary article, illicit deals have taken place due to Bitcoin, the initial network to use the Blockchain system. According to an article on arstechnica.com, the website Silk Road organized the sale and purchase of drugs over the internet using Bitcoin, the initial user of the system, as the primary currency.
The Silk Road represents complications and malicious innovations that may occur with the adoption of the Blockchain system. The primary article mentioned that once secured, blocks were near impossible to edit. This keeps them secure, but also impossible to correct The decentralized nature of the system also puts the users at risk because all their records lies in the hands of service providers, who could hike up prices or threaten companies with their new found power.
The article focuses on the innovations that come along with disruption, nearly forgetting that consequences come as well. The new period of disruption due to the Blockchain system promises to reinvigorate the industry, for better or worse.
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