The best-known application of blockchain is cryptocurrency. However, technology can conquer the (business) world in many more areas.
During their Checkup seminar, SecureLink will discuss the various trends that will change the technology landscape in the coming years. One of the most important trends that the company explains is blockchain, a decentralized database technology. Blockchain is mainly known as the backbone of cryptocurrency. Gerrie Smits, Digital Strategy Consultant, explains during the seminar that the technology can be used for much more than just bitcoins.
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Orange
During his presentation, Smits presents an orange to a man in the front row. “This is how blockchain works,” he says. “Without the intervention of a third party, I deliver a product to someone I don’t know. We have all seen that I gave this orange to him. Using a protocol – in this case our eyes – we record this event. Then we store the info in our brain. Since we don’t know each other, this transaction has been kept decentralized.”
In a perfect world, we wouldn’t need technology like blockchain. If we have a flawless memory and everyone is attentive at all times, we could preserve the exchange of an orange or other product in the brains of bystanders. In contrast to our brain, the software behind blockchain is fortunately flawless. You can fully trust that an event has been recorded correctly, that this transaction is not forgotten and that the information cannot be tampered with afterwards.
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Ethereum
Blockchain owes its fame to Bitcoin and other digital coins. The value of that cryptocurrency is growing exponentially, which is why many people see the virtual coins as a good investment. Yet you can use blockchain for much more than just digital money. “It’s not about bitcoin,” Smits says during his presentation. “We’re just getting started. The potential of blockchain is enormous.”
Bitcoin works great for making financial transactions, but its potential is much greater than that. Vitalik Buterin – a young Russian – therefore invented Ethereum, a technology that adds an extra layer to blockchain. “This layer is called the application layer, but I usually call it the ‘if this then that’ layer,” smits says.
With ethereum, all conditions must first be met before the transaction is executed. “I can check if Sven is 35 years old before I give him an orange,” Smits explains. “You can also use Ethereum for the lotto. The technology checks whether someone has the right combination of numbers and then hands the right person the prize money.” Another example that Smits cites is about smart cars. “If you haven’t paid your car’s insurance, it won’t start.”
Danger
During his presentation, Smits not only explains the advantages of blockchain and ethereum. After all, the technology can also mean bad news for a lot of companies. Currently, there is often a long chain of companies that provide services to other companies before the end product reaches the consumer. Blockchain can make most of these intermediate steps disappear from the chain, so that the usefulness of certain companies disappears. “You have to look for the value of your company. You have to reinvent yourself,” Smits gives as a tip.
“In industries where optimizing transactions is important, you can’t ignore blockchain. Every company must come into contact with the technology. You have to find out how it works and how blockchain can add value to your company. You have to look through decentralized glasses to see the world in a completely new way,” Smits concludes.
