March 28, 2018 Comments (0) Views: 2786 Innovation, March 2018

Next Big Thing: Taking Blockchain Beyond Bitcoin

The potential for the cryptocurrency’s underlying technology could impact everything from retail to biotech

Cryptocurrencies may be volatile, but they’re here to stay—and the potential for blockchain, their underlying technology, is even broader. Here’s a look at some ways the bookkeeper of the future will impact the economy from retail to biotech.

Why It Works

Blockchain is the Future

According to Forbes, real estate, insurance, entertainment, and practically any other contract-based industry would benefit from blockchain.

Cutting Costs

Fees associated with blockchain transactions are typically much lower than those of credit cards or PayPal, according to Entrepreneur.

The Mysterious Miners

Miners all over the world validate blocks to add to the chain. The digital transaction industry uses as much power as 3.7 million US homes, according to Digiconomist.net.

“The technology likely to have the greatest impact on the next few decades has arrived. And it’s not social media; it’s not big data; it’s not robotics; it’s not even AI. You’ll be surprised to learn that it’s the underlying technology of digital currencies like bitcoin. It’s called the blockchain.”

–Blockchain Revolution coauthor Don Tapscott, in a TED Talk.

See It in Action

More than Bitcoin

Blockchain is branching out. San Diego–based Luna uses blockchain technology to power its genomic and medical research database.

Practical Uses

Walmart, Nestle, and several other big brands are partnering with IBM to use blockchain technology to drastically reduce the time needed to trace the source of contaminated produce.

Prevent Fraud

A startup called Follow My Vote has developed a platform that uses blockchain to make the voting process tamperproof. The company says users can even vet election results.

No Risk, No Reward

It’s Not Foolproof

Although blockchain was designed to prevent fraud, several security breaches have been reported in which bitcoin was stolen. In December, South Korean digital currency exchange Youbit filed for bankruptcy after it was hacked.

Possible Downfall

The tech is just as vulnerable to monopoly as any business. If one entity ever gained control over half a particular chain’s mining power, it could manipulate or halt new transactions—a “51% attack.”

Spiked Tea

When Long Island Iced Tea Corp. changed its name to Long Blockchain Corp. in December, shares skyrocketed—despite having no blockchain-related business to show for it.

Wait, I Don’t Get It

Blockchain is the technology behind Bitcoin. It’s a massive, decentralized public ledger whose books can’t be cooked, since they’re kept and verified by every computer on the network simultaneously. The cryptographic keys that protect each transaction are generated and secured without ever being seen by human eyes.