Well, the potential applications of this new technology are far reaching. In the words of IBM CEO Ginni Rometty: “What the internet did for communications, blockchain will do for trusted transactions.” And these transactions can be anything from payments, to agreements, to the rapid conclusion of any complex transaction.
Before we look at some specific examples, it’s useful to understand one particular aspect of blockchain… an aspect that makes it revolutionary and explains why everyone is getting so excited.
It’s all to do with the concept of trust.
The internet has made global communication extremely easy in terms of distributing information, but extremely difficult in terms of establishing the truth. In any commercial context, some central authority is required (the NYSE, a government department, a corporation, a central records office) to hold the master copy of information and be the final arbiter in any dispute.