The Interesting Way Blockchain Disrupts Industries Infographic. Imagine the benefits of ecommerce without an Amazon. Consider engaging socially online without a Facebook. This is the power of decentralized blockchain technologies. The blockchain offers new capabilities for trust and transactions, without having to give away your privacy and identity.
Platform businesses will see major changes, but decentralization will dramatically change the economic architecture and business models that underpin existing companies. This blockchain infographic demonstrates how blockchain undermines platform businesses and how the business landscape will evolve through decentralization.
Blockchain is a distributed global ledger which leverages the resources of a large peer-to-peer bitcoin network to verify each transaction. Every single transaction conducted is stored and verified in a block that is linked to a preceding block, creating a chain. By ensuring integrity and trust, blockchain focuses on its potential to fundamentally change the banking industry. Of all the start-up initiatives, classified under Fintech, blockchain has received the most attention.
As blockchain strategies gain traction and the technology matures, organizations are becoming increasingly aware of the fundamental way that business transactions will change. This smart, decentralized, trusted and highly-encrypted network of computing nodes is poised to be the next disruptive wave in digital business. Organizations that engage early—to explore strategies, test use cases and hone their skills—increase the likelihood that they will reap benefits.
Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems. They protect assets and set organizational boundaries. They establish and verify identities and chronicle events. They govern interactions among nations, organizations, communities, and individuals. They guide managerial and social action. And yet these critical tools and the bureaucracies formed to manage them have not kept up with the economy’s digital transformation. They’re like a rush-hour gridlock trapping a Formula 1 race car. In a digital world, the way we regulate and maintain administrative control has to change.
Blockchain promises to solve this problem. The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. (See the sidebar “How Blockchain Works.”)