Let's start with some quick definitions. Blockchain is the technology that enables the existence of cryptocurrency (among other things). Bitcoin is the name of the most recognized cryptocurrency, the one for which blockchain technology, as we currently know it, was created. A cryptocurrency is a medium of exchange such as the US dollar, but is digital and uses cryptographic techniques and its protocol to verify the transfer of funds and control the creation of monetary units.
A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include enterprise blockchain applications, sustainability, tokenization, fund transfers, supply chain tracking and many other areas.
Cryptocurrency is a medium of exchange, created and stored electronically on the blockchain, using cryptographic techniques to verify the transfer of funds and an algorithm to control the creation of monetary units. Bitcoin is the best known example.
Visibility through the entire supply chain tracking individual components through the final product.
Corporations reducing costs by eliminating intermediaries and working directly with the airlines to track travel for each employee.
Improved management of resources by collecting decentralized data and distributing it to system participants.
Access to capital that was previously unavailable for the average consumer; funding projects that can power the future economy.
From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. Collaborative technology, such as blockchain, proclaims the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.” For this reason, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.
For an overview of digital assets, which include cryptocurrencies, start with Demystifying cryptocurrency and digital assets. We provide an introduction into the mechanics of the digital asset world, how it functions, the various categories of assets, and where the future of this space could lead.
For a deeper understanding of digital assets, we recommend these resources.
For an overview into web3, we recommend Demystifying web3 which discusses what business leaders should know about web3, its potential, and what no regrets decisions you can make to prepare. Here are two more recommendations.
For a deeper understanding of blockchain technology, we suggest Embracing sustainable innovation: understanding the environmental impacts of blockchain technology, which discusses in detail how blockchain technology can be used to improve sustainability strategies.
For a look into our historical thinking in this space, we recommend:
Although blockchain announcements are less frequent and happen with less fanfare than they did a few years ago, blockchain technology has the potential to result in a radically different competitive future.