Blockchain: Is this the Next Internet?
Blockchain technology implements the concept behind Bitcoin (and other cryptocurrencies). ‘A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial organization’ (Satoshi Nakamoto: Bitcoin …. October, 2008)
Frankly, the technology was tough to get my head around. These videos helped me.
Video The Cake Sharing analogy
Video Cartoon explanation
Video Simplified Lecture explanation
Video Expert explaining technology, What technology economics limit / drive it’s implementation and future potentials.
Questions:
Is this really a technology with potential impact the Internet had?
How would this technology impact Supply Chains?
Before I watched these videos I was aware of what bitcoin is but never heard of blockchain before which is essentially how bitcoin is used and effective. Now that I understand how blockchain technology works I have a better understanding of bitcoin’s and how it can effect our lives and technology as a whole. To answer number one, as I do believe bitcoin is pretty revolutionary I don’t think it will come any where near the impact the internet had on society. The internet basically took our lives and changed them and I don’t believe Bitcoin/ blockchain technology will have nearly as big of an impact. Blockchain technology can be used for more things online than just Bitcoin however I just don’t see how it could have nearly as big of an impact as the internet as a whole.
2) This technology essentially involves a network of people (or miners) as they are called with bitcoin that all work together in a way to move there money and protect themselves. I think that when dealing with Supply Chains blockchain could be effective with a company that has an extensive supply chain network with their products. In the simplified lecture I thought the guy used a good example when the one person in the group (letter A) tried to send more money to someone but didn’t have enough so the other members of the group wouldn’t allow it to go through. That could potentially be a good checks and balances system for supply chains.
Bitcoin created a frenzy a couple years back in the news for being the future of transactions. Other than being an alternative form of currency, I was unaware how bitcoin actually works. While a revolution to the concept of banking peer-to-peer, I do not believe that it has the potential impact that the internet had. The internet was made to make information easier to access view electronically, I believe the blockchain and bitcoin system is complicated and will take a while for people to understand the benefits compared to a physical bank. Also with cyber-security threats (even though it is secured) can scare people from giving full access to other users.
The potential impact to supply chains would be the currency exchange and the number of eyes on a transaction. For every player in the supply chain to check each transaction for approval would work as an accuracy tool. Transactions could potentially be faster without the need of an intermediary financial institution. However, i do not see the immediate need for this technology in the supply chain just yet.
Before watching these videos, I could safely say that I have never heard of what Bitcoin or Blockchain was, and could not even have guessed. However, after watching these videos, I feel like I have a great understanding of Bitcoin and Blockchain, and how they coexist together. For number one, while I believe that these technologies have a great chance to be “revolutionary”, I would not categorize it in the same breathe as the Internet. The internet was life-changing, and completely changed the scope of the world as we knew it, and now every single civilized person is pretty much reliant on the Internet. While Bitcoin/Blockchain is a great technology, I do not see it having the same impact as the Internet whatsoever. For the second question, I believe this technology could drastically impact supply chains in the near future. With every stakeholder within the supply chain having to confirm a payment, it would help increase accuracy across the supply chain, and reduce costs due to unnecessary mistakes. It will also help increase the speed of transactions by not using a “middleman” institutions for payments. While I do not think it is necessary this moment, in the near future Blockchain will change how supply chains operate forever.