Keeping Up with Blockchain Technology

While we often hear about blockchain technology in relation to cryptocurrencies like Bitcoin and Ethereum, an increasing number of enterprise CIOs and CISOs are wondering how it can help them meet their business objectives. This week, we look at what blockchain is, how it works, and where it’s going, so that you can Live Easy.

Blockchain: What it is and How it Works

Blockchain is a distributed ledger technology (DLT) based on peer-to-peer (P2P) architecture: data can be stored anywhere, on thousands of servers, so that every user on the network can see all entries in near real-time. Every data transaction is added to an inalterable record as a “block” and stamped, linking it to the previous transaction (block) to form a chain (Mearian).

Once information joins the chain, it is distributed – not copied or transferred – to the servers (users) on a P2P network and can’t be erased (BuiltIn). This, along with the required consensus among users on the network to update blockchain (Mearian), decentralizes the distribution chain, allowing access to blocks and administrative power for all network participants simultaneously. Modifications are then recorded in near real-time, making changes entirely transparent.

The topology, decentralization, and transparency of blockchain technology all contribute to its heightened security. As CEO and founder of Northwest Passage Ventures Alex Tapscott puts it, to hack a component of a blockchain, every user (or node) of the system would need to be hacked. While this doesn’t make it un-hackable, he says, it’s “significantly better than anything we’ve come up with today.”

Blockchain Trends

Blockchain is changing how businesses exchange data. In fact, in Deloitte’s 2019 Global Blockchain Survey, 53% of respondents said that blockchain technology became a critical priority for their organizations in 2019. The shift, however, will be gradual as Gartner predicts 90% of current enterprise blockchain platform implementation will need to be replaced within 18 months to remain competitive. So, while the business value added by blockchain will surge beyond $3.1 trillion by 2030, enterprises will want to watch out for early obsolescence (Gartner). Keeping up to date as the technology optimizes will be key.

Mike Walker highlights the powerful business-enabling capabilities of blockchain in Forbes with his overview of 2020 trends in the technology. These include self-sovereign data, tamper-resistant data, P2P collaboration, and distributed data governance. The power of blockchain, however, comes with the solution it is used to create. When enabled by internet of things (IoT) connectivity and artificial intelligence (AI), both at the edge and at the core (Walker), those business-enabling capabilities offer their highest value. So, what is this all leading to?

The Path to Decentralized Internet

Enterprises (and individuals) value data privacy now more than ever, a shift that’s causing major companies such as Google, Facebook, and Amazon to plan for the not-so-far future of the internet (Pollock): decentralization. Blockchain implementations are helping to carve the path for the running of internet applications on a decentralized basis, and it’s just the beginning. As the business-enabling capabilities of blockchain technology continue to develop, so to will the business value they add.

At LeCiiR, we want you to live easy. For questions on blockchain technology, decentralized internet, dVPNs, or any other topics, don’t hesitate to contact us.