One of the fastest moving technologies of 2016 is Blockchain. Put simply, Blockchain is decentralised trust system for ensuring transaction validity without a central authority. The use-cases for Blockchain are far reaching as it is essentially a data platform on which any applications that require trust for the “exchange” of information between multiple parties can be built. And it has just been revealed/confirmed that it has Australian origins!
The Blockchain methodology was designed to underpin Bitcoin but has since gained momentum in its own right, in fact arguably Blockchain is a more important innovation than Bitcoin itself. Certainly banking and FSI in general are all over Blockchain, with CBA and 10 of the world’s largest banks simulating trading using Blockchain, and the ASX working on a Blockchain based system for Australian equities. But these are just a couple of examples. The interest, momentum and pace surrounding Blockchain is quite astounding.
Blockchain is still in its early days and doesn’t have all the issues solved yet. Scalability can be a challenge but these problems will be resolved as Blockchain technology is evolved. In terms of resource, there is a lot of technical detail on the web about how Blockchain systems work, however if you’re looking for resources on the “why” for Blockchain a couple of good ones include:
- Forget Bitcoin — What Is the Blockchain and Why Should You Care?
- The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology (available on Kindle now)
If you’re involved in building or operating trust based systems that exchange information between multiple parties you absolutely need to get up to speed with Blockchain.