Confusion that blockchain is the same thing as bitcoin – often found in boardrooms around the country – is a real problem.
Blockchain education is sorely needed at a corporate level in order for large enterprise to understand the business model transformation coming from blockchain – possibly without them even knowing.
Let’s get clear on this now: cryptocurrencies are not the same thing as blockchain. Cryptocurrencies are built on a blockchain, and the cryptocurrency bitcoin was simply the first application of blockchain technology. Just as all email is built on the internet, but the internet runs far more than just email, all cryptocurrencies run on a blockchain, yet blockchain can have many more use cases and applications than just cryptocurrencies.
Blockchain will transform almost every single industry you can think of. New business models are made possible through blockchain’s core characteristics: decentralised, distributed and immutable. This, in turn, allows improved data recording, auditing and reconciliation between multiple distrusting parties. The efficiency gains this can bring allows for money to be deployed far more effectively, resulting in increased profit margins and reduced cost to consumers.
The tremendous interest in cryptocurrency as reported by mainstream media contributed to the conflation of bitcoin and blockchain. When the crypto bull-run of late 2017 occurred it was widely covered, and when the price action collapsed, blockchain interest took the hit along with cryptocurrencies.
Boardrooms and C-suites will benefit the most when they can mentally decouple blockchain from bitcoin and begin to look in earnest at where blockchain can offer them opportunities – or threats of business-model disruption.
Anthony Pompliano says: ‘Long bitcoin. Short the bankers.’ Blockchain Rookies says: ‘Long blockchain. Short bitcoin.’
Bitcoin has been part of the changes to finance and will continue to have a positive impact. Real impact for the long term will be blockchain.
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