Ever sat through someone trying to explain Bitcoin to you? You likely came away more confused than before. The key to understanding Bitcoin is understanding Blockchain technology. Yet when it comes to Blockchain, Bitcoin—its most well-known output—is just the tip of the iceberg.
In our latest webinar, Laura Masse, Global Consulting Partner, OgilvyRED, walks us through the growing importance of Blockchain technology. She explains how it can propel innovation strategy, disrupt business models, and create new revenue streams. The Blockchain isn’t just a way to exchange currency, but a means to build immutable trust that brands are utilizing today.
“The blockchain lets people who have no particular confidence in each other collaborate without having to go through a central authority,” The Economist wrote in 2015. “Simply put, it is a machine for creating trust.”
Throughout the webinar, Laura Masse breaks down blockchain technology into 3 distinct functions:
1. Decentralized Digital Ledger
2. Decentralized Database
3. Platform for “Smart Contracts”
Masse explains how it’s counter intuitive to think a decentralized public ledger will be more secure than one that is controlled by a central entity or institution; a central institution is less secure because everything in one place. She brings up VISA, Chase, and Target as examples of companies that have been hacked due do a single point of failure, resulting in major security breaches.
There is no one Blockchain, but in fact many happening at one time. There are public Blockchains, like Bitcoin, Ethereal, Ripple, and Dash, and then there are Private Blockchains mainly being developed by banks and other financial institutions. As a matter of fact, OgilvyRED has found that 80% of banks are developing Blockchains and estimate to spend $200 million in 2017.
In the webinar, we are provided with some infographics and analogies to help understand how The Blockchain operates. We are also directed to good references for further research. We learn that blockchain technology is about security, transparency, authenticity, and credibility. And Masse also speaks to some of the roadblocks to expect when trying to implement the Blockchain.
Watch the webinar in its entirety below:
