Blockchain, essentially a giant network, which records ownership and value, is being hailed as the second coming of the internet. We break down its future in 8 charts
Canadian writers and researchers, Alex and Don Tapscott, authors of the new book Blockchain Revolution, explain that blockchain goes way beyond the second coming of the internet. The pair, like so many others, stumbled across blockchain via the bitcoin association, quickly realising the genie is out of the bottle.
For beginners, blockchain is essentially a database, a giant network, known as a distributed ledger, which records ownership and value, and allows anyone with access to view and take part. A network is updated and verified through consensus of all the parties involved. When something is added it cannot be altered and, if it looks valid to everyone, the update is approved.
“The first generation brought us the internet of information. The second generation, powered by blockchain, is bringing us the internet of value, a new, distributed platform that can help us reshape the world of business and transform the old order of human affairs for the better. But like the internet in the late-1980s and early-1990s, this is still early days.”
Join us as we break down the future of blockhain in eight charts.
Blockchain, a distributed ledger, is an asset database that can be shared across a network of multiple sites, geographies or institutions. All participants within a network can have their own identical copy of the ledger. Any changes to the ledger are reflected in all copies, similar to a Google doc. On the other hand, a centralized asset ledger, or clearing house, the model currently used by financial services globally, is a list of transactions that is controlled by a single entity.
Following on from the chart above, with a distributed ledger between financial institutions, most transactions would be real-time and therefore instant.
The illustration below shows eight key areas of financial services which blockchain technology is likely to transform, ranging from making current accounts obsolete to creating new peer-to-peer (P2P) financing models.
Using the law of diffusion of innovation curve, blockchain is predicted to move past the ‘Innovators’ phase in 2016 and reach the 13,5 per cent of “early adopters” within financial services. The “tipping point”, according to Accenture, is then expected to happen in 2018 when the early majority of financial services begin to see the benefits of the early adopters and new models emerge. This growth phase is predicted by Accenture to last until 2025 when blockchain will finally become mainstream within financial services.