What it is: Blockchain is a shared ledger that uses cryptography to ensure the validity of each transaction on a distributed network.
- Blockchain holds the promise of democratizing capital, eliminating middle men, and re-humanizing commerce.
- Blockchain enables true value ownership. There’s no super user or central administrator that can move value, only the owner can transfer that value to another.
- Blockchain is to value as the internet is to information. Because of true value ownership, we can now securely transfer value without having to establish trust in the counterparty. No more fraudulent e-tickets. No fraudulent checks from Nigerian princes. The value is transferred and settles near instantly. No need for trust intermediaries to enable exchange.
- Blockchain will affect most industries including identity, land titling, money, capital markets, supply chain and voting. Where there’s a ledger there’s a possibility (though not always a need) for blockchain. Information about value can be shared instantly helping remove friction in current processes.
- Blockchain isn’t inherently good or bad, nor is it magic. Blockchain is a new combination of existing technologies.
- When you stop hearing about blockchain you’ll know that it’s gone mainstream. You don’t hear about how an application is “database enabled.” Blockchain will be one more tool in the IT toolbox.
Joel Weight is the Chief Operations Officer of Medici Ventures, a globally-leading blockchain accelerator.