Last month I hosted the second event in our newly established Elevated Conversations Series. The events are cozy, by-invitation-only gatherings that introduce smart investors, entrepreneurs, business owners and professionals to each other, and to experts at the leading edge of innovation and disruption in areas that will affect the way we live and do business.
You may remember at our first event we met Dr. Terry Lake, VP of Corporate Social Responsibility at Hydropothecary, a local cannabis producer. I wrote about that Conversation in my May 23, 2018 article, Curious about Cannabis.
Our most recent event was billed as Blockchain 101. It was a chance to wrap our heads around the concept of blockchain, bitcoin and cryptocurrency.
Our Visiting Expert
We welcomed Christopher Doré, Professor, Industry Liaison and Entrepreneur in Residence at Algonquin College. His first task was to correct our misconception that Bitcoin, or any other cryptocurrency for that matter, is not Blockchain, although they’re often confused. Blockchain is the structure that makes bitcoin trading possible; the bitcoin market uses blockchain technology to run.
What follows is my unsophisticated (yet developing!) understanding of this innovative technology…
Blockchain -- a ledger technology
Blockchain is a computer science term used to describe how data is structured and shared. Blockchain was developed to simplify, accelerate, secure and protect a series of transactions in a hacker-proof, tamper-proof, globally transparent ledger.
We all know what a ledger is.
A ledger records assets, and tracks how and when assets change ownership. These assets can by physical, like homes, cars or containers of salt; or virtual, like patents, stock certificates or intellectual property.
Blockchain is a ledger technology that records assets and transactions by encoding every transaction in a unique ‘block’. It uses cryptography to ensure each block is ‘digitally signed’ in a unique way, and the chain is distributed across thousands of computers around the world. That’s where the name comes from: a “cyberchain” of digital blocks. Thanks to that unique digital signature, all entries in a Blockchain and even the most miniscule changes to an entry are immediately obvious and traceable. That’s why Blockchains are considered secure, private, hacker-proof and tamper-proof.
Blockchains are originated by, agreed upon by, and visible to a network of traders, which means value can be transferred without a central, controlling authority or a middleman to verify the transaction, for example a banker, lawyer, accountant, or government regulator.
Blockchain applied
While doing some further research, I found an excellent example of a practical application for Blockchain technology in an article on the IBM Blockchain site (https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=54015254USEN&): facilitating the complicated payment of music royalties. A conglomerate of composers, songwriters and music publishers in the US is using IBM Blockchain to protect the copyrights of musical artists by tracking every song performance in real time. The system manages links between music recording and music work codes to improve royalty matching, speed up licensing, and reduce errors and costs.
Blockchain definitely shows potential to disrupt current systems of trade and transaction by removing intermediators and allowing direct trade of both tangibles and intangibles quickly, openly and securely, with a full history of transactions stored in the ‘chain’.
Of course, our presentation was followed by a lively discussion amongst guests about the viability of implementing a blockchain system in their own businesses. When do you need it? What is the business case? How do you measure the cost? What about legacy assets? What about hacking? What the heck are cryptocurrency miners? (That one will warrant another session!)
More to come!
Needless to say, we only took a small bite out of the ear of a big elephant. There’s still a lot to learn and make sense of regarding this new technology.
If you’re like me, it’s important for you to grasp at least the basics. Consider this free resource that can be found online – Blockchain for Dummies, the IBM Edition. (https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=XIM12354USEN)
Can you help us?
The great conversation and onslaught of questions fueled my excitement for future Elevated Conversations. I’m looking forward to topics like AI, Robotics, and more on Cryptocurrency. What would you be interested in learning about? Are you an expert in a field or industry that is set to revolutionize our world? Let me know. Email us here and let’s start a conversation.