Blockchain has become the latest trend in technology, and with good reason. Not since the first rollout of the Internet has there been a development that promises to change life as we know it. But while there was a sense that everyone had to be on the Internet or else get left behind, blockchain isn’t for every person or every company.
At least, not for now.
Until the digital ledger tech plants deeper roots, it likely will remain on the outskirts of the average American’s life. If you are wondering when and where to use blockchain, let this be your guide.
If you run a business where transparency with the public is good for the bottom line — think banking or healthcare, for instance — then blockchain could be a good overall tool. It will almost certainly disrupt current practices, but in place of that, it will save money through efficiencies that allow you to focus your efforts into more profitable ventures.
Imagine you’re in a food industry and one of your shipments contains contaminated meats or vegetables. Rather than tracking down and discarding the whole shipment, blockchain allows you to be laser-precise in your focus to where you can isolate and eliminate the contamination point while holding onto perfectly good inventory that would have otherwise been destroyed.
Reducing Cybersecurity Threats
Losses caused by cybersecurity deficiencies are expected to reach $6 trillion globally by 2021, or around one-third of the current national debt. Blockchain cuts the risk by transmitting all relevant data over peer-to-peer networks that force hackers to gain control of over half the participants on the blockchain in order to have control over data changes and additions.
When Blockchain Isn’t Useful
We’ve just shared three of the scenarios that can most benefit from blockchain, but there are circumstances where you’ll want to leave it alone. If you have no defined use, it’s difficult to experience gains from using it. Likewise, a blockchain is only as good as the entities using it. If you’re alone in your desire to be on it and can’t find willing partners, then you’re better off letting it rest.
Where Are You on the Blockchain?
New technologies can be intimidating. With blockchain, this can present an especially concerning barrier to entry because much of the legalities to come haven’t been worked out yet, and it’s only in the early stages of regulation, both federally and stateside.
If you need assistance understanding this area from a legal standpoint, contact John Teakell today. He has unique insight into the inner workings of the SEC as well as years of practice serving plaintiffs and defendants in criminal defense cases, including white collar crime.