Buzzword Buster – Blockchain

Blockchain is the core piece of technology which underpins Bitcoin and allows it to work. It is a distributed ledger, which is effectively a list of records which are spread across many computers in a network. You could think of it as a bit like an industrialised version of Google docs if you like.

Blockchain has been heralded as the future technology of choice for many industries (notably financial services) as it may provide a way of massively reducing the cost of various reconciliation processes and other dull but expensive bits of industry process. It does this by using a range of clever technological developments to provide a record that can be trusted, removing the need for companies who are currently needed to act as trustees or custodians.

There are two really interesting things about Blockchain.

1. If someone can crack the puzzle, it could completely and utterly rewrite how the financial services industry works leading to massive change and disruption.

2. The disparity between its current state of development and level of funding proves firms are more than willing to spend a fortune of project and investment money on a largely unproven concept if there is a buzzword and some good press associated with it.

Disagree or want to add something? What does blockchain mean to you?

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