Why Blockchain is Revolutionizing the Digital World

Innovation does sometimes include hyperbole, exaggeration and a bit of a bubble (which inevitably bursts).  Yes, the internet changed the world, but the .com bust also happened.  Sure, self-driving cars could be considered a technological inevitability, but they have also experienced their first fatality, which may slow the speed of testing in many states.

So when Bitcoin got announced as the “world’s first cryptocurrency,” and hyped as the “blockchain revolution” (there’s even a book about it), it was, understandably, still met with some skepticism.  

While it remains to be seen if cryptocurrency will make banks go the way of the dodo, there’s no doubt that the technology on which it is built is revolutionizing the digital world. Mega corporations such as IBM & Walmart are even getting on board.

It might not even be exaggeration to say that blockchain technology is the biggest thing since the invention of the smartphone.  Here’s why.

Decentralized Database Technology

Since its inception, the internet has been a leveling platform.  Instead of needing access to expansive libraries, data was a noisy dialup and few slow clicks away.  Instead of sending a letter at the post office, early users had hotmail and Outlook.com.  AOL even introduced the popular instant messenger function, long before texting and social media would make instant connectivity to friends and family truly instantaneous.

But before Distributed Ledger Technology (DLT), aka blockchain technology, electronic data was still primarily database-centered.  Verification of identity required third-party verification, such as notaries and banks, particularly for purchases or exchanges of goods or property of value, where establishing a verified identity was so important.

Open, decentralized databasing is the first step into the possibility of widespread verification, preserving identity and potential reducing fraud, since there’s no “middle man” to deceive or centralized database to hack.  The technology upon which it is built, using multiple layers of encryption, could offer unprecedented security.

Possibility of Joining the Chain

So why would a megalith like Walmart jump in on the block (chain) party? Well, to make money, obviously.  Even the Bank of Canada is exploring the technology that may one day render their existing banking services obsolete.

But blockchain technology also offers:

  • Transparency at every step of a transaction
  • Efficiency in information and value transfer
  • Authenticity of data

Given those possibilities, the current project from Walmart has to do with food transparency.  Under the existing technologies, getting food “from farm to fork” involves the exchange of information at several points, including paper transactions.  With blockchain possibility, traceability can go from weeks to just seconds, making a recall or food safety concern resolve much more rapidly.

Other industries that could be revolutionized by DLT include:

  • Legal transactions, where contracts and other information could not be changed without it being changed in all decentralized locations, making transactions more secure.
  • Medical information, where patient information would not need to be in centralized databases, a common source of identity theft.
  • Tax collection and government pay programs, eliminating the need for banks to get a share of the cut in aid or taxation.

The possibilities are limitless.

Staying on top of Technology

Innovation is at the core of NetSuite.  To help NetSuite users understand and stay apprised of new blockchain technology uses, Oracle NetSuite has an ongoing webinar series on the topic.  The official Oracle NetSuite blog also spotlights innovators in all kinds of fields, including early adopters of this revolutionary technology.

While regulatory challenges and growing pains will undoubtedly still be part of the DLT/blockchain future, we are excited to see where this revolutionary technology will take the digital world.

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