The introduction of blockchain technology through its use as a currency, via bitcoin, was arguably the best (unintentional) marketing move in recent years.
Bitcoin, the currency, allowed for speedy adoption and an opportunity to make money, quickly. It is only since the hype around the currency has cooled down, are we now realising the full potential of blockchain technology.
Many proponents of bitcoin argue that bitcoin is not the most exciting thing in this revolution of technology. Instead it is the technology that supports it and allows it to operate. We’re not alone in our argument; by the end of 2014 over $410.7m had been invested into bitcoin and related technology businesses.
To borrow an analogy from Mark T. Williams, a banking and risk management expert and professor at the Boston University School of Management, bitcoin the currency is the train that runs on a technology that serves as the tracks. The currency needs the tracks to run but the tracks do not need the currency to survive.
The technology is known as blockchain technology, it acts as a public ledger that records all transactions. It is upon this technology that bitcoin-supporting services can be built. However one can also create services that do not require the use of bitcoin.
What can we do on the blockchain?
What services can be created are still being discovered. Think back to when you first became aware of the internet, I doubt you imagined that you would be using it to transfer money, purchase flights and to order new clothes. This potential has been noticed by blockchain-focused investment companies such as Coinsilium Group.
So far, over 100 uses for the blockchain have been identified and are being developed. Here are some of our favourites.
- Security solutions, as demonstrated by Rivetz
- The Internet of Things as being tested by IBM and Samsung
- Payment solutions, as seen in CoinSimple
- Physical record representation, currently being tested for land registration
- Wallet providers, such as the popular Hive application
- Exchanges and financial services as offered by btc.sx.
Blockchain, the new internet?
Here at Coinsilium, we think that with an almost limitless range of commercial applications, ever growing attention from the big players of finance and technology, and the substantial amounts of smart capital flowing into the space, blockchain technology has the potential to be every bit as revolutionary as the internet.