5 Ways Blockchain Technology Adds Value to Businesses, Large and Small: Insights from Techstars Startup Week
Not surprisingly, blockchain technology was a hot topic of discussion during this month’s Techstars Startup Week in Dallas, a five-day event designed to bring together the startup community in North Texas. Blockchain technology has the potential to transform a number of industries, and leaders from the startup community are driving innovation in the space.
Below are five of the key insights discussed by leading Dallas-based organizations during the Blockchain Technology in Business Today panel at Techstars Startup Week.
1. Blockchain Technology Builds a Network for Businesses
Dr. Michael Yuan, Chief Scientist of CyberMiles, shared his thoughts on how blockchain provides value for both businesses and startups. While the CyberMiles project aims to build a public blockchain and a smart contract platform that is optimized for e-commerce applications, Dr. Yuan believes that the key value blockchain can provide is its ability to build a network for all types of businesses.
“Network builders, like Uber and Airbnb, are today’s most notable, successful startups,” Dr. Yuan said. “However, they tend to extract value without adding anything, resulting in a winner-takes-all ‘network effect.’ Blockchain allows a way to disrupt this through collaboration. It’s a mechanism to start — and sustain — a network. At CyberMiles, we are not developing software, but rather a network.”
During his talk, Dr. Yuan explained that blockchain technology is a decentralized electronic ledger that allows digital data to be securely shared across networks and users. The network is entirely peer-to-peer and managed autonomously, demonstrating the collaborative nature behind blockchain technology.
While Dr. Yuan explained that blockchain technology has the potential create a decentralized network for organizations, he also noted that the biggest hurdle to overcome is centralization.
2. Blockchain Technology Can “Unbank” the World
Kelly Graham, COO of D-Node, recommended the book, The Internet of Money, as its underlying premise is to “unbank” the world.
“Just like the Internet provided freedom of speech and expression to anyone with a modem, blockchain can do the same for freedom to transact in a bankless, borderless way,” Graham said.
Graham explained that blockchain technology has great potential to help “bank the unbanked” by allowing the millions of people without bank accounts the opportunity to create financial alternatives. For instance, if a major cryptocurrency — like Bitcoin — becomes a global currency, those who don’t have access to bank accounts would just need a digital wallet to make and receive payments.
Of note: IBM recently partnered with Stellar’s Lightyear to create blockchain banking in the South Pacific using Stellar’s XLM currency, also known as “Lumens.” The banking network consists of “12 currency corridors,” including Australia and New Zealand, as well as smaller countries like Fiji and Tonga. This is just a start to create new alternatives using cryptocurrency to help the millions of people in the world without bank accounts.
3. Blockchain Reduces Transaction Time
Christopher Brown, CEO of Modular, discussed how blockchain technology reduces the space between transactions.
“Common code packages and standardized development tools are lacking. The only thing that is secure is the blockchain itself,” Brown said.
As the blockchain serves as a secure, distributed ledger, Brown understands the potential for using this technology to send and receive payments in a timely, cost-effective manner.
In order to bring this technology to the business world, Brown created a multi-featured desktop wallet application that provides businesses and users with a simple way to manage their funds. The project is known as ‘Blossom’ and is being recognized as a “better wallet” for Ethereum.
4. IoT and Blockchain Technology for Legal Contracts
Peter Hunn, founder of Accord Project, discussed the relationship between IoT (Internet of Things) data and blockchain technology.
“The days of PDFs and electronic signatures for legal and document management are gone. Blockchain is upending capital formation and the organization of networks,” Hunn said.
In particular, the use of data from IoT devices enables organizations and users to connect to legal contracts that are hosted on the blockchain. For example, the Accord Project enables lawyers and business professionals the ability to turn legal binding agreements into smart legal contracts. External data from IoT connected devices are connected to the blockchain, making legal contracts usable immediately, without third-party interference.
5. Blockchain Technology Can Help with Monetization
Mark Hopkins, CEO of Roger Wilco, pointed out that certain monetization tactics are depreciating, such as advertising. Blockchain technology has the potential to create other opportunities, though.
“Micro payments and relicensing content are new opportunities being created with blockchain technology,” Hopkins said.
While social media platforms like Twitter, Facebook and Instagram run multiple advertisements, the money made from those ads often times go directly to the social media platforms. Content creators usually don’t earn profits from their ads.
The decentralized nature of blockchain technology solves this problem, as every piece of content created can be recorded on the blockchain. In turn, content creators can be rewarded for their content through cryptocurrency or fiat currency.
Where is this all going? The sky, as they say, is the limit.
