How will you pay for things in 2050?
Will you carry cash? Credit Cards? Or will you have a chip – inside a mobile device or perhaps inserted sub-dermally?
The bottom line is that the way we pay is changing.
Think Cryptocurrency and Cryptotokens.
cryp·to·cur·ren·cy ˈkriptōˌkərənsē/ noun
A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Many of the technical platform providers and the services providers that support them are looking at Blockchain. Microsoft and Amazon have moved pretty far into this space. Google is working on catching up. I would not be surprised to see SAP and other large platform providers follow suit.
They are building models, tools, and platforms to enable Blockchain to be the way manufacturers, governments, and others process payments with each other and with consumers.
The underlying security will be driven by advances in Crypto-Tokens. In this Breakthrough Byte, we will talk about some of the options being explored and how they will impact you.
“Bitcoin exploded on to the world’s stage in 2012 as a currency backed by everyone and controlled by no one.” via CIO
Blockchain, Bitcoin and BaaS
What is the connection between Blockchain and Bitcoin?
First off … What is Blockchain?
Effectively a blockchain is a kind of independent, transparent, and permanent database coexisting in multiple locations and shared by a community. This is why it’s sometimes referred to as a mutual distributed ledger (MDL).
Blockchain is a mutual distributed ledger (MDL)
Commercializing Blockchain with BaaS
In order to commercialize Blockchain there are a lot of hurdles to overcome. They are not insurmountable, but they will require a coordinated effort.
It’s simple. As noted above there is a desire to move to a transparent and imminently traceable model of financial transactions.
CIO Magazine summarized it quite nicely. I have extracted some of the salient bits here. The emphasis and separation is mine.
“BaaS enables blockchain capabilities as first class PaaS services.
From a functional standpoint, a BaaS model allows developers to build solutions that seamlessly combine the capabilities of the blockchain with typical platform and infrastructure services such as storage, middleware, messaging, and other functional building blocks of sophisticated software solutions.
More importantly, BaaS provides a seamless model to scale and manage a blockchain topology without deploying any proprietary infrastructure.”
The Tech Giants are Playing BIG!
- Microsoft's Project Bletchley follows the release of Azure’s BaaS platform
- IBM also announced the open source availability of the Hyperledger Project which attempts to make the blockchain completely open source and available to enterprise developers.
- Amazon and Google have been a bit quiet, but they are also making inroads into the BaaS space.
What does this all mean?
As with every Breakthrough Byte segment I break it down into Pros, Cons and ROI. You may disagree with these points and if you do please drop a comment here so we can start a discussion.
- Secure'ish (there are risks, see Bitcoin Mining)
- Subject to wild fluctuations
- Emergency Kit … How to deal with things when there is no power? EMP is a BIG RISK that needs to be addressed.
- Enables people around the world to engage in eCommerce
- Enables businesses to operate internationally without (as much) concern for currency fluctuations.
- Empowers consumers to pay and receive funds 100% electronically.
- Bonus: The end of paper and metallic currency. (If humans will allow it)
Want to Hear More & Learn More?
Listen to my segment of the Breakthrough Radio show here:
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Listen to the whole show here. As always Don Cooper, the Sales Heretic, shares a few words of wisdom to help us all connect with people more effectively. And, our host Michele Price always has a Spotlight Interview. This episode features Heather McGowan, where she talks about The Future of Work – Inside the Liquid Workforce.
image credits: btckeychain, RSA / EMC, Aegis, Blockchain, Breakthrough Radio, Michele Price, BlockCypher
Jeff is business advisor, mentor and community engagement expert. He has spent most of his career in the Enterprise Content Management industry. He brings over 20 years of Channel Sales, Partner Marketing and Alliance expertise to audiences around the world in speaking engagements and via his writing. He has worked for Microsoft, Kodak, and K2.
Connect with me on Twitter @jshuey