"Blockchain" is undeniably one of the hottest words on the internet. As proof, turn to Google Trends to see its traction over time. Couple that with the articles being published almost daily about this technology, the LinkedIn groups discussing it, the commentators crawling out of the woodwork -- including me!
Related: 3 Major Industries in Which Blockchain Technology Is Changing Life As We Know It
Many people, however, still associate blockchain only with Bitcoin. And while Bitcoin and other cryptocurrencies are certainly exciting, blockchain, which is these currencies' underlying technology, has far more applications across multiple industries -- from a comprehensive sport ecosystem to wedding contracts.
To understand these applications, start with exactly what Blockchain technology is. According to a Wall Street Journal explainer blog, “A blockchain is a data structure that makes it possible to create a digital ledger of transactions and share it among a distributed network of computers."
Blockchain allows each participant on the network to work with the ledger securely without the need for a central authority, the blog explained. Each time a participant adds a “block” of data, participants leverage technology to verify the transaction, and then it's added to the “chain.”
But what does blockchain mean for industries aside from . . .Bitcoin? Here are four big ways, to start:
It is reimagining crowdfunding.
Frank Holmes of Global Investors wrote on Business Insider that blockchain could be even more disruptive than Amazon was in the '90s and that crowdfunding probably provides the best illustration of this.
Related: Thanks to Blockchain, Decentralization -- and Data Security -- Are the Future
In fact, blockchain allows startup founders to raise capital by tokenizing equity, and gives investors the ability to trade startup stakes through a secure marketplace. This means that startups no longer have to prepare several pitches to angel investors and VC firms; each startup needs just one pitch to reach a much wider audience..........