How Blockchain Will Change Organizations

How Blockchain Will Change Organizations

1. What if there were an internet of value — a secure platform, ledger, or database where buyers and sellers could store and exchange value without the need for traditional intermediaries? This is what blockchain technology will offer businesses.

   • Technology underlying digital currencies such as bitcoin — technology commonly known as blockchain
     • how they are funded and managed, how they create value, and how they perform basic functions such as marketing, accounting, and incentivizing people
       • That’s because the internet was designed to move information — not value — from person to person.
         • to expedite a business transaction, emailing money directly to someone is not an option and can´t be 100% certain who is the recipient - intermediaries
           • to establish trust and maintain integrity
           • settle transactions and keep records.
           • use servers that are vulnerable to crashes, fraud, and hacks. Another is that they often charge fees
           • They also monitor customer behavior and collect data, and they exclude the hundreds of millions of people
           • exchange value without the need for traditional intermediaries? blockchain technology offers.
             • A blockchain has several advantages.
               • it is distributed: volunteers around the world,
               • it is public: Anyone can view it at any
               • it is encrypted:maintain security
             • Transactions are continuously verified, cleared, and stored by the network in digital blocks that are connected to preceding blocks, thereby creating a chain

2. The Role of Transaction Costs

   • the cost of searching for relevant prices and the cost of negotiating numerous contracts.
     • the internet reduced the costs of search, while email, social media, cloud computing, and applications
   • of “agency costs,” which are the costs associated with managers’ tendencies to make decisions
     • outsource overhead, crowdsource innovation, and eliminate middle managers and other intermediaries,

3. Managing With Blockchain: blockchain will transform how businesses are organized and managed.

   • We believe that blockchain will transform how businesses are organized and managed. It allows companies to eliminate transaction costs and use resources on the outside as easily as resources on the inside.
     • Human Resources and Procurement: to obtain better information about potential contractors and partners
     • Finance and Accounting: Searching horizontal (across the web) and vertical (within particular websites
       • Blockchain, though, there’s a third dimension: sequence. To obtain a historical picture
         • it brings to light off-book transactions and hidden accounts.
     • Sales and Marketing: blockchain provides a way people or businesses who are potential customers.
       • to profile customers by tracking and capturing their behavior online.
       • With the new platform, sellers won’t have to incur the cost of establishing trust
     • Legal Affairs: Blockchains facilitate contracting in both the short and long term.
       • Companies will be able to automate the terms of agreement
     • Raising Capital: We believe blockchains will also transform the process of raising money.
       • New York Stock Exchange has invested in Coinbase Inc.,
       • Nasdaq Stock Market is also experimenting with blockchain technology.

4. Integrating the Pieces: how will blockchain help companies?

   • Blockchain technology provides a platform for people to work together with the persistence and stability of an organization but without the hierarchy.
     • Consider ConsenSys builds decentralized software applications and end-user tools that operate on blockchain
       • each project operates on its own, with the major contributors holding equity.
       • people get to choose what they work on
   • Shareholders will be able to enforce the commitments executives make. Companies can specify relationships and state specific outcomes and goals so that everyone understands what the respective parties have signed up to do.