Using blockchain to drive innovation

While discussions around blockchain often focus on how they can improve existing business processes such as banking, these technologies can provide far greater societal and economic change. However, it is not simply enough for these technologies to exist by themselves as they require creatives, thought leaders, and developers to point them in the right direction.

This was the main point of discussion at the recent panel discussion focusing on how blockchain can drive innovation at all levels of society, held at the Democracy4All summit in Barcelona. The panel was chaired by Tomasz Krzystek, CEO of Metacourt AG, and featured:

You can’t force (blockchain) innovation

Wright began the conversation by noting that while most new technology is impressive and can help drive innovation, it is not possible to force innovation and that progress does not exist in a vacuum.

‘Innovation is personal because somebody has the drive to change. You can’t drive innovation. When I created (Bitcoin) I did it because I saw a need and a world where I wanted there to be disruption. I saw a world going towards Facebook, Twitter and advertising. This idea of community that everybody sells now, and I can avoid any sort of real engagement by clicking like’, he said.

Wright noted that this is vastly different from the world in which he grew up, where people had to talk face to face. In all this change he identified something he wanted to disrupt and this is ultimately the key to innovation, he said.

‘If they want to innovate, they need to find something that they see wrong and they need to drive the solutions themselves.’

This was echoed by Marinchuk who noted that some people are leaders by nature, while some people are followers. She added that there is nothing inherently wrong with this, but that some people have an innate curiosity and desire to change things.

Blockchain innovation requires utility

Speaking specifically on innovation using blockchain, Salomó noted that change and disruption will only come from the people who actively adopt the technology and use it in their daily lives.

‘The technology is very important – knowing and understanding it. But in this case (blockchain) is so disruptive. And that disruption is not done by the products, but rather the people who apply this technology and understand it completely.’

Wright added that the world will move to a single blockchain in the future and that there is no reason to have multiple chains as it opens up the possibility of fraud and theft. He cited his Bitcoin white paper and how companies such as Visa and Mastercard have failed to introduce micropayments on the Internet.

‘We are not looking at a system that is there for decentralisation’s sake. We are looking at decentralisation because it enables low-cost payments. Bitcoin isn’t there to deliver decentralisation, it is decentralised as it enables micropayments.’

He added that this feature is where some of the greatest innovations are likely to come from in the future as it will prevent financial scandals like FTX and SVB going forward as everyone will be able to trace every loan and payment. The only way that this will work is through scale and low costs – and if this cannot be done then it is useless, he said.

Find out more about how blockchain can drive innovation in your business

The above panel is just the tip of the iceberg when considering how blockchain can help drive innovation in society. One of the primary benefits of blockchain technology is its ability to provide a secure and transparent record of transactions. This transparency allows for greater accountability and trust between parties, which can lead to more efficient and reliable transactions. Additionally, the decentralisation of the blockchain allows for greater control over the data and transactions, reducing the risk of fraud and manipulation.

In the finance industry, blockchain technology can be used to create secure and transparent financial transactions. This includes the use of digital currencies and assets, which can be used to streamline the transfer of funds across borders and reduce transaction costs. Additionally, blockchain can be used to create smart contracts, which are self-executing contracts that are verified and enforced by the blockchain. This can reduce the need for intermediaries and speed up the contract execution process.

In the supply chain industry, blockchain technology can be used to create a secure and transparent record of the movement of goods from the manufacturer to the consumer. This can help reduce the risk of fraud, theft, and counterfeiting, while also providing greater visibility into the supply chain process. Additionally, blockchain technology can be used to create a more efficient and transparent system for tracking and managing inventory, reducing waste and improving supply chain efficiency.

Read more about how blockchain can help your business here.