Blockchain needs explanation before application

The future of blockchain lies beyond the financial sector but the full potential of distributed-ledger technology is unlikely to be unleashed until organisations understand that it’s not a silver bullet to every problem, experts have warned.

Data 61 senior research consultant Rob Hanson says that amid the “Cambrian explosion of innovation” in distributed technology there’s a need to avoid mythmaking around blockchain.

“The complexity of blockchain technology needs to be translated effectively,” Mr Hanson told The Australian.

“It’s no silver bullet and we don’t have great definitions in place just yet.”

The sentiment is shared by Nick Giurietto, CEO and managing director of the Australian Digital Currency & Commerce Association, who says organisations need to understand the basic logic of blockchain before committing to it.

“Blockchain is not good for anything that can already be done effectively and in a trustworthy manner inside an organisation,” Mr Giurietto said. “When we are talking about interaction between multiple stakeholders that’s when the technology becomes interesting.”

Mr Giurietto adds that while financial institutions are seen as eager adopters of blockchain, the highly regulated nature of the sector means the technology is likely to bloom elsewhere first.

“Registry services, supply chain management, agri-tech … these are some of the sectors where it’s easier to get a business case up and running a lot quicker,” he said.

Mr Hanson and Mr Giurietto, both speaking at the GovInnovate forum in Canberra today, are confident Australia can lead the way in the field of distributed-ledger technology, with the public sector playing an important role.

According to Mr Hanson, some of the first uses within the public sector will be non-financial, focusing on creating permanent records of transactions for information assets such as land titles, all types of registrations and licenses.

“It is likely blockchain will enter the back-end of business information management systems, quickly disappearing from public view but all the while creating revolutionary changes to institutional interactions,” Mr Hanson said.

To read more, please click on the link below….

Source: Blockchain needs explanation before application – The Australian