Blockchain changes something that is very fundamental to us, something we might think of as a standard way of action, something we do hundreds of times a day. What blockchain is going to do is change how we ‘trust’.
Trust is the fundamental currency of all commerce. Without it, commerce will come to a complete halt. Trust is something which is easily breakable, something very delicate but is able to run transactions worth trillions among billions of us.
If you could trade, interact because you had a complete trust from the outset, with anyone wherever they may be in the world - how would this impact business and society?
With the boom of the internet, we are now transacting and exchanging data in an unmatchable pace.
Blockchain creates trust as it reduces the perception of uncertainty and risk in transactions and provides for increased transparency.
Uncertainty is reduced as you're not trusting any single individual or entity who may make a mistake or is unable to adequately supervise and control the actions of other participants.
In a global world you may not have met the entity that you are doing business with - which reduces trust from the outset. With Blockchain you are trusting technology.
Blockchain creates transparency in every transaction by confirming each step with a block entry.
For example, a dairy company may create a blockchain solution for their export of milk to another country. Every entity in the process would need to record how they handle the milk, the weight of the milk etc. They would also have to approve the previous intermediaries work on the blockchain.
If the weight of the milk, the arrival time or anything else is incorrect, the company can use the blockchain to trace back through the supply chain and find out who is responsible for the issue.
Today this process is done with paperwork and signatures, but this process is often subject to manipulation. The data on the blockchain however cannot be manipulated and thereby increases transparency.
Blockchain can also provide for greater efficiency and thereby enable cost reduction.
Blockchain addresses the next big gap, the Trust Gap.