Although it was invented to track ownership of the online currency bitcoin, blockchain has potential far beyond the world of online money. As a brand new option for how records can be made, stored and updated, blockchain has the potential to enrich the technological landscape, and its unique features make it an attractive prospect.
Blockchain is simply a database – but it is distributed, meaning that it allows for all the participants to work together to maintain the log of entries. This could lead to a reduction in costs as middlemen are removed.
The consensus-driven verification process could also make the need to trust obsolete, with a group ledger that allows everyone to keep the system honest collectively.
However, to reach its full potential, blockchain must clear several very challenging hurdles around privacy, technical capacity, legal form and more.
The ICAEW's IT Faculty has produced 'The essential guide to blockchain' sets out the key features of blockchain, and the challenges it must face to reach widespread adoption.
It offers:
- A brief history of blockchain since the first steps were taken in 1991.
- An explanation of what blockchain technology can and cannot do.
- An insight into regulating blockchain.
- Case studies from three companies at the forefront of using the technology:
- BTL - the company that built the blockchain platform Interbit;
- Everledger - the firm that created a blockchain ledger for the diamond industry; and
- Ripple - provides global financial settlement solutions that enable exchange of value in the same way as information.
- An examination of the technology's impact on accountancy.
- A glossary of technical terms relating to blockchain.
The full report is available ICAEW members and students.
