Bloomberg’s website published an article about a promising new blockchain company, under a particularly attractive headline on February 10th, 2016. The headline reads “Want Your Own Version Of Bitcoin? Hire This Guy”. The article was about an up and coming Blockchain Company, called Bloq. The company was established by Jeff Garzik and Matthew Roszak. Garzik, is one of the leading Bitcoin Core developers, and according to Bloomberg’s article, one of the few blockchain experts in the world.
What is particularly curious about the article, is the choice of words displayed on the headline. The author was probably aiming to attract readers by using the popularity of Bitcoin, coupled with the explosion of private currencies out there. The cue for the readers was “this article will provide the insights necessary for you to get your own cryptocurrency”. In reality, it serves to highlight the increasing importance of blockchain companies as the underlying technology behind Bitcoin.
Why Blockchain and not Bitcoin?
Bitcoin as a currency is a means of exchange, but what is really interesting about it, beyond its libertarian, anti-establishment allure, is the technology that powers it. This technology can help make transactions much quicker, more reliable and less costly. It can also be applied to other areas of the economy in order to improve the efficiency of other processes. Bitcoin on the other hand, is limited to function as a currency or as a digital commodity.
So What Are Blockchain Companies up to?
Blockchain is probably one of the most attractive rising sectors to which venture capital can flow right now. Taking advantage of Bitcoin’s fame, these companies are breaking into the market offering a wide variety of services for different sectors of the economy. Bloq, the company mentioned in the article for example, offers mainly blockchain consulting. In other words how could companies use tailor-made type developments in their day to day operations, by using this technology to secure information or to provide their services in a more efficient manner.
Other blockchain companies are providing various payment services, loan services, marketing/user behavior services and more. Even traditional financial organizations like Goldman Sachs are looking into solutions that can be designed with this technology to power their services. This iconic investment bank has not only participated in investment rounds for blockchain-powered companies, but has also released a report this past December praising the techology. The report clearly states that “the blockchain could disrupt anything”.
Final Thoughts
From startup companies to well established financial corporations, increasing interest in blockchain and its advantages, will create a whole constellation of companies. These companies will become the core of a new industry that will dominate a significant portion of the 21st century economy. Payments are only a small part of what can be done through blockchain. Soon the implementation of this technology in different industries will change many other sectors like data analysis, marketing, governance, and more. Companies that fail to take advantage of this technology, risk being relegated to oblivion. That is why leaders navigating the 21st century economy should follow the stars in the blockchain constellation.
