What's the Blockchain? Oh no, not again...

Don't worry! It's a "simple" technology that has the potential to make notaries, tour operators or real estate agents unemployed :) The decentralized database technology is a fight against all business models where middlemen play a central role. So, what do we need to know about the destroying technology and what does it mean to future business and ready-to-go start-ups?

But, first, let’s remember... just 1:37 to go!

So, what is the Blockchain? Oh yeah, again...

You can skip this part if you worry to read something you might have already heard of. However, let's simplify...

The blockchain is nothing else and more than a database technology that relies on distributed databases. What? This database has the goal of enabling secure transactions. Ok, I got it here. There are certain rules. Each participant has his own copy of the database. Changes to the database are immediately visible on all participant banks. Head-scratching…

Once created, records cannot be changed. By the way, that is great. The database changes because new blocks are added to the previous entries. The order of the blocks is unique due to verification mechanisms. An essential trust factor is the encryption. And now, it’s getting important. Only participants who are in possession of a key can execute transactions and add blocks. So take care your keys. Always!

In order to keep databases in the distributed network up-to-date at any time, so-called miners are required. Are you? They ensure that all databases of all users are always kept up-to-date and thus ensure the integrity of the system. Blockchain thus makes business models possible without middlemen. The goal is reliable peer-to-peer communication. With the blockchain technology, for example, secured transactions without banks and stock exchanges are conceivable, house purchases aer possible without a notary, public or royalty management is just easy. Art and music can be managed by the artists themselves who no longer need agents, labels or the music authority for messing up and between.

Self-reflecting back to the music: Everybody likes music, even if you don’t listen to it by purpose. You don’t need to have a purpose for music, it’s just all around us and omni-all-time-present. We all love music.

In the following, let's get into it and talk business. Starting with music...

Start-ups whose business model is based on the blockchain principle

Here are some samples selected.

> Ujo Music: decentralized database for music rights.

Based on blockchain technology, the US start-up Ujo Music is building a global, decentralized database for music rights. This will enable artists to make themselves independent from collecting societies or record companies. The musician himself determines the prices for licenses and exploitation models. For example, for simple downloads or commercial exploitation. In this way, the artist is paid directly by the user - with the blockchain as a reliable, mediating technology. This is just awesome. Big label enterprises are cut off. Just the musician is rewarded, like it should be. It’s a piece of art that can be moneytized and protected at the same time just by the power of blockchain.

> Slock.it: new options for the Sharing Economy

With the help of blockchain technology, Slock.it, a start-up from little Mittweida, located in Germany, wants to create new possibilities of sharing economy for physical objects. How can Blockchain be used physically? The idea is to connect the Blockchain with the Internet of Things. Well, hell yeah, of course. For example, a bicycle lock that can be controlled via WLAN or Bluetooth is in the inventory of Slock.it. The user can borrow this bicycle if he buys the key to this bicycle lock via his smartphone. This works via Smart Contracts, which make the process of borrowing simple and user-friendly - without the need for a written contract in paper form. Paperlessness is just a positive side effect in my opinion.

> Ethereum: Allows creation of own crypto currency

Ethereum, based in Switzerland, sees itself as a blockchain app platform. It is operated with the crypto currency Ether. What makes Ethereum special is that this blockchain technology not only records transactions, but can also execute the smart contracts just mentioned. This allows participants to create their own crypto currency and to issue crowdfunding projects, auctions or shares. Or they can set up entire organizations in which the participants exercise their voting rights via the blockchain. It's just amazing how beneficial this is/will be.

> Bitwala: Payment transactions even without a bank account

The Berlin-based start-up Bitwala comes entirely from the financial services sector. Bitwala's mission is to enable payment transactions via the blockchain. This ranges from foreign bank transfers to the management of all purchases, for example via a mobile app. With Bitwala, people who do not have a bank account can also participate in payment transactions. And especially for international money transfers, transaction costs are minimal thanks to the blockchain. The assistant from the Philippines, who wants to quickly transfer 100 USD home to the Philippines, no longer has to accept transaction fees in the double-digit percentage range.

Are you ready to blockchain?

Let’s sum up here...

The blockchain is regarded as one of the essential cross section technologies for transactions of all kinds. Certainly, there are still numerous hurdles to be overcome. This starts with the acceptance of the technology by the public and ends with major legal regulations. Until real estate can be sold via the block chain, the entire real estate law must change. And there will be stakeholders here who will not give up their privileges so easily. The blockchain might have enough magic power to force them thinking "crypto", too (sooner or later). I guess definitely sooner.

In any case, however, we should keep the blockchain issue on our list of trends we need to monitor steadily. Maybe, you already have an exciting business idea up your sleeve? I'm now getting excited. Why not telling us about it by leaving a comment ...

Let's brainstorm :D

THANK YOU FOR READING AND YOUR TRUSTED SUPPORT !

by SatoshiGorilla