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PoliciesDown the blockchain rabbit hole
Blockchain technology holds a lot of potential. But most of it lies undiscovered.
This week, we explore a new frontier – blockchain technology. It’s so well known for crypto; what else can it do? Find out who’s already tapping into its potential.
Christian Ortiz De Zarate
Creative
Technology
5 minute read
I first heard the term ‘blockchain’ around 2017. My brother (a walking almanac of valuable but offbeat knowledge), explained its complexity to me very patiently. Of course, he was talking about it as an investment. After all, it’s most famous for enabling decentralised currencies like Bitcoin, Ethereum, Litecoin and (yes) Dogecoin.
This intrigued me – I couldn't help but think "What else can it do?". A bit of research showed me that cryptocurrency is indeed just the beginning. So let's move beyond that to explore untapped potential.
This intrigued me – I couldn't help but think "What else can it do?". A bit of research showed me that cryptocurrency is indeed just the beginning. So let's move beyond that to explore untapped potential.
In short
- Blockchain is most famous for cryptocurrency, but it’s potential could expand much further beyond that.
- Companies are only just experimenting with uses for marketing, customer experience, and production processes.
- To develop this technology further, we need to consider all its implications – good and bad.
What the block?
While most of us have heard of blockchain technology, not so many know how it works. Here’s a refresher:
At its simplest, a blockchain acts as a record-keeper, a bit like a database or ledger. It’s kept secure using cryptography – a method of masking information using codes.
This record is publicly and transparently distributed; data can be viewed and added at any time. That’s because the data is shared across a network of millions of computers all authorised to access it; not just one centralised server. One parcel of data is stored as a ‘block’, so a ‘blockchain’ is a string of chronologically-ordered block transactions.1
Interestingly (for any history buffs out there), blockchain isn’t exactly a new thing; it’s now over a decade old. And cryptography itself emerged in ancient civilisations – Samarians, Egyptians and Mesopotamian scribes used it 3,500 years ago to enhance the linguistic appeal of their writing and to protect sensitive information, like a secret formula for pottery glaze to use on clay tablets.2
At its simplest, a blockchain acts as a record-keeper, a bit like a database or ledger. It’s kept secure using cryptography – a method of masking information using codes.
This record is publicly and transparently distributed; data can be viewed and added at any time. That’s because the data is shared across a network of millions of computers all authorised to access it; not just one centralised server. One parcel of data is stored as a ‘block’, so a ‘blockchain’ is a string of chronologically-ordered block transactions.1
Interestingly (for any history buffs out there), blockchain isn’t exactly a new thing; it’s now over a decade old. And cryptography itself emerged in ancient civilisations – Samarians, Egyptians and Mesopotamian scribes used it 3,500 years ago to enhance the linguistic appeal of their writing and to protect sensitive information, like a secret formula for pottery glaze to use on clay tablets.2
Not just finance
For the last three years, crypto has paid my living expenses and built me a nice little nest egg. What can I say? I’m hooked like a thin-lipped mullet on a fishing line! Apart from financial investments, I’ve learnt to embrace blockchain in other ways, too. Right now, I’m digitising design projects from the past 20 years of my career. I hope that one day, when my kids are grown up, they’ll take interest in this preserved timeline of my work. I’m also building up a collection of NFT artworks. Who knows, maybe this information will have future educational, artistic, or monetary value...
In short, blockchain technology has so much potential, beyond finance. It is set to transform the way we interact with technology. But like me, businesses are still only just realising it.
Take a look at these initiatives, new and in development:3
- Shell is piloting projects to enhance trading, lower costs, and explore new efficiencies to push for lower emissions.4
- Pharmaceutical companies are working on a supply and distribution system for vaccines.
- Walmart is running a transparent freight system for food safety.
- Ford is tracing its suppliers to make sure raw materials (like cobalt) are ethically sourced.
- Pfizer and Biogen are leading the Clinical Supply Blockchain Working Group (CSBWG) to track records and manage their digital inventories of products.
“Blockchain technology has so much potential, but businesses are still only just realising it.”
Baby steps
If blockchain technology wants to progress, it’ll have to get past some teething issues. A growing concern is electricity consumption and the consequences for our Pale Blue Dot (but that’s a whole other article). Another is navigating its sheer complexity and intangibility.
Some key considerations are:
Some key considerations are:
- How do we come to terms with a world in which every transaction can be transparently and indelibly recorded?
- Who can we trust as leaders, when the discussion is dominated by self-appointed influencers like Elon Musk?
- How can we design new pathways to share information between peers, corporations, and governments?
- What will encourage consumers to acclimatise to this unfamiliar technology, so it really gains traction in real-world business?
How much further could it go?
Marketing is a careful blend of design and sentiment. Blockchain is a design foundation that builds on the sentiments of transparency and trust. With these traits, the end goal of marketing – persuasion – is all the more potent. Imagine empowering your campaign with those qualities!
For instance, a clothing brand could use blockchain to track the ethical footprint of their textiles. A customer could take a leather jacket off the rack, scan a code and learn what kind of leather was used, whether the animal was treated humanely, and where it was sourced from.
Or this – a company could legitimise their products with an authenticity trail. Marketers can use a blockchain to show exactly when, where, and by whom a product was created. Likewise, they could combat fraudulent data and misinformation by literally codifying accuracy and truth.
Personalisation could also reach new levels of sophistication. Marketers could accurately track individual consumer shopping habits, monitor their satisfaction, and incentivise specific actions. Think of blockchain tokenisation and ‘smart’ contracts to build tailored customer loyalty programmes.
Just some things to think about. Through my own journey of discovery, I hope I’ve taught you a bit, or perhaps opened your mind to blockchain’s capabilities – and its questions.
For instance, a clothing brand could use blockchain to track the ethical footprint of their textiles. A customer could take a leather jacket off the rack, scan a code and learn what kind of leather was used, whether the animal was treated humanely, and where it was sourced from.
Or this – a company could legitimise their products with an authenticity trail. Marketers can use a blockchain to show exactly when, where, and by whom a product was created. Likewise, they could combat fraudulent data and misinformation by literally codifying accuracy and truth.
Personalisation could also reach new levels of sophistication. Marketers could accurately track individual consumer shopping habits, monitor their satisfaction, and incentivise specific actions. Think of blockchain tokenisation and ‘smart’ contracts to build tailored customer loyalty programmes.
Just some things to think about. Through my own journey of discovery, I hope I’ve taught you a bit, or perhaps opened your mind to blockchain’s capabilities – and its questions.
on advertising crypto
Seen a Bitcoin ‘time to buy’ ad on the bus or train recently? It might be okay here in Oz, but the UK advertising watchdog is having none of it. Banned for giving “the impression that bitcoin investment was straightforward and accessible.”5, it’s an important reminder to tread carefully – never mislead customers.
The best of blockchain
Companies globally are turning to Blockchain for their business needs. This week we analysed why 15 different companies are using the technology.
What can Blockchain bring to your business?
References
- Luke Conway, Blockchain Explained (1 June 2021) Investopedia.
- Binance Academy, History of Cryptography (May 2021) Binance Academy.
- Kaya Ismail, A look at the current state of blockchain (21 January 2021) CMS Wire.
- Shell, Blockchain (date unknown) Shell.
- Mark Sweney, ‘Time to buy’ bitcoin adverts banned in UK for being irresponsible (26 May 2021) The Guardian.
- IBM, IBM Blockchain Platform.
- Rachel Wolfson, Pfizer And Others Join Working Group To Use Blockchain Protocol For Supply Chain Management (May 2019) Forbes.
- Sarah Tran, Unilever to Use Blockchain for Transparency and Traceability to Achieve Deforestation-Free Supply Chain by 2023 (July 2020) Blockchain News.
- DHL, Dhl and Accenture Unlock the Power of Blockchain in Logistics (2018).
- Lars Schwabe, Generating more transparency in aviation with blockchain technology Lufthansa.
- Asia Insurance Review, AIA introduces Hong Kong's first blockchain-enabled bancassurance network (2017).
