What Startup Founders should understand about Blockchain

And How it Disrupts Your Industry

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It is a new way of storing, sharing and protecting data.

In many ways, it can be compared to the invention of cloud computing and the Internet.

This means that there are no central authorities such as banks or governments involved in the transaction process.

Instead, each party involved can verify and approve transactions without an intermediary.

What can Blockchain do?

Blockchain fundamentally changes three things: how we transfer assets from one person or entity to another; how we store data; and how we protect that data from third parties.

How does it work?

In order to understand how blockchain works, we first need to understand the concept of transactions and blocks in the blockchain network: Transactions are a way of transferring value between accounts, usually with one account paying another for a product or service.

Blockchain networks rely heavily on peer-to-peer (P2P) networks in order for nodes to be able to communicate with each other.

In order for two different peers that do not trust each other or are unaware of each other in the network (for example, two different nodes run by two different people) to exchange information or transactions quickly and without conflict, they need a common platform (the chain) where they can store data about all blocks that have been created by all other peers (or nodes) — also referred to as “network time” (or “consensus” in blockchain parlance).

What are some use cases for Blockchain?

Cryptocurrencies: Bitcoin was one of the first systems built using blockchain technology. With Bitcoin and many other cryptocurrencies like Etherium and Litecoin serving as digital currencies used for payments online and off-line today, everyday people can now transact directly with one another without relying on banks or governments as intermediaries.

What about the Education Industry?

We have seen a lot of higher education institutions and organizations with great ideas but their execution has been poor. These institutions have either failed to reach the right audience or created products that do not solve real problems for students and their families.

Conclusion

Blockchain technology has the potential to disrupt almost every industry from finance, health care, education, energy and even public services. As cryptocurrencies like Bitcoin continue to gain traction globally, it’s important that startup founders are aware of blockchain technology’s potential impact on their businesses in the future.

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.