April 20188 KNOWING HOW TO APPROACH BLOCKCHAINBY THOMAS JAKOB, REGIONAL PRESIDENT ASIA PACIFIC, BOSCH SOFTWARE INNOVATIONSHow executives should approach blockchainAcross industries, companies are considering how to implement blockchain. While some are more advanced than others, there are also many companies standing at the very beginning of their blockchain journey. For those the question arises: How can we approach a new technology like blockchain? Below are a few things to consider when evaluating the opportunities blockchain could have for your business. Understand how blockchain worksAs with all emerging technology, it's important for leaders to have an up-to-date understanding of how new technology works. This will help them understand the potential risks and benefits of blockchain. Blockchain is a database that is managed on a peer-to-peer network of computers. It's also often referred to as a distributed ledger: a decentralized way to chronologically document transactions. Each participant in the network has access to the entire blockchain and its history. When a transaction is recorded, the accounts of all the participants are updated with the information. Transactions are grouped together in blocks, each of which are then linked to the one before it. The result is a chronological record that is nearly impossible to tamper, alter, or destroy.A key characteristic of blockchain is that it is decentralized and reliable. Blockchains are distributed across peer-to-peer networks, which mean that copies are stored on all participants' computers. Therefore, there is no crack for hackers to attack. Blockchain also offers transparency because each transaction is recorded and visible to all participants. Lastly, blockchain bypasses third-party intermediaries like banks or brokers. Since it's virtually impossible to counterfeit, the philosophy behind IN MY V EW
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