Insights/News/Newsletter
Blockchain beckons businesses … still
The term and concept known as “blockchain” is hardly new. This technology surfaced more than a decade ago. Bitcoin, the relatively well-known form of cryptocurrency, has gotten much more attention than blockchain itself, which is the platform on which Bitcoin is exchanged.
One might be tempted to think that, having spent so many years in the shadows, blockchain has missed its opportunity to become widely accepted by businesses. Yet its promise persists, and you’d be well-advised to keep an eye on when blockchain might begin to make further inroads into your industry — if it hasn’t already.
A shared ledger
In simple terms, blockchain is a distributed, shared ledger that’s continuously copied and synchronized to thousands of computers. These so-called “nodes” are part of a public or private network.
The ledger isn’t housed on a central server or controlled by any one party. Rather, transactions are added to the ledger only when they’re verified through established consensus protocols. Third-party verification makes blockchain highly resistant to errors, tampering or fraud. The technology uses encryption and digital signatures to ensure participants’ identities aren’t disclosed without permission.
Smart contracts
Blockchain’s ability to produce indelible, validated records establishes trust without the need for intermediaries to settle or authenticate transactions. So, the technology lends itself to a wide variety of uses.
Perhaps the most talked-about functionality of blockchain is smart contracts. These allow parties to create and execute contracts directly using blockchain, with less involvement by lawyers or other intermediaries.
For example, under a simple lease agreement, a business might lease office space through blockchain, paying the deposit and rent in Bitcoin or another cryptocurrency. The system automatically generates a receipt, which is held in a virtual contract between the parties. It’s impossible for either party to tamper with the lease document without the other party being alerted.
The landlord provides the lessee with a digital entry key, and the funds are released to the landlord. If the landlord fails to provide the key by the specified date, the system automatically processes a refund.
Legal protection
Business owners may also encounter blockchain when looking to exercise, secure or defend their legal rights. In litigation, demonstrating that “service of process” has been completed or attempted can be a challenge. Some companies are using blockchain to address this issue.
Process servers in the field use an app to post metadata — such as GPS coordinates, timestamps and device data — to a blockchain, which generates a unique identification code. Lawyers, courts and other interested parties can use the blockchain ID to access service of process data and confirm that information in physical affidavits or other records hasn’t been altered.
Stay tuned
Blockchain continues to beckon forward-thinking business owners with its ability to provide highly efficient and secure transactions — particularly for companies that do business internationally. We can assist you in identifying whether this or other technologies may enable you to better manage your company’s finances.
© 2021
Our Latest Insights
Please SUBSCRIBE to our newsletter and you’ll receive practical, actionable updates on a regular basis.
Recent Posts
Categories
Archives
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
Boeckermann Grafstrom & Mayer
Bloomington, MN 55435
(952) 844-2500
332 Minnesota Street, Suite W900
St Paul, MN 55101
(651) 227-9431
Sauk Centre, MN 56378
(952) 844-2518
999 Vanderbilt Beach Road, Suite 200
Naples, FL 34108
(239) 325-5045
Denver, CO 80206
(303) 651-0304
1714 Duchess Drive
Longmont, CO 80501
(303) 651-0304