book

Unblocked

by Alison McCauley

June 2019

Beginner to intermediate

274 pages

7h 34m

English

O'Reilly Media, Inc.

Read now

Unlock full access

THE ELEPHANT IN THE ROOM
DAWN, RISING
Bite While the Apple Is RawChance, UnchainedOpportunity Hidden by ComplexityThe Six Forces of an Unblocked EraIt’s Time
Beth Is CorrectAt the Center: DecentralizationValue Exchange Made Smarter Through “Smart Contracts”Why is it Called a Blockchain?Blockchain or Blockchains?What Does Bitcoin Have to Do with Blockchains?The Many Roles of CryptoassetsRetaining Privacy When the Ledger is Open to EveryoneSo What?Blockchains Across Industries
The Consumer Technology CreatedHow Did We Get Here?The Internet: Built to FailEnter BlockchainsThe Era of the Unblocked CustomerA Whole New Layer of ExpectationsBlockchain-Era Expectations Will Put More Pressure on BusinessesWhy Now?A Huge and Disillusioned GenerationThe First Technology with Democratization Baked In?
How Far Along Are We?The Age of Open InnovationUnlocking the New Tools of Open InnovationBreaking Away from Silicon ValleyThe Decentralization of EntrepreneurshipThere Will Be BloodBuilding on The Backs of Failure
SummaryThe SettingWired for MiddlemenThe Rising Cost—and Power—of the MiddlemanWhen Cost Is UncoveredWhat Blockchains Make PossiblePure Peer-to-PeerIn Code We TrustA Broad Range of Industries Are VulnerableImplications: A New Balance of PowerDeath by Blockchains?The Middleman Is dead. Long Live the Middleman!We’ve Welcomed New Middlemen into our LivesThe Hinge is ValueCustomers Don’t Understand What They Can’t SeeAt Some Point, the Unblocked Customer Will Question Your WorthValue Is Not One-Size-Fits-AllThe Sharing Economy, EverywhereWe May End Up Somewhere in the MiddleThe Next-Gen MiddlemanThe Importance of Clear ValueThe Value of an EcosystemPut a Spotlight on Hidden ValueCautions and ConsiderationsCautionsConsiderationsExamplesDecent: Affordable Health Insurance for AllOpen Garden: Disintermediating the Internet Service ProviderLantmäteriet: Streamlining Land Registry

SummaryThe SettingSeeking Assurance in a Complex WorldConsumers Expect MoreSustainability and Responsibility: The New Corporate NormEveryone Is a StakeholderThe Focus on Sustainability Is Here to StayA Business Case for UrgencyTransparency Affects How Our Brain Perceives a BrandTrust in CrisisFake News Fuels SkepticismThe Elusive Nature of True TransparencyWhat Blockchains Make PossibleAll-Seeing Meets the Ever-KnowingCoding for TrustTracking the Intangibles: Can Blockchains Kill Fake News?One Feature Set Drives Value for AllA Step Toward a Better WorldImplications: When Authenticity Becomes More Than a BuzzwordBlockchains for the Bold and the BraveThe Appeal of a Killer CombinationBusiness-First View: Yet Another Digital Transformation Must-Have?Society-First View: Will Pioneers Push Progress?Refining Customers’ Taste for TransparencyA New Spin on Spin?This Is a Natural Next Step in Our JourneyCautions and ConsiderationsCautionsConsiderationsExamplesProvenance: Meaningful Change through Supply Chain TransparencyBlockcerts: Trustworthy Digital RecordsGiveTrack: Holding Charities Accountable for Use of Donations
SummaryThe SettingImbalance is Baked into our Digital NormsWe’ve Been Willingly Looking AwayBut Now, We are Poised for a ShiftPrimed for a Better AlternativeWhat Blockchains Make PossibleBlockchains as a Foundation for a More Sustainable Digital FutureBlockchains Promise Direct and Feature-rich CompensationValue Will Solidify (One Way or Another) with Market MaturationImplications: What Happens When Your Customer Knows Their WorthThe Birth of the AlternativeThe Short Journey from Exposure to ExpectationWhere It Could All BeginContribution Doesn’t Always Mean HumanCompensation Doesn’t Always Mean MoneyToward a More Balanced FutureCautions and ConsiderationsCautionsConsiderationsExamplesSteemit: Compensation for ContributionBrave: Get Paid to Browse
SummaryThe SettingThe Steady Extinction of the Loyal CustomerBeing Heard Is Harder Than EverNew Tools Haven’t Always Driven ROILoyalty Programs Are BrokenWhat Blockchains Make PossiblePowerful Incentives at ScaleHit Me Again, Please: What the Heck Are Tokens?Your Token or Mine?Tokens Build on a Foundation of Behavioral PsychologyFine-Tuned Calibration—and ImpactThe Potency of Tokens + GamificationMore Powerful, Aligned CommunitiesBlurring the Lines between Business Owners and ParticipantsImplications: Program the Incentives, Program the BehaviorDriving Escalating CommitmentStoking Community through TokensUsing Tokens to Shape Individual BehaviorIncenting Not Just Action, but ImpactThe Next-Gen Influencer StrategyUsing Blockchains to Ensure QualityBut Where Do You Start?Agile Strategies, Smarter MarketingReinvigorate the Loyalty ProgramThe Power of PartnershipThe Beauty of System-Wide AlignmentThe Dangers of a Coin-Operated WorldCautions and ConsiderationsCautionsConsiderationsExamplesSwytch: Incenting Global-Scale Adoption of Renewable EnergyMobivity: Aligning an Ecosystem of Brands and Consumers
SummaryThe SettingBusinesses Fueled by Big DataFalling Short of the Big Data PromiseFighting the Idea of OwnershipIoT Fuels the FireIs It Time for a New Deal on Data?What’s Coming Next Could Change EverythingWhat Blockchains Make PossibleWho Really Owns the Data?Your Very Own Black BoxConsumer at the ControlsSecuring and Protecting the DataThe Potential of New, Powerful Data LayersThe Blockchains Themselves Are Public Data LayersAt the Starting LineThe Two-Edged Sword of the Blockchain Data StoryImplications: Rethinking the Rules of CompetitionBigger, Better DataThe Vision of the Data MarketplaceThe Redefinition of Competitive AdvantageData Science Quality Could Be More Important Than EverThe Power of RelationshipsThe Importance of MissionGrowing Awareness of the Value of PrivacyA Shift That Presents Nuanced ChallengesKnow Thy Data, Know ThyselfEnabling a New Wave of Innovation?Cautions and ConsiderationsCautionsConsiderationsExamplesuPort: Take Back Control of IdentityOcean: Unlocking More Data
SummaryFlipping Conventional WisdomExtreme Peer-to-PeerThe Big Flip and “Super Platforms”As Things Get Smaller, Value Gets BiggerProgrammable AssetsMachines Working Together to Serve UsSocial-Aligned Models
Now, Where to Begin?Organization Models Birthed from DisruptionIn the Blockchain Era, This Is Not Good EnoughIsolate or Integrate?Time to Rethink InnovationHeterogeneous Collaboration RequiredEffective and DiverseBlockchain-Era Table StakesOpen MindsetFirst, Search WithinConnect the NodesPut the Customer at the CoreChange Agents in ActionLydia Krefta: Shared Knowledge Drives InnovationDiana Biggs: From Cypherpunk to Enterprise Innovation Leader
The Challenge and Opportunity in Early MovesThree Investment Strategies for the CorporationInvesting in Disruptive CapabilityDebuting Cryptoassets in Portfolio StrategiesUsing Tokenization to Remove Friction from CapitalA New Frontier for the Corporation
Be SkepticalDon’t Write off the ToysDon’t Overestimate Who Cares about PrivacyIt’s Nothing without Network EffectsThe Best Technology May Not WinNothing Matters without ScalabilityIdentity Hasn’t Been SolvedToken Instability Hasn’t Been CrackedConsensus Mechanisms Are an Ongoing BattleWe’re Still Figuring out GovernanceBut Above All, Maintain Vigilance
Key Questions to Help You Compose Your Next StepAssessmentAspirationAction
THE OPPORTUNITY AND THE HOPE ARE HUMANACKNOWLEDGMENTS

Content preview from Unblocked

Preface

THE ELEPHANT IN THE ROOM

Since you opened a book on blockchains and business, you probably already know this technology offers more than a new form of money called cryptocurrency—which is more than most people realize. In 2018, blockchains were caught in the crossfire of both cryptocurrency’s swift peak and dramatic plunge. This is not surprising: cryptocurrency is the first and most visible application of blockchain technology, and many people think they are one and the same.

It would have cost you less than $1,000 to purchase a bitcoin (the most well-known cryptocurrency) in early January 2017, and a year later it would have been worth over $14,000. By the end of 2018, it would have plunged under $4,000. That’s a pretty sensational journey. It’s no wonder the headlines focused on it.

This obscures what’s really happening in blockchains. The core blockchain functionality underlying bitcoin and other cryptocurrencies is being leveraged to do new things in just about every industry. Thousands of companies are hard at work to solve real problems and unlock meaningful opportunity with the technology. They seek to create, in many cases, an entirely new foundation for our digital world.

Cryptocurrency is, in a way, a fantastic first proof of concept: Can blockchains really be a way to safely transfer digital value from one person to another? (We’ll talk more about what that means in Chapter 3.) Over the past few years, bad actors, scandals, and large-scale hacks of various ...