Raleigh securities attorney Jim Verdonik is a frequent contributor to Triangle Business Journal. A recent article published online and in the print edition on August 31 provided his perspective on blockchain and why businesses may need a blockchain strategy. From the article:
The SEC knows that leaving blockchain financial instruments unregulated would create huge holes in its securities and capital-raising regulatory structure.
The Delaware legislature realizes that stock certificates and traditional stock ledgers remain the most inefficient part of the system that keeps track of ownership interests and wants to keep Delaware’s lucrative business of being home to most major corporations.
In effect, both institutions have put the world on notice that they don’t intend to let a new disruptive technology make them irrelevant. To avoid irrelevancy, the decided they need a blockchain strategy.
That raises a question: Does your business need a blockchain strategy to avoid becoming irrelevant?
Before you answer "no," remember that much of the brick-and-mortar world relished the dot-com stock market crash that occurred at the turn of the 20th century. Hundreds of dot-com companies crashed. Fortunes disappeared. By 2002, it seemed the brick-and-mortar world was safe from the dot-com barbarians.Yay!
Fifteen years later, the brick-and-mortar world’s relief over the dot-com bust was premature.
Will we see something similar with blockchain technology?
Probably. Initially, we will see a boom and bust cycle. Over-enthusiastic investors often create bubbles. But bubbles only kill investors. Bubbles don’t destroy disruptive technology, and blockchain technology has many disruptive capabilities, including:
▪replacing paper with digital information;
▪cost reduction; and
▪eliminating human error.
Eventually, people find ways to use disruptive technology that no one imagined before. With new uses, people refine technology to minimize weaknesses. What seemed like dead ends become super highways.
The full article can be viewed here with a Triangle Business Journal subscription.