In 2017, bitcoin value surged from just under $1,000 at the beginning of the year to nearly $20,000 by mid-December.
While some industry leaders are skeptical of bitcoin, others are eagerly investing, confident in projections that bitcoin value will reach $1 million by the end of 2020. I don’t know if I’d go that far, but then again, I’m no financial expert.
However, many financial pundits and industry observers see bitcoin’s supporting technology, blockchain, as the true star with the greatest potential in coming years, and manufacturing could prove to be one of its biggest successes.
What Exactly Is A Blockchain?
According to Investopedia, “A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
Originally developed as the accounting method for the virtual currency Bitcoin blockchains – which use what’s known as distributed ledger technology (DLT) – are beginning to appear in a variety of commercial applications, including manufacturing. Currently, the technology is primarily used to verify transactions, within digital currencies, though it is possible to digitize, code, and insert practically any document into a blockchain, including those found in the manufacturing process. Doing so creates an indelible record that cannot be changed and the record’s authenticity can be verified by an entire community (supply chain) using the blockchain instead of a single centralized authority.