Unless you have been sleeping under a rock, it’s very likely that you have been bombarded over the past several months with the latest technology chimera: blockchain and its prodigal son cryptocurrency. Since October of last year, I have been reading articles, watching videos, even writing a heroic poem or two about the possibilities of blockchain. The one question I am asked most often, however, is “What exactly is this blockchain thing?” That question is quickly followed by “What does that mean?” Having said that, let’s begin with a quick discussion of blockchain — as Robin Williams might have said: “What it is, what it was and what it shall be.”

Blockchain — The 10,000-Plus Foot View

I have said many times over the past few months that the reaction to blockchain when describing it to people in an organization is both predictable and funny. Talk to CEOs and they are universally intrigued and ready to assign the action items to the resident propellerhead: the chief information officer (CIO), who is ready and willing to roll up the sleeves and start building. Talk to chief security officers (CSOs), and they are thrilled with the potential of a new product line their team can leverage. Talk to the chief financial officers (CFOs), and they are immediately terrified by the thought of an open ledger.

Let’s go back to the original purpose of blockchain. Yes, blockchain is a distributed open ledger. This means that any data that is shared between business partners is both transparent and immutable. This is the core of the promise of blockchain. Because of the inherent transparency and tamper-resistant nature, trust is no longer a hindrance between companies wishing to do business together.

Now, let’s talk about what blockchain is not. Blockchain is not the world repository for all information ever generated. There is no “blockchain police” that will come beat down the door of your enterprise and force you to post all of your data for the world to see. You share what you agree to share — as much or as little as your company is comfortable with. In time, the market will skew toward companies that are willing to be more open, as communication transparency itself is a form of currency, but how much you choose to share is a conscious decision you can and must make for your individual enterprise.

The Road To Failure Is Paved With Good Intentions

So you are a CIO ready to take the blockchain world by the horns. Where do you start?

As with all technologies, you start with solving a real-world problem. In today’s world, I know it is en vogue to get a project started and find the application of that tech later. Those of us old enough to remember the tech bubble of the 90s should know that success hinges on finding the solution to a problem that the world wants solved. Your mission is to know blockchain’s strengths and weaknesses and to use both as tools for success: