Kaihan Krippendorff
Kaihan Krippendorff is CEO and founder of The Outthinker Network and author of “Driving Innovation From Within: A Guide for Internal Entrepreneurs.”
Blockchain is an emerging technology that has the potential to make transactions with customers and members more seamless, transparent, and secure. Your association can help lead the charge for blockchain adoption in your industry.
The job of an association executive has never been more complex, but it’s about to get trickier thanks to the blockchain, which could be the most transformative technology taking shape in decades. Before you roll your eyes or dismiss blockchain as just the latest overhyped trend, it helps to study up on what the technology is and what it could do for your association and the industry or profession it represents.
Blockchain goes beyond cryptocurrencies like Bitcoin or Ethereum, and while companies like IBM, Google, Walmart, and ExxonMobil are early adopters, associations might actually be the natural leaders of the blockchain revolution.
But first, what is blockchain? It’s a technology that promises to redefine how any asset—real estate, electronics, intellectual property, agricultural goods---can be tracked and accounted for. It could radically redefine how players in any industry interact. Instead of one entity or business maintaining its own ledger of transactions, the blockchain would offer one master ledger, replicated and shared by multiple players.
For example, if a grocery store finds contaminated lettuce, it could query the industry ledger and rapidly identify which farm produced it, which exporter shipped it, and which distributor delivered it, saving millions of dollars in wasted produce due to a total product recall. A blockchain approach ensures four important elements:
This kind of blockchain network is known as a “permissioned-private” network. These networks are different from Bitcoin in two important ways: Participants cannot transact anonymously (the networks are “permissioned”) and must be invited to join (the networks are private).
Blockchain goes beyond cryptocurrencies like Bitcoin or Ethereum, and while companies like IBM, Google, Walmart, and ExxonMobil are early adopters, associations might actually be the natural leaders of the blockchain revolution.
Such networks are already emerging across many different industries, including retail, energy, financial services, media and entertainment, publishing, real estate, sports management, maritime shipping, and trucking. These efforts are being led by two types of participants: technology firms that build the infrastructure and industry leaders who set standards and induce other participants to join.
This second category may offer a prime opportunity for associations to lead blockchain adoption in their industries. So far, technology firms and industry leaders are taking the lead, but they might struggle to engage participants, establish common standards, share best practices, and shape regulations. All of these are activities that lie at the heart of what associations do.
If your industry is ready to take advantage of blockchain technology, your association can help lay the groundwork for a successful network. These four steps will help you get started:
A wide array of industries can benefit from blockchain, and many associations can step forward to advance the technology in their fields. Only one question remains: Is your association ready to lead?