The answer lies in the cryptocurrency connections that blockchain is the technology that enabled this movement. Blockchain and cryptocurrency have an interesting codependent relationship that is misunderstood by most. Of course the OG grandaddy application of blockchain technology is the most famous cryptocurrency of all, Bitcoin. But underlying that blockchain is an accounting technology, a digital ledger, that allows for single-entry bookkeeping rather than the standard dual-entry that has been used for centuries.

The eloquence and efficiency of blockchain has yet to be put into use in many applications. Cryptocurrency applications were the first to utilize the power of blockchain, and still the only applications that take advantage of single-entry bookkeeping. But most cryptocurrency trading is done on exchanges where the records are kept using dual-entry bookkeeping and there is no inherent benefit that a cryptocurrency is being exchanged rather than a gold deposit or other asset. Many other cryptocurrencies like Ripple, Stellar, and Hedera Hashgraph, are not actually blockchains at all but other types of digital ledgers with various benefits and drawbacks to their individual technology makeup.

Blockchain in most business applications is less clear on the benefit side. I can’t speak to all applications of blockchain technology and how there may or may not be a legitimate business case, but I can speak for our company. The main benefit of blockchain technology for a payroll application is using the immutability of blockchain to verify that contractual terms are met and not changed after they are created. This is the dream of smart contracts, legally binding blockchain contracts that clearly spell out the terms of the agreement, and pay out proceeds fairly based on each party giving their benefit of the bargain. In theory though this often works better than in use, this is because people are not used to paying deposit monies at the beginning that are forfeit if the bargain is not completed. With perhaps real estate transactions being the notable exception to this, where people are used to paying a down payment or earnest money deposit stating they will complete the terms of the agreement.

Having an accounting and technology background myself, I understand and love blockchain as a technology. While certainly many people are frustrated from having lost money in scams or poorly managed investments, please don’t blame the technology for this. Blockchain is technology, and technology is just a tool. Let us use this tool in the future by building companies that help make the world a better place, rather than speculating for short-term gains. Growth over a long period of time may not be sexy, but it is what gives our lives improvement one generation over another. So stop treating blockchain like a dirty word or the next greatest thing, and focus instead on how to build the next great companies.