On the contrary, you can follow an organized structure for defining blockchain concepts to your boss. The following post offers a detailed overview of different concepts in blockchain explained clearly in simple words. You can use the element of simplicity in your explanations to communicate the true potential of blockchain to your boss. The post will also help you figure out the best ideas for pitching blockchain technology to your boss.
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Definition of Blockchain
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The first thing you need to explain blockchain to your boss is a simple definition for blockchain. You need a blockchain simple explanation in a way that your boss could understand from their perspective. Is the technical definition not enough? Not in all cases. You need an example with which your boss can identify what exactly a blockchain is and how it works. For the technical definition, a blockchain is a decentralized and distributed ledger responsible for recording the provenance of digital assets. The design of the blockchain makes it impossible to modify data registered on the blockchain.
Now, let us explain blockchain technology with a simple example for your boss. Ask your boss to imagine that they are the “node” or the computer with a file of transactions, known as the “ledger”. At the same time, two other government accounts also have the same file of transactions, therefore making the system distributed.
When your boss, i.e. the node, makes any transaction, their computer would send an email to each accountant about the transaction. Both the accountants compete with each other to verify whether you can afford the transaction. The first accountant who would successfully check and validate the transaction with their logic would receive the reward. The other accountant would check the proof and update his file with the new transaction.
In this example, the network, including your boss and the two accountants, shows the perfect outline of blockchain technology. The answer to “What is blockchain in one sentence?” paints it as a decentralized, immutable database of transactions in a network. However, blockchain technology involves many other crucial concepts beyond this simple explanation.
For example, you can notice how the two accountants competed with each other to discover Proof of Work in return for rewards. The process is referred to as mining and has considerable significance in the world of blockchain. You have to work on simplifying these concepts as far as possible for your boss.
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Working of Blockchain
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The best way to explain blockchain to your boss would also focus on the working of blockchain. Blockchain basically includes three critical components such as blocks, miners and nodes. You can explain each component to your boss to help them familiarize with how blockchain works in the following ways.
As the name implies, every blockchain has been created with multiple blocks. The three important elements in a block define its role in the blockchain. First of all, you have the data in the block, followed by the hash, or a 256-bit number associated with the nonce. It is important to note that the hash must be small and start with multiple zeroes. The nonce is a 32-bit whole number generated randomly upon creation of the block. The outline of blockchain explained in simple terms must also highlight the fact that the nonce is responsible for generating the hash value.
The next critical requirement while you explain blockchain technology to your boss focuses on an understanding of nodes. Nodes are the integral components in the working of blockchain as they set the platform for decentralization. The most striking highlight of blockchain technology refers to decentralization, which implies that any computer or organization could not exercise sole ownership over the chain.
On the contrary, the control of the blockchain network is vested in the distributed ledger spread across different nodes connected in the network. Nodes could be any type of electronic device which help in maintaining copies of blockchain and ensuring functionality of the network.
The outline of a blockchain simple explanation of nodes also shows that it is impossible to get any transaction through the chain without passing through nodes. Every node features a distinct alphanumeric identification number for showcasing its transactions.
The role of miners in a blockchain network is also one of the key highlights when you explain blockchain to your boss in simple terms. Miners are responsible for creating new blocks on the chain through mining. All blocks have their unique hash and nonce, along with references to the hash of the previous blocks. Therefore, miners must use special tools for solving complex mathematical problems to determine the nonce capable of creating a valid hash.
Miners have to compete with each other to figure out the right nonce-hash combination from around 4 billion possible combinations. Mining is more like a safety measure based on math which makes it difficult to modify blockchain technology for different possible reasons. Upon successful mining of a block, all the nodes on the blockchain accept the change, and the miner receives financial rewards.
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Blockchain Applications
You cannot complete a blockchain pitch to your boss with answers to “What is blockchain in one sentence?” only. The use cases of blockchain will also be one of the important highlights you need to draw the limelight on the potential of blockchain. You can obviously rely on cryptocurrencies as the best example of practical use cases of blockchain technology.
Cryptocurrencies leverage blockchain technology for the cryptography and public ledger system, thereby ensuring documentation and security of online transactions. How do cryptocurrencies work?
Cryptocurrencies are basically digital assets using blockchain technology for recording and securing all transactions. For example, Bitcoin can serve as digital currency you could pay for purchasing homes or cars. As of now, there are almost 6700 cryptocurrencies spread throughout the world.
The total market cap of cryptocurrencies amounts to almost $1.6 trillion. Big companies have been advocating for the idea of blockchain-based digital currency payments in recent times. At the same time, cryptocurrencies introduced the benefit of security from blockchain technology alongside reducing the need for central intermediaries.
However, you should not miss the potential setbacks of cryptocurrencies while you explain blockchain technology to your boss. Cryptocurrencies don’t operate in a highly regulated market and generally incur damages due to volatility. On the other hand, the growth of cryptocurrencies showcases tangible proof of the rise of blockchain beyond the chasm of hype.
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Ethereum, dApps and Tokens
The second most popular blockchain network, Ethereum blockchain, is also an important highlight among blockchain basics for your boss. The founder of Ethereum, Vitalik Buterin, introduced a platform with the traditional functionality of blockchain along with the added advantage of writing and executing computer code.
Therefore, Ethereum has evolved as one of the most preferred platforms for developers to create advanced decentralized and interoperable applications. Decentralized applications or dApps have successfully introduced the benefits of transparency and security for different areas. Another important highlight in applications of blockchain explained to your boss would be a focus on tokens.
Tokens are one of the revolutionary interventions in the blockchain space. Ethereum programmers could create tokens for representing any type of digital asset and track its provenance. At the same time, tokens can also serve unique functionalities according to specific instructions programmed in smart contracts.
The discussion on applications of blockchain technology could span various industries. For example, the distributed ledger technology could help in tracking fraud in the domain of finance and secure sharing of patient medical records. Similarly, blockchain can also help in safeguarding the intellectual property rights of a specific business easily.
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Best Practices for Pitching Blockchain Technology to Your Boss
The job of explaining blockchain technology to your boss can be quite challenging. However, new technology like blockchain can serve promising value improvements for your business. Therefore, an effective pitch can help you communicate your views effectively. Here are some important tips you must keep in mind before you pitch blockchain technology to your boss.
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Think from the Perspective of Your Boss
Before you try to find “What is blockchain in one sentence?” you must find out why your boss needs to learn about blockchain technology. Put yourself in the seat of your boss and think about whether your business actually needs blockchain. Identify the problems which blockchain could solve for your boss. Create a list of the business benefits of blockchain technology for your boss, which can hold their attention to your pitch.
You can opt for detailed presentations with a timeline of blockchain technology and infographics to explain blockchain technology to your boss. However, cluttering your pitch with excessive information and unwanted technical jargon can distract your boss. Remember that you would have limited time to get your boss hooked on the concept of blockchain.
Make sure that you use your time wisely by presenting simple explanations for blockchain technology. For example, if you are explaining blocks, tell your boss about what they contain and what they do. However, a deep dive into hashing mechanisms might not be reasonable in a beginner’s pitch.
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Preparation Can Work Wonders
The most trusted best practice for presenting a blockchain simple explanation to your boss would turn the focus on preparation. You must get your facts right and an outline of your pitch. You must include a few simple stories and examples in your pitch to improve its impact on your boss.
For example, you can try incorporating analogies between blockchain concepts and everyday activities in your office. In addition, you must pay attention to the design of the presentation such that it can serve as an effective guide for your boss. Most important of all, practice your pitch with friends and colleagues before you explain it to your boss.
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Bottom Line
The term “blockchain” has become quite elusive for business leaders in recent times. Business owners are suspicious of the long-term feasibility of blockchain technology while also checking out the prospects for business improvement with blockchain. The only way to resolve the apprehensions of business owners regarding blockchain technology is a simple explanation of the technology.
You can explain blockchain technology and the value it can bring to the business of an individual. However, you need to follow the non-technical approach in explaining blockchain to your boss. Awareness regarding blockchain technology is the foremost requirement for fuelling blockchain transformation initiatives. Try pitching your ideas about blockchain technology and how you can use it to your boss.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
