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[P]ractical applications grow nearer every day.
Libraries that are striving to maintain relevance need to prepare for blockchain innovations. The exchange of popular cryptocurrencies (such as Bitcoin) is one notable application of this paradigm-shifting technology. However, modern libraries can benefit from its implementation in myriad ways. Similarly, non-fungible tokens (NFTs) and decentralized protocols raise exciting possibilities for collection curation and presentation at libraries, museums, and other public institutions. Let's look at blockchain, cryptocurrencies, and NFTs as they relate to libraries in the present and the future.
What Is Blockchain?
A blockchain is a decentralized database that uses independent nodes to store and retrieve data. Rather than dependence on a central entity, blockchain databases function on a global network of volunteer nodes. This means that no individual controls the data or the network. All transactions are recorded, accessible, and transparent.
Blockchain databases store data in a grouped structure. Each set of data, or block, stores a certain amount of information. Once filled, each block connects to past and future blocks, thus forming a blockchain. Complete blocks serve as a permanent record of data, stored with a clear timestamp and connected to the rest of the network indefinitely.
Blockchain Applications for Libraries
The ways in which blockchain technology associates to the future of library technology and infrastructure are vast. Financial activity remains speculative at this point, but practical applications grow nearer every day. From one angle, it isn't feasible for most libraries to manage their trusts and endowments with blockchain in the current day. From another, improvements in the form of enhanced transparency, loan procedures, and data retrieval serve as more realistic integrations of this technology.
Trust is a key appeal to blockchain, and it will benefit libraries and their users. In their book Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World, authors Alex and Don Tapscott argue that "a global ledger of truthful information can help build integrity into all our institutions and create a more secure and trustworthy world. In our view, companies that conduct some or all of their transactions on the blockchain will enjoy a trust bump in share price. Shareholders and citizens will come to expect all publicly traded firms and taxpayer-funded organizations to run...