Blockchain and cryptocurrencies are two of the most talked-about technologies in recent years—yet for many, they remain shrouded in mystery. Are they the future of finance, or just overhyped digital trends? What problems do they actually solve? And how might they impact your everyday life?
To cut through the noise, we sat down with Keran McKenzie, Futurist-in-Residence at MYOB—Australia and New Zealand’s leading financial services platform. With a passion for emerging technologies and their real-world applications, Keran breaks down blockchain and crypto in simple, relatable terms. Whether you're a complete beginner or someone who's heard the buzzwords but wants deeper clarity, this guide will give you a clear, practical understanding of what these technologies are and why they matter.
What Is Blockchain? Beyond the Hype
At its core, blockchain is a decentralized digital ledger that records transactions across multiple computers in a way that makes them secure, transparent, and nearly impossible to alter.
Think of it like a shared Google Doc where everyone can see changes in real time, but no single person controls it. Once data is added, it’s locked into place—like sealing a page in a book that can’t be rewritten.
This technology solves a fundamental problem: trust. In traditional systems—like banks or payment processors—we rely on central authorities to verify transactions. Blockchain removes the need for intermediaries by using consensus algorithms and cryptography to ensure trust is built into the system itself.
👉 Discover how blockchain is reshaping trust in digital transactions today.
Key Features of Blockchain:
- Decentralization: No single entity controls the network.
- Transparency: All participants can view transaction history.
- Immutability: Data cannot be altered once recorded.
- Security: Encrypted and verified through distributed networks.
These features make blockchain ideal not just for financial services, but also for supply chain tracking, identity verification, voting systems, and more.
Cryptocurrencies: Digital Money with a Difference
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates on blockchain technology. Unlike traditional money issued by governments (like USD or EUR), cryptocurrencies are typically decentralized and not controlled by any central bank.
Bitcoin, launched in 2009, was the first cryptocurrency and remains the most well-known. Others like Ethereum, Solana, and Litecoin have since emerged with added functionalities—such as smart contracts and faster transaction speeds.
But here’s the key point: cryptocurrencies aren’t just about money. They represent a new way of thinking about ownership, value transfer, and financial inclusion.
For example:
- A freelancer in Nigeria can receive payment instantly from a client in Canada without high bank fees.
- Artists can tokenize their work as NFTs (non-fungible tokens) and earn royalties every time their art is resold.
- People without access to traditional banking can store value securely using a smartphone.
While price volatility has led some to label crypto as speculative or risky, the underlying innovation opens doors to more equitable and efficient financial systems.
Real-World Problems Blockchain Solves
It's easy to dismiss blockchain as tech jargon—but it addresses real challenges:
1. Financial Inclusion
Over 1.4 billion people worldwide remain unbanked. Cryptocurrencies offer an accessible alternative: all you need is internet access and a digital wallet.
2. Fraud Prevention
Traditional systems are vulnerable to tampering and fraud. Blockchain’s immutability drastically reduces opportunities for falsified records or double-spending.
3. Supply Chain Transparency
From farm to table or mine to jewelry store, blockchain enables end-to-end traceability. Consumers can verify product origins—critical for ethical sourcing and sustainability claims.
4. Efficiency in Cross-Border Payments
Sending money internationally often takes days and incurs high fees. With blockchain-based transfers, settlements happen in minutes at a fraction of the cost.
Common Misconceptions About Crypto
Let’s address some myths head-on:
“Cryptocurrency is only used for illegal activities.”
Reality: While early adopters included bad actors, today’s regulated crypto platforms require KYC (Know Your Customer) checks. Most illicit activity still occurs through cash and traditional banking channels.
“Blockchain is too slow and energy-intensive.”
Reality: While early blockchains like Bitcoin use proof-of-work (which consumes significant energy), newer networks use proof-of-stake and other efficient consensus mechanisms that reduce energy use by over 99%.
“It’s all just a bubble.”
While speculative trading exists, comparing crypto solely to a bubble overlooks its foundational role in Web3—the next evolution of the internet focused on user ownership and decentralized applications.
👉 See how next-gen blockchain platforms are solving scalability and sustainability issues.
How Blockchain Could Shape the Future
Keran McKenzie emphasizes that we’re still in the early days. Just as few understood the internet’s potential in the 1990s, blockchain’s full impact may take decades to unfold.
Potential future applications include:
- Self-sovereign identity: Control your personal data without relying on tech giants.
- Decentralized finance (DeFi): Earn interest, take loans, or trade assets without banks.
- Tokenized real-world assets: Own fractions of real estate, art, or commodities via blockchain tokens.
- Transparent governance: Use blockchain for secure, auditable voting systems in organizations or even nations.
The shift isn’t just technological—it’s cultural. We’re moving from centralized control to user empowerment.
Frequently Asked Questions (FAQ)
Q: Is blockchain the same as Bitcoin?
A: No. Blockchain is the underlying technology; Bitcoin is one application of it. Think of blockchain as the internet, and Bitcoin as email—a single use case built on top of it.
Q: Can blockchain be hacked?
A: While individual wallets or exchanges can be compromised, altering data on a well-established blockchain (like Bitcoin or Ethereum) is extremely difficult due to distributed consensus and encryption.
Q: Do I need technical knowledge to use crypto?
A: Not necessarily. Many user-friendly apps and wallets now make buying, storing, and using crypto as simple as using a mobile banking app.
Q: Are governments banning cryptocurrencies?
A: Regulations vary globally. Some countries restrict certain uses, while others embrace crypto innovation with clear legal frameworks. Regulatory clarity is growing, which supports long-term adoption.
Q: How does blockchain affect privacy?
A: Public blockchains offer transparency but can also protect privacy through pseudonymous addresses. Private or permissioned blockchains allow stricter data control.
Q: What’s stopping widespread blockchain adoption?
A: Challenges include scalability, regulatory uncertainty, and public understanding. However, enterprise adoption (e.g., in logistics and finance) is already accelerating behind the scenes.
The Bigger Picture: Technology with Purpose
Keran reminds us that technology should serve people—not the other way around. Blockchain isn’t about getting rich quick; it’s about building systems that are fairer, more transparent, and more resilient.
Whether it's enabling microtransactions in developing economies or giving creators full control over their digital content, the promise lies in democratizing access and value.
As we move toward a more connected and digital-first world, understanding blockchain and cryptocurrencies isn’t optional—it’s essential literacy.
The journey into blockchain doesn’t require being a coder or economist. It starts with curiosity—and asking the right questions. Now that you know what blockchain really is and how it powers cryptocurrencies, you're already ahead of the curve. Stay informed, stay critical, and stay open to what comes next.