In 2019 we have not seen the game-changer some of us expected. Over the past few years, blockchain has been extolled as a revolution in business technology. First blockchain innovations have been launched nine years ago and many technologists have spent countless hours to explore its potential. Some results are there but there are also problems in this innovation that have to reshape certain business processes & transactions.
Infant technology of blockchain
From an economic point of view, blockchain development roadmap is not that surprising. I see that it’s still used by entrepreneurs who bring a prototype new technology to early adopters. Blockchain development is as we speak relatively unstable, expensive, and complex. In a classic lifecycle theory, today might be a tipping point, as many prototypes have been built but blockchain technology has not yet seen the widespread application at scale, and the future remains uncertain. As we move towards growing market demand leads to product standardization and regulations.
As always it is crucial to understand where and how to use technology such as this. You can always wait for the second lifecycle to kick in or use it today – if you choose to dig in today aim to find value from here;
- Niche applications
- Try to specify your use cases for which this technology is well suited. Example; insurance, supply chains, and capital markets, in which distributed ledgers can provide benefits to inefficiency, fraud & process opacity
- Modernization value
- Usually in this technology is attracted by industries that are in the modernization phase in overall business applications such as; trade finance, collaboration, process simplification, global shipping, contracts & payment applications. Keep in mind that usually, blockchain technology is a small part of the solution and not involve a distributed ledger.
- Aim for fame
- As we see today many pilots going on these has a reputational value. Such as keeping your competitors at their feet or demonstrate in our organization your ability to innovate.
Moving ahead in the cycle: Three key principles
As I write this today there is no guarantee that any application will make a second stage in the industry lifecycle. However, if your business case is strong in rationale, it raises loads of capital & technology that you adopt have an increased standardization try to bare these in mind:
- Start with the problem. The blockchain is not likely to be a practical solution. I suggest you get familiar with Occam’s razor as it applies usually when trying to find the simplest solution.
- Evaluate your ability to deliver. Sufficient economic and technological support is a must.
- Clear business case and target ROI. Agreements of participation, maintenance, compliance, and data standards.
4 common blockchain myths
Finally here are 4 common blockchain myths to be busted. I hope you did get a more clear picture of this concept called blockchain that has potential but some expectations about needs to be de-hyped.