Is Blockchain Technology Hype Truly Generational And Transformational Worthy?
Blockchain technology is undoubtedly of one of the most hyped up discoveries of recent times. So much has been said about the revolutionary potential of this emerging technology.
Despite the mania, only a few corporate institutions have ventured into the industry. These companies have conducted pilot tests to determine the viability and applicability of blockchain technology. However, a majority these projects have not progressed beyond this phase because the technology has not demonstrated advantages over traditional systems.
The Reason Behind Low Blockchain Adoption Rates
The reluctance to adopt blockchain-based solutions stems from the concentration on proving the applicability the technology rather than focusing on the creation of value. If the approach is adjusted, blockchain technology can prove useful.
The Potential Of Blockchain Technology
Blockchain tech is perfect for tasks that involve multiple enterprises. This is because it facilitates the exchange of information and management of operation between different parties. It is worth noting that blockchain is not a substitute for databases or other conventional automation tools. Rather, it provides certain privilege’s and fosters democracy on information sharing platforms.
How Blockchain Technology Works
Blockchain technology has proven that it is functional. Instead of wasting resources on proving the functionality of blockchain, projects should evaluate the value generated by the technology. This can be done by comparing the present performance with the desired objective.
Solving Business Problems
During pilot projects, most companies duplicate existing business processes. This is done at the expense of testing real business problems that would generate value if solved. Blockchain technology is ideal when used on a project that involves several enterprises, has poor performance, a potentially high return and is non-automated. Such include provenance of goods, the supply chain and manufacturing flow.
The Importance Of Blockchain Ecosystems
The success of a blockchain project is heavily dependent on the structuring and operation of its ecosystem. Ideally, the ecosystem should be compliant with legal frameworks to ensure continuity even when new members are introduced into the system.
Importance Of Competent Management
Deployment of blockchain technology is a revolutionary process that can significantly impact the income generated by an organization. This demands for the constitution of a competent steering committee to oversee the transition from traditional systems to a blockchain-based platform.
Scaling The Blockchain
In addition to the technological infrastructure, the governance of the blockchain platform determines the performance of the project. After the completion of the pilot testing, the following steps should be implemented:
- Build blockchain competence – an internal committee should be created to improve competence.
- Design for information sharing – this describes the nature and extent of information that will be shared on the blockchain platform.
- Establish corporate standards – this pertains the deployment of the blockchain platform and compliance with local and international regulations.
- Determine ecosystem governance – this concerns the incentivization of members and the eldership model implemented by the blockchain platform.
- Adaptation – blockchain technology is still in its developmental stages. The platform should be ready to adapt to the evolving changes in the industry.