Will your business need blockchain technology?

The answer to that is yes, with a caveat. You will not need blockchain technology in any of your current business models. Blockchains are a foundational technology that require new ways of thinking about how business will be conducted internally and externally. The technology is really the known variable. The unknown variable is how the technology will change your current processes and business relationships.

To start, where will blockchain be used? Simply put, blockchain technology can be used anywhere where two or more parties are transacting in some way. These transactions can be internal and external and can involve tangible and intangible assets such as money, goods, services, data, information, etc. The reason blockchain technology is perfect for transactions is because of their ability to record, verify, and guarantee that a transaction took place. These qualities allow for a reduction of middleman overhead that has traditionally been held by a third-party person or entity. Simple third-party examples include payment processors, escrows, industry verifications, and even management. But, this middleman reduction only works when the solution is built from the ground up with blockchain technology at the core. As mentioned before, blockchains are a foundational technology. Foundational technologies provide little value when placed in established frameworks.

What does this mean for your business? It means the best strategy to take when thinking about and building with blockchain technology is to find a new, standalone use case leveraging the superior qualities of blockchain technology. The standard, across all industries, has been to build proof-of-concepts (PoC) solving one of your business problems. These PoCs provide two benefits to your business. First, they provide an opportunity for your company to learn and understand the intricacies of the technology. And, second, PoCs allow your business to think about how blockchain technology can create new value and efficiencies for you.

As evident by the list of companies developing with blockchain technology, it is apparent that these new blockchain business models will affect most industries. These new models will revolutionize how business is conducted similarly to how the internet created social media and e-commerce companies. Discovering those new blockchain business models should be top of mind for you and your business.

 

 

 

Kyle Tut