Blockchain offers great promise, but companies don’t know how to get commercial value from it. Leaders in business architecture and technological innovation must focus on the four types of blockchain business initiatives and assess which ones will achieve their strategic goals.
Businesses find it challenging to turn that interest into real-world implementations that generate business value. Blockchain technology is emerging and, although its application is broad, there are few successful business models or agencies in companies that provide ready-made models.
Before moving ahead, you should go through these stats to plan your blockchain-based product accordingly;
As per an article titled “Blockchain beyond the hype: What is the strategic business value?” by Mckinsey; IBM with over 1,000 staff has heavily invested #200 Million in blockchain-powered IoT.
Also Gartner stated;
• Over a billion people will store some of their data on a blockchain by 2022, unknowingly.
• Blockchain-based business is estimated to attain a valuation of $10 billion.
Experimenting with blockchain technology is fast and expanding. Companies are mainly trying to determine how blockchain technologies can solve persistent business problems that have so far resisted other technologies.
Blockchain Technology That Adds Value To Organizations That Employs Them
Creation of digital assets
Ability to create a unique representation of each asset that allows the exchange of value and avoids duplication.
Payment token capacity
It is used as a digital token for payment that transfers value and avoids duplicate expenses.
Record of distributed records
It is a growing list of records of permanent transactions signed by cryptography, shared by all participants in a network. Each record includes a timestamp and references to previous transactions.
Immutability of records
A function that prevents something from being changed after it was created. The data items stored in the distributed ledger cannot be replaced. Only new records can be added for each fix.
Ability to check all historical changes to a record on a blockchain. Consensus mechanism is Process in which all nodes in a distributed network agree with the most recent state of a given record. Thanks to consensus mechanisms, transactions can be executed under certain conditions.
A computer program or protocol that facilitates verifies or executes the terms of a contract. Smart contracts are digital representations and extensions of the traditional contract concept.
Moving ahead with the types of blockchain initiatives,
According to Gartner they are basically bifurcated as;
• Blockchain Disruptor
• Digital asset market
• Efficiency play
• Record keeper
What These Blockchain Initiatives Mean?
The above pointers are some of the initiatives adopted by startups, tech giants, unicorns respective to their product and applications. When we say, these initiatives are value drivers for businesses that adopt accordingly.
First the Blockchain disruptor,
Mainly relies on a blockchain foundation. Its objective is to gain the decentralization of technology function or business. Players adopting this initiative have a hold of every critical capability. For example, content management, social platform, forecasting platform, or marketplace.
Second is the Digital asset market,
This initiative is dedicated to new markets that enable trading and creation of new digital assets. Players that can onboard this initiative could be market traders, platforms that trade energy assets, and others.
Efficiency play is attributed to boosting the efficiencies of current business operations and can be adopted by any level entity. These initiatives do not have to possess new digital assets or perform payment for cryptocurrencies. Examples are processing systems, supply chain management, and traders.
Record keepers are initiatives whose main objective is to ensure that documents cannot be damaged and that they can be verified upon request. These initiatives are not about digital assets or a solid consensus-based decision-making mechanism. The intention to use the distributed ledger is resilience and not decentralization between the parties. Examples of who can deploy are large enterprises, government bodies, and market infrastructure providers.
To the point,
The paradigm shift in business operations that is more dedicated to security and efficiency is shaping the future of blockchain in multiple ways. As to stay digital is the new mantra of being successful, the advent of digitization and blockchain is expected to change the function of businesses. Now is the time to onboard this favoring technology and stand out firm in the global market.
Looking to start with a blockchain-based venture
Panacea Infotech is one of the pioneering tech company with hands-on experience in IT product development and integration services. We hold a phenomenal expertise in blockchain domain that can make your business future-ready.
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