Blockchain Technology: The Future Is Here

Blockchain Technology: The Future Is Here

Blockchain technology has turned into a buzzword recently. Now that everyone is talking about distributed ledgers and their disruptive potential, what follows?

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Blockchain technology has turned into a buzzword recently. Now that everyone is talking about distributed ledgers and their potential, what follows? Professional services company Deloitte issued a report that might give us some answers.

Blockchain Adoption Is Rising

More and more businesses and individuals recognize blockchain`s transformative power – they look to use the technology for a bunch of new services and platforms. For example, both private and public organizations could use it to share information securely with others, exchange assets, and offer digital contracts. Individuals might benefit from distributed ledgers when it comes to managing their financial, medical, and legal records. It is even speculated that the trendy distributed ledgers could replace banks, credit agencies, and other traditional intermediaries. Nowadays, blockchain technology is disrupting literally every industry sector – from banking to retail. Check out some examples of the tech`s applications in different sectors:

  • Europe’s largest shipping port, Rotterdam, has founded a research lab to study the technology’s applications in logistics.
  • Utilities in North America and Europe are deploying blockchain to trade energy futures and manage billing at electric vehicle charging stations.
  • Blockchain is disrupting social media by allowing users to own and control their images and content.
  • Blockchain consortiums such as the Enterprise Ethereum Alliance, Hyperledger Project, R3, and B3i, are developing an array of enterprise blockchain solutions.

The adoption of the technology is gaining traction as the list of adopters continues to grow. Gartner Inc. foresees that blockchain`s business value-add will increase to $176 billion by 2025, as Deloitte wrote.

However, despite the growing number of platforms and protocols in the marketplace, no single solution has taken the leading role. As a result, we see no technical or process standards in the field. These operational obstacles reportedly stop companies from developing clear business plans around blockchain technology or joining forces with ecosystem partners for mass adoption. But how can organizations deal with these problems? The approaches vary depending on the particular sector and its concrete needs. Nevertheless, three main trends can be observed:

  • Focus blockchain development resources on use cases with a clear path to commercialization
  • Push for standardization in technology, business processes, and talent skillsets
  • Work to integrate and coordinate multiple blockchains within a value chain

Once we find solutions to the major obstacles, large-scale blockchain adoption will follow.

Commercializing The Chain

According to Deloitte`s study, blockchain technology is heading towards mass adoption. In particular, they state:

“In the coming months, as the trend toward mass adoption progresses, expect to see more use cases emerge that focus on enterprise-specific applications that meet unique value chain issues across organizations.“

Speaking of commercial potential, chief information officers (CIOs) can make an assessment of their blockchain use cases by answering the following questions:

  • How does this use case enable our organization’s strategic objectives over the next five years?
  • What does my implementation roadmap look like? Moreover, how can I design that roadmap to take use cases into full production and maximize their ROI?
  • What specialized skillsets will I need to drive this commercialization strategy? Where can I find talent who can bring technical insight and commercialization experience to initiatives?
  • Is IT prepared to work across the enterprise (and externally with consortium partners) to build PoCs that deliver business value?
  • It is expected that more companies will start exploring opportunities for blockchain commercialization despite short-term challenges like the lack of standardization in technology and skills.
  • Companies could deal with these hinders and manage to integrate and coordinate many blockchains within a single value chain.

The full report is available here.

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