Blockchain technology is set to have a profound impact on a wide variety of industries, ranging from capital markets to the music business. While some use cases may seem obvious, the technology is still surrounded by its fair share of hype and uncertainty. As a manager, how should you approach the subject, and when should you put your money where your mouth is and actively aim to implement blockchain technology?
According to Juniper Research, six of 10 large corporations are either actively considering or in the process of deploying blockchain technology. Amongst companies that have reached the Proof of Concept stage, two-thirds (66 percent) expected blockchain to be integrated into their systems by the end of 2018. The research claimed that those companies that would benefit most from blockchain include those with the need for (1) transparency in transactions, (2) current dependence legacy storage systems and (3) a high volume of transmitted information.
Looking at the reasons for implementing blockchain, there is an inherent risk that managers eager to explore new technologies jump to conclusions without exploring alternative options. According to the research, systemic change rather than technological may provide both better and cheaper solutions to the issue at hand.
For many corporations, the go-to approach to investigate potential use cases for blockchain is to look for inefficiencies in current processes.This approach is guaranteed to provide some results, but often the solution is to truly re-design legacy processes to fit a digital world rather than exploring new and unknown technologies.
One reason why blockchain often emerges as an answer to many problems is that it is easy to imagine high-level use cases of blockchain technology. However, as we venture under the surface of such use cases, applying blockchain technology to a known problem is all too often a theoretical solution.
If we look at it, blockchain in its simplest form is an alternative to the traditional database. Blockchain differs from a database in many ways, but the most significant exception is the decentralized nature of blockchain. While a database requires a central authority to maintain and manage data, blockchain offers a decentralized approach to storage and verification of data. However, this feature comes at a cost. Blockchain