Don't Blame The Blockchain

Blockchain is deeply embedded in revolutionizing data integrity, across several industries worldwide. Over the past few years, the credibili

Ian Quinn
April 13, 2021
Don't Blame The Blockchain

Blockchain is deeply embedded in revolutionizing data integrity, across several industries worldwide. Over the past few years, the credibility of blockchain as a promising technology has made leaps and bounds, with a point of maturity still awaiting on the horizon.

The year 2021 can be characterized as a transitional phase: another wave of heightened interest in the technology behind blockchain itself has arrived, with active participation and experimentation occurring every single day. Organizations have an incredible opportunity to control their own destiny, by choosing to operate on the cutting edge of ongoing innovation.

Early adopters are tasked with bridging the numerous gaps that exist between legacy software stacks and blockchain networks.There is a tremendous need to facilitate growth through further education, socialization, and technical implementation, in order to sustain momentumand get the absolute most out of blockchain foreveryparticipant.

With such fervent attention and activity, how has the degree of difficulty for blockchain integration remained so high?

Don’t blame the blockchain, this is simply the nature of disruptive innovation.

Unlike incremental innovations (when existing technology is refined, then optimized), disruptive innovations bring about complete paradigm shifts, with resounding ripple effects that follow in their wake. Blockchain joins the likes of smartphones, video streaming services, and personal computers as disruptive innovations in recent times. All share the common thread of completely transforming their respective industries in due time.

For blockchain, the way in which we store, share, and partition data is rapidly changing, with emerging value in decentralized protocols, permissioned distributed ledgers, and hybrid solutions alike. Institutional interest in blockchain integrations has skyrocketed recently: large companies, banks, and governments are dedicating serious time and resources on blockchain projects today. Although these programs are proving the efficacy ofthe technology for a wide variety of real-world applications, they are producing more learning experiences than immediate profits, for the time being. Even in the case of 2021's explosive bull market for cryptocurrencies, the industry is still entrenched in speculation & foundation-building. The blockchain epoch is far from resolved.

As major players continue to test the waters, mid market participants who may not have the luxury of an unlimited budget for trial and error style iterations, must pursue alternative approaches to best position themselves for success in a blockchain-immersed world.

How can organizations get the ball rolling to ensure long term benefits from blockchain integration?

Whether you’re chomping at the bit to build a pristine blockchain prototype, or just aren’t entirely sold yet on the immediate cost-effectiveness of sponsoring a blockchain solution: mapping out a strategic plan for leveraging blockchain to your benefit remains a tall task in 2021.

Assessing a full commitment to a blockchain strategy requires a balanced perspective. It’s easy to get off course without establishing a sound framework for use-case analysis.

It’s absolutely critical to note that there isn’t one superior blockchain network, one optimal use-case, or one specific way to approach a blockchain integration successfully.

The proliferation of quality software tools, secure hosting solutions, and expert services will expedite the development of blockchain solutions.

With these pillars existing as must-have prerequisites for successful blockchain integration, here are 3 key categories worth noting, during the assessment process:

  • Blockchain use-case analysis: Identify the advantages of converting from a traditional data storage solution to blockchain, and choose the specifications that best fit. Whether it’s applying blockchain to digital identity, healthcare, supply chain management, or real estate, analyzing the use-case directly impacts deployment. For example: public vs. private blockchains, single vs. multi-chain solutions, running your own network vs. joining an existing ecosystem.
  • Personnel and operations: Utilize software tools and viable processes that allow your organization’s skilled labor to continue focusing on what they’re best at. This will mitigate the unneeded stress of taking on multiple work streams across the breadth of a blockchain integration. Optimized processes yield optimized results.
  • Network incentivization: Guarantee recurrent activity in your blockchain ecosystem, by establishing a value proposition for network participants that promotes engagement and throughput. Having a sandbox is no fun if there isn't anybody else to play with: blockchain solutions thrive on their network effects.

Remember, don’t blame it on the blockchain: stay tuned for more blog posts, where we’ll take a deeper dive into specific aspects of blockchain integrations with key insights, examples, and solutions.