Should we adopt Blockchain ?
Investment in blockchain in the first 5 months of 2018 had already exceeded that of the whole of 2017. The biggest blockchain investments are moving beyond the experimental phase, telling us that the more established companies have raised significant capital to meaningfully improve their resources & leverage blockchain. People have started talking about it a lot more this year, leading to the inevitable question in every company – Should we adopt blockchain?
Blockchain is believed to help industries if :
There are multiple transactions that all need to go through a 3rd party intermediary
Security of information is of utmost importance
There are recurring transactions that could be automated
Financial Services, Healthcare, Insurance are some industries that can benefit from blockchain.
Supply chain & logistics could make use of the ‘smart contracts’ feature in blockchain. Smart contracts are essentially coded, self-executing contracts that automatically make transactions once a pre-defined goal has been met. This reduces the chances of fraud & malpractices, if not eliminate them entirely. It will also serve to remove the middlemen, who currently act as intermediaries to facilitate the movement of goods, which in turn reduces the markup costs one needs to pay them.
Why you may not need Blockchain
Today’s blockchain is not for everyone. Adopting it means starting to code from scratch, changing the way you think of your business, and putting your weight behind a technology that is still immature. So for the time being, if you’re happy with your database, there is no need to change it. If speed of transactions is important, don’t go to blockchain in its current state.
Why you may need Blockchain
If you are utilizing a third party for transactions, or you have multiple people making changes to your database, or you have untrustworthy elements that need to carry out transactions or modify your database, blockchain will become a necessity. Blockchain provides a transparent, tamper-proof solution for all these cases, and will start to see widespread adoption over the next two years, once people get the hang of it. Not choosing to be a part of this could mean choosing to get left behind. Remember – blockchain is the new mobile, so everything needs to built here from scratch. There’s room for a new Google, Amazon, Facebook on blockchain, so the potential seems limitless.