Blockchain -- 4 things your organisation needs to consider

Blockchain is the technology behind Bitcoin, Ethereum, Ripple and many other crypto platforms. It works as a decentralised distributed ledger (think of it as a special database system) with the following key properties:

1. Security of data and transactions.
2. Safe data storage and exchange.
3. No central authority or single administrator.
4. No intermediaries (banks, financial institutions, etc.) -- transactions are direct.
5. Each network participant has access to data.
6. A wide variety of use cases -- whilst the tool is the same, it can be applied in many situations and solve a wide range of tasks.

Though the technology is primarily associated with the financial industry, blockchain can be applied across many different industries to significant effect.

If you need a Blockchain 101, this video is a great starter.

4 things to consider

1 -- The driver for change

Is blockchain going to disrupt your business, industry or vertical?

You should reconsider your roadmap for the future. Assess the scope of disruption and where it's going to occur. Focus on where blockchain is making the most rapid progress and understand the initiatives you need to undertake to not fall behind.

2 -- Fit for purpose

Is blockchain the right solution for the challenge you are facing?

The challenge you're facing could be addressed via other methods, or may be addressed by tackling key issues in other parts of your organisation. Quite often, businesses look to apply blockchain solutions where a simple database could work.

You could also look to bring efficiencies to your value chain or improve the quality of your services through the use of a blockchain. Make sure you are looking beyond the issue you are facing now, as well as the core issue, to stay abreast of what's coming next.

3 -- The market environment

What is the impact to the market caused by blockchain technology?

In a stable market, impacts could be significant. In a turbulent market, whilst the impact may still be significant, you may struggle to find buy-in and build a resilient solution.

The very nature of a blockchain means that no single party owns it -- it is decentralised. Who is going to own the governance of it? How will identity, roles and rights be managed? Does your market require a 'public' or 'permissioned' blockchain?

4 -- The implementation plan

Does the architecture of the solution fit within my 3--5 year technology roadmap?

The development and implementation of a blockchain is not a trivial task. You should consider the opportunity cost of pursuing this technology vs. a traditional model.

More importantly -- how will you engage the various parties involved and define the touchpoints? The resolution of this needs to involve collaborative design between blockchain architects and legacy architects.

Wrap up

Leave a comment and let me know what you find the biggest challenge with blockchain.

---

Disclaimer: Thoughts are my own and do not represent any other parties.