This article is written by one of our contributor Iliya Zaki.
“Blockchain is as significant as the Internet 25 years ago.” ~ Blythe Masters, CEO of Digital Asset Holdings”
Blockchain Technology has been touted as the main drivers of the 4th industrial revolution and is improving business processes in value chains within many industries. But is it a must though? Maybe is a strong word.
However, the evidence is piling up and it is essential to stay competitive in the business world.
In this article, we will talk about the next step to exploring blockchain technology by going through these factors:
- Quick Overview of Blockchain Technology
- Industrial Applications For Blockchain
- Being An Early Adopter
- Engaging A Blockchain Consultancy Firm
What makes Blockchain Technology Special?
The distributed ledger enables a shared system of records among business network members. This eliminates the need for reconciliation of different ledgers
The members on the Blockchain network will have access privileges and the information can be shared with them on a need to know basis
The consensus is required from the members on the network. In addition, the transactions are permanently recorded. Even system administrators cannot delete transactions
It is estimated that Blockchain can reduce operating costs by one-third of banking payments and other financial infrastructure costs. The cost optimization, as a result, will enhance profits
Despite all the hype behind this technology, it is important to note that it is still maturing. For blockchain to mature, it requires lots of experimentation and faith. In theory, blockchain will be able to make life easier but it will take time.
Industrial Application of Blockchain
Clinical data across hospitals and allied medical institutions enable patients to control their data and increase the quality of care to patients
The retail segment is heavily reliant on inventory control, operations management, and consumer satisfaction
Banks & Financial Institutions
Financial institutions will have enhanced customer satisfaction due to the security and trust-less features of Blockchain technology
The insurance industry will be revolutionised due to the incorruptible nature of the data, which ensures transparency in the system
The Blockchain ensures that the data of citizens are secure, protected, and accurate to maintain trust in the government
Supply Chain & Automotive
Blockchain allows innovative mobility services, adding traceability and secure financial transactions
Travel & Transportation
The Blockchain will reduce fraud, increase operational efficiency, and ensure faster transactions for passengers and other stakeholders
Media & Entertainment
An ecosystem of assurance is built around digital content with Blockchain’s immutable, secure and trust-less network
Blockchain will provide transparent tracking of agricultural products from growth to consumption to ensure food authenticity
Benefits of becoming an early adopter
Adopters are already benefitting from Blockchain —
Industrial and Commercial Bank of China: $165bn sales
Bank of America: $103bn sales
– Working to automate the process of creating letters of credit using the Ethereum Blockchain
Apple: $247.53bn sales
– Filed a patent for using Blockchain technology to timestamp data
Royal Dutch Shell: $322bn sales
– Working with BP to create an energy commodities platform
Toyota Motor Corp: $265bn sales
– Exploring how Blockchain payments could enable self-driving cars
Samsung Electronics: $225bn sales
– Announced “Nexledger” platform for tracking global supply chains
BLOCKCHAIN BUSINESS CONSULTING
Disclaimer: Important to note that I am a representative of Moonwhale Ventures
The majority of the world have an inkling what blockchain is but the next step seems to be the hardest — what’s next? who should we go to?
That is where you can consider engaging a blockchain consultancy firm.
Blockchain consultants are skilled individuals or group who can provide the necessary steps to move forward with an unknown industry. The main benefit of hiring consultants is the temporary expertise that they bring. Adopting a Pay-Per-Service philosophy, hiring consultants can be cost-effective in the long run as compared to hiring a full-time staff — employees’ benefits, human resource issues. Consultants are also expendable to some degree providing an easy way to remove deadwood.
Having a consultancy at your beck and call provide a great amount of value to the organization. A consultancy usually contains individuals from various backgrounds and expertise, allowing consultants to think objectively and develop innovative strategies purely for the hiring company’s business development and revenue growth. Consultants also may have the necessary business expertise and experience than the average employee.
A good blockchain consultant should have a good grasp of current regulatory and legal in the blockchain space. Due to the false-promises brought by various ICOs, authorities have finally started catching up with the hype and bringing new legislation and law that can only be good for the industry.
Let’s have a look at Moonwhale Ventures, a Singapore-based Blockchain Advisory Firm on how they conduct their consultancy services.
Moonwhale focuses on providing blockchain solutions to existing business and is dedicating a lot of resources into their blockchain business consulting. The first step in engaging a consultancy always involve a preliminary discussion on whether the technology can in fact help in your business.
- Create operational efficiencies through Blockchain applications
- Determine industry- and sector-specific Blockchain use cases for your business
- Identifying legacy systems, security risks and recommendation for complexity reduction
- Identify existing and suitable Blockchain applications for implementation
- Proof of concept services to showcase the business and technical viability of a Blockchain application and its market potential
- Customized recommendations on Distributed Ledger Technology (DLT) for the entire Value Chain (loyalty & rewards systems, payment systems, data storage and sharing solutions, supply chain, financial transactions, and insurance) and to optimize Security with Decentralized Business Networks (data storage, data transfer, payment systems, communications)
- Full cost-benefit analysis and SWOT analysis of Blockchain implementation
Strategize is arguably the most important. Together with your consultants, you will decide on the advantages and disadvantages from different blockchain protocol and regulations in various countries. These factors should be clearly explained by the consultants.
- Utilize or build permissioned private Blockchain protocols, applications and platforms to optimize or replace legacy systems
- Integrate DLT and Smart Contracts in existing infrastructure
- Development of Token Ecosystem customized Cryptocurrency to launch your customized crypto coin, e.g. customer loyalty & reward products
- Design fully automated, decentralized and autonomous, self-governed and self-executing business contracts and workflows
This phase involves the actual implementation of blockchain solutions.
- Training of employees handling and maintaining the new system structures
- Training of customers and clients on new ways to interact and transact accordingly to business optimizations implemented
- Training all stakeholder on business improvements, change-management
Blockchain Technology is still in its infant stage and requires a great deal of experimentation before it can be considered industry-ready. With large corporations already working towards making it viable for smaller businesses, we can only assume that mass adoption of blockchain technology is not too far. Blockchain Adoption Is Closer Than We Think.