Principles of Successful Blockchain Deployments
What's Holding You Back?
- Selecting the wrong problem: even though blockchain can be used to solve many problems in a wide range of different industries, it is still not a panacea. Understanding what it can actually do and where its strengths best come to light is key to putting it to good use.
- Unattainable expertise: while blockchain is different from other, more established technologies, that does not mean the niche is closed to all but a select few. However, when businesses showed the need for blockchain, developers rushed in to fill it, so now there are plenty of solutions within the space to choose from—all prospective users have to do is figure out what it is that they need.
- A lack of adoption: there is a perceived lack of adoption with blockchain, but we would argue the annual Blockchain 50 reports from Forbes, shows otherwise. A number of the world’s largest corporations have already implemented the technology in one way or another. On the other hand, the decentralized finance (DeFi) space attracts institutional and retail investors alike, with more than USD 12 billion locked in the space as of the time of writing (source: defipulse.com).
The Three Principles
1. Target use case
What problem are you targeting? Although blockchain can be applied to many different use cases, there are a number of them that would benefit more from a different solution—using blockchain just because it’s the shiny tool is pointless. However, there are three main areas in which blockchain excels:
- Records of ownership: recording ownership of an asset on a blockchain removes the need for asset owners to have their own internal representation of an asset. This means they don’t need to track the asset on their own internal systems.
- Cross party business processes: for large businesses with processes spanning multiple external entities, keeping them all in sync can be a laborious process which often requires trusted third parties. Blockchain removes a number of these intermediaries as it provides a single source of truth for multiple organisations. This simplifies what has historically been slow processes where data is constantly being exchanged and reconciled between multiple organisations.
- Digital fingerprints: as blockchain is immutable and tamper-proof, it can be used to certify data at the point of capture, helping in dispute resolution.
- Self hosted. As its name implies, this means onboarding a DevOps team to create a fully bespoke blockchain platform from the ground up.
- Cloud. Blockchain-as-a-Service offers third-party creation and management of blockchain networks, but still requires some understanding of how the technology works for day-to-day operations.
- Fully managed. Some providers are able to create your solution for you, as well as manage it completely.