I hope you’ve enjoyed our journey in learning more about how blockchain is changing the way of the future. Hopefully now you know what it is and why business leaders should be adopting this new technology that’s breaking down boundaries without sacrificing security. (If you have yet to read our blog about “Why Businesses Should Care About Blockchain, click here to check it out!)

As we wrap up our blockchain trilogy detailing what blockchain is and why businesses should care, we now must look to the future and see where blockchain is heading. Alternatively, you can listen to our podcast here, featuring two of our blockchain experts at Luxoft, James Bowkett and Vasiliy Suvorov.

The hype versus the reality – Explore the real-life possibilities of tomorrow

One thing to note is that blockchain was extremely hyped up when it was first discovered. The possibilities were considered “endless” with blockchain no matter how far-fetched, as this happens to most new technologies when they emerge. This of course led to misconceptions on what it can actually do. But now, companies are just in Phase 1 by moving from proofs of concept (PoCs) to developing actual business use cases. They now better understand what blockchain can and cannot do.

Think of blockchain’s evolution comprised in four stages:

Hype Stage: Everyone becomes really excited over blockchain and its possibilities
Proof of Concept Stage: Early adopters invest time and effort into proving specific use cases for their business. As the use cases begin to accrete, the applicable landscape appears for the technology
Production Stage: As more people work with it, the technology becomes more central (and less of a complement) to business architecture
“True Technology” Stage: This is the next and final stage, and makes blockchain recognized as just another tool in the IT toolbox that yields business value

Once it reaches the “True Technology Stage”, blockchain will become more well-known and widely used. More companies will become familiar with what a company architecture with blockchain actually looks like, benefitting from the efficiency, auditability and transparency the technology can provide. They will realize they can change the way they do business through blockchain, such as growing trust with third parties on a shareable yet tamperproof platform. Blockchain is truly a disruptive force.

Three important alliances – The differences

While a popular trend in today’s news, there are three major blockchain contributors you should consider when investing in blockchain. These alliances host blockchain platforms that are used by various organizations:

Hyperledger is hosted by the Linux Foundation. They cover all sorts of use cases due to the variety of experts under their wing – from IoT, to manufacturing, to finance experts.
R3 is geared toward financial services and the insurance industry. Their open source platform, Corda, promotes “frictionless commerce” in financial services.
Etherium focuses on enterprise use. This makes sense, since it was based off of the theory on public blockchain being purely for an enterprise setting in order to achieve full optimization.

If you would like to learn more about which alliance would be best for your business, please contact us so we can help.

Blockchain – It’s an emerging disruptive force

Blockchain is becoming more prevalent everywhere. For instance Zug, a small town in Switzerland, has been nicknamed “Crypto Valley” because of the large amount of companies engaged in cryptocurrency in the town, further publicizing the groundbreaking technology. The first city in the world that accepts Bitcoin as a form of currency, Crypto Valley is a global hub for crypto technologies that connects and educates policymakers, lawyers and enterprises on the topic of blockchain through providing research, implementing projects and organizing conferences.

Canada is hopping on the blockchain train, too. Those who live in or visit Canada will be able to use personal information from a central source in order to open a bank account, a telco account, or even to rent a car. Instead of having to rely on disparate databases to gather your insurance, driver’s license and other forms of identification, people will be able to bypass all that with blockchain. Instead of having to collect documents by physically showing up in person with all this information, it will be automatically accessible in a secure, private way. As a tamperproof sharing medium, blockchain eliminates hassle.

Blockchain is also a valid choice for the IoT realm. For example, in automotive it could be a great way to pay for parking, electrical charging, tolls, etcetera – providing an auditable ledger of transactions. Another example in IoT is supply chain management; by putting IoT readable tags on goods, you can trace their provenance, journey and ownership changes.

Further, businesses are now looking for people to fill their “Head of Blockchain” and “Blockchain Specialist” job titles, which of course did not exist before. And those who code yet understand legal contracts, dubbed “cryptolawyers”, will also be in high demand.

The truth is, blockchain is opening up new opportunities for everyone.

Conclusion – How we can help

Blockchain will eventually become an everyday tool in the IT toolbox that aids in digital transformation. More and more businesses are starting to understand what blockchain can do for them, and are accepting the positive changes blockchain ignites.

Now that you’re familiar with blockchain, it’s time to see how it can change and improve your business processes. Please contact us at Luxoft by clicking here, and be sure to download our brochure!

Richard Pilling
Director, Luxoft Digital
Richard Pilling
An executive and leader with extensive experience across a broad range of industries and technologies. He is dedicated to helping his clients develop and integrate digital transformation strategies by incorporating Big Data, AI/ML, Cloud and IoT solutions into the fabric of their IT systems. He is a proven expert in client engagement, analyst and investor relations, Enterprise Systems Architecture & Governance, Big Data, Distributed Computing, SaaS, Infrastructure and IoT.