Staying on course, we’re now headed into the second installment outlining why business leaders should be paying attention. Alternatively, you can listen to our podcast
So, why should businesses invest a huge amount of interest and money into blockchain technology? Let’s dive in and find out.
How do you know your data hasn’t been touched?
When you share data with other companies, it’s really important to have guarantees. With blockchain, you are guaranteed that no one has tampered with the original data. This data could be anything from financial transactions, to medical records, to land ownership information. Whether it’s your organization or another group you’re partnered with, the data always remains untampered. Using the technology and concepts behind blockchain (or other distributed leger technologies) is an excellent choice when you are building a business ecosystem with third parties.
Blockchain disrupts the disruptors
Big multi-billion dollar companies with their own identification platforms, such as Facebook, Amazon, Google or Twitter, dominate the market. Businesses using these platforms either have to deal with a central consortium, which holds your technology, or a third-party company that’s actually making money off of your data.
But blockchain changes that. Instead of having to depend on other companies, you disrupt the disruptor. You can build your own business ecosystem without depending on a dominant network player (who could become slow, expensive, and lack innovation over time.)
Blockchain streamlines processes
Maybe you’re wondering: what if you already have something implemented that is quite possibly ‘just as good’ as blockchain?
Yes, you could have a database and a message queue. Yes, you could have many more technologies that could add up to the equivalent of blockchain. But why should you make your processes more complex with more than one technology? Why not just have one that can do it all?
The truth is, blockchain clears up and simplifies a lot of moving parts in the business machine. Eliminating unnecessary, manual, or even paper-based processes is something blockchain excels at. Blockchain also helps promote infrastructure resilience, allowing for new, smoother processes or current processes at a lower cost.
Blockchain applied across all industries
While being a primary influence in the finance industry and Bitcoin, blockchain is becoming more popular in all sorts of industries. From Healthcare to Logistics, blockchain is making a big splash. And when it comes to healthcare, it feels like blockchain was made for that industry. When you look up your medical records or insurance records, don’t you want it to be secure without a doubt? Blockchain allows healthcare companies to have firm integrity in their data, allowing their customers not to fret.
The truth is, blockchain adoption is increasing. More and more enterprises across industries are learning about how it can benefit their businesses. And according to Gartner, by 2025, the business value added by blockchain will grow to slightly over $176 billion, then exceed $3.1 trillion by 2030.
Why wouldn’t businesses adopt blockchain?
So, we’ve talked about why businesses should consider blockchain – but it’s not a silver bullet.
The truth is, it’s one of many tools in the toolbox. When a customer has a problem, we at Luxoft want to solve that problem. Yes, we’re excited about offering blockchain, and there are times when blockchain is definitely the answer, but there are other times when the solution could be something different. It could be a microservices project, or a database project. It’s always important to make sure blockchain is a good fit to solve the presented issue. The right tool for the right job is key, no matter how cool the tech may be.
In a similar way, blockchain is not a project in itself. It’s a part of the entire digital transformation strategy. In order to utilize blockchain efficiently, it’s important to have a digital transformation path, which Luxoft can guide you along.
Gradually breaking down barriers
Blockchain is an agile disruptor that breaks down boundaries. Being able to easily share data between companies or across an organization is always a good thing. But unfortunately, the real trick is getting multiple organizations to get behind that effort by seeing the business value. Getting people to collaborate can be difficult, but hopefully this blog has convinced you to try blockchain and reap its benefits.
In our next blog, we will talk about Luxoft’s perspective on blockchain. We’ll outline where blockchain currently stands and where it’s heading in the future.
Director, Luxoft Digital