Contact us anytime to know more — Kuldeep K., Founder & CEO CISIN
According to the comparatively slow pace of adoption from all of the hype and hope, executives will need to believe carefully about why, where and how they're adopting blockchain in their daily business enterprise.
In a new report by the World Economic Forum, this questions can be answered. The writers of this report, '' Cathy Mulligan, JP Rangaswami, Sheila Warren, along with Jennifer Zhu Scott outline queries executives will need to inquire before they proceed with blockchain.
As they see, despite strong interest in adopting blockchain, company leaders have "significant concerns and confusion regarding whether blockchain would address their business requirements and had serious concerns regarding safety, immutability and should use a public or private blockchain." There's a demand for practical and objective guidance in cutting through the hype and differentiating where blockchain could add true value to your own companies to cut through the confusion, they add.
Before diving into the blockchain, ask these questions of your own enterprise:
Are you trying to remove intermediaries or brokers?
"It is very important to understand the company context - Does the company problem require the removal of an intermediary? For example, would it be more economical to cooperate directly with suppliers or competitors rather than utilize a clearinghouse? A good instance of that is that the banking industry using a solution like CORDA to handle remittances between themselves; this allows them to provide services faster, securely and much more cheaply compared with existing technologies.
They do this by assessing how business processes are sent in their industry."
Are you currently working with electronic resources (versus physical resources)?
Blockchain needs to work with "'digitally native' resources, meaning resources which could be represented in a digital format.
If an asset has a physical representation which can change shape, then it isn't easy to effectively manage this advantage on a blockchain."
Could a permanent document be made for the digital asset in question?
"A blockchain needs to be the origin of confidence. Whether there are a number of sources of trust concerning the state of an item, then the thing cannot be effectively stored over the blockchain.
In those instances in which a permanent record can be made, it's necessary that all parties that have accountability for the state of the digital advantage in question agree with the way that nation will be handled/managed in the new business process prior to any development happening."
Is a permanent record desired?
"In a scenario where the should delete data is vital, subsequently blockchain or DLT isn't an appropriate solution.
It would not make sense to store an ordinary grocery list on a blockchain."
Can you require high performance, millisecond trades?
If a company process "requires millisecond operation on trades, blockchains are unable to handle this efficiently yet and it's a good idea to utilize present technology or wait till blockchains can manage such transaction speeds.
As of April 2018, numerous kinds of dispersed ledger technology carry involving two- and 10-minute processing time."
Do you intend to save considerable quantities of non-transactional data?
"It isn't currently a good idea to store non-transactional information on a blockchain. If this is required for a specific use case, it is not advisable to use a blockchain.
If, however, the confidence in question is connected to transaction records (instead of the underlying data itself), then a blockchain could be applicable. In all instances, any confidential information or any data which could be in conflict with local and global data-protection regulations, such as GDPR, should not be saved to the blockchain."
Do you will need to rely upon a reliable party?
A trustworthy party may be crucial for liability or compliance reasons, the report states. "If an industry has specific requirements on using intermediaries or trusted partners, then it may be complex to deploy blockchain, even if other advantages of its use are easily apparent.
In use cases where law plays a big part, it can be essential to include regulators at the project and deliver means where the authorities can ensure compliance with laws, including antitrust and environmental regulation."
Are you handling contractual relationships or value exchange?
"For blockchain to assist in cutting costs and providing real business value, it is important that a blockchain looks at handling transactions around digital assets - if a company problem isn't actually about managing contractual relationships and value exchange, then there's minimal demand for a blockchain - a different technology could probably address that problem more effectively."
Do contributors know and trust each other?
"In case the actors/entities already understand one another and trust one another, there's most likely no need for blockchain.
If they don't understand or trust one another and/or have misaligned interests, then there may be a great reason to utilize blockchain."
Do you will need to have the ability to command performance?
"When the ability to change the functionality to a blockchain (e.g., node supply, permissions, participation rules, etc.) without having a comprehensive debate across the huge open discussion forums such as blockchain is desired, then you need to choose a personal, permissioned blockchain."
