5 ways to tell if your business needs blockchain
There is no doubt that blockchain is a buzzword in the world of business right now, but should you consider it for your needs? To help you make that decision, here are 5 things you need to ask yourself beforehand.
Are we ready to trailblaze in the world of technology?
Blockchains offer businesses a shared, secure, and totally immutable record of transactions across either a public or private network. By embarking on a blockchain project, your business will need to “go big”, something that requires commitment from you. A good example would be that of businesses operating in global supply chains. Blockchain can be used to simplify documentation processing between carriers, customs, and logistics providers (resulting in a 60% reduction in timeframes) but it requires entities working together over and on the same network.
Does our organisation want to join an extended business network to improve processes?
For many the answer will be “yes, of course”, but making a move of this type requires the willingness to change the way you have always done things, as well as allowing others to both verify and produce business results. For example, after signing up preferred vendors and other industry stakeholders onto a blockchain-based energy consortium, a solar design business was able to speed up the work process by sharing one set of specs over the entire platform. This way, all stakeholders including the customer had full visibility of the entire process from start to finish and changes and approvals could be communicated to everyone, instantly.
Do we need to authenticate or verify digital or physical assets as a part of our business model?
One of the best ways of using blockchain technology is for the tracking and authentication of digital assets such as music, digital wallets, education certificates, movies, and mortgage contracts, with each one having a digital transaction lodged against it. The blockchain can also be used to keep tabs on things such as diamonds, gold, organic foot, artwork, even though they require being checked “off-chain”. In cases such as these where authenticity and the history of a product need to be verified, it is up to trusted sources in the supply chain to audit each asset, which can prove tricky.
Do our business processes involve specific contract terms that could benefit from faster automated processes or payments?
If your business model involves contracts or sign-offs from multiple individuals, then you can benefit from blockchain. Law firms, real estate agencies, supply chains- all of these can benefit from trusted parties involved being able to see a log of all transactions that have occurred. The blockchain is particularly suited to automating smart contracts between two or more parties.
Do we trust our blockchain participants to act in good faith or do we need to incentivise them?
For example, two food distributors in France are building a blockchain ecosystem of over 500 organic suppliers to authenticate and certify where the organic foods have come from. In this case, the authentication of products relies on other individuals involved in the process meaning there is always a margin for error. In cases such as this, incentivising these individuals with tokens for their accurate participation can help to maintain the integrity of the network.
E&S Group are experienced in all matters related to blockchain, cryptocurrency and tokenomics. Our team of experts can help you decide whether you want to create your own blockchain project or implement such technology into your existing business. Send us an email at [email protected] and we will ‘make things happen’!