Blockchain is certainly the future of many business sectors. From finance to food, it will radically change a lot of aspects of the daily life of every company.
Everything will run faster than now, and a lot of operations will be automated. Security of enterprises’ databases will be rock solid and they will no longer need costly networks to exchange data.
However, entrepreneurs who decided to implement Blockchain in their business are still too few. If Blockchain is so powerful, and the future is so bright, how come too many companies choose not to try it?
We might know the reasons. Follow us.
Innovation can be overwhelming
When we think about innovation in business, our mind immediately jumps to start-ups. They are small, agile, cheap to maintain, and have enough funds to research and develop something new on their market, thanks to the multitude of investors who invest on them.
We regularly hear of a new start-up around the world that invented a successful business model and their product or service is becoming more and more popular. What we ignore, however, is that those successful start-ups are only a tiny, delicious slice of a massive cake made of failures.
The most successful businesses are those with established procedures, contracts, and policies that have been in place for years. Probably, their CEO invested in systems, technology, compliance, workflows. And they work well. If that is the case, it is unlikely that they decide to pull everything down in order to implement a new technology they know very little about.
Small tests can be run, though. If you are thinking about implementing Blockchain, you do not have to take a leap into the unknown. Inquire a Blockchain consultant and tread lightly.
Compliance and other challenges
Blockchain is going through a lot of regulatory challenges, and while some countries have an open approach and allow crypto-friendly banks to prosper, some other countries like Switzerland, UK, and Italy are still holding their breath before taking the jump, even though they are willing to do so.
Furthermore, in Europe there is still that old GDPR issue that is yet to be totally solved. Although new opportunities are coming, there are still some issues to adjust.
Blockchain needs technicians and experts to be successfully run, at least in the early period after the adoption. This means a major investment in human resources, with recruiting, training, coaching, and consulting.
Security is also another major concern: many blockchains work with open databases. Notwithstanding the encryption algorithm, strong access control is required in these cases. According to a survey by Deloitte, 20% of senior exectuives worldwide are worried about sensitive competitive information ending up on the shared database.
Is Blockchain ill-fated?
History is full of inventions that took very long before being adopted by masses. Blockchain is definitely promising, and all the hype around it is tells us it won’t take long to see Blockchain-based companies become ordinary stuff.
No company would say no to:
- A network not owned by a single, private entity;
- Data protected by cryptography;
- Immutable data in order to prevent any manipulation;
- Chance to automate processes;
- Controlled access;
- Tokenisation of assets and commodities;
- Supply chain traceability;
- Effective and fast KYC;
- Chance of saving money on middlemen and solicitors.
As soon as more companies turn to Blockchain, their competitors will do so. Just a matter of time, and from a spark, a fire will flare up.