How to Determine if Blockchain is Right for Your Company

Blockchain technology has been a buzzword in recent years and has the potential to revolutionize industries by providing a secure, transparent, and tamper-proof digital ledger. However, it is not a one-size-fits-all solution for every business, and not all the blockchain projects have a happy ending. So, how to determine if blockchain is right for your company?

In his recent article on Security Boulevard, “9 Reasons Blockchain Projects Fail (And How to Succeed),” Rob Brown states that “at least 95% of enterprise blockchain projects end in failure.” Some of the main reasons for this include a lack of vision and understanding of the purpose of blockchain, the high expense of implementing blockchain, regulatory compliance, unpredictable budgets, and more.

In this article, we will explore real-life examples of companies that have successfully adopted blockchain, provide a list of key questions to ask before adopting it, and discuss the factors that should be considered when deciding if the time is right to adopt blockchain.

Real-Life Examples of Blockchain Adoption

Several companies have successfully implemented blockchain technology to solve complex problems. For instance, Walmart, one of the largest retailers in the world, has adopted blockchain to track the supply chain of food products from farmers to consumers. This technology enables Walmart to trace the origin of products and quickly identify any potential safety issues.

Another example is De Beers, one of the largest diamond producers in the world. They have implemented a blockchain-based system to track the origin of diamonds from mine to retailer. The system provides transparency and helps prevent the sale of conflict diamonds.

Nestle is using blockchain to trace the origin of coffee beans from farm to cup. The system provides transparency for customers and helps ensure that coffee beans are ethically sourced and sustainably grown.

In the financial sector, JP Morgan has developed a blockchain platform called Quorum, which is used to settle securities transactions in real-time. The platform enables the bank to reduce settlement times, increase transparency, and minimize risks.

However, there are real-world examples of unsuccessful blockchain adoption. One such instance is the failed blockchain project in the supply chain industry by Maersk and IBM, who shut down their TradeLens blockchain platform, ending a five-year project. “TradeLens has not achieved the level of commercial viability necessary to continue to operate as an independent company and meet financial expectations,” said Rotem Hershko, head of enterprise platforms at Maersk.

Key Questions to Ask Before Adopting Blockchain

Adopting blockchain technology requires careful evaluation of various factors, including the business problem that needs to be solved, the cost and scalability of the solution, the availability of skilled resources, and the technical considerations involved.

Before deciding to adopt blockchain, businesses should ask themselves several key questions, including:

Problem and Use Case:

• What problem is your company trying to solve, and can blockchain technology address it?

Identify the specific problem your company is trying to solve, such as creating transparent supply chains, secure identity verification, fast payment systems, intellectual property management, decentralized marketplaces, or secure data management and storage. Then, research and evaluate the capabilities and limitations of blockchain technology to determine whether it is the right solution for your use case.

• Do you need immutability for your use case?

Determine whether immutability is critical for your use case. Consider that no records may be corrected or removed from a blockchain system.

• Do you require transparency in transactions and recorded data?

Determine whether transparency is necessary for your use case, especially in situations where data needs to be shared across multiple parties.

• Are you trying to solve a problem that involves multiple organizations or entities?

If so, it’s important to determine if the trust between them is important to the solution.

• Do multiple entities trust each other in this context?

Assess the level of trust between the entities and determine if blockchain technology can help establish trust where it is currently lacking.

• Do you need to remove intermediaries/brokers?

Determine if intermediaries or brokers can be eliminated using blockchain technology.

• Is a consistent state of data storage/transactions required?

Determine whether a consistent state of data storage/transactions is necessary, such as in cases where auditing or regulatory compliance is required.

• Is public verifiability required?

Consider whether public verifiability is necessary, particularly in cases where transparency and trust are crucial.

Cost and Impact:

• What are the costs associated with implementing and maintaining a blockchain solution?

Evaluate the costs associated with implementing and maintaining a blockchain solution, including hardware, software, and ongoing maintenance costs.

• How will blockchain impact your customers and stakeholders?

Determine how blockchain technology will impact your customers and stakeholders, and identify any potential challenges or concerns.

• How will blockchain impact your existing business processes and systems?

Assess the impact of blockchain technology on your existing business processes and systems. Determine whether any modifications or integrations are necessary to ensure a seamless transition.

Technical Considerations:

• Do any performance requirements exist, and if so, can blockchain meet them?

Determine whether there are performance requirements, such as the number of transactions per second or response time, and assess whether blockchain technology can meet those requirements.

• Do constrained devices need to participate in the blockchain network as a node?

Determine whether constrained devices need to participate in the blockchain network as a node, and assess the feasibility of doing so.

• Does your team have the necessary skills and expertise to implement and manage a blockchain solution?

Evaluate whether your team possesses the required skills and expertise to implement and manage a blockchain solution, and determine if additional training or hiring is necessary.

Astrakode Blockchain (AKB) is a comprehensive low-code platform that makes it easy for anyone to create private blockchain networks. With AKB, you don’t need extensive coding knowledge to build and deploy your own blockchain networks and smart contracts. Get started for free by signing up here and create your project.

Answering these questions comprehensively will enable your company to determine whether blockchain technology is an appropriate solution for your use case, the potential impact it may have on your business, and the technical and operational considerations required for successful adoption.

Are you interested in discovering whether blockchain technology is right for your company? Take this short quiz to determine which kind of solution is best for you.

At the end of the quiz, receive an interactive infographic to keep handy for future reference by signing up for our monthly newsletter!

Conclusion

Blockchain is a powerful technology that has the potential to transform businesses by providing secure, transparent, and tamper-proof digital ledgers. However, it is not a one-size-fits-all solution. To determine if blockchain is the right fit, businesses should carefully evaluate the key questions and factors discussed in this article. By doing so, they can make an informed decision and reap the benefits of adopting blockchain technology.