Blockchain technology is a once in 25 year revolution. It provides many new advances for business and society. Fundamentally it offers a way of validating trust between unknown parties. This will speed transactions and verified data capture in real time. In commercial activity it will enable Straight Through Processing and can improve operational efficiencies by 30% or more. This rapidly advancing technology is able to bring people and their data together in a decentralised way, without the delay and cost of a middleman for verification.
There are different types of chains with different use-cases. Private or Permissioned chains work with a network of known or co-operative peers. Public chains allow any one party to exchange data or value with any other unknown party in a trusted way.
All Blockchain members or ‘nodes’ maintain and see the same ‘validated’ version of the ‘truth’. It is a dynamic and time sequenced database in that regard.
Even more powerful is the business logic layer. This is built as a ‘Smart Contract’ or designed into Blockchain Apps (known as distributed Apps) that are a second layer on top of the database. These execute automated communications and transactions.
A Blockchain will update every few minutes so that everyone on the network sees the same current version of the situation. Data checking and transaction reconciliation can be vastly simplified.
Then with verified data, that second layer can execute business logic in an automated way between multiple parties when certain conditions are met. This programmable capability means that many business functions can be automated.
And because the data is already validated the business function is carried out on reliable information. There is no reconciliation step required.
Blockchain smooths the flow of information between people and between organisations. It ensures that processes can be automated and happen in real time. Transactions and data will not be exchanged unless certain conditions are met by both parties or organisations.
It means that there are big opportunities now for a new ecosystem with joined up systems that streamline operational processes. This could result in a reduction of up to 30% of operational tracking and reconciliation costs. It also means that transactions and communication between parties and partners can occur in real time.
This is rapidly advancing technology. It takes a while to ‘get it’ so you and your organisation need to start now.
You need to begin to get your head wrapped around this in the first instance. The first use cases are being rolled out now into production. Bitcoin is one of them. But that’s just a starter. All major corporates have teams working on this new area. They are scared. They know it could rearrange the winners, fast. But they also see opportunity.
First, you need to understand it.
Second, you need to do a strategic assessment of your industry and the dynamics of the new ecosystem and how it will impact you.
Once you are clear how things could change you can take a decision to consider a Blockchain approach that suits the stage of evolution. You want to be aware, ready and experimenting with operational efficiency gains in the first instance. You also want a helicopter line of sight on how this could change the industry at a strategic level.
The reason to get into it now is because there is a learning curve with Blockchain. This means there is a lag time to start grasping how it will change your world. It’s important to see the threats and opportunities that lie ahead.
We can run some trial Blockchain concepts to help you test new ideas in a Sandbox environment.
New business models are evolving using this technology and it is important to know how that could play out in your industry and what that will mean for you. Great fortunes will be lost and made. The best way to see the opportunities is to understand them before your competition.
Chain Ecosystems is run by Kris Vette M.Phil, B.Sc, PG Dip Admin, Dip Bus Stud.
Kris has spent his career in high reliability industries, both at executive management level and in business process re-engineering. He has worked in the UK, US and Australasia. While in the UK he managed at senior level in the NHS. He has also consulted in Change Management, Quality Improvement, and worked in Pharmaceuticals and NGOs. In the NHS he was responsible for the Quality Improvement Program across two London hospitals. In New Zealand he ran the project to standardise best practice clinical care across the three largest District Health Board’s and was on the National Stroke Advisory Committee.
Additionally Kris has significant experience in Start Ups and has developed high reliability process tracking software.
Over the last few years he has seen the significant advantages that blockchain will bring in both operational efficiencies and decentralised business models.