IBM has identified what it sees as the three key elements for successful enterprise blockchain adoption.
The three principles are designed to help c-suite leaders effectively evaluate whether blockchain solutions are right for their business.
The business tech giant believes that blockchain applications had the potential to become ‘as revolutionary a technology for business transactions as the internet was communications’.
According to the World Economic Forum, reducing the barriers within the international supply chains could give global GDP a 5% boots and increase total volume by 15%.
IBM believes that blockchain can reduce delays and spoilage, potentially saving billions of dollars annually.
The three elements every CEO needs to consider are:
1.) Huge potential changes to trade, transactions and business processes
Blockchain is essentially smart, tamper-resistant way to record trade, transactions and business processes. Members of a network use a ledge that all members have access to and which is synced across the entire network.
Any transaction of tangible or intangible assets before it is approved and stored on the blockchain.
As more and more businesses begin to adopt and see the benefits of blockchain, are those late or non-adopters going to begin to suffer in terms of perceived legitimacy and transparency?
2.) The value is in the ecosystem
A business blockchain network can include different kinds of participants. IBM believes that the real value of blockchain will be released as these business networks grow.
By achieving strong ecosystems these networks will “more easily reach critical mass allowing the users to build new business models and reinvent the transaction process.”
3.) the scope to improve visibility and trust is large
Not only do blockchains reduce transaction settlement times to seconds, they do so while providing complete visibility to all participants.
There is theoretically no need for costly intermediary third-parties that are typically used to verify transactions. The transparency and trust implicit in the network can also curtail illicit practices, fraud and cybercrime.
“The visionaries adopting blockchain today are using the technology to reinvent many fundamental business practices. Working with clients to develop open source and permissioned blockchain solutions for the enterprise, we are seeing firsthand how the technology is revolutionizing the way organizations recognize value and do business with one another,” said Marie Wieck, general manager, IBM Blockchain.
“Critical success factors in these engagements are top-down executive support for innovative use cases and bringing key network participants into the dialogue from the start.”
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