After two sequels, today we bring the last insight about blockchain - untapped potential.
Blockchain maximalists will cite blockchain as the complete and final solution to a range of operational inefficiencies. However, the reality is that there are a number of technologies that can compete with blockchain technology in some sectors. This is especially evident in the financial sector.
"Numerous fintechs are disrupting the value chain. Of nearly $12 billion invested in US fintechs last year, 60 percent was focused on payments and lending. SWIFT's global payments innovation initiative (GPI), meanwhile, is addressing initial pain points through higher transaction speeds and increased transparency, building on bank collaboration," reported from McKinsey & Company.
In addition, implementing a blockchain-based solution may require a significant level of integration with the organization's legacy systems. In the financial sector, this can be a dangerous thing, as it represents significant monetary holdings. There are also legal considerations that must be taken into account when it comes to financial institutions and the systems they use. In addition, many financial institutions are cautious about embracing technology because it can reduce or completely eliminate large portions of existing revenue.
Furthermore, financial institutions face the paradox of collaboration, with many unwilling to invest a significant amount of time, money and human resources in technology that will ultimately benefit their direct competitors.
So the financial sector - supposedly the most obvious case of blockchain use and the most business-friendly sector, has so far proved to be none of these.
So if not finance - then what? Blockchain technology is believed to be best suited to areas other than the financial industry.
If we’re going to go for blockchain-based products that are actually advancing beyond the theoretical stage, these are the sectors which stand out. Experiments in supply chain management, digital identity, and public record sharing have shown the most success. In these situations, it is likely that the simplest solution is blockchain based.