{"id":1886,"date":"2019-08-14T04:57:49","date_gmt":"2019-08-14T04:57:49","guid":{"rendered":"http:\/\/kusuaks7\/?p=1491"},"modified":"2024-05-01T16:14:50","modified_gmt":"2024-05-01T16:14:50","slug":"blockchain-beyond-the-hype","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/blockchain-beyond-the-hype\/","title":{"rendered":"Blockchain Beyond the Hype"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1886\" class=\"elementor elementor-1886\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-4bef3c96 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4bef3c96\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7fa2674e\" data-id=\"7fa2674e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-726c66bb elementor-widget elementor-widget-text-editor\" data-id=\"726c66bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tA recent\u00a0issue\u00a0of\u00a0<em>The Economist<\/em>\u00a0included a special report on cryptocurrencies and blockchains.\u00a0\u00a0<em>The Economist<\/em>\u2019s\u00a0<a href=\"https:\/\/www.economist.com\/leaders\/2018\/08\/30\/bitcoin-and-other-cryptocurrencies-are-useless\" class=\"broken_link\" rel=\"noopener\">overall conclusion<\/a>\u00a0was that \u201cBitcoin has been a failure as a means of payment, but thrilling for speculators.\u201d\u00a0\u00a0Its\u00a0<a href=\"https:\/\/www.economist.com\/technology-quarterly\/2018\/09\/01\/the-promise-of-the-blockchain-technology\" class=\"broken_link\" rel=\"noopener\">assessment<\/a>\u00a0of blockchain was somewhat more positive.\u00a0\u00a0\u201cFor blockchains, the jury is still out,\u2026 For all the technology\u2019s potential, though, most attempts to use it remain tentative,\u2026\u00a0\u00a0The advantages of blockchains are often oversold.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc3fd74 elementor-widget elementor-widget-text-editor\" data-id=\"bc3fd74\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn 2016,\u00a0<a href=\"https:\/\/www.weforum.org\/agenda\/2016\/06\/the-blockchain\" class=\"broken_link\" rel=\"noopener\">blockchain made the list<\/a>\u00a0of the\u00a0<a href=\"https:\/\/www.weforum.org\/\" class=\"broken_link\" rel=\"noopener\">World Economic Forum<\/a>\u2019s\u00a0<a href=\"https:\/\/www.weforum.org\/agenda\/2016\/06\/top-10-emerging-technologies-2016\/\" class=\"broken_link\" rel=\"noopener\">Top Ten Emerging Technologies<\/a>.\u00a0 That\u00a0<a href=\"https:\/\/www.gartner.com\/smarterwithgartner\/3-trends-appear-in-the-gartner-hype-cycle-for-emerging-technologies-2016\/\" class=\"broken_link\" rel=\"noopener\">same year<\/a>, blockchain also made its first appearance in Gartner\u2019s\u00a0<a href=\"https:\/\/www.google.com\/search?client=safari&amp;rls=en&amp;tbm=isch&amp;sa=1&amp;ei=PtqTW9_CNI-85gLH4qmQCA&amp;q=gartner+hype+cycle+2018&amp;oq=gartner+hype+cycle+201&amp;gs_l=img.1.0.0j0i67l3j0l2j0i67l2j0j0i67.160235.160235..162422...0.0..0.63.63.1......1....1..gws-wiz-img.BqQ1NHNX_kY#imgrc=uDjayXqjgAeZVM:\" rel=\"noopener\">yearly hype cycles<\/a>.\u00a0 Even\u00a0<em>The Economist<\/em>\u00a0has been guilty of overselling when it featured blockchain in\u00a0<a href=\"https:\/\/www.economist.com\/printedition\/covers\/2015-10-29\/ap-e-eu-la-me-na-uk\" class=\"broken_link\" rel=\"noopener\">the cover<\/a>\u00a0of its October 31, 2015\u00a0issue\u00a0with the tag line \u201cThe Trust Machine: How the technology behind Bitcoin could change the world.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-39ce6a1 elementor-widget elementor-widget-text-editor\" data-id=\"39ce6a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIs there too much hype surrounding blockchain?\u00a0\u00a0Absolutely,\u2026 but not surprising.\u00a0\u00a0All potentially transformative technologies are oversold in their early stages.\u00a0\u00a0Remember the\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble\" rel=\"noopener\">dot-com bubble<\/a>\u00a0of the late 1990s.\u00a0\u00a0Blockchain is still in its\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2017\/07\/is-blockchain-ready-to-cross-the-chasm-lessons-from-the-internet.html\" rel=\"noopener\">early phases<\/a>\u00a0of experimentation and adoption.\u00a0\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2017\/07\/realizing-the-potential-of-blockchain.html\" rel=\"noopener\">Much work<\/a>\u00a0remains to be done on standards, platforms, interoperability, applications and governance.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ed158ed elementor-widget elementor-widget-text-editor\" data-id=\"ed158ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tBut, does blockchain have the potential to become a truly transformative technology over time?\u00a0 Yes, said McKinsey in a recent article on the strategic value of\u00a0<a href=\"https:\/\/www.mckinsey.com\/business-functions\/digital-mckinsey\/our-insights\/blockchain-beyond-the-hype-what-is-the-strategic-business-value?cid=other-eml-ttn-mip-mck-oth-1806&amp;hlkid=fe882ae1886e4885b783f4370374c5aa&amp;hctky=2259579&amp;hdpid=f3a30356-6857-47f4-a1a5-0d0e5ff12a0a\" class=\"broken_link\" rel=\"noopener\">blockchain beyond the hype<\/a>.\u00a0\u00a0The article starts out by acknowledging that all the hype around blockchain makes it difficult to nail down not just blockchain&#8217;s long term strategic value, but also\u00a0what it actually is and what it isn\u2019t in the present.\u00a0To make sure everyone is on the same page, the article first recaps what it calls \u201cthe nuts and bolts of blockchain.\u201d\u00a0 Let me start by summarizing blockchain\u2019s\u00a0<em>nuts and bolts<\/em>.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b19a76c elementor-widget elementor-widget-heading\" data-id=\"b19a76c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2>\u00a0<strong>What is blockchain?<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-81464db elementor-widget elementor-widget-text-editor\" data-id=\"81464db\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li>A distributed database or ledger that is shared by participants in an ecosystem over a public or private computing network.<\/li>\n<\/ul>\n<ul>\n \t<li>Every piece of information in the ledger is secure because it\u2019s encrypted using\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Public-key_cryptography\" rel=\"noopener\">public-key cryptography<\/a>, which can only be decrypted with the appropriate private key.<\/li>\n<\/ul>\n<ul>\n \t<li>Each participant in the network has an identical copy of the ledger in their computer; its contents are only available to those with the proper private\/public keys.<\/li>\n<\/ul>\n<ul>\n \t<li>New information can only be added to a blockchain; it cannot be removed or overwritten, thus creating a perfect audit history of all the transactions in a ledger.<\/li>\n<\/ul>\n<ul>\n \t<li>Various consensus protocols are used to validate a new block among ecosystem participants before it can be added to the ledger.<\/li>\n<\/ul>\n<ul>\n \t<li>Ledgers can include smart contracts, that is programs automatically triggered when a set of pre-specified conditions are met.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-56c646c elementor-widget elementor-widget-heading\" data-id=\"56c646c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Common blockchain myths and misconceptions<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b28f7ec elementor-widget elementor-widget-text-editor\" data-id=\"b28f7ec\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Blockchain and bitcoin are the same thing<\/em>.\u00a0\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Blockchain\" rel=\"noopener\">Blockchain<\/a>\u00a0was created a decade ago as the public transaction ledger for\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Blockchain\" rel=\"noopener\">Bitcoin<\/a>.\u00a0\u00a0Bitcoin was the first application supported by blockchains, but there are now many others.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-11f4e8c elementor-widget elementor-widget-text-editor\" data-id=\"11f4e8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Blockchain is better\/worse than traditional databases<\/em>.\u00a0\u00a0Blockchain enables the members of an ecosystem to securely share data even if all the members are not fully trusted.\u00a0\u00a0But there are significant drawbacks, including performance and complexity.\u00a0\u00a0Whether blockchain is right for a particular solution depends on the trade-offs between its benefits and drawbacks.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4981563 elementor-widget elementor-widget-text-editor\" data-id=\"4981563\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Blockchain is a \u201ctruth machine\u201d<\/em>.\u00a0\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Garbage_in,_garbage_out\" rel=\"noopener\">Garbage in, garbage out<\/a>.\u00a0\u00a0Blockchain is just a means to securely share the data stored in it.\u00a0\u00a0As is the case with any other data base, blockchain by itself cannot vouch whether the data entered is actually correct and truthful.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-97857be elementor-widget elementor-widget-heading\" data-id=\"97857be\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Key blockchain use cases<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-97b8880 elementor-widget elementor-widget-text-editor\" data-id=\"97b8880\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tBlockchain use cases fall into two fundamental categories:\u00a0<em>record keeping<\/em>, &#8211; static registries of data about highly valuable assets; and\u00a0<em>transactions,<\/em>\u00a0&#8211; dynamic registries of the exchange of tradeable assets.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e669c0 elementor-widget elementor-widget-text-editor\" data-id=\"6e669c0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<em>Record keeping<\/em>\u00a0use cases include the long term safeguarding of data on valuable physical and digital assets, &#8211; e.g., land and house titles, patents, diamond origins; keeping track of important, identity-related information about individuals, &#8211; e.g., births, marriages, divorces, deaths, voter registration, driver licenses, passports; and executable smart contracts based on pre-defined conditions, &#8211; e.g., insurance-claim payments, music license fees.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4878661 elementor-widget elementor-widget-text-editor\" data-id=\"4878661\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Transaction<\/em>\u00a0use cases include keeping track of data about frequently exchanged assets, &#8211; e.g., supply chain information, financial trades, investments; near-real-time digital payments, &#8211; e.g., payment reconciliations among banks, peer-to-peer payments, cross-border payments; and emerging digital assets, &#8211; e.g., cybercurrencies, initial coin offerings.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72ca7ea elementor-widget elementor-widget-heading\" data-id=\"72ca7ea\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h2><strong>Strategic value of blockchain<\/strong><\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f78c0c elementor-widget elementor-widget-text-editor\" data-id=\"5f78c0c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tMcKinsey\u2019s analysis of over 90 discrete use cases across 14 major industries revealed three core insights about the strategic value of blockchain.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a9da490 elementor-widget elementor-widget-heading\" data-id=\"a9da490\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h3><em>Blockchain does not need to be a disintermediator to generate value<\/em><\/h3><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a86711 elementor-widget elementor-widget-text-editor\" data-id=\"7a86711\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe disintermediation of public and financial institutions was indeed the original objective of Bitcoin and bitcoin\u2019s blockchain.\u00a0\u00a0But, bitcoin\u2019s public, permissionless blockchain is just one kind of blockchain architecture, one with no central authority, where anyone can join, read, write and commit.\u00a0 Permissionless blockchains are hosted on public servers, are anonymous and highly resilient, but suffer from low scalability and high energy usage due to their use of\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/p\/proof-work.asp\" class=\"broken_link\" rel=\"noopener\">proof of work<\/a>\u00a0or\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/p\/proof-stake-pos.asp\" class=\"broken_link\" rel=\"noopener\">proof of stake<\/a>\u00a0protocols.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-12d3d58 elementor-widget elementor-widget-text-editor\" data-id=\"12d3d58\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tMost business use cases are based on private, permissioned blockchains, which are hosted on private servers and networks, and only authorized participants can join as well as control what data is shared, with whom and when.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e2300c elementor-widget elementor-widget-text-editor\" data-id=\"0e2300c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAs was the case with the Internet and World Wide Web a few decades ago, a major part of the excitement about blockchains is that once more, we are developing a\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2016\/01\/the-blockchain-achieves-a-major-milesonte.html\" rel=\"noopener\">potentially transformative platform<\/a>\u00a0based on open standards.\u00a0\u00a0Blockchain protocols could become the universally agreed open standards for trusted records, transactions and identity management among companies, governments, and individuals.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25bf627 elementor-widget elementor-widget-heading\" data-id=\"25bf627\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><h3><em>In the short term, blockchain\u2019s strategic value is mainly in cost reduction<\/em><\/h3><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cb8415f elementor-widget elementor-widget-text-editor\" data-id=\"cb8415f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tOver time, blockchain technologies will enable transformative business models and new revenue streams.\u00a0\u00a0But its initial impact will be to predominately drive operational efficiencies and reduce the costs and complexity in the interactions among institutions doing business with each other around the world, such as record keeping and transaction reconciliation.\u00a0 Supply chain management, financial services, government and healthcare are likely to capture the greatest value in the near term.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d64b03a elementor-widget elementor-widget-text-editor\" data-id=\"d64b03a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\u201cOne of the most promising and transformative use cases is the creation of a distributed, secure digital identity &#8211; for both consumer identity and the commercial know-your-customer process &#8211; and the services associated with it.\u00a0\u00a0However, the new business models this would create are a longer-term possibility due to current feasibility constraints.\u201d\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5061b29 elementor-widget elementor-widget-heading\" data-id=\"5061b29\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><h3><em>Feasibility at scale is likely to be three to five years away<\/em><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c84487a elementor-widget elementor-widget-text-editor\" data-id=\"c84487a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAccording to McKinsey, the feasibility of deploying a blockchain solution at scale is dependent on four key factors:\n<ul>\n \t<li>Common standards are essential, &#8211; this is a major limitation in blockchain\u2019s ability to scale.<\/li>\n<\/ul>\n<ul>\n \t<li>Technology must advance, &#8211; blockchain\u2019s relative immaturity limits its current viability.<\/li>\n<\/ul>\n<ul>\n \t<li>Assets must be capable of being digitized, &#8211; this is critical for improving record keeping or transacting via blockchain; for physical assets, it requires enabling technologies like IoT and biometrics.<\/li>\n<\/ul>\n<ul>\n \t<li>The coopetition paradox must be resolved, &#8211; \u201cBlockchain\u2019s major advantage is the network effect, but while the potential benefits increase with the size of the network, so does the coordination complexity.\u201d<\/li>\n<\/ul>\nFinally, the report recommends that companies follow a structured, disciplined approach in implementing blockchain strategies:\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66c4a6d elementor-widget elementor-widget-text-editor\" data-id=\"66c4a6d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Focus on specific, promising use cases<\/em>. \u201cIdentify value by pragmatically and skeptically assessing impact and feasibility at a granular level and focusing on addressing true pain points with specific use cases within select industries.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb918d6 elementor-widget elementor-widget-text-editor\" data-id=\"eb918d6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<em>Optimize blockchain strategy based on market position<\/em>.\u00a0\u00a0\u201cCapture value by tailoring strategic approaches to blockchain to their market position, with consideration of measures such as ability to shape the ecosystem, establish standards, and address regulatory barriers.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Is there too much hype surrounding blockchain?&nbsp;&nbsp;Absolutely,&hellip; but not surprising.&nbsp;&nbsp;All potentially transformative technologies are oversold in their early stages.&nbsp;&nbsp;Remember the&nbsp;dot-com bubble&nbsp;of the late 1990s.&nbsp;&nbsp;Blockchain is still in its&nbsp;early phases&nbsp;of experimentation and adoption.&nbsp;&nbsp;Much work remains to be done on standards, platforms, interoperability, applications and governance.&nbsp; But, does blockchain have the potential to become a truly transformative technology over time?&nbsp; Yes, said McKinsey in a recent article on the strategic value of&nbsp;blockchain beyond the hype.&nbsp;<\/p>\n","protected":false},"author":612,"featured_media":3628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[98],"ppma_author":[3320],"class_list":["post-1886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain"],"authors":[{"term_id":3320,"user_id":612,"is_guest":0,"slug":"irving-wladawsky-berger","display_name":"Irving Wladawsky-Berger","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Wladawsky-Berger","first_name":"Irving","job_title":"","description":"Irving Wladawsky-Berger, a Guest Columnist at WSJ CIO Journal, is Research Affiliate at MIT Sloan School of Management, Adjunct Professor at Imperial College, London, and Chairman Advisory Board at r4 Technologies."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/612"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=1886"}],"version-history":[{"count":6,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1886\/revisions"}],"predecessor-version":[{"id":36822,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1886\/revisions\/36822"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3628"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=1886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=1886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=1886"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=1886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}