{"id":1985,"date":"2019-10-01T03:12:50","date_gmt":"2019-10-01T03:12:50","guid":{"rendered":"http:\/\/kusuaks7\/?p=1590"},"modified":"2024-03-18T17:07:02","modified_gmt":"2024-03-18T17:07:02","slug":"cios-cant-ignore-these-5-realities-of-blockchain","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/cios-cant-ignore-these-5-realities-of-blockchain\/","title":{"rendered":"CIOs can\u2019t ignore these 5 realities of blockchain"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tWhat would happen if a car automatically negotiated its own insurance rate, or if centralized banks were no longer necessary to verify payments? What if neighbors could buy energy directly from each other\u2019s solar panels? What if a contract enforced its own clauses?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\nThese scenarios might seem overly futuristic, but\u00a0the reality is that blockchain\u00a0<\/a>could make all of them possible. The more important question is how might these changes affect the enterprise, and how can the organization take advantage of this technology?\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tFew enterprises have deployed blockchain, yet it can\u00a0significantly impact<\/a>\u00a0broad swaths of the business. The low adoption of blockchain technologies lulls many\u00a0CIOs\u00a0into thinking they don\u2019t yet have to take action, yet the opportunities for blockchain technology are massive.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOnly 4 per cent of enterprises expect that blockchain will be a game-changer for them, according to the 2019 Gartner CIO Survey. Furthermore, only 11 per cent of enterprises have deployed \u2014 or will deploy over the next year \u2014 even minimal, blockchain-inspired technologies.\u00a0CIOs<\/a>\u00a0need to start thinking about what value blockchain can add to their organization and how to tackle its challenges over the next five years.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Reality #1: Blockchain provides a spectrum of opportunities that evolve over time<\/b><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBlockchain is not a monolithic technology. The term blockchain actually encompasses a wide range of technologies, from smart contracts to tokens to consensus models that will continuously mature and become available. In turn, CIOs should plan for incremental evolution of their own blockchain strategies.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBlockchain is not a monolithic technology. The term blockchain actually encompasses a wide range of technologies, from smart contracts to tokens to consensus models that will continuously mature and become available. In turn, CIOs should plan for incremental evolution of their own blockchain strategies.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tBlockchain technologies fall into four phases on the\u00a0Gartner Blockchain Spectrum<\/a>:\n
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  1. Blockchain-enabling<\/b>: These are the building blocks of blockchain, including encryption and consensus algorithm, distributed computing infrastructures, tokens and others.<\/li>\n \t
  2. Blockchain-inspired:\u00a0<\/b>Technologies in this stage combine some elements of blockchain, but lack two core elements: decentralization and tokenization.<\/li>\n \t
  3. Blockchain-complete:\u00a0<\/b>These solutions have all five elements of blockchain. They are decentralized, immutable, encrypted, tokenized and distributed.<\/li>\n \t
  4. Blockchain-enhanced<\/b>: Alongside the five elements of blockchain, blockchain-enhanced is combined with technologies such as artificial intelligence (AI) and the Internet of Things (IoT) for more intelligent solutions.<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Reality #2: Blockchain can change your operating model, not necessarily your business model, in the next 5 years<\/b><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tWhile blockchain will eventually change the core of a business, in the next five years it will mostly affect how an organization executes its business. Focusing solely on how blockchain is being used today (i.e. efficiency and record keeping) is limiting. CIOs should look for opportunities to leverage blockchain technology for deeper business changes that can drive real value.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tBegin by looking for areas where blockchain could strengthen the organization\u2019s value proposition, and propose projects that could truly differentiate the organization. Put real thought into how this technology could benefit the business, versus just purchasing a cool \u201cdisruptor\u201d venue.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Reality #3: Blockchain offers the ability to create a multi-asset digital economy<\/b><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tIt\u2019s time to think creatively about tokenization and digitally representing assets in the marketplace. For some organizations this will increase efficiency, and for others, it will enable entirely new markets. Consider how tokenization would be helpful in current business operations and in the future, and talk to ecosystem partners about tokenization\u2019s\u00a0potential and challenges.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Reality #4: Blockchain enables a new society, but doesn\u2019t solve trust problems at all levels<\/b><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tOne of the main elements of blockchain is decentralization. It removes central authorities from the process and enables a level of trust between two parties who have never done business together. This means that the definition of participant will expand beyond individuals and businesses to include smart contracts, distributed ledgers, connected things and DAOs.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tBlockchain will facilitate the interactions between all of these participants and enable a new society, but it cannot solve all trust problems. For example, any goods that are physical or not completely digital, would gain limited (if any) trust value. Create a map that highlights potential gaps and weak spots, and don\u2019t oversell blockchain technologies to executives as a solution to every problem.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Reality #5: The programmable economy will set the terms of competition in the future<\/b><\/h3><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tThe reality is that blockchain and its core elements will radically alter not only the business world, but the world in which businesses exist. Blockchain will allow autonomous ecommerce and eventually a programmable economy.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tA programmable economy results from applying distributed computational resources, such as blockchain at scale, in a decentralized manner to support exchanges of monetary and nonmonetary value between people, organizations and artificial agents that have a legal standing equivalent to today\u2019s corporations and individuals. This will eventually evolve into a\u00a0digital society<\/a>, as consumers change behaviors and adopt new practices. Organizations will need to develop the technology, but also the ethics and practices to exist in the digital society.\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":"

    What would happen if a car automatically negotiated its own insurance rate, or if centralized banks were no longer necessary to verify payments? What if neighbors could buy energy directly from each other\u2019s solar panels? What if a contract enforced its own clauses? These scenarios might seem overly futuristic, but\u00a0the reality is that blockchain\u00a0could make<\/p>\n","protected":false},"author":649,"featured_media":4111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[98],"ppma_author":[3400],"class_list":["post-1985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain"],"authors":[{"term_id":3400,"user_id":649,"is_guest":0,"slug":"rajesh-kandaswamy","display_name":"Rajesh Kandaswamy","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Kandaswamy","first_name":"Rajesh","job_title":"","description":"Rajesh Kandaswamy is Chief of Research (Technology & Service Providers) & Gartner Fellow, and Analyst covering Blockchain, Fintech & Banking."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1985","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\/649"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=1985"}],"version-history":[{"count":5,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1985\/revisions"}],"predecessor-version":[{"id":36472,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1985\/revisions\/36472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/4111"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=1985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=1985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=1985"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=1985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}