Like an overloaded electric outlet during the holiday season, blockchain and its offspring, cryptocurrency and digital tokens, are the answer to every problem, they are the hammer when every problem is a nail. Blockchain will solve all problems that we have faced in business and technology since beginning of time….not.
Blockchain will solve all problems that we have faced in business and technology since the beginning of time….not.
In my business, I spend the vast majority of my time helping businesses, business executives and business operational teams design business models that are powered by blockchain; I help them align new business models 100% with the capabilities enabled by blockchain and design businesses for the new, distributed economy.
There are good reasons to use blockchain. As I’ve written before, understanding the business possibilities allows you to take innovative to a whole new level. While speaking, advising and supporting use case development, I have noticed that understanding, simply, where to draw the line on the use of blockchain is not well understood. Therefore, you can ask yourself the following questions to help guide you to understand if blockchain is the answer:
If any of the above questions are no, you should seriously review and honestly ask yourself, “can I build my business with a traditional business model based on traditional centralized paradigms and technology?”
In addition to the basic measures outlined above, as you design your business, if your business requires an intrinsic source of funding, where a payment is paid by the system rather than a third party, a token, you need to ask yourself the following question:
If you answered yes to the above questions, you most definitely need blockchain, however, if you take away either, and your business does not fall apart, “you don’t need a cryptocurrency and you may not need blockchain.”
I feel like I’ve done good when I help businesses understand that they don’t need blockchain for the idea they are pursuing. Using blockchain when it isn’t required is a very expensive proposition with survival ramifications. If you try to force fit blockchain into your current business without a business model redesign, you will at best be wasting money and hampering your business operations, and at worst jeopardizing your businesses future. Designing a business that is fueled by blockchain, however, is an evolving skill; a skill that most don’t hold as up until two years ago, the economic and operational models for business design only varied slightly.
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Designing a business that is fueled by blockchain, however, is an evolving skill; a skill that most don’t hold as up until two years ago, the economic and operational models for business design only varied slightly.
In the end, if your business model needs the above capabilities or if having been designed for the new blockchain economy excels with these capabilities, then blockchain is for you.
Originally published at https://www.linkedin.com on October 27, 2017.
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