Market Disruptors’ Influence on Blockchain’s Future
Right at this moment, someone, someplace, is building a blockchain solution to stimulate innovation and disruption of conventional business models. This is transpiring in implicitly every industry and most fields globally. Indeed, we are now witnessing an evolution in business.
The world has seen amazing emerging technologies in recent times, and it is interesting to note that they have begun to disrupt industries and sectors. One of such technologies is Blockchain; the decentralized digital ledger technology has proven to be a wonder and has begun to cause a stir in the financial industries and other sectors. At first, they functioned as the underlying technology for cryptocurrencies; however, it was discovered that its features like immutability, transparency, data security, etc. made it a technology that could be adopted for use with any form of system that functions with data.
Further exploitation of the technology has led to the creation of several blockchain-based platforms and applications, and at the moment, more blockchain-based systems are still being created to bring solutions to the challenges that come from using traditional business models. Interestingly, the disruptions caused by blockchain technology are affecting almost every industry, and it is happening globally. It is safe to say that the evolution of commerce in the world has begun, and we are grateful for that.
Back to the Future
The need to deliver goods and people to different parts of the world began so many years ago, and over time commerce evolved, as people sort out ways to regulate and rely on a system that could move goods over long distances, and thus created an avenue for new markets to emerge. In 1990, the future of commerce was created that would take commerce to new frontiers globally, and this system was called “the internet,” and it was basically a technology of interconnected network of computers sharing data and information with each other. With the aid of the internet, global communications and commerce got enabled. The internet paved the way for the creation of a plethora of other innovative technologies essential to enhance commerce globally, and the blockchain technology is one of such technologies, as it has the ability to break a lot of boundaries put up by the centralized methods of handling commerce.
The world of blockchain has continued to grow since inception, and this is due to the fact that new entrepreneurs are partnering with veterans in the industry to begin new systems and organizations. It will interest you to know that the fast-rising disruptors are using a different approach with the blockchain technology compared to traditional and legacy organizations. The disruptors are looking to change how business is performed across the different sectors and industries, while the legacy organizations are just interested in slowly adopting the technology to surmount some challenges.
Business models that are built around blockchain technology will be decentralized, and thus cause a paradigm shift in commerce. At the moment, there are different blockchain use cases that are disrupters of industries, and they include:
- A token and incentive-backed economy.
- Smart contracts can identify parties involved in a contract, and thus identify and penalize defaulters.
- Solutions to digital identities.
- Enhanced security and improved verification solutions.
The use cases mentioned above have their different applications in different industries; however, it is important to take cognizance of the complexities involved, especially as regards the regulatory provisions guiding the application of the technology to the different industries, while taking the environment, strategy and best practices into consideration. Some of the areas to consider include the following:
There is a need to have these regulations in place in order to successfully make blockchain a mainstream technology to be adopted by more companies, businesses, and organizations.