Could my Business Adopt Blockchain Technology?

Lupercal Capital advises existing companies and start-ups on successfully applying blockchain technology to their business. To learn more, go to Lupercalcapital.com or email enquiries@lupercalcapital.com to discuss with our expert team.

Background

Whether bitcoin’s price recovers to US20k, rises beyond that, or falls significantly, what is clear is that the underlying blockchain technology that bitcoin pioneered is here to stay.

The blockchain’s potential has been recognised for some time by financial institutions, major technology companies, governments, academics and forward-thinking firms (including in work by Lupercal Capital’s experts in 2013/14).

As we have written previously, there are parallels between businesses’ adoption of blockchain technology and adoption of the internet by businesses in the late 1990s-2000s.

We are still at the start of this process, and businesses that undertake a considered, strategic review of whether and how they could utilise the technology set themselves up for long term success.

Blockchain 101

The blockchain technology has been described comprehensively elsewhere — it is fundamentally a form of distributed ledger (explained simplistically here, or in more detail here). One of the key developments the blockchain represents is that it allows effective record keeping by a range of people on a distributed network, rather than on a single record-base (which is typically a centralised, third-party operated database like a bank).

Blockchain’s Benefits & Applications

There are lots of potential benefits behind blockchain, some of which depend on how the technology is used. The commonly recognised/ key benefits include:

• Reduced reliance on third parties
• Enhanced Security of Records
• Reduced Cost (at least for businesses who would otherwise have created and maintained centralised records)
• Potentially increased low-cost access to certain technologies

The list of potential applications is huge, but includes:

• As a fast, accessible payment system
• To improve data usage and storage
• To protect property rights

Combine this with the ‘smart contract’ technology pioneered by ethereum, and the list grows larger still.

Is Blockchain right for my business?

There is a vast array of potential applications for blockchain technology, and its potential uses are still being determined.

However, despite the hype, blockchain is not necessarily the ‘be all and end all’ of digital commerce — in our view, there is very little obvious benefit behind how some ICOs and start-ups proposed to use the technology. Simply adopting blockchain for the sake of it often carries no benefit. Blockchain is the technology of the moment (like Sharing Economy platforms and AI were); once the hype dies down, businesses that have applied the technology for no substantial benefit could find that they have wasted their time and money.

On the other hand, businesses that have carefully, strategically implemented blockchain could find themselves far ahead of the competition — like early adopters of the internet — and on the road to substantial improvements in business performance.

How do I know where my business should implement blockchain?

In our view, most businesses and areas of commerce could benefit in some way from blockchain adoption. Determining where and how varies across industries, and is in many ways the ‘million-dollar question’.

Simply speaking, understanding the technology and its ability to overcome problems is the foundation to working out how and where it could be applied — does your industry rely on centralised information storage? Could the blockchain improve security? Could it be adopted to increase engagement in an industry, or utilise an untapped market?

The real ‘sweet spot’ lies in areas where tokenisation (and an economic model) lend themselves to the use of blockchain technology, as this supports an attractive ICO (check back soon for our article on whether running an ICO is the right way of implementing this).

As with any big executive decision, strategic management and careful implementation is usually key.

Lupercal Capital has worked with existing companies and promising start-ups to identify how blockchain could solve problems and maximise business performance. If you’re interested in how the technology could impact your business, we’d love to talk (enquiries@lupercalcapital.com).

If you’re interested in regulatory developments in cryptocurrency, check our CryptoRDB, the most comprehensive database on cryptocurrency regulation.

Could my Business Adopt Blockchain Technology? was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.