Emerging Approaches for Enterprise Blockchain Implementation

With the advent of blockchain technology, a fresh perspective on the future of the internet has emerged. Previously, data on the internet was controlled by centralized entities, resulting in a concentration of economic power and influence among a few dominant corporations that profit from aggregating data. This has eroded user trust in the information they access, find, use, or absorb.

The adoption of blockchain technology is poised to revolutionize the way enterprises conduct business and financial institutions process transactions. By removing costs and inefficiencies, it creates tamper-proof records and enables near real-time transparency. This could lead to a complete overhaul of current business processes within an enterprise, ultimately streamlining operations and enhancing efficiency. In this article, I’m going to discuss the emerging approaches for enterprise blockchain adoption.?

Enterprise Blockchain Adoption

Many Fortune 500 companies are currently engaging in discussions regarding the potential impact of blockchain technology on their business operations and the possibility of implementing it. These conversations are taking place in C-suite offices and innovation labs as they assess whether this technology is suitable for their needs.

The companies are evaluating the potential effects on their primary business lines, existing solutions, and the best areas or consortia to invest in. Although there have been developments in the standardization of distributed ledger technology and the adoption of Bitcoin, it is still unclear when and how enterprises will ramp up their pilots and fully embrace this technology.?

Some industries, such as financial services, have made significant progress in exploring and testing blockchain, however, there is still a general sense of skepticism and confusion surrounding its future as a widely adopted disruptive technology.

Limitations to Enterprise Blockchain Adoption

Let us examine a few limitations and problems in this technology today.

Technical complexity

The technical complexity of blockchain technology can be a barrier for some organizations, especially those with limited technical resources or expertise.

Solution

• Hiring specialized personnel: Hiring specialized personnel with the necessary technical expertise can help to mitigate the technical complexity of blockchain implementation.

• Partnering with technology vendors: Partnering with technology vendors who specialize in blockchain solutions can help to simplify the implementation process and provide support and expertise.

• Investing in education and training: Investing in education and training programs for in-house technical personnel can help to build the necessary skills and knowledge to effectively implement and manage blockchain technology.

• Utilizing low-code platforms: Utilizing low-code platforms, which simplify the process of building and deploying blockchain applications, can help to reduce the technical complexity of implementation.

• Leveraging cloud-based solutions: Leveraging cloud-based blockchain solutions, which are managed by the provider, can help to reduce the technical complexity and support required for implementation.

• Participating in community projects: Participating in community projects and contributing to open-source initiatives can help organizations to learn from others and build the necessary skills and knowledge to effectively implement blockchain technology.

Limited Pool of talented developers

Blockchain is a nascent field with a limited pool of talented developers who are still mastering the technology. The lack of a well-established developer ecosystem has hindered the growth of blockchain resources. The challenge of retraining traditional Web2 developers to work on decentralized applications also slows down the adoption and implementation of technology solutions.

Solution

• Upskilling and Training: Encouraging existing developers to acquire the necessary skills through training and upskilling programs.

• Attracting new talent: Offering competitive salaries, benefits, and work-life balance can attract new talent to the field.

• Collaboration and Partnership: Collaborating with academic institutions and partnering with companies can help to build a pipeline of new talent entering the field.

• Remote work opportunities: Offering remote work opportunities can help to tap into a wider pool of talent, regardless of location.

• Diversifying the pool: Encouraging underrepresented groups to join the field can help to diversify the pool of talent and bring fresh perspectives to the technology.

Step to Blockchain Adoption

I apply business and technology acumen to solve problems in industry and enterprise settings. The result is a well-thought-out business architecture and technology blueprint, along with requirements for compliance, audit, and enterprise integration.

Devising a business blueprint

Using a design-thinking approach, the goal is to simplify the existing business process into a blockchain-based transaction model. This involves comprehending the existing process, including compliance and reliance on external systems. The process of simplification transforms the business process into a blockchain model characterized by attributes such as provenance, immutability, flat ledgers, and smart contracts that control the validation and distribution of the ledgers.

Mapping the business blueprint to technology tenets

The results of creating a business blueprint inform the development of a technology blueprint, which guides technology choices such as the blockchain data model, consensus mechanism, audit, and logging needs, deployment strategies, transaction requirements, data accessibility, and overall systemic security, including authentication and authorization.?

This is an iterative process, meaning that the more effort and expertise an enterprise invests in the early steps of creating the technology blueprint, the closer the outcome will be to a precise and accurate deployment model.

To align technology with business goals, it's crucial to make informed technology and architecture decisions that meet business needs such as transactions per second (TPS), enterprise integration, integration with external systems, and regulatory and compliance requirements. This makes blockchain a reality for an enterprise.

Enterprise integration with adjacent systems

I also consider enterprise systems that would need to be integrated with blockchain applications for operational purposes. The aim is to guarantee the aspects of the trade, trust, and ownership, leveraging the intrinsic features of this technology like immutability, provenance, and consensus, to create a trustworthy system that eliminates duplicative and redundant systems and processes.

These redundant systems can result in substantial resource allocation for an enterprise, causing delayed transaction processing and incurring opportunity costs.

Integrating blockchain with enterprise systems, especially with adjacent systems, is a crucial factor to consider, both from a business and technology standpoint, as it affects critical business systems and downstream transaction systems.

Roadmap to Enterprise Blockchain?

The key to successfully adopting technology in the enterprise is to focus on a specific use case and translate it into a blockchain-based business and technology model. This involves applying both business and technical expertise to a problem in a particular industry that has a significant impact on the enterprise. The outcome should be a well-designed business architecture and technology plan, including requirements for compliance, audit, and integration with other enterprise systems.

Final Thoughts

In conclusion, as blockchain technology approaches enterprise integration, companies and projects must align with the needs and processes of businesses. There are various considerations, including operational, commercial, technical, and regulatory factors, that distinguish the enterprise landscape from the blockchain-only world.?

For more details regarding enterprise blockchain, visit Gyan Consulting.