What is Blockchain?<\/strong><\/p>\n\n\n\n People often use the terms Blockchain and Bitcoin synonymously, but they are clearly not the same. Blockchain is the platform being used to record and store bitcoin transactions, and it has many use cases beyond bitcoin which we will discuss later. Bitcoin was the first “commercial” use case for blockchain technology. <\/p>\n\n\n\n More specifically, Blockchain provides the means for recording bitcoin transactions (as an example) in a distributed ledger or database that is shared across a computing network. Each node or computer in the network has a copy of the ledger, so there is no single point of failure. Every piece of information is encrypted and added as a new \u201cblock\u201d to the chain of historical records. Then various validations are utilized for each new block (with the other participants) before it can be added to the chain, minimizing fraud or other negative outcomes. So, this all sounds interesting and a bit complex, but still why all the hype? Well, blockchain has the potential to address one of the more challenging problems of the digital era. The Economist<\/strong><\/a> puts it this way, <\/p>\n\n\n\n Blockchain addresses how to transfer something of value from one person to another without “middlemen” having to make sure that the item is not copied or, in the case of money, spent more than once! And it does it while being open unlike other existing mechanisms! <\/strong><\/p>https:\/\/www.economist.com\/finance-and-economics\/2014\/03\/13\/hidden-flipside<\/em><\/cite><\/blockquote>\n\n\n\n \n\nA great example shared by HPe<\/strong><\/a>, is the simple credit card charge which requires 5 or more parties to complete, and may take up to 17 steps to complete over multiple days from your initial swipe to clearing and settlement. And of course, all parties takes a “cut” along the way. A “private” blockchain could clear out the intermediaries and transform the process to a one-step transaction between two banks that takes just one hour to clear, drastically reducing costs! \n\n<\/p>\n\n\n\n Use Cases<\/strong><\/p>\n\n\n\n Let’s be clear, it is “early days” for Blockchain technology (used outside the cryptocurrency space) and as a result there are still some challenges with the technology that still need to be addressed (i.e., high setup costs, legacy system integration, etc.), but that hasn\u2019t stopped the players from developing a myriad of use cases. McKinsey<\/strong><\/a>, recently performed an “In-depth” industry-by-industry analysis, combined with expert and company interviews, which revealed more than 90 discrete use cases of varying maturity for blockchain across major industries. Other organizations have done similar analyses. I’ve highlighted a few use cases that are gaining significant traction:<\/p>\n<\/div>\n\n\n\n There are several use cases within the four areas above, and several others outside those areas such as Insurance and the Internet of Things (IOT). With the plethora of use cases, the key question is where do I start?<\/p>\n\n\n\n Next Steps<\/strong><\/p>\n\n\n\n Since it is early days in the maturity of Blockchain technology, there are some things that still need to \u201cshake out\u201d including which providers will survive, which use cases should be pursued and when, and when will (my) industry\/customers\/vendors make the shift. However, it is not too early to incorporate blockchain into your company\/digital strategy. In a recent study of 3000 senior leaders by Cognizant<\/strong><\/a>, 68% said they are in the process of developing a blockchain strategy and 52% of C-suite execs said they have already defined a Blockchain strategy.<\/p>\n\n\n\n So, if you haven\u2019t started the journey yet, I recommend the following steps:<\/p>\n\n\n\n These steps are similar to what you would use for any strategic enterprise-level transformation, with a focus on how to deliver value to the customer. This space is changing so fast due to its disruptive market potential, so don\u2019t wait too long to get started\u2026.<\/p>\n\n\n\n ————————————————————-<\/p>\n\n\n\n Art Anderson<\/em><\/strong> is Managing Principal for AH Anderson Consulting, LLC, which focuses on helping companies be more productive, efficient and competitive. He has 25+ years of experience in various end-markets including industrial and specialty chemicals, manufacturing, semiconductors, consumer products, aerospace and several others. Specific expertise in strategic transformation and planning, intelligent automation, shared\/global service delivery strategy, optimizing commercial operations and leveraging process excellence tools. Prior to consulting, Art had a successful career at a Fortune 300 in a variety of business and functional leadership roles. Most recently, as Director and member of the executive team leading the transformation from Shared Services to a Global Business Services framework, leveraging a host of intelligent automation technologies. Learn more at <\/em>www.ahandersonconsulting.com<\/em><\/a>. Art can be reached directly at <\/em>art@ahandersonconsulting.com<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The topic of Blockchain is all over business and technology news but, if you ask an operational executive to explain why all the hype, chances are they will have a difficult time explaining its value. This response is not unusual because the technology is a bit complex, and it’s only proven use case is cryptocurrencies like […]<\/p>\n","protected":false},"author":2,"featured_media":45,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[152,141,169,157,168,159,161,160,172,164,170,167,171,162,173,155,153,154,12,163,166,165],"class_list":["post-44","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-blockchain","tag-deloitte","tag-dubai","tag-education","tag-estonia","tag-financial-services","tag-government","tag-healthcare","tag-hpe","tag-ibm","tag-illinois","tag-kroger","tag-mckinsey","tag-mit","tag-ny-times","tag-partner-selection","tag-proof-of-concept","tag-strategy-development","tag-supply-chain","tag-the-mision","tag-unilever","tag-walmart"],"_links":{"self":[{"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/44","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/comments?post=44"}],"version-history":[{"count":0,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/44\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/media\/45"}],"wp:attachment":[{"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/categories?post=44"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ahandersonconsulting.com\/blog\/wp-json\/wp\/v2\/tags?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.ahandersonconsulting.com\/blog\/wp-content\/uploads\/2022\/12\/1531236972711-1024x576.jpeg\")
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