The value of blockchain is a hot topic of discussion, with Bitcoin-the earliest and most well-known implementation of blockchain-grabbing headlines for its skyrocketing price and volatility. Given that Bitcoin’s market value soared from less than $20 billion to more than $200 billion in 2017 alone, it's no surprise that Bitcoin is at the center of the blockchain conversation. However, Bitcoin isn’t the only use of blockchain technology that has piqued the interest of the government and the industry.
Focus on particular, promising use cases to compete.
There are so many applications for blockchain that corporations have a tough time picking on which ones to explore. They may, however, reduce their possibilities by taking a systematic approach via a pragmatic skepticism lens. The first step is to determine whether a given use case has sufficient accessible value at stake. Only by thoroughly analyzing actual pain-points the frictions for consumers that blockchain may eliminate-can businesses avoid producing a solution without a problem.
The identification of individual pain points allows for a more detailed study of the possible economic value within the restrictions of the blockchain solution’s overall practicality. Companies must grasp the subtleties of all these components to decide which use case will create a strong return on investment. Overall industry factors, as well as a company’s knowledge and skills, will also affect this choice. Companies do not have to consider the second phase of which blockchain technique to use if a use case does not satisfy a minimal degree of practicality and potential return.
How To Compete: Tailor Your Blockchain Approach To Your Specific Market Position.
Companies must build strategies based on their market positions in relation to their intended use cases once they have identified promising use cases. Many of the previously mentioned feasibility considerations are under a company’s control; even technological and asset limits may be addressed through trade-offs and a series of design decisions to build a feasible solution. As a result, the following two market parameters, which they have the least control over, will define a company’s ideal strategic approach to blockchain:
- market dominance—a player's capacity to sway the major players in a use case
- Regulatory and standardization barriers—the need for regulatory clearances or collaboration on standards.
These two criteria are crucial in defining a company’s best strategic approach since they are necessary for obtaining the necessary coordination. The value of blockchain stems from its network effects and interoperability, and to obtain this benefit, all parties must agree on a single standard-many siloed blockchains provide no advantage over numerous siloed databases. A market standard will emerge as technology advances, and efforts in the nondominant standard will be squandered. For More about the Blockchain Development Connect With ManekTech