Blockchain is still three to five years away from feasibility at scale
July 2, 2018
Blockchain does not have to be a disintermediator to generate value, a fact that encourages permissioned commercial applications.
Blockchain’s short-term value will be predominantly in reducing cost before creating transformative business models.
Blockchain is still three to five years away from feasibility at scale, primarily because of the difficulty of resolving the “coopetition” paradox to establish common standards.
Companies should take the following structured approach in their blockchain strategies:
Identify value by pragmatically and skeptically assessing impact and feasibility at a granular level and focusing on addressing true pain points with specific use cases within select industries.
Capture value by tailoring strategic approaches to blockchain to their market position, with consideration of measures such as ability to shape the ecosystem, establish standards, and address regulatory barriers.
With the right strategic approach, companies can start extracting value in the short term. Dominant players who can establish their blockchains as the market solutions should make big bets now.