Page 59 - Payout Magazine Online Volume 8.9

the blockchain for a certain purpose, you will technology speedily. We’ve seen it before: for These standards should define the model of
most likely have to construct your own piece instance with TCP/IP, which was adopted very the business, which still one of the biggest
of software for it. slowly. challenges in blockchain implementation.

As you already know, building new software Researchers used TCP/IP in 1972, which 3. Let each participant decide on the
is not cheap. Experts estimate software allowed them to send emails to one another. operating rules for the technology.
development to be around $10,000 for simple Only a few companies used it in the 80s, and
apps and at least $800,000 for unique and the technology did not become mainstream
complex software. Only a few small and until the mid-90s. The design of the platform begins with
medium businesses have the money to fund the business model, and it includes decision-
for proprietary software. Therefore, it is highly How Companies Can Overcome making regarding whether the technology will
unlikely that small businesses would choose These Obstacles not require permission (available to all users)
to use such expensive technology unless or have various permission levels.
a larger company releases an affordable Blockchain technology has arrived but
application that is blockchain-based. what’s a company to do? They can embrace As you construct the blockchain for the
a wait-and-see mindset, but they risk falling business, it is wise to confront risks as early
It is disconcerting because this particular behind their competitors. On the other hand, as you can. Add crucial elements, including
technology can potentially save both the leaders are not encouraged to jump right in compliance and cybersecurity. You may also
consumers and businesses tons of money. without being prepared. It is why building
However, the initial investment is still pretty trust is essential with the blockchain and with need help from both audit and legal specialists
steep for smaller businesses at the moment. the following strategies, businesses can set who can be an essential addition to the
themselves toward successful execution: development team. Involve risk professionals
2. Lack of Blockchain Pros and take into account the privacy implications
1. Begin with a clear-cut case for your of the technology.
The blockchain technology is still young. business.
Its concept started in the early 90s, but it took It is also necessary to invest in processes,
about a decade and a half to put it into practice Preferably, have something that is small as well as data. Traditional procedures of
upon the launching of Bitcoin. Blockchain has yet scalable. It should be able to deliver each organization generally include sales,
been around for about a decade now, but it quantifiable benefits in the shortest amount
is still hard to find experts who understand of time possible. A smart move is to involve shipping, manufacturing, and the like. These
it completely and with the skills to create the risk professionals right from the start. processes are frequently suboptimal, which is
platforms. Additionally, you should bring your data why it helps to focus efforts into streamlining
governance processes and policies up-to- these activities.
Due to the lack of pros, it hurts the adoption date.
of the technology in the following ways: There may be several obstacles and
Ask a few questions that involve what challenges in applying blockchain technology,
There is an inadequate number of people you’re trying to accomplish strategically and especially for businesses. However, early
working on blockchain to fulfill the demand. your pain points. You should also know which implementers, as well as researchers, believe
shareholders share these pain points with
Exclusivity is costly, mainly because it you. The business case should allow you to that it indeed has the power to radically
may require hiring pre-existing experts on the discover the procedure involved in funding the change systems and services we rely on
technology. initiative and how it will be governed. today.

The growing interest may encourage more 2. Collaborate with other businesses, Businesses that want to adopt blockchain
people to discover blockchain. It will take a including your competitors. should direct their attention to solving the
few years for individuals to gain experience obstacles and not the adoption process
about the technology. Also, companies should Blockchain technology may demand itself. It will still take some time, but there is
be willing to hire them because of their collaboration of competitors so that they the huge possibility that people will end up
knowledge. can provide solutions for problems in the using blockchain as part of their daily lives.
industry. One good reason for such need
3. Reluctance to Change is that blockchain’s value grows immensely Moving forward in digital transformation using
blockchain technology could soon be as easy
when there are more people and businesses
The blockchain is revolutionary as it involved. as opening and checking your email.
changes the conventional methods, such as
with financial exchanges and contracts. The An excellent option here is to convene
problem with it is that these modifications a group of stakeholders and have them
make it less likely for the world to approve the agree as a whole on a set of standards.

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