Another blog, same topic, with a little drill down, color, light shed, or whatever you want to call it.
Another new big thing
In my last blockblog I mentioned that blockchain may very well be “another big thing” like internet was in the ‘90s. I also mentioned that the blockchain technology could very well be utilized in many business cases and that is what I would like to explore a bit more in this blockblog.
Criteria to utilize Blockchain
As said earlier, blockchain works when a (chain of) process meets following criteria:
- Verification and transparency is important
- Many users in the chain
- Many transactions in the chain
- Desire to take out a central party (that currently slows down the process or makes it expensive)
Now what if we would put these four criteria in a matrix and then include a few business cases and see why this could work. Let’s look at logistics and HR for now (and I intentionally stay away from the payment process, because there are already so many use cases with the Crypto currencies like Bitcoin, that I believe everybody has a good idea how that works):
A shipment of goods being transported from a vendor in one country to a buyer in another country, using a warehouse company and a shipping agency for transport. Payment to happen when goods are on ship. Currently letters of credits are being used often – which need to be processed by a bank (which is not open 24/7 – in fact the term “bank holiday” says it all).
With the hire-in process (via labor agents) and all laws we have in Europe surrounding this topic, the checking of ID is a very crucial process to avoid reputational risk, GDPR issues, fines and loss of business time. This may involve different labor agents in different countries, that all need to verify ID, store copies in their database, pass it on to the other to ultimately the end user client. The same counts with salary information, to ensure that each respective person is being paid an equal salary. Let’s take the example that a welder is being recruited in Portugal, and will work in the Netherlands at a construction yard.
In the Matrix
Let’s take these two examples and map those in this matrix:
When applying blockchain to either of these cases, it clearly indicates advantages. Now the adaptation is a different animal and it probably needs some time and understanding.
We have created the blockchain canvas as tool to map processes in a way that it becomes visible how blockchain could optimize a process and enhance transparency in the chain. If this blockblog has triggered you and you want to know more. We are happy to organize a blockchain canvas session in your company.