In our first blog about blockchain, we explained what this new technology is and why companies are showing increased interest in its capabilities, from improved security and shared information to exact documentation of every data edit. Different from conventional databases, which use a hub and spoke structure with a central server to provide access to individual users, a blockchain operates as a shared database without a central server to secure and track digital transactions.
Although few organizations have developed the technology needed for large-scale production, most Fortune 500 companies are at least exploring blockchain. The financial sector leads in research, development and investment, but in 2017 there was increased activity in retail, shipping, telecom, aviation, automobiles and other industries.
Challenges with blockchain adoption remain:
- It’s still difficult to find talented developers and internal understanding of the technology at most organizations is limited.
- Although blockchain provides remarkably robust data capabilities and integrity, they do have slower transaction processing times, which can be an issue for consumer-facing businesses or those that require quick data resolution.
- Even if blockchain is implemented internally, competitors, suppliers and customers must be integrated into the system.
- Regulatory and legal issues are ever evolving and may be open to interpretation as blockchain is developed and are applied in different industries.
MJ will continue to track industry implementation of blockchain and share pertinent news and updates on the technology moving forward. There’s certainly a lot to learn, and we anticipate accelerated acceptance across many sectors.
If we’ve already peaked your interest and you’d appreciate a deeper dive today, check out the written summary of the 2017 EY Global Blockchain Summit – How trust changes everything/Opportunities to authenticate and transact. In this presentation, you’ll find an overview of current blockchain development in financial services and healthcare, as well as energy, power and utilities. In addition, there is detail about the technology’s potential impact on any organization’s cybersecurity, C-suite, smart contracts and supply chain management.