The reason why blockchain has taken off over the last couple of years is that we are taking the principles of blockchain technology — the security, the redundancy, the ability to prevent hacking or theft — from a public cryptocurrency infrastructure, and applying them to business transactions.
Right now, it seems like everybody wants to do some kind of blockchain proof of concept or pilot. To make sure you focus on the right ones, that really create value, we have a five-point test to check whether blockchain is a good solution.
Number one, are there multiple parties in this business ecosystem? Number two, do you need to build trust between the parties? Third, are you managing finite resources? A lot of the underlying technology of blockchains is created to prevent people from double counting the assets. Fourth, is there a complex set of business rules that bind the parties together so that it is more than just a simple back and forth? And fifth, does the ecosystem as a whole benefit from some level of increased transparency?
If you can say “yes” to three or more of these question, the chance is that you have a really compelling case for the use of blockchain technology.
Internet of Things (IoT)
IoT is changing the way we build new businesses and how we integrate existing businesses, or make our existing businesses more efficient.
There are two main entry points for IoT uptake. One is business profitability through reducing costs. IoT provides the possibility to measure, and if you can measure, you can really manage. The second entry point is to create new revenue streams from business processes that don’t yet exist. IoT is able to connect machines with machines and assets with assets without human interaction. Data from sensors can be sent to the cloud or to the edge, and then processed and made to work using Artificial Intelligence (AI).
Why now? Because of the price. The price of the technology is decreasing, and something which cost a lot of money 10 years ago, now is almost zero. The second thing is the speed of technology. Today, you can process data in absolutely enormous speed. So, both those elements make the business case work for enterprises.