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Blockchain Projects – Just Because You Can Does Not Mean You Should

by Rajesh Kandaswamy  |  May 17, 2017  |  Comments Off on Blockchain Projects – Just Because You Can Does Not Mean You Should

Pick up any news article on blockchain and there is a fair chance that it is about how blockchain will revolutionize one industry or the other. The narrative goes somewhat like this – 1. This industry is inefficient 2. We haven’t solved the issues with current technologies 3. Blockchain is new and different 4. Lo and behold, blockchain will make the industry efficient. blockchain magic pillInteresting hypothesis, but has anyone looked at whether there was ever a serious attempt with tried and tested technologies? Is it inefficient because technology could not get the job done? Or is that because we could not get all other work to be done to be effective? While blockchain might be enticing for such issues, have we really looked into all other business, technology and culture issues that need to be addressed for the proposed blockchain project to provide value? Is it viable?

This is not a tirade against blockchain, but a caution against thinking of it as a panacea for all ills of inefficiency. Swinging at the right pitch is a better strategy than swinging at everything. When you look at opportunities for blockchain and uncover inefficiencies, do not immediately settle for blockchain as the answer. Selecting blockchain as a solution before you look at all options results in ‘blockchain washing’ – projects where blockchain is used, but not needed. It is still important to evaluate the viability of current technologies and make a dispassionate comparison based on a business case, before you choose to spend time and money. What do you think?

Category: blockchain  

Rajesh Kandaswamy
Research Director
1 years at Gartner
20 years IT Industry

Rajesh Kandaswamy covers the banking industry for technology and service providers. His focus areas within banking include retail banking, credit cards, payments, mortgage, consumer and commercial lending, risk management, and technology finance. His primary technology areas are mobile banking, mobile and cloud payments, channel convergence, digital strategy, big data analytics, core banking, program governance, and outsourcing. Read Full Bio




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