Building your blockchain advantage. Fresh insights on how to create value, scale fast and open new markets

Introduction

According to IBM, more than 60% of early adopter companies anticipate having a blockchain network in production by 2020. The sharing economy is expected to change the company models of more than half of the C-suite respondents. IBM's Blockchain lays the groundwork for trust and scalability.

Some networks may evolve from one kind to the next, while others may evolve from one network to the next. The problem for businesses today is determining whether or not to develop upgraded – and likely distinctive – procedures early on.

Three sorts of networks are forming, each with its own set of value sources.

• To improve current procedures, create a business differentiation network.
• To improve common procedures, an industry utility network has been established.
• To develop new platforms, the Newmarket network will collaborate.

     A methodical progression

• Organizations that start their travels by building and testing minimum viable ecosystems (MVE) are more likely to succeed.
• Not all use cases are created equal, and businesses may choose those that offer the most value or the quickest return on investment.
• Organizations must share value from the beginning and evolve along with the network.
• According to a new analysis by John Defterios of The New York Times, organizations may need to reconsider the design of the use cases themselves.
• Competition is built on a network of partners, not a single entity, according to the document.

      Taking turns with the pie

• Additional than cost savings, companies should search for other forms of rewards for network members.
• These benefits might include increased brand recognition as a result of trustworthily monitoring items on a blockchain, more dependability, and less environmental impact to the communities they serve.
• The majority of the founding members believe that bringing in prospective ecosystem members early on makes the most sense.
• Some members' joining fees might be waived, onboarding costs may be covered, and future transaction fees might be discounted or rebated.
• Electric merchants and customers are encouraged to join the Interac network and sell excess energy to the grid using token-based tokens.

             Getting to scale

Industry utilities built on the blockchain have a good potential of establishing network effects. By bringing competitors along, industry utilities are meant to dominate their categories or areas. The first blockchain trading platform for business clients was built and licensed by Wetrade, a joint venture controlled by 12 European banks.

             Let's begin with strength.

Starting with strength is a strategic need for industrial utilities. Organizations that start with a large percentage of their industry have a significant advantage in generating network effects. More than 100 leafy green vegetable suppliers will be required to register their products on Walmart's blockchain.

              Managing for the long term

Industry utilities are used to imposing conditions to their supply chain partners rather than cooperating with them. Policies establishing intellectual property (IP) might be particularly difficult for rivals to join together. In the future, the most difficult problem for industrial utilities may be collaborating with other industry participants.

             Trade lens

The TradeLens network fosters information exchange and openness while promoting more efficient and safe global commerce. TradeLens allows numerous parties involved in international commerce to collaborate digitally. By allowing trading partners to interact, Maersk and IBM have created a new paradigm for digital supply chains.

             Creating designs for new markets

To capture the long tail, new market business strategies must be bold. A cross-brand platform, Loyyal, is redefining how loyalty is formed, rewarded, and maintained. By bringing underused assets into the sharing economy, new market networks may profit from them.

             Show me the money

Monetization strategies tend to fall into three types: charging by access to apps, charging by volume or value of transactions on the network, or by the degree of insight. Data on the blockchain can be monetized in new ways: sold with the assurance of privacy or with permission by consumers. Newmarket networks need to generate revenue, but they also need to manage and monetize the resale of tickets. LedgerConnect is a decentralized app (Dapp) store that connects fintech, software companies, and banks with apps for buy-side and sell-side trading.

              Toward a circular economy

Charging by access to applications, charging by volume or value of network transactions, and charging by the degree of insight are the three most common monetization tactics. Data on the blockchain may be monetized in innovative ways, for as by selling it with the certainty of anonymity or with user authorization. Newmarket networks must not only produce money but also control and monetize ticket reselling. LedgerConnect is a decentralized app store (Dapp) that connects fintech, software businesses, and banks with buy-side and sell-side trading apps.

We propose that companies follow these five phases as they develop their blockchain strategies:

• Look for possibilities.
• Determine the viability of the ecosystem
• Figure out the network equation
• Make sure your network is prepared for the future.
• Maintain a flexible mindset.