​It’s no secret that blockchain technology has enormous transformative potential, offering businesses benefits that include enhanced security, immutability, decentralisation and scalability. So, what’s stopping organisations from truly harnessing the power of blockchain?

In this article, we’ll explore some of the reasons why blockchain implementations often fall short, the hurdles to overcome, and how to set up for success.

A report from Accenture found that blockchain technology can help investment banks cut costs and deliver savings of more than 30% across the middle and back office. Other research revealed that blockchain in the financial services market is predicted to reach $1.18 billion by 2027. It is therefore surprising to read that only as few as 15% of blockchain projects make it past launch and prove to be sustainable.

Navigating a vast blockchain landscape
There are over a thousand blockchains with multiple programming languages, specific rules, strengths and weaknesses, resulting in assets and smart contracts created on one chain being ‘native’ without easy mobility to other networks. Blockchains also require in-depth technical knowledge that not all developer’s master.

​This reality and the lack of domain on the subject by executives can present significant challenges for businesses, who often find themselves on the outskirts of the blockchain economy due to the sheer complexity, uncertainty and high costs. When we look at industry adoption, blockchain projects are primarily associated with large financial institutions that can absorb the costs. Not only does this exclusivity hinder innovation, but it also creates a barrier to entry for other businesses looking to harness the power of this technology.

​Where does the complexity stem from?
A lot of the complexity – and therefore the challenge with blockchain adoption – is a direct result of a lack of standardisation and interoperability.

​Thankfully, the ecosystem is beginning to recognise the importance of developing standards, frameworks and interoperability. We’re seeing a shift towards a landscape where blockchain-based innovation can become accessible to all – regardless of organisation size or budget, but other issues remain unaddressed.

​Often, projects also fail because:

  • ​They do not integrate with existing technology stack
  • ​Their base technology is not flexible enough to keep pace with the rapid evolution of DLT
  • They are too complex, hindering ecosystem adoption

These issues can create silos and result in project overhauls, making it difficult to scale projects and add real value to the business.

​How can you simplify the adoption of blockchain?
​1. Identify the right technology
To quickly unlock blockchain’s benefits for their use cases, seek a flexible technological foundation that can reduce reliance on in-house expertise and evolve at the pace of DLT innovation. Much like core banking platforms, blockchain infrastructure can and should be outsourced.

​Flexibility also means future-proofing your project for future developments in the DLT sphere and better version control. The less complex and rigid your infrastructure, the higher the rates of innovation and experimentation across your ecosystem and other industries.

2. ​Understand your use cases
Whether using an off-the-shelf product or commissioning a bespoke solution, the most crucial step is establishing a clear use case and path to implementation. Then, businesses can build out a structured approach that brings together technology, people, processes and resources for a successful blockchain implementation.

​3. Bring together the right partners
Finally, any successful blockchain project requires an ecosystem of support, including partners, advisors, and a community.

The time is now to embrace blockchain

​Blockchain technology presents businesses with the opportunity to thrive in a decentralised world. But the digital asset ambition will only take flight once financial institutions can overcome the challenges associated with implementing blockchain into their organisations.

​If businesses can identify the right technology solution, while staying focused on the importance of standardisation and interoperability, they can overcome the complexities associated with blockchain and propel themselves towards success and innovation in the ever-evolving digital landscape.

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