When IBM created Sabre, it interconnected all the airline companies where they could easily exchange data and inter-operate to their full potential. The groundbreaking technology created a furore in the aviation sector. Taking cues from such a successful venture, IBM collaborated with Maersk once again to launch another grand initiative by the name TradeLens to revolutionize the supply chain, but it met with an ultimate demise in 2023. The project failed to acknowledge that though industries wish to collaborate for better interoperability, they are resilient to sharing trade secrets, especially, the shipping industry.
Perhaps, that’s one of the major problems why enterprises have been finding it hard to operate with blockchain as an underlying layer. Most enterprises fear that their data will be compromised. However, blockchain’s data narrative must be taken from a different standpoint. Enterprises have discretion how they wish to deploy the blockchain solutions and bring better data ownership and portability at the forefront. With that being said, we shall look at a few ways to solve the problem of increased centralization that enterprises experience while deploying enterprise blockchain solutions.
How To Overcome This Problem?
Do Not Treat Innovations as Monolithic
What most enterprise blockchains have failed to consider is that there cannot be a one-size-fits-all approach to problem-solving. For example, at present, the supply chain network has been heavily cluttered. When MAERSK did research, it was found that when they shipped roses & avocados from Kenya to the Netherlands, the process had to go through more than 100 intermediaries. The same created unwanted delays in settlements.
When you realize that much of the supply chain is managed by supply chain financing, timely information on delivery can improve the cash flow. This can significantly improve business operations. The problem however is the ability to host the nodes. Small businesses might like to go from a POC to a production litmus based on their operational scale. That being said, initial deployment cost on HyperLedger Fabric comes down to $327,095 that includes onboarding, cloud cost, ongoing maintenance, monitoring costs and so on and so forth. These problems eventually subside within the first two years. Meaning, as the deployment becomes older, it shall optimize the performance. And when that happens, the cost will ultimately plummet. For example, in the first year, there might be bugs in operation, downtime and network errors.
These challenges are too much for a new enterprise if they wish to pivot to a complete on-premises or even cloud-based deployment. Hence a monolithic way forward to problem-solving might create major hassles for small businesses which are more open to innovation than their bigger counterparts. IBM and MAERSK failed to optimize their offerings and stressed targeting only prime players. However prime players would not like to get engaged with a solution which has been allegedly centralized.
Do Not Make Innovations Complex
When you want to introduce a new concept or establish a new modular structure, it shouldn’t be a complex thing for enterprises. For example, the problem with TradeLens was that they made the technology so complex that it obstructed adoption. Higher computing power and the inability to coordinate with the existing databases created major bottlenecks.
The deployment required blockchain experts to manage nodes, run operations and look at other things. Most enterprises, which are in their early or mid-levels of growth cannot afford to go luxurious.
Why? Experiments become too costly to fail. So, they better stick to the basics and refrain from implementing new innovations. When you look at the Web2 tech innovation, majorly it was driven by startups. The decision-making was spontaneous.
However, when it comes to the existing enterprise solutions, the big techs have deployed complex processes, which create major hurdles towards adoption. On the contrary, when you speak of technological innovations, it should be such that it can easily reshape and replace the existing systems with a new approach to problem-solving. VE3 has done the same through its node-hosting services where even small enterprises can host their own nodes and run operations on top of the blockchain.
Do Not Make Risk Tolerance a Major Obstacle
Incremental innovations demand lower risk when compared to radical innovations. Blockchains are radical, meaning when they go, you or the one deploying the solutions go with them. With respect to IBM and MAERSK, those are big brands that could easily survive the fall. But when small startups risk it all on deployment and functionality, their investments become too big to fail.
A risk-calculated approach should be such that you can walk away despite the project failing. Hence an MVP approach to problem solving could be a better way forward.
When we are speaking of blockchain as a revolutionary technology which could supercharge various sectors, it is essential to look at the larger picture. We need to provide a test approach to problem solving. Enterprises have existing infrastructure which they cannot straight forward throw away. As a result, enterprise blockchains must provide an easy way to test the solutions and find out their efficacy in the long run. In the end, when small startups and SMEs deploy blockchain solutions without the fear of busting it badly in the long run, it shall create a better narrative for faster deployment and the success of enterprise blockchain as a whole.
VE3, being one of the leading IT consulting companies, provides enterprises with the necessary expertise and resources required for successful implementation of blockchain projects. One of the ways we can help is by offering nodes that are essential for the functioning of blockchain networks. These nodes ensure that the enterprise has a reliable and secure blockchain network that can be used for various purposes. Additionally, we combine the nodes offering with consulting services to help enterprises understand the technology better and develop strategies for its implementation.
With our extensive experience in the field of blockchain, we assist enterprises in developing a comprehensive blockchain strategy that aligns with their business goals. This includes determining the appropriate use cases for blockchain, identifying potential risks, and developing a roadmap for implementation. Conclusively, we also assist in the integration of blockchain technology with existing systems and processes, ensuring a smooth transition without any operational disruptions.