Blockchain technology promises to revolutionize just about every industry on the planet, and its transformative powers are still not quite yet fully understood.
Although it’s currently most famous for Bitcoin, that is just one application out of many potential ways that blockchain technology can alter the way everyday people address and solve common problems.
In the case of Bitcoin, blockchain technology helps provide security and trust between two parties to a transaction. It allows two individuals who have never met to securely send and receive money without requiring a third-party intermediary, like a bank, to intervene.
But the truly transformational potentials of blockchain technology are not yet fully understood. All of the hype around Bitcoin has muddied the field in a very similar way to the dot-com bubble of the 1990s. Although the bubble did eventually burst, the World Wide Web went on to completely change the foundation of modern society and commerce.
Blockchain has the potential to do the same. In order to best understand how to prepare your business for the rise of the blockchain, it’s helpful to look back to the dot-com bubble and examine the factors that led to the subsequent success of companies like Amazon and Netflix.
Stay Focused on the Big Picture
One of the main ways that blockchain technology will disrupt today’s commercial landscape is by rendering small-scale business differentiating details almost meaningless. The same small-scale value differentiator responsible for your success right now could be overtaken by the equalizing force of blockchain trust and transparency.
Amazon and Netflix are great examples of how focusing on the big picture works. Amazon understood that its main value wasn’t its product lineup – not yet, at least – but the fact that it was able to utilize user data and a negative cash conversion cycle to exceed customer expectations where competitors like Pets.com had failed.
Netflix focused on the almost universal need for quality entertainment on-demand knowing that the market would drastically change in the near future. For this reason, the made great efforts to adapt to its users’ evolving interests – transitioning from DVD rentals to video streaming and then into original content all based on its original value proposition.
How to Apply These Rules to a Blockchain-Based Future Economy
Looking at these examples of success, it is easy to conclude that flexibility and attentiveness make a huge difference in any company’s ability to adapt to changing circumstances. Blockchain technology may change or replace your relationships with banks, insurance providers, and even your local government, but it won’t reduce consumers’ needs for legitimate value.
In order to thrive in the world of blockchain, you need to make customers want to trust you, because they will no longer need to trust you. The better you know your customers, the more capably you will be able to utilize blockchain technology to speak to their real needs – rather than letting someone else do it for you.
Speak with blockchain experts to learn how your company can prepare itself properly. Contact us to learn about blockchain solutions in your industry.