Blockchain And Digital Transformation Go Hand In Hand – Forbes
New technologies are revolutionizing business from every direction. Digital transformation isn’t a technology trend; it’s a customer experience trend. In short, businesses are evolving because customer expectations are evolving. Either we are revolutionizing experiences through our own innovation or we are using data to iterate and innovate along with what the customers want. In some cases, we are doing both. However, new technologies like blockchain and AI are certainly setting the course for digital transformation at the speed of customer experience.
Created as the technology architecture for Bitcoin in 2008, blockchain solves some of the immediate issues of digital economies. The security, data preservation, and networking capabilities of blockchain can circumvent traditional cybersecurity barriers and enable the information-sharing requirements of contemporary business. Due to the regulatory, processing, and connection efficiencies available with blockchain, Santander Bank estimates $20 billion a year in savings from using the technology. But while blockchain can streamline the processing of fees, payments and costly intermediaries, as well as the network exclusions inherent in financial systems, the applications for the technology are capable of larger cultural and political shifts. All forms of commerce and anything of value is set to be changed by blockchain, allowing consumers the protection they require in a new economy.
The role of the individual and consumer is already shifting in the digital marketplace. With the support of machine learning, connected devices and analytics, consumers are more connected, with fewer barriers, than ever before. The risks for these types of interactions are impossible to overcome without the beneficial structure of blockchain to address and mitigate the threats. Allowing this level of intimacy without the traditional risks is one reason blockchain is the key to widespread digital transformation.
Addressing the Threats to Digital Transformation
As I mentioned in Companies Killing It in the Digital Transformation, even though market leaders like StubHub, JetBlue, and Dominoâs are making the most of digital opportunities, only 18% of businesses consider their own strategies âvery effective.â While some of this hesitation is a barrier of perception, without the infrastructure of blockchain technology to enable efficient networking, it may be impossible for some enterprises to fully capitalize on digital opportunities.
For example, the Internet of Things (IoT) already represents 6.4 billion devices in use worldwide, with 25.5 million new things connected every day. But the security risks to privacy, and easy access for hackers, are growing along with the adoption of this technology. As stated in Blockchain 101: How This Next Big Service Will Change The Future, blockchain picks up where cloud technology leaves off by creating highly secure venues for information sharingâ far better than the cloud alone. In order for the full potential of the IoT to be realized, blockchain needs to be the underlying architecture.
The same holds true for all cloud and machine learning applications. HIPAA laws, regulatory issues, licensing, data validation and security risks are barriers to digital adoption. Only with blockchain as a base can health care, finance, commerce and digital economies realize the potential of digital transformation. Consumers and businesses alike balk at adoption with the current downside of this level of access.