The Problem of Coopetition in Blockchain, and How Fluence Helps Resolve It
The Problem of Coopetition in the Blockchain Ecosystem
The paradox of coopetition in the blockchain ecosystem is that it triggers factors that keep certain industries away from mass-technology adoption.
According to the McKinsey Report, the issue of coopetition between various industries using blockchain platforms is a core problem that has to be resolved. In order for a technology and its ecosystem to become feasible and widely used by the community, it has to provide multi-purpose solutions for all industries, thereby engaging the required critical mass.
Although the greatest blockchain technology advantage is its decentralized network of independent users and transparent data storage, the issue of complexity coordination must be further developed. This means that currently, industries (especially those competing with one another) are facing specific challenges in setting up the process of coordination across digital-content representatives.
“Natural competitors need to cooperate, and it is resolving this coopetition paradox that is proving the hardest element to solve in the path to adoption at scale. The issue is not identifying the network — or even getting initial buy-in — but agreeing on the governance decisions around how the system, data, and investment will be led and managed,” states the report.
Despite the hype around blockchain-technology integration, it is clear that it is not yet fully developed. This should not be treated as a disadvantage, however. Nothing is done in one day, and there are already numerous solutions for dealing with the coopetition issue.
How to Solve the Issue of Coopetition?
Currently, a range of industries, companies, and entrepreneurs are launching their startups on blockchain platforms. This provides their workflow with transparency, data traceability, enhanced management, security, and ease of transaction processing.
The problem is that if one financial company, for instance, runs on the Ethereum platform and another runs on Stellar, it is not easy for them to settle the processes of communication, coordination, and data exchange due to the lack of established standards. This is important, as coopetition between players results in major breakthroughs and improvements.
In order to solve this, a structured approach must be undertaken by all blockchain platforms. Blockchain use should be tailored to market position, conditions, and requirements. This requires certain standardization procedures addressing regulatory compliance.
With that said, and many will disagree, decentralization is the main advantage of blockchain. Therefore, let’s take a look at possible solutions within platform use:
- Hyperledger has recently enabled the settlement of collaboration on enterprise technologies. Three major companies, IBM, Cisco, and Intel, have managed to band together for cooperation within the blockchain ecosystem.
- Synergy arrangement. Platforms like Ark enable interoperability of various blockchains, making cross-chain and cross-organization activity possible.
Another option for any business is to use a blockchain-as-a-service platform.
Fluence Blockchain-as-a-Service Platform
Fluence.sh is blockchain-as-a-service and smart-contract-as-a-service platform that enables any company or business to easily step into the blockchain ecosystem. Fluence solves a range of tasks by providing full-stack services for blockchain deployment, smart-contract use, token generation, event management, marketing, and more.
One of the greatest advantages is that one can choose the desired blockchain with just a click of a mouse, and Fluence will do the rest.
To solve the coopetition issue, the platform enables various blockchain platforms to connect on the back end through the use of API layers.
The blockchain API layer allows any blockchain to be deployed and run on a private or client infrastructure, connected to both mainnets as well as private blockchains of the client’s choice.
Blockchain Launcher acts as a wizard for the simple launch of a private blockchain with setup ability of Terraform with a YAML configuration file. This also includes monitoring tools.
Users can choose any smart contract from the library, or upload the own, which will interact with the blockchain layer by way of oraclization function.
Finally, the auto-generated SDK from the smart contract ABI JSON will include detailed how-to documentation on smart-contract workflows.
Contact Fluence. Our team will easily establish a blockchain ecosystem for you!