Blockchain Use Case Assessment
Due to the Blockchain hype in late 2017, a short desk research already shows you that Blockchain is marketed as the missing miracle cure for almost every conceivable use case. The reality, however, is quite different. The financial sector alone invested almost 2 billion dollars in Blockchain projects last year, and the trend is rising. Productive use cases, on the other hand, can only be found in very few cases. So, the first question of all should be the following.
“When does Blockchain really make sense?”
Basically, eight criteria can be used to roughly indicate whether blockchain could be a solution to your problem. These eight criteria are illustrated in the graphic below.
An article by Raphael Iten and Uwe Klötzner.
3 basic criteria
Three points are particularly relevant for a possible Blockchain bet.
The first is to realize a network effect with a Blockchain, because only with that it unfolds its full potential. In addition, the Blockchain should assume a trust-building function. Thirdly, Blockchains are optimally aimed at disintermediation. Disintermediation is particularly suitable if the intermediary causes costs for substitutable processes, delays processes or decentralized processes are better suited for political reasons.
In addition, the information desired to be saved on the Blockchain applications and information should be as forgery-proof or unchangeable as possible. Since the Blockchain architecture specifies a certain “uniformity per system”, there should also be a certain data congruence. This means that the network participants use and store data on the Blockchain via various sources and events, although the type of information is or should be relatively similar. Furthermore, it should be emphasized that such an initiative has to stand up from a financial point of view. On the one hand, it must pay off internally. It is equally important that economic incentives for participation and cooperation are implemented for each user. Last year, many Blockchain initiatives arose in the corporate environment due to media pressure and the fear of missing something. With the last question regarding these economic incentives, we want to underline that importance again.
As mm1 we have experience in the evaluation and development of such scenarios. The following example already illustrates that these eight questions can be used relatively easily and practically for an initial assessment of the meaningfulness of a Blockchain deployment.
In cooperation with a Swiss Blockchain technology provider, we were able to analyse a certification feature of university degrees and diplomas using Blockchain and summarized the essential questions in the following diagram.
Due to our broad network of technology partners, we know how to take Blockchain-specific factors into account when modelling a use case. Contact us directly if interested!
This article is part of an article series on blockchain technology. Read more articles from our blockchain team:
1. Blockchain in 100 words
2. 6 Myths about blockchain
3. Different types of Blockchain
4. The token economy
5. Application areas of blockchain technology
6. Blockchain use case assessment
7. Blockchain in the mobility sector
8. mm1 roadmap for blockchain initiatives
Raphael Iten is an experienced entrepreneur in sustainability management. Through his experience as a consultant in the insurance sector and platform construction for telcos, he considers and combines different approaches to solutions. In his academic career at the University of St. Gallen, he examines success factors of active Blockchain projects in the insurance industry.
Uwe Klötzner brings 14 years of consulting experience, particularly in service industries (finance, telco, energy). He is an expert in implementing digital transformation of business models and IT landscapes. Uwe has many years of experience in the management of complex programs and projects as well as in the design and optimization of business processes. He reliably delivers projects with structure, binding communication and strong identification.
