Home>Blog > Create Tangible Opportunities with Blockchain Technology
Blockchain

Create Tangible Opportunities with Blockchain Technology

By -

Hong Kong – 19 September 2018 – The advent of blockchain technology has certainly created a lot of dialog of how a new paradigm can again change the world. The mainstream acceptance of the internet changed how the world moved from a PC world chasing ever faster processing power to the connected world of greater access to information chasing to be more socially connected or there lack of real social contact. Ultimately my take on the shift to the blockchain world is about creating access to a “singular source of truth”. This little phrase will expand the boundaries of greater opportunities in our everyday lives. Hear me say this, unlike many pundits I am not about to over sell blockchain will provide “unlimited” opportunities.

The Challenge for Entrepreneurs is the Supply Chain

When I look at just about every opportunity of our social fabric, the core limiting factor of anyone finding successes with entrepreneurship is the necessity of the supply chain. The facts remain everything from our everyday lives such as food services, transportation services, health care services, real estate services, environmental services, social networks services and financial services to just name a few; all of their successes will be dependent on an efficient and cost effective supply chain. I envision blockchain technology as it imparts to supply chain will be able to lower the barrier of entry for entrepreneurial opportunities.

The Solution to Supply Chain difficulties is Blockchain Technology

What blockchain technology can do. Traditionally in the clothing or fashion businesses, the barrier of entry to be successful is the margins from the products. Large companies are able to increase profile margins by low cost of materials from their supply chain as a result of the large volume of materials purchased. Small businesses wanting to design its own clothing line will have difficulties to procure sufficient volume from textile supplier to drive down cost; therefore, will be difficult to increase profit margins or difficult to be competitive in the market with large design houses.

1. Nothing Goes to Waste

What if there are applications built on the blockchain platform able to source out different suppliers having excess textile materials that would normally go to waste, which then small businesses could procure at prices comparable to what the large companies would pay for. A small business could set up their demand for materials on the blockchain. A community of suppliers that are set up on the blockchain community could then offer to provide certain amount of their unsold materials, which can be from multiple suppliers in order to get to the right mix of volume needed for the small business. The efficiency of this whole process on the blockchain will come from platform being able to setup of terms, contract, delivery and payment which can be verify on the blockchain at every step at one go.

The strategic benefits of the example, which could apply to different industries and services illustrate not only a small business can be more competitive, the supply chain profits can be less impacted by large businesses’ changes in demand, which they can recovered by alternative avenue of demand in the community. “Remember the cry from parts suppliers about the lower than expected demand for new iPhone X.” Of course there will be environmental benefits with fewer wastes.

2. Expanding the Blockchain Community Creates Value

Within one blockchain community, there will be other blockchain set up in tangent. There could be blockchain community for the shipping agent for lowest cost of delivery. Between the designer and the store outlet, a “smart contract” on the blockchain can be created to receive royalties of merchandises sold. The blockchain community could create self-contain crypto-token between contracted parties to facilitate payments. The crypt-token can be used for other services that are keen to join the ever expanding blockchain community, which is the seed to increase its value in the market.

One of the obvious offspring of a blockchain community is the social network necessary. However, unlike how the current social network world is set up, the access to data and information on the blockchain are owned by individual entities. If access is revoke at certain point in time, others cannot continue to have access. Ideally, it would create an incentive of every party in the community to act upon for the “agreed” benefits of everyone else. This is in contrast to current views of how individuals have no control over how to monetize our own information.

Change the Thinking behind Blockchain Technology and Cryptocurrencies

The current views with blockchain technology and more to cryptocurrencies is that traditional institutions have little understanding. The “expert” community in blockchain technology and cryptocurrencies will need to create platforms that can build partnership and relate with the existing way of doing things.

Blockchain technology is about security but non adopters right now feels comfortable with existing protocols. Cryptocurrencies are not tied to signal authority and low cost at digital transactions but non adopters do not know what “everyday things” can be purchased for and are comfortable in accepting the higher cost of transfer with knowing what fiat-currency can do for them. The massive value fluctuation of bitcoin and other cryptocurrencies plus the added bad press generated has put cryptocurrencies in a difficult light to adopt. There are many hurtles to jump over in areas of compliance and risk management and with a large population continue to look at blockchain technology or cryptocurrencies investing as generating no real assets or infrastructures. It is a big challenge to change people’s thought process. However, there are good opportunities being done with a number of start-ups, which emphasizes their businesses on legitimizing blockchain technology and cryptocurrencies investments to attract institutional investors.

No Strategy is better than Just Do It

I believe the strategy is to look out for or create applications platforms to build business opportunities of “real world” supply chain applications using blockchain technologies. One way to speed up adoption is to create a consulting platform to help the community to adopt blockchain technologies. Consulting with companies or entrepreneurs to join blockchain consortia, educating on the value of private and public blockchain, understanding the number of participant require to get involve, sorting out the complexity of business portfolio, setting requirement of long term tracking and compliance, managing the need to transfer assets and payments in real time. Ultimately create of line of business that will create trust and a singular source of truth.

This article was originally published in LinkedIn on 19 September 2018. Read the original article here.

Top Stories