How to Develop a Blockchain Strategy

Blockchain can have many benefits for all industries. However, if you are considering implementing a blockchain system at your organization, you need to develop a clear and comprehensive strategy. Here are five steps for creating a successful blockchain strategy.

Step One: Understand Blockchain

At its core, blockchain is a database technology. Every transaction is built on top of the previous transaction, creating a chain. It can be applied to any industry, but organizations that want to implement blockchain need to understand it.
Know what the benefits and drawbacks of using a blockchain system are. Everyone that is deciding whether or not to use blockchain needs to understand how it works. While they do not need to be experts, they should be able to create a shared vision for what blockchain will do for their business.

Step Two: Define the Problem

Determine what problem blockchain can solve for your organization. Not every issue requires blockchain. Without a good understanding of what you are trying to fix, you cannot use the technology to resolve the problem.

Step Three: Build a Minimum Viable Product

Build a minimum viable product to address the problem. Start small and slowly implement it throughout your organization. If you rush into large-scale adoption, you risk destabilizing the system and losing your investment. You will also be able to prepare for the challenges of blockchain. Small-scale implementation will prepare you for the difficulties of a still-developing technology. You can ensure that the technology will work as it is expanded.

Step Four: Hire Specialists

New technologies require new talent. You will need to hire blockchain specialists. There are consulting companies that provide assistance, but you can also create specific roles in your organization. However, because it is a developing technology, blockchain is a small market. There are not many experts available, so if you think you may need one, hire them as soon as possible.

Step Five: Expand Your Efforts

The final step is to expand your efforts to implement blockchain throughout your organization. Create a long-term roadmap for how you will use and benefit from using blockchain. Additionally, as blockchain develops, you should be prepared for changes to the technology.

Final Thoughts

Blockchain can have many benefits, but in order for organizations to receive those benefits, they have to implement the technology successfully. The best way to do so is to develop a clear and comprehensive strategy. If you are interested in implementing blockchain at your organization, create a plan before moving forward.