Best practice tips for adopting blockchain technologyFollowing Dr Vince Ming's Information Age blockchain guide for CTOs and tech leaders, he provides his best practice tips for adopting blockchain
As more use cases emerge, adopting blockchain technology will become a growing priority for CTOs, and equivalent positions, in end user organisations, ranging from property to retail.
Adopting blockchain, as with any new technology, will be a challenge. There are numerous suitability and adoption issues, as Dr Vince Ming — chief regional director at FST Network and speaker at Information Age’s Tech Leaders Summit, explains in his blockchain guide for CTOs and tech leaders:
The blockchain guide for CTOs and tech leaders: suitability, adoption, regulation, hype and future predictions
But, he goes further than just identifying these issues. Here, he provides his best practice for adopting blockchain technology.
One commonly universal benefit that blockchain technology can bring is the ability to incorporate an efficient financial inclusion mechanism into any business or utility model.
However, the milestone for flawless incorporation is lacking and cumbersome. This is mostly due to the immature development stage of the blockchain technology.
Here are some of best practices towards achieving wider adoption are as follows:
a) Understanding of underlying problems and needs, then devising proper implementable solutions
The failure to clearly define problem statements can be the downfall of many existing blockchain models, as most projects focus on only partial aspects (usually the extrinsic value “assigned” onto the designated cryptocurrency), without actually targeting the pain points that must be solved or improved by implementing the proper DMS solution.
Most projects only focus on the “oil” (coin provision) and get side-tracked without actually investigating and devising the proper “machine” solution (the DMS). In fact, the “vending machines” produced have limited functions that are, in some cases, almost “empty” and unusable, because the developer cannot systematically identify the underlying needs.
Defining the pain points and needs is the first step to devise implementable solutions as different needs will require completely different models and solutions. Adopting this practice will speed up development and go-to-market time, which can quicken and the shorten the test period for adoption.
Why should CTOs in the financial sector consider blockchain technology?
b) User focus + Value focus
Understanding the target audience and user landscape is a crucial step. This includes age group, habitual activities, persona etcetera. The capacity and capability to provide seamless user-experience is paramount to the success of proper adoption.
One of the key factors to attract users to “stick and stay”, while actively engaging with the product, is through the proper incentive model, which the blockchain technology is very good at doing. However, this reward system needs a proper design that creates value amongst the user in exchange with their time spent and meeting their needs. Value creation is the key for successful adoption of the product.
c) Make it simple and easy to use
The seamless user experience in value exchange is important, but the ease of use and engagement process is also key. This includes both “to-C” and “to-B” business models. Any product or solutions needs to have “blockchain-hidden” features and functions that still allow the users to visualise and understand the process of engagement.
It will also be good practice to prepare several story-telling and various use-case demos to help customers understand the product features, while letting them test it for a period — a free-trial, for example. The feedback obtained through a free-trial can also help to improve and enhance product refinement and features that can be re-made and re-considered; repeating this process until the product gains traction and fame in order to accelerate its adoption. Again, this combination with a good incentive model will help to further promote the product.
Integrating IoT with blockchain: a trust and security game changer
d) Familiarise with regulation
Product creators or companies that provide blockchain-related services need to understand and familiarise themselves with the regulatory aspects that may apply to their product. This is really important, especially given all the announcements and new rules given by the authorities and the applicable interpretation of the law. For example, companies that engage with ICO products may not be able to target the STO (security token offerings) market directly until they have included the relevant compliance features that safeguard against risks. In other words, users may not fully understand the regulatory impacts, but they will want to know if they are operating on safe ground from the regulatory perspective.
Success in engaging confidence, provisioning on compliance and regulatory perspective, will help to quicken the pace of adoption in this blockchain space.