Organizations have begun deploying pilot projects to test the technology before they can actually finalize on a future roadmap for blockchain. Almost 60% pilot projects are in the Banking, Financial Services and Insurance Industry owing to the trust and security that the technology brings along with it.
The selection of the correct use case is extremely important as this can accelerate the adoption of the technology through a mix of stakeholder awareness and value realization from the blockchain pilots. Trading ecosystem is perhaps the most advanced in terms of product readiness when it concerns blockchain, followed by clearing and settlement and interbank payments. All the three use cases incorporate transparency and auditability as their core benefit while utilizing automation/process optimization as a multiplier when it concerns cost reduction. Majority of the ready use cases either result in cost reduction or enhancing stakeholder experience; of these two, the former has taken precedence.
COVID-19 has accelerated the pace of use case adoption in other industries such as Telecom/Media and Transportation & Travel. Wipro Enterprise Operations Transformation has built two solutions; one specifically tends to supply chain inefficiencies in the market for the manufacturing sector and the other focuses on the order management capability within order-to-cash process for telecom and technology. Blockchain would be greatly beneficial for the government and healthcare sectors, especially when it concerns Identity Management, which is another use case where Wipro has advanced capabilities.
Creating an ecosystem for blockchain implementation
The other aspect and probably a far greater factor for blockchain adoption is the creation of an ecosystem. The biggest bottleneck when it concerns an implementation is the ability to persuade stakeholders to transition their processes from an existing setup to a distributed ledger, which is going to ease security, privacy and trust between the stakeholders.
While convincing the stakeholders is one aspect that has hindered blockchain adoption due to the availability of alternatives which are further in the product lifecycle and hence mature; the other is the dichotomy of choosing to place data or customer journey as the focal point for the creation of the blockchain system. Data has clearly gained precedence over customer journey, at least from the perspective of the most ready use cases but it would be fair to consider that the core requirement of the Banking, Financial Services and Insurance space, where 60% of these pilots have been implemented, place data security as their primary need. When a blockchain pilot is implemented in a consumer-facing environment such as retail, consumer products and the likes, customer journey will take precedence over data as the focal point.
Creating an ecosystem requires the cohort to also establish a framework and guidelines to ensure transparency in functioning within these cohorts. As the scale of blockchain implementations grows, we will obviously be looking at disputes, both between parties within the ecosystem as well as parties outside.
What will be crucial is how the participants within the ecosystem resolve disputes. Presently we have 4 dispute resolution mechanisms which include the following:
- Private/Semi-private: The operator of the blockchain can utilize the already established governance framework to settle disputes with parties who are presently ‘on the chain’. However, if the matter concerns the overall industry and the parties feel that inconsistent information has been provided by the parties, they can also ask other industry participants to join the resolution of the dispute.
- Third-party arbitration: If the nature of the dispute requires a neutral arbitrator and/or the parties prefer to not bear the expenses of litigation, they can always seek out the governing body, which has been central in establishing norms and practices to settle the disputes between parties.
If the dispute can still not be resolved, then either party can choose to settle the dispute via litigation bearing in mind the lengthy appeals process, cost, and the fact that court might not be sophisticated enough to understand the technology involved.