Blockchain In Enterprises

Considering blockchain as a technology that requires collaboration to be effective, organizations, both allies, and competitors have started forming partnerships. However, forming a successful blockchain consortium needs forethought, effort, and dedication. ​Blockchain, the digital distributed ledger technology that underpins Bitcoin and has the potential to disrupt a wide range of businesses, is fast evolving.

However, one blockchain movement has nothing to do with technology: A rising number of organizations looking to build and deploy blockchain-based business solutions are doing so as part of a consortium, which is a collection of companies that band together to set standards that enable the development of new infrastructures.

The formation of blockchain consortiums

Consortia have grown in popularity as a way for businesses to collaborate on blockchain technology. A lot of blockchain consortiums have been formed around the world, with some receiving significant support, primarily from financial services firms.

Business-focused blockchain consortia and technology-focused blockchain consortia are the two types of blockchain consortia. Business-focused consortia strive to create and run blockchain-based business platforms to tackle a specific problem.

In every industry, consortiums will play a critical role in the commercialization of blockchain technology. In the next two or three years, many more consortia are likely to form. Not every project will lead to a commercial deployment, which is acceptable for those who are more interested in learning at this point.

Indications

• More than 40 consortia have been formed throughout the world to investigate blockchain and distributed ledger technology, the majority of them in the last six months.
• Blockchain technology will be deployed at a commercial scale over the next 12 months, according to well-funded and staffed consortia that have attracted prominent industry participants.
• While financial services have seen the largest consortia so far, other industries, including health care and logistics, have begun to follow suit.
• Policymakers, regulators, and central banks are forming or leading blockchain consortiums.
• 18 percent of CEOs’ who are familiar with blockchain technology are already members of a consortium, 45 percent are planning to join one, and 14 percent are considering finding one.

In the end, blockchain consortia emerge as a result of the technology. Even while a distributed ledger might have an instantaneous favorable influence between two organizations, network effects provide greater value. The more users there are, the more useful the technology becomes to everyone. Consortia enable businesses to take advantage of blockchain network effects right away by offering a vehicle for establishing a governance framework around this collaboration, which is typically between competitors. As a result, most businesses will need to join a consortium to use blockchain successfully.