by Lumai Mubanga
With Blockchain gaining more and more momentum and adaptations across different platform, it appears the technology is just heating up and is yet to reach its climax in ita transformative wave across businesses. This article endeavours to speculate on the possible effects Blockchain will have on businesses in general.
Overall business operations
Blockchain will bring fundamental changes, not only to how businesses are run but to the nature of businesses as well. One area is in the way enterprises are managed and funded. Not only that but also how value will be created and how some marketing and accounting functions operate.
Further changes will be seen in company structures and how goods and services will be created. Engagement of corporations on the world level will drastically be affected.
For example, we have previously observed a vertical integration of businesses, running on a largely top to bottom structural plan. Transactions on open markets have been higher, mainly driven by profit motives. Big banks domination results in costly business ventures and loans leading to complex business startups and fundraising. Step aside and imagine encapsulating all this in a bubble with low costs, low transaction fees and almost zero centralized identities like banks and government agencies!
Apparently, Blockchain will eliminate many cost-related challenges corporations incur in doing business. This will result probably in many companies reaching their targets, making more profits, expanding exponentially and launching more startups along the way.
Instead of current enterprises that exist in isolation, future enterprises will look more like groups of network enterprises on some permissioned or permissionless Blockchain backbone. The most successful will thus be groups of networked organizations and individuals with integrated business models.
As smart contracts automate corporations and individual transactions, value delivery will increasingly depend on how efficient these smart contracts will function and meet corporate expectations.
New blockchain organization
Generally speaking, Blockchain will reduce four different types of business transactions to be discussed in the next article. Going further, Blockchain will even affect internet searches as well as the way the internet of things devices will scale and be managed. Four types of Blockchain organizations will emerge and dominate the world stage. These will include distributed application or DApp, autonomous agents, the open networked enterprise and the distributed autonomous enterprise.
New Business models
Looking ahead, seven new business models enhanced by blockchain technology could emerge and probably become the model by which many business enterprises will be designed. New and better ways will have to be found on how to manage and protect intellectual properties on Blockchain. The new environment will also dictate to some extent the rules and regulations for adoption to govern, even in a more robust way how Blockchain governance will be administered.
As the new technology gains more adoptions, different governance networks will clearly emerge and nations around the world will begin to examine desirable qualities that will enable them to build vibrant systems and ecosystems that will be supported by the Blockchain tech.