Blockchain pilots show big-business promise

The much-hyped, little-understood distributed ledger technology takes aim at big business, with promising pilot programs and rising demand for blockchain skills, though security and buy-in questions remain.

Blockchain pilots show big-business promise
Thinkstock

Become An Insider

Sign up now and get FREE access to hundreds of Insider articles, guides, reviews, interviews, blogs, and other premium content. Learn more.

Blockchain, the complex technology that supports bitcoins and other cryptocurrencies, is poised for a move into mainstream business.

A growing number of industries and at least three national governments are conducting pilots or, in a few cases, actual deployments of blockchain applications. Early use cases are aimed at harnessing the technology to improve supply chain management and food safety, verify identities, conduct real estate transactions, and handle medical records and insurance transactions. There’s serious money involved as IBM, Microsoft and a host of startups are building blockchain platforms, and companies looking for blockchain engineers and developers are paying premium salaries.

“There have been many prototypes in the last two years, and now we’re starting to see the first serious blockchain applications,” says David Treat, a managing director for financial services at Accenture, a business consulting company. “Beyond financial services there are two overarching themes: identity and supply chain.”

Where blockchains fit in business

In a recent report, IDC analysts said they expect “blockchain ledgers and interconnections to evolve at a slow and steady pace over the next 36 months … and by 2021, at least 25 percent of the Global 2000 will use blockchain services as a foundation for digital trust at scale.”

Even so, there’s still a good deal of confusion about what blockchain is all about. “I spent a good deal of time in client meetings explaining that blockchain is not bitcoin,” says Treat.

To continue reading this article register now

NEW! Download the Fall 2018 digital issue of CIO