Key Business Considerations for Selecting the Right Blockchain Framework
When it comes to adopting blockchain technology, organizations need to carefully evaluate various criteria to ensure that they choose the right framework to address their business challenges. From open platform and open governance to economic viability, there are many factors to consider. Here are some key business considerations to keep in mind when selecting a blockchain framework.
Open Platform and Open Governance
The blockchain technology standards chosen by an organization can significantly impact the success of the enterprise blockchain adoption, compliance, governance, and overall cost of the solution. Choosing an open platform and open governance model that can accommodate changes and evolution in the industry is crucial.
Economic Viability of the Solution
A blockchain framework must align with an organization's existing business models, charge backs, compute equity, and account management to provide economic viability. By analyzing the return on investment (ROI) of the framework, an organization can ensure that the selected blockchain solution is cost-effective and sustainable.
Longevity of the Solution
The success of a blockchain network is reliant on its sustainability, which requires the ability to sustain the cost and operation of the network. As organizations aim to build a trusted network, they need to ensure that the blockchain framework can grow and scale to accommodate additional participants and transactions.
Regulatory Compliance
Compliance issues related to transaction processing, such as industry-specific reporting and analysis for business workflows and tasks, both automated and human-centric, must be considered when selecting a blockchain framework.
Coexistence with Adjacent Systems
A blockchain network needs to coexist with the rest of the enterprise, network participants, and adjacent systems that may have overlapping and complementary functions. This consideration can avoid disruption and ensure seamless integration.
Predictable Costs of Business Growth
To ensure predictable business growth, an organization should evaluate the transaction processing capabilities of the blockchain framework. Metrics such as transactions per second (TPS) differ from system to system, based on system design, compute costs, and business processes.
Access to Skills and Talent
Availability of talent affects maintenance and longevity of a blockchain solution as the industry and technology evolve. An organization must ensure access to skilled talent to keep up with continued innovation.
Financial Viability of Technology Vendors
Selecting a reliable vendor with a long-term vision and a sustainable business model is critical. Examining the financial viability of technology vendors can ensure long-term support and the longevity of the blockchain solution.
Global Footprint and Support
As blockchain solutions tend to involve business networks with a global reach, the related skills to support the network's expansion with minimal disruption is essential.
Reliance on Technology and Industry-Specific Standards
Establishing industry-specific standards for blockchain technology can enable standardization of a shared technology stack and deployment. It can also establish an effective communication platform for industry experts to use for problem solving, enabling low-cost, easy-to-consume technology possible.
By keeping these key business considerations in mind, organizations can choose the right blockchain framework that aligns with their business needs and drives success in enterprise blockchain adoption.