Beyond Cryptocurrency: Blockchain as Value Creator and Connector

Of Vikrant Viniak, CEO of Accenture Strategy ·

January 8, 2019

Most people recognize blockchain as the technology behind in-vogue cryptocurrency, but few truly understand the potential of this technology to substantially reduce operating costs for businesses and enable new ways to create value. For companies that depend on strategic partnerships or seeking to increase the transparency of interactions between consumers or business partners, blockchain presents a world of possibilities. Ultimately, as companies co-invest in blockchain solutions, we will see the supply chains and ecosystems of business partners becoming increasingly interconnected, increasing the sense of shared destiny and creating opportunities for joint ventures.

To understand the value of blockchain for companies, both as a cost saving and value creation mechanism, we will explore three key use cases. In delineating these three examples, it will become clear how the blockchain can allow a substantial evolution of partnerships along the supply chain. Our three use cases are:

• how the blockchain can increase transparency in the supply chain by validating the provenance;
• how the blockchain can reduce costs and complexity in asset tracking and smart contracts; is
• as a blockchain it can drive upsell opportunities through data purity.

Understanding what makes blockchain and how it looks in practice

First, it is important to understand what makes blockchain, how companies can cooperate to implement blockchain solutions and how it appears in practice. Blockchain is a shared digital transaction log shared on a public or private processing network. Transactions are added to the blockchain only after the computers on the network confirm their validity through cryptographic crisis response authentication. This feature eliminates the need for third-party intermediaries, as the network uses a consent mechanism for transaction execution. Transactions are stored on the blockchain in groups called "blocks".

Of Vikrant Viniak, CEO of Accenture Strategy ·

January 8, 2019

Most people recognize blockchain as the technology behind in-vogue cryptocurrency, but few truly understand the potential of this technology to substantially reduce operating costs for businesses and enable new ways to create value. For companies that depend on strategic partnerships or seeking to increase the transparency of interactions between consumers or business partners, blockchain presents a world of possibilities. Ultimately, as companies co-invest in blockchain solutions, we will see the supply chains and ecosystems of business partners becoming increasingly interconnected, increasing the sense of shared destiny and creating opportunities for joint ventures.

To understand the value of blockchain for companies, both as a cost saving and value creation mechanism, we will explore three key use cases. In delineating these three examples, it will become clear how the blockchain can allow a substantial evolution of partnerships along the supply chain. Our three use cases are:

• how the blockchain can increase transparency in the supply chain by validating the provenance;
• how the blockchain can reduce costs and complexity in asset tracking and smart contracts; is
• as a blockchain it can drive upsell opportunities through data purity.

Understanding what makes blockchain and how it looks in practice

First, it is important to understand what makes blockchain, how companies can cooperate to implement blockchain solutions and how it appears in practice. Blockchain is a shared digital transaction log shared on a public or private processing network. Transactions are added to the blockchain only after the computers on the network confirm their validity through cryptographic crisis response authentication. This feature eliminates the need for third-party intermediaries, as the network uses a consent mechanism for transaction execution. Transactions are stored on the blockchain in groups called "blocks".

January 8, 2019