It was Jan 3rd, 2009 that genesis block of Bitcoin was mined and since then this date is regarded as the birthday of Bitcoin. Now, in 2023, as we cross the 14th birthday of Bitcoin, it’s a much different world that we live in. Banks and Financial institutions that have grown bigger than Countries economies have been controlling and or influencing global policies. The decentralised movement, part of many such movements globally lead to arrival of Bitcoin. Many movements died while Bitcoin not only survived but lead to the evolution of BlockChain technologies.
BlockChain community across the globe kept focusing on DeFi – Decentralised Finance. The community is so focused at driving this agenda that majority are stuck in a BIG bubble of “DeFi or nothing”. It is time to loosen the slack. DeFi approach essentially evolving out of Bitcoin challenged the centralised Banking ecosystem. But, Enterprises, Public Institutions and even Government Agencies are considering BlockChain Technologies. It’s time we appreciate that BlockChain is beyond decentralised. One of the fundamentals of BlockChain is Distributed Ledger Technology (DLT), this enables an effective functioning of distributed and yet centralised system. This is where the Private BlockChains have a play.
Over 105 countries (contributing to 95% of world’s GDP) are exploring CBDC, the BIG shift is underway. India has already done the pilots in both wholesale and retail space. Though the Finance Minister of India suggested that, they don’t intend to disrupt the traditional financial system, its matter of time before the Banks as we know will no longer wield the kind of power or influence they have been used to across the globe. This is sufficiently BIG cue for Blockchain Technology Businesses to realign their efforts towards Private chain instead of Public Chain. Look at Distributed instead of Decentralised.
2. Greater transparency is another key aspect that determines accountability across every stakeholder.
3. Traceability is becoming a significant differentiator to Product lifecycle and also customer journey across segments.
4. Speed and efficiency of fulfilment of service from Government agencies to Private enterprises is another factor of significance.
5. Finally, Automation is becoming the hallmark of every industry in its effort to stay relevant and even Government and administrations have started automating processes as Citizens expect ease and convenience that the Brands have made available.
Private Chain, unlike Public Chain gives huge confidence to Government agencies and large corporations and enterprises. While they still have to significantly change in the way they run administrations or manage Corporations from being a Top-down hierarchical (Pyramid) organisations to Distributed (Spherical*) Organisations, Private chain, gives them the best of BockChain Technology while still giving scope to operate in a closed environment. This will protect the interests of the parties be it Government or large corporations, addressing their threat perceptions of a Public Chain.
It’s time to move from DeFi to DiFi. Decentralised to Distributed. Unlock the value of BlockChain technologies without getting self limited. There is an all new world to be discovered. Great value to be created and even greater value to be realised.
* Spherical is with reference to business operating with Distributed Economy models and is in contrast to Circular (economy), which in principal refers to all the stakeholders while leaving out the majority while sharing the collective value.