Question

1. What kind of Business problem does 0x( Blockchain solution) solving?  

Answer 1

n their simplest form, blockchains are the digital equivalent of the old stone ledgers. They are memory devices — a kind of database — for recording and verifying transactions and terms of engagement. Just like their ancient counterparts, they can record information about any number of things: who owns a specific asset, who bought a particular product from whom, or who has the right to make a certain type of decision. And all of this information can be aggregated to develop insights about, say, the reputations of parties involved or the origins of the supply chain of a particular commodity.

What makes blockchains so powerful, however, is the fact that they are distributed and digital. Rather than having to physically record transactions in one place, any authorized party can be given access to either the entire ledger or specified portions. As transactions take place between parties, the distributed digital copies of the ledger are instantly and simultaneously updated, and the record of each transaction is indelibly recorded through advanced computational algorithms and cryptographic locks. Depending upon the rules of the particular blockchain, participating parties can be either identified or anonymous. The decentralized nature of the ledger means that parties can more easily interact with each other — and have confidence that the record of the interactions will be fully memorialized.

Distributed ledger technologies — collectively known as blockchain — have burst onto the business scene, accompanied by a significant amount of hype.1 They are widely expected to disrupt existing industries and lead to the creation of new types of companies.

Some of the excitement may indeed be warranted, but only if organizations focus on how these technologies can be used to support their strategy. Without that lens, companies risk making large investments in initiatives that don’t create meaningful value.

However, with careful planning, businesses can use blockchain to gain an edge over rivals in a number of ways. It can provide a foundation for powerful applications that will streamline core operations. Distributed ledger technologies can lower transaction costs and make intellectual property ownership and payments more transparent, seamless, and automated. But companies should resist jumping on the bandwagon until they first understand what specific problems they can solve with blockchain — and for whom. How will it help them reach new customers? How can it improve efficiency or transparency in their supply chains? And most important, what will blockchain enable them to do that competitors and new entrants can’t do? Answering these sorts of practical, targeted questions will allow businesses to cut through the hype and create a blockchain strategy that makes sense for them.

To begin, it’s critical to understand the basic uses and functionalities of blockchains, which tend to get lost in the buzz. So we will provide a quick primer on digital ledgers before discussing how companies should build powerful problem-solving applications that are uniquely configured to their own strategies.