Understanding Enterprise Adoption of Blockchain Technology
The landscape of enterprise technology is evolving rapidly, and while blockchain is increasingly recognized for its potential, many enterprises—such as leading payments companies, global banks, fintech platforms, and asset managers—are not aiming to create or manage their own blockchain infrastructure. Instead, they are primarily focused on solving specific business problems, like improving settlement speeds, enhancing liquidity, or reducing reconciliation risks. Essentially, what they are after is not ownership of blockchain technology, but rather the advantages it can bring—speed, transparency, and programmability.
The Demand for Practical Solutions
Enterprises are aware that blockchain can help resolve their operational challenges. They are curious about its potential but are often seeking concrete pathways to implementation. It’s not merely about recognizing the benefits; it’s about ensuring that the use of blockchain presents a clear operational or economic upside. Whether it results in cost savings, increased efficiency, or reduced fees, the motivation to engage with blockchain hinges on tangible benefits.
To meet this demand, protocol teams—those building blockchain networks—must make it as straightforward as possible for enterprises to utilize their offerings. This encompasses everything from the development and deployment of blockchain networks to ongoing infrastructure management. The less operational burden placed on the enterprise, the smoother the path to adoption will be.
Aligning Needs versus Selling the Chain
Many protocol teams encounter challenges when trying to persuade corporations to adopt blockchain infrastructure. A common misstep occurs when they frame their pitch as an invitation for companies to independently manage their blockchain solutions. Phrases like “You could run payments on our chain” often translate in corporate minds to “Run your own payments network,” which is far from desirable. The objective should not be to sell blockchain but to align solutions with the specific operational needs of corporates.
This approach revolves around orchestration—it’s not enough to propose a stand-alone blockchain; successful protocols are those that translate enterprise requirements into actionable, partner-driven implementations. Most protocol teams lack the capacity to design and operate full production systems on their own, but established partners often have the capabilities needed to deliver.
The Importance of Partnerships
The shift towards blockchain integration can be daunting for corporates, especially when considering the operational complexities involved. Traditionally, many large organizations have relied on external partners to manage critical infrastructure, which holds true in the case of blockchain adoption as well. For instance, consulting firms like Accenture or Deloitte are often already embedded within enterprise clients, making them ideal partners for facilitating such transitions.
In specific regions, different dynamics come into play. Take South Korea, where companies like Kakao and Naver initially attempted to develop and control their own blockchain systems. Facing operational challenges, they have now pivoted towards exploring existing chains or modular solutions to streamline their blockchain endeavors.
Three Paths to Adoption
Enterprises typically engage with blockchain technology through one of three main paths:
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Deploying onto Someone Else’s Chain: In this scenario, a corporate partners with a protocol that already exists. By building use cases directly on top of an established blockchain, businesses can address their specific problems using deployed rails. This method is low-lift and can yield broad results, but it does mean operating within the constraints of another’s infrastructure.
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Having Someone Deploy Onto Your Chain: Here, a protocol team develops the blockchain and invites various partners to create applications or assets tailored to distinct use cases. The protocol retains oversight of the network and provides technical support while partners manage distribution and integration. This collaborative model is where much of the enterprise adoption is currently taking place.
- Offering Your Stack as a Service: Some protocols take it a step further by providing comprehensive, purpose-built networks or “stack-as-a-service” tailored to specific enterprise needs. Although the protocol delivers the infrastructure, implementation still garners input from partners who carry out the actual deployment.
Simplifying the Adoption Process
Across all these paths, a consistent theme emerges: enterprises do not want to own their blockchain infrastructure—they require tailored solutions that meet their specific use cases. The task for protocol teams is to facilitate the adoption process without diving into the complexities of infrastructure management.
For most enterprise stakeholders, the focus should be shifted from convincing corporates to operate their own chains to developing ways for them to utilize the technology effectively. This means clearly identifying the use cases and ensuring that protocols can provide the necessary infrastructure while the partners handle the delivery of solutions, like stablecoin integration or application development.
The Role of Design Partners
A strategic approach involving design partners can accelerate the engagement process. Rather than merely acting as early adopters, design partners actively collaborate with protocol teams to adapt workflows to fit within blockchain structures, often prior to a product’s official launch. This collaborative environment ensures that the chain aligns with real-world operational needs.
The protocol assists with critical tasks like deployment, compliance, and throughput, allowing partners to focus on integrating relevant components. This not only leads to a product that suits the partner’s business logic but also fine-tunes the protocol based on real demands.
Emerging Market Patterns
The unfolding patterns across various blockchain ecosystems reveal a strategic alignment between protocols and partner enterprises. For instance, Avalanche’s Evergreen subnets facilitate tokenized asset infrastructure, with Avalanche handling the network while its partners manage distribution. Similarly, Base works with Coinbase’s enterprise clients to ease the adoption of blockchain technology while Circle collaborates with banks and payment solution providers to operationalize blockchain benefits seamlessly.
In each of these scenarios, the underlying principle remains consistent: empower partners to deliver real value without necessitating that they manage infrastructure independently.
Enabling Partners for Success
To truly enable successful adoption, protocol teams need to prioritize partnerships. Identification and engagement of key partners who cater to target enterprises is paramount. This may involve collaborating with established consulting firms or specialized technology providers that specialize in blockchain solutions.
Once these partnerships are formed, the focus should shift to equipping these partners with the tools they need to support your solution. This may include conducting joint technical sessions, creating easily navigable documentation, and providing demo frameworks that showcase how the blockchain infrastructure functions seamlessly with existing systems.
By removing complexities and empowering partners, protocols can ensure a smoother pathway toward enterprise adoption, allowing the technology to function as an invisible, yet integral component of modern business solutions.
Final Thought
The future of blockchain adoption lies in making the technology work effortlessly for enterprises. By focusing on partnership and operational compatibility, protocols can seamlessly integrate their infrastructure while delivering undeniable value to enterprises across the globe.
