Hybrid Technology Approach for Blockchain implementations. Enterprise blockchain adoption methodology

1. Is Hybrid Approach the need of Enterprise for Blockchain Adoption
by Adarsh Naidu Enterprise Product Architect (BPM/Blockchain/Devops)
Problem
Statement
“How can leaders manage
the uncertain transition
period from one technology,
service, or business model
to a newer, including
disruptive technology like
Internet , Social Media and
Blockchain.”
Responding to disruptive
innovation may be one of the
greatest challenges managers
in established firms face. On
the one hand, they’ve been
warned that disruption can
sneak up and quickly destroy
their business
The Approach
Developing a Hybrid
product/solution that combines
emerging technologies with
existing once – is a smart way
to tackle the challenge. This
solution allows enterprises to
learn as they go and shape
where the industry is heading.
Summary
Thomas Edison’s lightbulb
ushered out the gaslight era as
completely as it ushered in the
age of electric power. But the
gas companies didn’t fall victim
to disruption immediately. gas
companies borrowed the
filament technology from the
electric bulb to improve the
efficiency of their gas lighting
fivefold, starving Edison’s new
company of profits for 12 years
and nearly bankrupting him.
Edison and electric lighting
prevailed in the end. But by the
time the disruption was
complete, gas companies,
having bought themselves
more than a decade of
breathing room.
Timing is everything when it
comes to surviving
disruption
Reference:
Harvard Business Review
The Prius Approach
by Nathan Furr and Daniel Snow
FROM THE NOVEMBER 2015 ISSUE
12/25/2018
Key Points
“Hybrids can be used to adjust
to disruption or to stave it off
entirely.”
“While the purpose of most
hybrids is to buy time to adjust
to a new landscape, some can
be used to stave off disruption
entirely.”
Generally, the more mature the
disruption, the likelier it is that
an incumbent will employ
hybrids to shape how the
innovation develops; the newer
and more uncertain the
disruption, the likelier it is that
an incumbent will employ a
hybrid primarily as a learning
tool. To manage a hybrid
effectively, you must know why
you’re using it.
Hybrid
Technology
Gas lighting with filament
(between gaslights and electric
lightbulbs)
Kodak’s digital photo printers
(when it was easy to take a
digital photo but hard to turn the
file into a print)
Digital SLR cameras (with more
sophisticated lenses than
ordinary digital cameras)
Prius automobile (between gas
and electric)
Microsoft Surface (combines a
tablet’s convenience with the
sophisticated software of a PC)
Fotosetter (replaced slugs of a
traditional typesetter with a
camera)
HIT solar cell (between
conventional silicon technology
and “thin film” alternatives)
Executive Summary of article published in Harvard Business Review “The Prius Approach”

2. s
Blockchain Adoption issues
Incorrect technological perception
Weak use cases
Flawed governance/operating model
Monolithic architecture and design
Constrained scalability and performance
Unforeseen technology maturity path
The Approach
Hybrid technology use by adopting blockchain as an
API on top of existing technology stack and use
blockchain for transactional logs and smart contracts
execution.
Looking at blockchain and relevant to above context
“blockchain Disruption Has Just Begun”. so enterprise
needs to think about Bridging hybrids and Niche
hybrids based on which industry they are in and
what’s the impact of blockchain is in their industry.
Bridging Hybrid example is Toyota Prius that is
helping Toyota navigate a long period of uncertainty
about electric vehicle
Niche hybrid example is cloud computing which has
proved to be a significant disruption to enterprise
computing, many companies are not comfortable with
the security of the cloud. Hybrid cloud services, which
combine some cloud services with local computing
hardware to handle sensitive data, have become a
major and enduring niche and are likely to remain so
until security concerns are fully addressed
As Enterprise blockchain is evolving and rapidly
moving towards web 3.0 with features like
Decentralized identity, Off-chain computing, Zero-
knowledge privacy, State machine and Chain-to-
chain interoperability, enterprise of today should start
adopting Blockchain technology and should be
prepared for Blockchain based disruption i.e. API
based programmable economy.
Since blockchain technology is proving really a game changer enterprise should Learn about the threatening
technology with intent to eventually adapt to disruption. Also improve existing offerings by introducing
elements of emerging technology.
Deferring blockchain adoption decisions without proper due diligence can put the organization at
a competitive disadvantage while the new decentralized business models take shape.
Blockchain adoption in a industry should be gauged and accordingly Enterprise should plan for adopting
this disruptive technology.
Immediate Action: This is when blockchain has strategic relevance to an organization core business
Plan and experiment: This is when blockchain has strategic relevance but there is less urgency in terms
of threats to the core business model
Wait and see: It is safe to wait for blockchain technologies to mature before attempting serious adoption
Enterprise have option of choosing between Permissioned and Public blockchain or use a Hybrid approach
of using both Permissioned public ecosystems.
Most importantly, permissioned blockchains currently need a scalable and reliable operating model that
works in trusted environment, especially since they do not use tokens as incentives and rewards for
validators participating in consensus mechanisms. Without this model, permissioned blockchains tend to be
centralized, supporting very fewer validating nodes. Enterprise need to therefore question if stand-alone
permissioned blockchains will survive, die or eventually be merged into a public blockchain where they can
benefit from public’s blockchain proven operating model based on consensus among public participants.
While permissioned blockchains remain largely centralized, enterprise must carefully evaluate the business
benefits of blockchain technology versus proven legacy technology to satisfy a particular use case before
moving ahead with a blockchain project.
Below are two important points enterprise should consider before starting their blockchain journey -:
• Define decentralization requirements in the context of the minimum viable product, followed by
modeling digital asset objects, events and smart contracts. Develop decentralized applications
architecture with provisions for replacing/upgrading platform components
• Select a tactical blockchain platform to implement a pilot solution in the short term while planning
for the platform obsolescence. The design and implementation should apply a shift-left testing
strategy to ensure the solution can progressively meet functional, performance and security
requirements.
Blockchain promises to enable true P2P interaction
and transactions without the use of any
intermediary.
Represent assets digitally ■ Develop trusted
decentralized transaction protocols ■ Track and
manage the state of digital assets locally and
globally ■ Enable new forms of value creation and
exchange ■ Interact/transact without a central
authority or intermediaries ■ Ensure distributed
copies of identical records that are immutable and
traceable
How Blockchain can be used by the approach suggested in the above article