Can Blockchain Enable Digital Transformation of Business and Society?

Defining Digital Transformation

While there is no strict definition, most sources seem to agree that digital transformation involves a fundamental redesign of existing models and processes to create an operation that’s new and different from what came before. It should make a marked change to overall performance.

Digital Transformation — A Short History

The terminology of digital transformation may seem relatively new, but the concept itself isn’t. Computerization and automation have already changed the world. Firstly, organizations became increasingly reliant on computers for basic tasks like word processing and managing accounts with spreadsheets.

Digital Transformation in Context

The scenarios above take an aerial view of how digital transformation has diffused throughout business and society as a whole. However, it’s useful to take a few examples of digital transformation in context.

Where Does Blockchain Come In?

Blockchain is only one component of a digital transformation, but it’s unique properties mean that it can function both as a standalone technology and as an enabler of other emerging technologies such as artificial intelligence.

Taking Decentralization Further

Decentralized autonomous organizations (DAOs) are now possible using smart contracts on a blockchain platform. A DAO has no central ownership or hierarchy. Each participating member of the organization holds equal voting rights, with all policies, voting rules and agreements coded onto the blockchain itself. In the future, it’s possible that entire companies could be run in this way.

A Blockchain Enabled Society

Opportunities and Challenges

These examples illustrate the extent to which blockchain can transform current paradigms. The opportunities of living in such a decentralized society are more than just convenience and efficiency. Decentralization means peer-to-peer connectivity, eliminating the need for central entities such as brokers or, in the example above, companies such as Uber.

Apla’s solution to DAO-like hacks

The Journey is Underway

At least for now, a fully decentralized society seems a long way off, and in light of the potential pitfalls, perhaps that’s not such a bad thing. Nevertheless, blockchain is already a critical component in the digital transformation journey of businesses, governments and other organizations, offering some radical opportunities to change ways of operating. While the world is still catching up with the opportunities provided by blockchain and other emerging technologies, there is much to look forward to.

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Sarah Rothrie

Sarah Rothrie

Blockchain and emerging tech writer/researcher. Reporter at Crypto Briefing. Traveller, foodie, scuba diver and all-round geek.