Response time is the fundamental competitive advantage in the blockchain field

Baozou Commentary : The speed of development of new technologies always leaves no room for respite. The disruptive nature of blockchain technology will inevitably make its impact even greater and more rapid. Therefore, if you want to gain a favorable position in this transformation, you must recognize and accept its potential as soon as possible and take measures to gain enough time to respond. Otherwise, you will only be swept into the shallows by this technological torrent.

Translation: Annie_Xu

Business executives need to evaluate whether blockchain is an opportunity or a threat, but it is difficult to get their attention. Generally, I can always use the following questions to get their attention.

"Imagine if a competitor enters your market with a 50% price advantage, how would you respond?"

Then you can observe their expressions.

Assuming they feel uncomfortable with this blockchain technology, they will ask you, how much time do I have?

My response is always:

"The Mars base has informed me that the alien fleet is heading to Earth; once it reaches the moon, there will be no time to react."

The blockchain will mature in 2020

The fact is, no one knows whether it will be six months, one year or two years. But one thing is certain, blockchain will mature by 2020. But reaction time is the main factor.

Blockchain is more than just a new technology, network, development environment, currency, and distributed ledger. It also represents a change in business infrastructure and traditional operating models.

The nature of work has not changed since the modern era of mass production, and organizational and managerial practices have barely advanced in more than 150 years.

SQL databases in the 1970s and ERP in the 1980s revolutionized record keeping systems. Inefficient technology created the current industrial status quo and duplication of processes, where everyone’s database holds a piece of information but cannot be trusted by others.

Anti-money laundering and know your customer regulations

Why is this? Because the existing business system is based on a debt system, so we must always endure the audit of anti-money laundering and know your customer regulations.

We have gone through audits, coordination, and verifications over and over again, adding at least 25% friction costs to the already inefficient operating model. And because of mutual suspicion, a central agency is needed to act as the final verifier and arbitrator of facts.

The blockchain operating model can eliminate all unreasonable processes. Because the blockchain is an open distributed ledger, all information is transparent, the network verifies transactions, and the identities of various participants are open and transparent, without the need for coordination or auditing.

Competitive weapons

If you’re a CEO, you and your organization need at least a blockchain plan in case a competitor suddenly appears and you don’t have time to react, or a customer suddenly abandons you.

We should choose to be at the forefront of blockchain and use it as a competitive weapon to gain competitive advantage, because in the blockchain world, only the first movers will fall behind.

Peter Thiel

As PayPal founder Peter Thiel said:

“The goal is not to compete, but to destroy competition and monopolize the market.”

Everything is happening very quickly this time and reality will be cruel.