Blockchain technology has exploded in popularity and adoption over the last few years. From financial services companies experimenting with blockchain-based payments systems to logistics providers using blockchain to improve supply chain transparency, businesses across industries see the disruptive potential of blockchain.
However, despite all the hype and interest, many companies still don’t fully understand how to strategically implement blockchain technology to drive real business value. The technology is complex, security and governance standards are still developing, and it often requires looking at business processes and models in entirely new ways. That’s where blockchain consulting firms and experts come in.
The Rise of Blockchain Consulting
As blockchain goes mainstream, there has been a corresponding rise in firms and consultants specializing in advising clients on blockchain opportunities. According to recent reports, the global blockchain consulting market was valued at nearly $1.4 billion in 2021 and is expected to grow at over 37% annually over the next few years.
Blockchain consultants usually have strong technology expertise, including hands-on experience designing, developing and deploying blockchain solutions. Many come from technical backgrounds in areas like cryptography, computer science and programming.
But the most effective blockchain consultants combine their tech skills with a strong understanding of the client’s business strategy, competitive landscape and operations model. They can bridge the gap between the technical capabilities of blockchain and the real-world business needs and processes of an organization in any industry.
Key Roles and Responsibilities
So what do blockchain consultants actually do for their clients? Some of their most important responsibilities include:
Educating clients on blockchain fundamentals. Blockchain is often poorly understood even in technically-savvy organizations. Consultants must educate stakeholders on how blockchains work and their unique benefits compared to traditional systems. This education lays the groundwork for strategic adoption down the line.
Identifying use cases and opportunities. The bestblockchain consulting firms use their technical and business expertise to surface real, tangible use cases for blockchain within a client’s operations where it can add significant value. They think creatively about how blockchain could solve existing business problems or enable new opportunities.
Advising on technology options. There are many technology options under the blockchain umbrella that each offers different tradeoffs. Consultants help clients analyze the feasibility and cost-benefit economics of platforms like Ethereum, Hyperledger Fabric, Corda or custom chains for their specific use cases. They guide technical decisions around consensus models, on-chain vs. off-chain data and other architectural considerations.
Developing proof-of-concepts. Blockchain consultants frequently work with client engineering teams to develop limited scope proofs-of-concept for the most promising use cases. They provide advice and best practices while the client team builds sample applications to validate the merits of blockchain or better understand how it would integrate with existing systems.
Outlining implementation roadmaps. Once use cases are validated and technology options selected, consultants support clients in mapping out full implementation rollout plans spanning technology, process change, organizational alignment and regulatory factors across departments. They get into the weeds of what needs to happen from proof-of-concept to production.
Building connections to the ecosystem. Blockchain consultants usually maintain strong relationships with leading technology vendors, industry groups, standards bodies, regulators and other players across the decentralized ecosystem. They leverage this network to connect clients to the resources they need during evaluation, architectural planning or implementation.
Real Business Impact
The result of engaging good blockchain consulting partners is that companies can tap into blockchain’s benefits to solve real pain points and capture real opportunities. A few examples of the business impact of blockchain consulting engagements include:
- A major shipping company developed a blockchain solution to provide tamper-proof, real-time tracking of cargo containers across their global logistics network. This improved supply chain visibility, optimized routing and delivery, and built trust with customers.
- A leading financial firm implemented a private securities trading platform with embedded compliance rules. This reduced settlement times from days to seconds while enabling regulatory oversight into every trade.
- A retail brand created a blockchain consumer loyalty program where points earned had real monetary value, providing consumers more flexibility and transparency than traditional loyalty point systems.
- An insurance provider developed parametric insurance products for farmers in emerging markets using blockchain smart contracts and IoT data feeds. This increased financial inclusion by extending protection to previously underserved rural communities.
The Final Word on Blockchain Consulting
At the end of the day, blockchain consulting firms play a critical role in building understanding, evaluating opportunities, and developing solutions that harness the true advantages of blockchain – decentralization, cryptographic security, transparency and automation of trust. They turn the theoretical promise of blockchain into real-world use cases that create business value.
Any company looking to leverage blockchain needs an experienced partner that can bridge between its strategic aspirations and the practical reality of implementing complex, bleeding-edge technology across people, processes and systems. That partner is a qualified blockchain consulting firm.
