Blockchain Seoul; Competition and Specialization

Companies utilizing blockchain technology realize that they are venturing into uncharted waters. They are relying on the on-paper benefits that blockchain technology provides to enhance their existing operation. For example, banks have started adopting blockchain technology around the world, despite their notorious reputation for being slow to change. For them, the technology can significantly reduce costs and service periods.

Does this mean that companies utilizing blockchain technology have no peers? This can’t be the case according to a story from CNBC which outlines a report from PwC whose results show that 84% of executives responded that their companies are actively involved in blockchain explorations for their operations.

What do other SMEs that utilize blockchain think?

Last week in Seoul was the very successful Blockchain Seoul Expo in the spacious and modern COEX D Hall.  A few immediate observations about the expo were that it was expansive. As is the case with almost all of these expos, the majority of exhibitors came from SMEs. Then one would see that this was an event primarily for Koreans since, after all, it was held in Korea for a population that is bounding their way towards the industrial sophistication of other regions. After the ‘wow’ factor wore off, further examination of the projects revealed a trend.

Many of the exhibitors here were either not doing an ICO or had already finished that process, so a new set of questions needed to be asked of them to measure in some degree their competence in the industry. Representing thenews.asia, I asked booths first: What specialization to blockchain technology or utilizing blockchain technology are you offering? Second I asked: Who are your competitors in business or in the blockchain industry?

What I found this time, as was the case with the Beyond Blocks respondents, was that those who could adequately answer both questions did so with authority. They were eager to share what they knew about the industry, how they felt their project could add legitimacy to the industry, and how we the people will ultimately benefit from their contribution. Passion may be the most attractive characteristic.

For example, the respondent from Waltonchain led me around to several booths to answer my questions by making comparisons and demonstrating differences in technology. He stated bluntly, as if it were on his mind all the time, that IOTA and Vechain are his competitors. He also went into detail about how only Waltonchain has developed a hardware/software tandem use-case for their blockchain project, serving as the specialization the company is providing.

Then Darius Montvila from StopFakeFood demonstrated his concern for our food safety. He first responded that his company had no competitors. He explained that his company plans to complement, not compete with other labs or supply chain management protocols that may be working on similar projects. His emphasis on complementing rather than competing illustrated how his company understands its unique position. Through complementing, this project could actually find a niche in the market that finds support from national governments.

Representatives from booths who struggled to answer the questions revealed the naivete many companies share when it comes to their place in the market. While some needed a brief moment to find an answer, others looked lost, as if they had never thought about the issue before.

The respondent from KT, one of the largest Korean telecoms companies, could not think of a single competitor for their potential 100k TPS blockchain project. When LG CNS was confronted with the issue, however, they were quick to note that they were in direct competition with KT. Traditionally, LG and KT have been in direct competition with each other over their telecoms services.

Following them were representatives from projects like Berith who stated confidently that they have no business competitors. Berith is a payment services and marketing brokerage. There must be thousands of such companies globally.

A firm that is out of touch with its market, whether they know it or not, hangs perilously on the edge of market exit. The banks that are testing blockchain technology cannot qualify a lack of competition just because they are using blockchain. In fact they realize it’s quite the opposite so they are integrating blockchain technology as fast as they can.

Blockchain technology is becoming increasingly mainstream. Being guided by traditional business practices, those companies that know how to command competitive advantages in the industry keep their competition close because they know they are never alone.