Blockchains are distributed ledgers that record transactions across multiple computers. This makes transactions transparent and fool-proof. BAs must understand blockchain fundamentals like decentralisation, smart contracts, and consensus mechanisms to assess its influence on business processes.
Intermediaries like banks and regulatory organisations have traditionally established commercial transactions. Blockchain's decentralisation and unchangeable nature has slowly built confidence over the past decade to the point where large banking and fintech companies are adopting blockchain technology such as Ripple's XRP for faster payments. This shifts the focus of business analysis from designing processes to leveraging the confidence of blockchain.
Smart contracts, which execute terms specifically typed into code, can challenge existing business models on blockchain. For BAs, this means reviewing processes and systems. In the near future, BAs might be tasked with specifying smart contract requirements or analysing the implications of adopting a decentralised business model.
Blockchain enhances security but isn't perfect. BAs must evaluate vulnerabilities, especially when blockchains interact with other systems. This could involve analysing cyber-attacks or making sure data for smart contracts are reliable and secure.
As governments and organisations struggle with the rise of blockchain, regulations are changing. BAs should monitor these changes and assess their effects on organisations, particularly those in heavily regulated industries like finance and healthcare.
Blockchain's revolutionary nature means there's a steep learning curve for many stakeholders. BAs will need to help technical teams and business stakeholders understand blockchain advantages, drawbacks, and ramifications.
BAs might need to acquire new skills or deepen existing ones to understand the blockchain landscape. My understanding of blockchain has improved by actively involving myself in the market. For BAs, this could require taking courses on blockchain technology or seeking knowledge on programming languages.
Blockchain presents a transformative force, reshaping how businesses operate and transact. It presents Business Analysts with problems and opportunities. BAs can lead organisations towards a decentralised, transparent, and trust-driven future by understanding blockchain, staying updated on changing regulations, and continuously upskilling.
