Most blockchain value in the short term is in cost reduction but disruptive operating models will start emerging in 3-5 years

McKinsey analysis is that blockchain technologies are 3 to 5 years from having the technical maturity to have meaningful scale for mainstream impact.

Blockchain technical configurations are a series of design choices.

Choices can be made for more speed, security and storage. Speed is impacted by the size of block and other choices. Security is affected by the choice of consensus protocol. Storage is impacted by the number of notaries. It will be possible to create commercially viable implementations of most use cases with the appropriate technical choices.

The technology and programming solutions needs to mature. The solutions also will need to have common standards and prove to be trustworthy for large enterprises.

Short term value : McKinsey estimates that most (70%) value is in cost reduction, followed by revenue generation and capital relief.

Longer term there is the potential for new operating models.

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