13 Making Sense of Blockchain: How Firms Can Chart a Strategic Path Forward ^Top During each step of the way, it’s important that organizations not get caught up in the hype surrounding blockchain but evaluate its merits independently. Moreover, since every step is crucial in today’s fast-paced and highly compet- itive markets, we introduce four key questions for firms to ask themselves as they navigate this road map. Diagnose Do I Really Need Blockchain Now? Technology shifts can prove disruptive, even fatal. Before changing technol- ogy strategies and committing resources, firms should evaluate whether the shifts are actually relevant to them at a given point in time. They should ask the fundamental question of whether they currently need blockchain at all. To help answer this question, refer to the diagnostic matrix below. It overlays a firm’s transaction measure with the technology’s infrastructure measure to evaluate both the need for blockchain and the risk of adoption. Interparty Transactions Index (ITI) A firm’s ITI is high if it conducts a high volume of transactions involving mul- tiple parties that have a high counterparty risk of reneging on the contract terms. For instance, intra-firm transactions entail high trust and a low risk of non-compliance, while transactions involving several external vendors carry a higher risk of contract non-adherence. Infrastructure Readiness Index (IRI) A newly deployed blockchain solution will require robust network infrastruc- ture to operate at its full potential. A firm can measure its infrastructural readiness for dealing with mission-critical projects by two main parameters: scalability and privacy.