In the past three or four years, the adoption of blockchain has been greatly expanded, and each industry is exploring different use cases for the technology. There are multiple aspects to blockchain-from business to technology, etc.-but with the explosive growth of the industry, it is really difficult to get it right.
It is best to divide the blockchain theme into two main parts to understand the development of the ecosystem and the main benefits and innovations it provides. One is cryptocurrency. We cover industries such as financial services, insurance, and capital markets, including transactions through private equity and venture capital. Then we look at the corporate world, which is about how we apply blockchain as a technology to different industries.
Last year, we released the “Trusted Time” report, which covers The top five use cases of blockchain technology: Provenance, payment and financial instruments, identity, contracts and dispute resolution, and customer participation. These use cases will have a significant impact on a country’s GDP and the global economy.
The first use case is Traceability or provenanceIn the future, with the technological revolution and evolution of decentralization, you will need to understand and provide complete transparency to your consumers. For example, if you want to buy a very expensive anti-cancer drug, you need to know that it is a genuine one, not a fake one. This is where we have technical solutions supported by blockchain technology.Same for buying High-end fashion Expensive clothes, cars, etc. Consumers who pay a lot of money must ensure that they are buying genuine products, which is why these supply chains may become the killer use cases for blockchain-especially in the next decade.
The second use case is Peer-to-peer transaction. But how does P2P trading play a role in the supply chain? It revolves around the logistics market. For example, a company wants to send a container from Amsterdam to Australia. It needs to go to a transportation company that will move a container onto the ship, and then it will actually move on. There are also transportation suppliers on the other side of the trade, and they do the same. They unload the container and make sure that it is shipped to the importer. But what if you have a market or platform where you can see how many ships are moving in the next day or the next hour? If there is a space, you can directly place the container you want to ship out by yourself, which means you don’t need an intermediary. This is the future of this decentralized technology.
Then the third-and final bucket-is nearby File Sharing. How do you store all bills of lading, letters of credit and certificates digitally? Currently, you can use cloud solutions to do this, but it is easy to crack PDFs. In some cases, transportation companies are facing millions of dollars in fraud, forcing them to insist on using paper documents, because then they know that the paper is definite evidence and they have something tangible in their hands. But with blockchain, you can add timestamps and fully track how the document was generated, where it was sourced, who opened it, who edited it, and who changed it.
You can track it completely, which is also quite a lot of time. There are already many business cases. For example, if you only put a bill of lading, then only one file will be saved on the blockchain. And each container can save one hundred dollars. Therefore, you can multiply it by the number of containers shipped per day, which is already a multi-billion-dollar business case. This use case has huge potential. Therefore, we see these three barrels in the supply chain.
Complex feelings about blockchain
But the question now is: What is the current situation? There is a complex feeling about this topic, first of all because the blockchain technology itself is very complicated-it is not like the Internet of Things. For the Internet of Things, it is: “Well, this is my device, and now it is a digital version of it. This is what the Internet of Things does.”
But what is the role of blockchain? This is the technology behind the scenes. This is why it is difficult for people to understand it-understanding it is similar to the Internet Protocol. You don’t really understand in detail what HTTP is doing and how it works, you just visit your website and do whatever you want. This is what we are talking about. This is the real topic.
The second is the lack of knowledge and understanding of the blockchain, which is composed of five different aspects: immutability, encryption, distribution, tokenization and decentralization.
These are five aspects. The immutability, encryption and distribution provided by blockchain technology have been well established. What the company needs now is to move towards decentralization and tokenization. For enterprises, it is important to understand the tokenization model and how to incorporate it into the current business model. In addition, companies need to truly understand the use of tokens-fungible, non-fungible and secure tokens.
The only suggestion for the company is to have more and more in-depth education on this topic, in-depth understanding of its relationship to their business and the types of problems it solves-not just exploring the technology on the surface.
What will happen in the future, what will happen next year?
The first most important topic is about InteroperabilityThe landscape of the past five years has exploded-it has exploded. If you look at how the Internet developed, we had VPNs in the 90s, and then the bubble boom and the way the Internet became popular. Today, some companies are still using VPNs, while others are using the Internet, and you don’t really see the difference. This is how we look at the way private and public blockchains work together. Therefore, there is no controversy: the public blockchain will prevail, with Private blockchain will prevail. And this interoperability theme is indeed on the market, but it requires a lot of work. This is what the company and solutions will come up with in the next five years.
The second topic is about how we Integration Like other technologies, because blockchain is just a back-end technology-or a behind-the-scenes technology. This is why it is very important. At the same time, it is a super strategy because it involves multiple companies, but it is still a technology and a pillar. Not just because you have a blockchain, it solves everything in your company. Therefore, I think the company needs to understand how to integrate it into a form of digital transformation. What we need to do is to check how these technologies will be combined with the existing environment. This is an important and important topic. Without it, nothing will work. This is indeed a topic that we need to address.
The third future theme is one of my favorite themes.nearby Governance: Blockchain governance, as well as supply chain governance. This solves the problem of how we manage the supply chain stakeholders involved in the ecosystem. This is also complementary and we need to develop.
And the fourth topic is around business model Because in the end, the company forgets that we need to make money from it and save money. Sometimes, blockchain solutions will not succeed because they cannot do it. For example, how do we achieve a paperless business model? How can we profit from it? If we are generating revenue, how do we share it with different partners?
I think these are the key themes for the development of the blockchain ecosystem in the next five years and will help the blockchain to a higher level. This technology will gradually reach the level of large-scale adoption, and its inclusion is a wise strategy that will make the company a leader in the future of the digital economy and the business world.
The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Hussen Capasi He is the blockchain leader (consulting) of PwC Europe, focusing on enterprise blockchain. He leads the PwC Europe blockchain community, which consists of about 300 members in Europe, and promotes the topic of blockchain in the supply chain in the PwC global network. Engaged in the blockchain field for 5 years and has consulting experience in the digital transformation of the Internet of Things. He has extensive experience in blockchain implementation in more than 10 industries. He supports clients from blockchain strategy to implementation, and plays a key role in developing collaborative industry ecosystems and technology partnerships.