How Enterprises are Adopting Blockchain
VYSYN Ventures Weekly Insights #54 — Exploring the disruptive potential of blockchain technology and its implementation among various enterprises
Cryptocurrency was the original and most widely implemented application of blockchain technology. Bitcoin was the first to facilitate permissionless payments across a censorship-resistance decentralized network. However, blockchain technology has rapidly advanced in recent years. We have recently been observing widespread experimentation with eclectic decentralized finance (DeFi) applications.
Netizens may be predominantly focused on cryptocurrency developments, especially in light of price increases since Q4 2020. However, blockchain technology offers vastly more use cases. Governments and enterprises have been able to deploy the technology to address key bottlenecks and improve both efficiency and security.
In the latest VYSYN Release, we highlight some of the more recent blockchain applications that are not focused primarily on cryptocurrencies. We explore some of the key areas where decentralized ledger technology (DLT) is being implemented.
Basic blockchain properties
The fundamental properties of blockchain technology make it attractive as a prospective solution for many enterprises. These properties have allowed enterprises to address key bottlenecks in their operations and radically improve both efficiency and security. A 2016 report by Business Insider estimated that blockchain technology would help businesses cut costs by roughly $20 billion by 2022.
Some of the basic properties of blockchain technology can provide several benefits to businesses. Traceability, transparency, and immutability (which offers the benefit of linking uneditable timestamps to transactions) can be easily implemented into company databases.
(Source: Quora.com)
Using blockchain to track food products
For instance, Spanish-based seafood company Nueva Pescanova Group implemented DLT to meet traceability standards set by the United Nations Global Dialogue on Seafood Traceability (DGST). Nueva Pescanova Group has just entered into a partnership with IBM. Nueva Pescanova Group will deploy IBM’s Food Trust Traceability blockchain solution.
The solution will enable the company to monitor the supply chain of procured seafood. The food products can be effectively monitored while in transit, preventing malpractice in the supply chain while also guaranteeing safety to consumers.
The Nueva Pescanova Group partnership with IBM is the second major adoption of the solution within a short period. In February, Carrefour, a multinational retail giant entered into a similar partnership with IBM. In their case, the solution was deployed to track the supply chain of chicken and microgreens.
Enhancing production and tokenizing sugar
Another recent blockchain implementation comes in the form of cooperation between the Russian State Geological Holding Rosgeologiya and Universa Blockchain. This cooperation is targeted at using blockchain technology in the field of geological exploration.
The initiative aims to deploy blockchain technology to enhance production and make it more efficient. The initial step to implementing DLT involves the collection, processing, and storing of product information on a timestamped immutable distributed ledger.
The deployment is expected to achieve a more efficient administration process. It is further expected to make the data management systems tied to the project more reliable. In turn, this will make the industry more to investors who may be looking for opportunities in geological exploration.
The cost reduction potential of introducing blockchain technology is one of its more endearing benefits. The biggest sugar refinery in the UAE was motivated to implement the technology for this reason. Al Khaleej Sugar also worked with Universa Blockchain to implement DLT solutions. This is one of the attractions that has motivated the deployment of this technology, again through Universa Blockchain by Al Khaleej Sugar, reputedly the world’s biggest sugar refinery in the UAE.
With this deployment, Al Khaleej Sugar has launched a digital sugar trading platform, DigitalSugar. Traders on the platform are provided with the opportunity of exploring low exchange fees and inexpensive storage charges. This is achievable with the use of platform tokens that are tied to up to 100,000 tonnes of raw sugar on the blockchain.
Huawei spearheads Chinese blockchain deployment
Huawei’s Blockchain Service (BCS) is another entity that has been working helping enterprises implement blockchain technology. Recently, the service developed a product that is designed to facilitate the safe and reliable circulation of data between different government departments. The product is named “government cloud big data solution 3.0”.
Huawei’s foray into the blockchain space is not new. As far back as 2018, the Chinese telecommunications giant published the Huawei Blockchain Whitepaper, which introduced its Blockchain Service (BCS) mentioned above. The company has been at the forefront of developing compatible solutions for mainstream enterprises, especially in China where blockchain development is highly encouraged despite the government’s resistance towards cryptocurrencies.
The authorities at Huawei agree with the popular opinion that Blockchain is the next generation of infrastructure. The general expectation is that blockchain will become a general-purpose technology that will find application in multiple domains.
Will blockchain become a necessity?
There are a myriad of opportunities to implement DLT solutions to improve efficiency and security in various fields. The fundamental properties of the technology make it an endearing option for countless enterprises, offering the possibility of significant cost reductions and security enhancement.
Every day, new developments emerge where blockchain is deployed to introduce novel systems or enhance existing processes. Everything points towards blockchain becoming the basis of digital technology in the future. It’s disruptive potential is spreading rapidly among enterprises and it will likely become a necessity in industries where companies are intensely competing for market share.
