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Blockchain technology creates real added value in traditional industries

June 25, 2020

Blockchain technology has spread in a number of industries outside the cryptocurrency space in the past ten years since Bitcoin (BTC) began. The underlying technology of the outstanding cryptocurrency went unnoticed in the early years of the cryptocurrency’s introduction, before projects like Ethereum began exploring the possibilities of blockchain networks.

While many startups wanted to use blockchain technology to develop new cryptocurrencies, A number of mainstream technology companies started building their own blockchain systems for companies that could be deployed. IBM and Microsoft are giants in the field of information technology and have driven the development of many digital tools that are used worldwide. Both companies have developed their own blockchain platforms that are scalable to serve everything from small businesses to global businesses.

In fact, the traditional information technology sector could be at the forefront of efforts to drive the adoption and spread of blockchain technology across all industries. But, Which industries really want to use blockchain technology to renew their systems and offerings, and is this technology required in other industries?

Survey suggests that blockchain acceptance is increasing

Blockchain technology creates real added value in traditional industriesBlockchain technology creates real added value in traditional industries

Examining giant Deloitte’s latest global blockchain survey shows that more and more people who respond to their annual in-depth research in the industry are actively developing blockchain projects. Research shows that last year’s numbers rose 16%. This is based on a survey of executives and professionals from 14 countries to determine if they have already started blockchain services or projects in their respective organizations. .

An interesting fact was the steadily increasing percentage of respondents who believe that Blockchain technology is a fundamental part of your business and an important priority in your planning. The report provides a comprehensive overview of the current settings and provides a good overview of the options for using blockchain technology on a larger scale.

John Wu, president of AVA Labs, told Cointelegraph that the Deloitte report confirms a growing number of research that highlights the increasing acceptance of blockchain and digital assets. Wu emphasized that companies that are more active in technology could earn a lot more in the coming years:

“Institutions and individuals need to be better equipped to manage financial risks, protect investments, and even increase our assets when the next crisis comes.” The widespread adoption of blockchain technology is an important step in building a new system that is robust enough to meet the challenges ahead, and will reward innovators who take action today. This dramatic and rapid development of the market structure towards decentralization quickly leads to the fact that the “if” is given up and becomes a “when”. “

Increased demand for blockchain services

The Linux Foundation launched Hyperledger Fabric in 2015 and has since worked with a number of leading technology companies such as IBM and Intel. Hyperledger enables developers to create various blockchain applications and networks that can be shaped and scaled for specific use cases and requirements.

Marta Piekarska-Geater, director of ecosystems at Hyperledger, seemed to repeat the conclusions of the Deloitte report, explaining that interest in blockchain systems is growing steadily. It seems there has been a clear path from conceptual ideas to work projects in recent years, as Piekarska-Geater explained: “There has been a steep acceptance curve, particularly in the past two years. “He added that” it took some time for the use cases to solidify, but production systems are now supporting critical business transactions worldwide.“”

Blockchain supporters have long praised the infinite possibilities of technology and the ability to use infrastructures to manage and solve a variety of problems in different industries.. Piekarska-Geater told Cointelegraph that these feelings are true and that the variety of uses of blockchain technology gives weight to this perception:

“Businesses and organizations are turning to blockchain to track assets and products, trigger and track transactions, and build a layer of trust between parties who don’t necessarily trust each other. Blockchain has proven valuable in a number of cases, including collaboration between industries and consortia, tracking their origins, managing digital identities in new ways that really improve privacy, and enabling new models of digital financial transactions. “

The broad uses of blockchain make it difficult to identify a particular industry that is particularly interested in using the technology. Hyperledger technologies appear to be used in a variety of industries, from healthcare and manufacturing to retail and mining. However, two key features that add value are interoperability and governance.

Blockchain creates measurable value

As blockchain technology moves from proof of concept and pilot projects to working solutions, various industries are gradually realizing the real value of introducing new systems. Deloitte’s “Global Blockchain Survey 2020” also shows that some respondents believe this Blockchain technology has sometimes been overrated. This was reflected in the rapid increase in value of Bitcoin in 2017 and the sheer number of blockchain-based ICOs and projects that were started during this time.

Things have changed in the past two years and the entire ecosystem appears to be more mature. It is a point that Piekarska-Geater addresses that is supported by measurable business impacts:

“We have managed to pass the ‘blockchain will sell everything’ and now the industry is asking ‘what is the return on investment?’ It’s not enough to put a DLT in the solution to sell the product, and that’s a good thing. Initially, the main driver of interest in blockchain solutions was the fact that they sold well. Now it’s more about that actual commercial value they bring.: Responsibility “.

The relevant question is whether blockchain technology creates real value and performance improvements in the technology and finance sectors. This will inevitably be the deciding factor for companies looking for new solutions, and Piekarska-Geater says the perception is changing: “The use of blockchain technology means cost savings and increases the availability of information and trust. All industries have already passed advertising and are considering implementing DLTs to really improve their products.“In addition, the focus has also changed significantly:”Companies are switching from advertising as blockchain companies just to talk about their solution. “

What will drive adoption?

While blockchain is advancing into an area where work solutions are a reality for companies, adopting technology is the next logical step. However, There are still some obstacles that will slow the gradual introduction of blockchain technology in various industries. Piekarska-Geater has highlighted some problems that need to be fixed at short notice:

“Everyone is definitely talking about interoperability. Another aspect is the limited number of trained developers. […] Over time, we will see more and more students who will be able to join the workforce. “