Blockchain technology is often a valuable tool in solving various business challenges due to its ability to create secure, trusted, and transparent data sources and has gained traction across industries as businesses seek efficiency and cost reductions.
Daniela Barbosa, the Executive Director at the open-source blockchain development firm the Hyperledger Foundation, spoke to Cointelegraph about how blockchain for enterprise is transforming global markets and industries.
Barbosa noted blockchain technology has already demonstrated its value in various enterprise use cases, such as provenance tracking, logistics, and cross-border payments. By providing efficiency and cost-saving solutions while saving time and labor, enterprise blockchain technology offers a reliable and secure source of data that enables businesses to reduce the cost of record keeping, automate business processes, and increase efficiency.
Citing some real-world examples of how enterprise blockchain applications are already delivering value to businesses and consumers, Barbosa shared:
“Goldman Sachs recently arranged a €100 million two-year digital bond for the European Investment Bank with two other banks, all based on a permissioned blockchain. That is a significant milestone for the financial markets and enterprise-grade blockchain technology.”
Although enterprise blockchain technology is transforming businesses and markets, Barbosa highlighted various risks and challenges involved in adopting enterprise blockchain and suggested ways to mitigate them. These challenges include a lack of complete comprehension of the technology’s advantages, use cases, and its proper integration into business models and processes. Additionally, the expenses and time required for implementation and the complexities of onboarding all relevant participants have contributed to skepticism among consumers, businesses, and the media about the role of blockchain in the business industry.
In the interview, Barbosa mentioned the impact of enterprise blockchain adoption on traditional financial institutions and how they can maintain competitiveness in a rapidly evolving landscape. According to Barbosa, enterprise blockchain technology provides the potential for decentralization, combined with distributed trust, which is a potent combination for financial institutions.
Looking at the most promising future applications of enterprise blockchain technology, and how they might transform global markets and industries, Barbosa shared two key applications that come to mind given the recent industry movement: the rise of Central Bank Digital Currencies (CBDCs) and the reduction of friction in our financial markets:
“Today, 114 countries, representing over 95 percent of global GDP, are exploring CBDCs. […] Governments are moving carefully, and goals range from modernizing payment processes to removing barriers and costs associated with back-end settlements to boosting financial inclusion.”