Nexia TS, a Singapore-based accounting firm, notes that the use of blockchain or distributed ledger tech (DLT)-based solutions can potentially “improve compliance” and “decrease risks” typically associated with digital transformation processes. DLT-enabled solutions might also improve the overall efficiency of a company’s operations.
The Nexia TS team wrote in a blog post that business shutdowns and social distancing measures introduced due to COVID have forced many companies to re-evaluate how they run their businesses. Companies were put in a situation where they had to quickly adopt changes in work procedures and new technology to ensure that they’d be able to maintain their operations during these unprecedented times.
Nexia TS has pointed out that people are now using more collaboration and video conferencing tools than ever before. Companies are also digitizing their documents, certificates and routine business processes so that they can operate more efficiently in a post COVID world.
The Nexia TS team added:
“The use of blockchain-based solutions can potentially improve compliance and decrease risks associated with the digitization process and can improve efficiency in use cases that cut across organizations. Enterprises have been exploring the use of blockchain to improve efficiency since the advent of technology. And this has resulted in proof-of-concepts that eventually became production systems that utilize blockchain as the fundamental technology.”
They further explained:
“All data or transactions that enter the blockchain is validated by the network, creating trust in the information. Documents like certifications or guarantees issued by one entity (on blockchain) can be trusted by another. Counterparties can also attest to the information by signing the data digitally on the blockchain.”
Blockchain or DLT use cases in an enterprise environment may include: trade, supply chain, manufacturing, food safety, trade finance, medical records and inter-bank settlements. Many of these projects are being led by a consortium. For instance, the blockchain-powered trade finance platform we.trade is a joint-venture firm that’s owned by 12 European banks and IBM. The shareholders of this initiative include CaixaBank, Deutsche Bank, Erste Group, HSBC, KBC, Nordea, Rabobank, Santander, Societe Generale, UBS and UniCredit.
Nexia TS notes:
“Blockchain-based solutions are growing and it is a matter of time before SMEs need to join some of these consortium efforts.”
There are many companies that now support and encourage developers to work on DLT-based solutions. The Waves Association is offering 1 million WAVES or $2.9 million via its blockchain developer grant program.
The global Internet of Things or IoT security market is expected to reach a $22 billion+ valuation by 2027, largely due to blockchain adoption.