Blockchain’s Critical Role In A Post COVID-19 World

Although we have been hearing about blockchain for a long time, the truth is that it is not until now that this technology that structures data grouped into blocks of information is experiencing its greatest boom. Not only are investments in adoption increasing, but real applications are beginning to be seen that will have an impact in all areas.

According to Gartner’s forecasts, blockchain will create $ 3.1 billion in value in 2030, a significant amount of which will result from improvements in the efficiency of current operating models and business processes. However, the real value will be seen in the way in which the blockchain will allow a paradigm shift when societies, companies, customers, and all people interact, create, and exchange value.

And all this is possible because, in essence, blockchain provides trust in an environment that, in principle, it is not, allowing the participants of a network, who may or may not know each other, to exchange value in digital environments, eliminating the need for authority.

This leads to blockchain not only having an impact on IT environments but on practically all those that exchange information or that contain information that is digitally controllable. This is the case of supply chains and the necessary traceability of many products.

Spending on blockchain in Europe to reach 4,900 million dollars in 2023

The multiple applications and benefits looming that blockchain technology has been driving investments in it. According to the latest IDC data, forecasts for blockchain spending in Europe will go from $ 800 million to $ 4.9 billion by 2023. This will mean a compound annual growth rate of 65.1% in the period between 2018 and 2023.

From the consultancy, they point out that the knowledge of opportunities in the blockchain is spreading from large companies to new start-ups that seek to grow thanks to safe and active data management.

New use cases

Without a doubt, more organizations are becoming familiar with the possibilities of blockchain technology, which is no longer synonymous with cryptocurrencies or associated with financial aspects alone. And it is that if initially blockchain has been established in banking, more and more sectors and industries taking advantage of its benefits participating in the digital transformation.

Manufacturing, retail, professional services, and banking are the sectors that aim to continue to experience above-average annual investment with an eye toward improving transparency and authenticity in their businesses.

All this is leading to the emergence of new use cases prompted by the growing awareness of the advantages of blockchain. And is that, among the main benefits that businesses are seeing, the fact that blockchain allows companies to eliminate the intermediary, thus saving costs and reducing the risks of fraudulent behavior and human error. Identity management is a new booming use case in Europe, implemented in insurance, banking, government, and personal and consumer services.

Blockchain’s goodness goes beyond cryptography

With emerging data as one of the most valuable resources, it is becoming crucial for companies to have an effective and secure way to store, protect, and use consumers’ personal data. Blockchain offers a decentralized and encrypted system to do this and is now being used for a variety of purposes, including voting and IP management.

This extols the value of blockchain beyond its crypto possibilities as well as a management tool when it comes to tracking products, information, and customer data. The retail and transport industries are two of those that see great opportunities in this regard.

Potential for Human Resources

Undoubtedly, the potential of blockchain to change the key activities of Human Resources is enormous by allowing reliable interactions between unknown participants and combining design elements to authenticate users, validate transactions, and record that information in a digital ledger. 

The possibilities of this technology will allow, with a blockchain, to perfectly connect all companies, suppliers, people, activities and communications, budget approvals, authorizations, and all the steps that are taken. 

Payroll management is so far the most robust use case for blockchain in the Human Resources area. Key transactions are encrypted and stored as immutable data on the blockchain. The payroll data is protected and uses the provider’s key management, which stores the information required to generate a key instead of the key itself (so it is not possible to retrieve a key using a single component). But this new approach to payments also allows workers to be hired and paid in remote locations or countries where payment infrastructure is limited or currencies are volatile.

Overcoming barriers

As spending on the blockchain continues to grow, and more companies are betting on this technology to have a secure and reliable solution, the market will adapt and will end up becoming a standard for the client.

At least this is the point of view that some experts share not without taking into account that, in the coming years, blockchain will also face important challenges. The lack of regulatory bodies will be one of the barriers to overcome, together with the fact that small producers of goods make use of business platforms.

Nevertheless, the European Commission’s recognition of the importance of blockchain for a single digital marketplace and the work done by large cloud blockchain service providers is in place to create simple mobile apps for their smallest members of the consortium, and similar developments which are certainly promising.