Writen by Caroline Capitani e João Gianvecchio,
5 minutes of reading
Blockchain beyond cryptocurrencies
There is no doubt that blockchain is one of the most disruptive technologies today, being able to revolutionize business models and entire industries.
The crypto market is becoming more and more promising every day, attracting the attention of entrepreneurs, representative entities and enthusiasts around the world. In the United States, President Joe Biden is preparing his fiscal 2024 budget plan, in which he intends to modify the tax rules on cryptocurrencies. With this, the expectation is to collect US$ 24 billion. The European Parliament, in turn, has already approved the Cryptocurrency Markets Law, known as MiCA, whose main objective is to define a common regulatory standard and establish harmonized rules for the cryptoasset market and industry in the European Union.
Given this scenario, there is no doubt that the adoption of crypto assets by companies in the financial sector is a great opportunity to disrupt these business models. However, it is time to think beyond the “hype” around crypto and effectively explore the possibilities of using it for financial innovation. In Brazil, although these technologies are still in the initial stages, there are already possible advances and excellent prospects for the future.
Just as streaming has transformed the way contemporary society consumes music, movies and series, blockchain technology has the potential to revolutionize the way we carry out financial transactions and contracts. According to research conducted in 2022 by Gartner, blockchain adoption can lead to significant cost reductions, especially in areas such as logistics and finance – with potential savings of up to 30%. We know that this impact on infrastructure, combined with traceability, transparency and decentralization, can have very interesting consequences for the business world.
Additional reading: Metaverse, decentralized finance and the future of the planet
Proving to be increasingly relevant and disruptive, blockchain technology has the ability to create a secure and decentralized record not only of transactions, but also of information. In this sense, we have another important topic, tokenization. That is, the process of transforming an asset into a digital token, which can be traded and transferred 100% through the blockchain. In other words, this means that we have the power to bring assets from the physical world online.
A great example of the application of tokenization is the case of Nasdaq Link, a tool that uses blockchain to issue and trade shares of private companies, allowing investors to buy and sell shares directly on the platform, reducing costs and increasing efficiency. Therefore, we can say that tokenization ensures not only accessibility and agility, but also transparency and security. In addition, it allows the elimination of intermediaries, making trading more accessible globally.
“Data Supply Chain”
Another important concept is the “Data Supply Chain”, or data supply chain, which refers to the management and flow of information – collecting, storing, processing, analyzing and sharing data -, with the main objective of supporting the processes of business, being essential for the decision-making of organizations.
Traditionally, companies collect material from a variety of sources, store it in one or more banks, and use analytics tools to gain insights. However, this approach often results in limited and/or outdated information, as well as hampering cross-team collaboration.
With the “Data Supply Chain”, which has an integrated and collaborative approach to data management, it is possible to have a holistic and real-time view. This is because it is based on advanced technologies such as big data, machine learning and artificial intelligence. In the financial market, it is particularly important, as this is an industry that deals with an enormous amount of sensitive and confidential information. With proper management, it can also help companies to better manage their risks and make more informed and assertive decisions.
A great example of combining blockchain with “Data Supply Chain” is JP Morgan, a world leader in financial services and the third largest company in the world. The institution implemented the Liink tool to improve the efficiency and transparency of interbank transactions. The platform also allows participating banks to share information in real time, increasing speed, security and improving the efficiency of the financial sector.
Additional reading: A panorama of the evolution of the fintech market
Integration between technologies
There is no doubt that blockchain is one of the most disruptive technologies today, being able to revolutionize business models and entire industries. When combined with the internet of things (IoT) and artificial intelligence (AI), its potential becomes even greater. Together, they can create an ecosystem where data is shared in a completely secure and transparent way.
A practical example of how these technologies can work together is in the health sector. The IoT collects patient data such as heart rate and blood pressure, and the information is stored securely and immutably on the blockchain. In practice, this allows professionals in the field to have access to a complete and accurate medical history. Then, AI is used to analyze existing information and help physicians create personalized treatment plans for each patient, facilitating faster and more efficient care.
In the financial sector, blockchain can be used to create a safer and faster payment network, while AI analyzes financial transactions and detects possible fraud, increasing the security of the system.
Analyzing the scenario, it is exciting to realize how promising the coming decades will be for those who are willing to invest and explore the full potential of these technologies. Therefore, it is essential that we are prepared for this technological revolution. As William Gibson, the most influential science fiction writer of the second half of the 20th century, said, “The future is here, it’s just not evenly distributed yet.”