Blockchain in practice: Why and how to adopt it in the coming years?

Blockchain is no longer a distant promise of innovation; it has become a tangible reality transforming industries worldwide. For Brazilian CIOs, especially those leading companies with low to medium technological maturity, the question is clear: how should this technology be approached practically over the next two years to ensure a competitive advantage? With emerging markets like Brazil poised to benefit from innovative solutions and the growing influence of the Asian market, the time to act is now.

The current state of blockchain: beyond the hype

A few years ago, blockchain was met with a mix of excitement and skepticism. However, times have changed. According to Gartner’s Hype Cycle, blockchain has passed the “trough of disillusionment,” showing tangible results across various industries. Token2049, held in Singapore, highlighted how Asia is becoming a global leader in blockchain adoption. While the West continues to debate regulations and use cases, Asia is rapidly advancing blockchain implementations in areas like supply chain, financial services, and even government projects.

“The winners and losers are found in the trough, not in the plateau of productivity; we’re leaving the trough of disillusionment.” – David Furlonger

In Brazil, the potential is clear. Despite having an impressive 26 million cryptocurrency investors, blockchain adoption in companies still lags behind its potential. This scenario, however, presents a unique opportunity for visionary CIOs to position their companies ahead of the technological curve by leveraging lessons from more mature markets and adapting them to the local context.

Opportunities in emerging markets: exploration and speed

One advantage of operating in an emerging market is that we are not as bound by legacy systems as in more developed markets. This creates a window of opportunity to adopt disruptive technologies more quickly and efficiently. In the case of blockchain, plug-and-play solutions—allowing for fast, customizable integration—are accelerating experimentation. Instead of lengthy implementation projects, companies can now rapidly prototype, apply case studies and evaluate results within months.

Gartner data shows that 70% of past blockchain initiatives failed due to implementation errors or a lack of understanding of the technology. However, as the industry evolves, these failures are being overcome by more mature and tested solutions. Today, the challenge is no longer whether blockchain can deliver value but how it can be integrated most efficiently into business operations.

Challenges overcome and new obstacles

One of blockchain’s greatest strengths is its ability to provide transparency and efficiency in bureaucratic, complex processes. Global companies like BHP and Vattenfall are already using blockchain to simplify international transactions and manage contracts, reducing the need for intermediaries and eliminating manual processes. In Brazil, where bureaucracy is a significant barrier to growth, blockchain can offer a robust solution to improve operational efficiency.

However, the challenges haven’t completely disappeared. One of the main obstacles is regulation, which is still evolving here in Brazil. While the U.S. and European countries are advancing rapidly with stablecoin regulations and other applications, the Brazilian market needs to speed up this process to provide a safe and predictable environment for investments. The adoption of Drex, the stablecoin linked to the real, is an important step in this direction, but much work remains to ensure that Brazilian companies fully capitalize on this new landscape.

Drex and the adoption of stablecoins in Brazil

The recent introduction of Drex is a clear sign that Brazil is starting to take stablecoins seriously. Our CBDC (Central Bank Digital Currency) tied to the real has the potential to transform digital transactions in Brazil, offering greater security, lower costs and more agility in financial operations. CIOs should closely follow this initiative, as it could be the gateway to broader blockchain adoption in their operations.

The stablecoin market is growing rapidly, expanding from $127 billion to $171 billion in a short time, and Brazil, with its high demand for efficient and inclusive financial solutions, is positioned to be one of the key beneficiaries of this technology.

Blockchain in practice: an adoption roadmap

To ensure blockchain becomes an integral part of the business strategy, Brazilian CIOs need a pragmatic plan that addresses current challenges and capitalizes on future opportunities. Here’s a recommended roadmap for the next two years:

Education and experimentation

• Invest in education: CIOs should lead internal initiatives to educate teams and business leaders on blockchain’s potential. Workshops, expert consulting, and case studies are effective tools to demystify the technology.
• Identify strategic opportunities: Evaluate current company processes and identify areas where blockchain can bring the most benefits, such as supply chain management, asset tokenization, and contract optimization.
• Launch pilot projects: To minimize risks, implement controlled pilot projects. These should be well-defined to generate valuable insights that can be scaled in the future.

Expansion and strategic adoption

• Scale successful pilots: Expand successful pilots to other areas of the company, demonstrating ROI and gaining internal stakeholder support.
• Monitor emerging trends: New trends like DePIN (Decentralized Physical Infrastructure) can be explored as the technology evolves. CIOs should stay alert to new possibilities for disruption and innovation.
• Bet on stablecoins: As Drex evolves, companies will have a unique opportunity to use stablecoins to reduce costs and increase efficiency in international and local transactions.

Blockchain adoption requires more than technical knowledge; it demands strategic vision and agile execution. ilegra, which has heavily invested in blockchain consulting, is ready to help companies navigate this new landscape. With experts prepared to develop customized cases and prototypes, we can accelerate your blockchain adoption journey, turning ideas into real solutions quickly.

Sources:

• Token2049, participation in the event
• 2024 Global Adoption Index, Chainanalysis
• The State of Blockchain: What CIOs Should Know, David Furlonger and Christophe Uzureau – Gartner Webinar