With COVID-19, many businesses faced unprecedented challenges. While companies focused on digitalization during this period, blockchain technology began to be considered as a stronger alternative than ever before. So how will this development of technology in the business world continue in 2021?
Henry Ma, CIO of China-based new generation bank WeBank, shared his views on this issue. Emphasizing that the increasing number of blockchain applications across industries in the past 10 years have created the new infrastructure of the digital economy, Ma collects his ideas for blockchain applications in the business world in 3 main headings in the future.
Unlocking the power of data
Data is a key resource in the digital economy and plays a key role in new infrastructure. There are currently heated debates on how to unlock the power of data to make meaningful contributions in every industry. Large amounts of data are currently being exchanged and this trend is expected to accelerate in many countries.
Data exchange may sound simple, but the isolation of many small data sets has actually resulted in underuse of available data. This is because meaningful insights from most of the data can only be derived from a broader, more holistic view of the individual or business.
Secure storage, reliable transfer methods, and collaborative production are the three main problems businesses must deal with in 2021 to take advantage of these data sources that have been siloized. A breakthrough for the blockchain in 2021 will be about how the technology will integrate with other advanced technologies (e.g. AI, Cloud and Data analytics) to solve the above three key problems.
Strengthening industry integration
Booming digitalization is also accelerating the development of the industrial internet. Big data computing resources are required to strengthen the deep sharing and collaboration of a trusted resource network. This can be achieved in three ways.
Lowering operating costs: Blockchain offers new tools and pathways for the development of the industrial internet. The value brought by technology provides trust while reducing the complexity of intermediaries. It allows information sharing and transaction verification. These benefits help businesses reduce overall costs and move one step closer to being environmentally friendly.
Upgrading business models and renewing revenue structures: The digitalization of industries offers enormous opportunities for blockchain implementation, especially under the conditions of COVID-19. In addition to lowering operating costs, it also offers security, full traceability and transparency for deeper collaborations.
Supporting the real economy: It will drive the integrated development of blockchain, finance and other industries in the near future. Financial integration can create new cross-industry financial scenarios for blockchain. In addition to this, in-depth collaboration will also produce more innovative financial products with a higher level of digitization and information.
Accelerate asset digitization
Conflict and legal concerns are serious issues due to the uncertain data rights framework. Nevertheless, with the help of the blockchain, predetermined data rights can be offered to the network of users of digital assets. Blockchain-based digital assets are increasingly being adopted as stricter regulations are in place.
In 2021, services, products and assets will be powered mostly by digitization or blockchain in the digital economy. The Central Bank Digital Currency (CBDC) will become one of the most effective payment tools for such digital assets, laying the foundation for the fundamental financial infrastructure for the digital economy.