Enterprise blockchain transforms business operations and reduces costs: Web3 exec

Blockchain technology is often a valuable tool for solving various business challenges due to its ability to create secure, reliable and transparent sources of data and has gained traction across industries as businesses seek efficiencies and cost reductions.

Daniela Barbosa, CEO of open source blockchain development firm Hyperledger Foundation, spoke to Cointelegraph about how enterprise blockchain is transforming global markets and industries.

Barbosa noted that blockchain technology has already shown its value in various business use cases, such as tracking provenance, logistics and cross-border payments. By offering efficiency and cost-saving solutions while saving time and labor, blockchain technology for businesses offers a reliable and secure source of data that enables businesses to reduce record-keeping costs, automate business processes and increase efficiency.

Citing some real-world examples of how enterprise blockchain applications are already delivering value to businesses and consumers, Barbosa shared:

“Goldman Sachs recently arranged a €100 million two-year digital bond for the European Investment Bank with two other banks, all based on a permissioned blockchain. It is a significant milestone for financial markets and enterprise-class blockchain technology.”

Although enterprise blockchain technology is transforming businesses and markets, Barbosa highlighted various risks and challenges associated with adopting enterprise blockchain and suggested ways to mitigate them. These challenges include a lack of full understanding of the technology’s benefits, use cases, and its proper integration into business models and processes. In addition, the expense and time required for implementation and the complexity of involving all relevant participants have contributed to skepticism among consumers, businesses and the media about blockchain’s role in business.

In the interview, Barbosa mentioned the impact of enterprise blockchain adoption on traditional financial institutions and how they can maintain competitiveness in a rapidly evolving landscape. According to Barbosa, enterprise blockchain technology provides the potential for decentralization, combined with distributed trust, which is a potent combination for financial institutions.

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Looking at the most promising future applications of enterprise blockchain technology and how they could transform global markets and industries, Barbosa shared two key applications that come to mind given the recent industry movement: the rise of Central Bank Digital Currencies (CBDCs) and the reduction of friction in our financial markets:

“Today, 114 countries, representing over 95 percent of global GDP, are exploring CBDCs. […] Governments are moving cautiously, and the goals range from modernizing payment processes to removing barriers and costs associated with back-end settlements to increasing financial inclusion.”