How are big companies building Blockchain plans?

Maturing blockchain industry compelling for major players

A common criticism of blockchain technology and related business solutions is that the immaturity of these new systems has created volatility that may still gather momentum.

However, Clare Adelgren, head of sales and operations for EY Blockchain, told INN that recent moves have added to a unified vision of the future that encourages corporate giants to engage meaningfully.

Adelgren, who has over 25 years of technology experience at the large global enterprise level, said the team at EY believes the power of the blockchain movement lies in decentralization.

“As soon as you have an owner … or you have a centralized management of it, you already lose the inherent value. It was very clear to us that public blockchain is where we needed to focus,” she said.

The expert credited the Ethereum network with introducing smart contracts, which represent a “step forward” in adopting the technology. She also noted that the recent Ethereum merger has strengthened companies’ confidence in blockchain solutions.

“I think what we’re going to see is that maturation changes the dialogue for businesses,” the EY expert said.

Big companies are “learning the language of blockchain”

“We work with a number of large enterprises,” Abhishek Sinha, an EY Canada partner and national banking technology leader at the firm, told INN. “They look at it in terms of value and utility.”

He said this commitment is real and long-lasting. “They’re not pursuing it because it’s cool,” Sinha said. “They’re pursuing it because there’s business value to be gained from it.”

Already, a significant amount of research leading to trial and error and experimentation has been done by the biggest companies out there. “A lot of them have gone through the experimentation — part of that experimentation is learning internally, it’s learning the language of blockchain,” Adelgren said.

Privacy key for adoption by large companies

According to both EY experts, the use of blockchain technology will require continued maturation.

“The difficult part of it is really around standardization,” Sinha said.

Adelgren explained that in the past, large entities have been indecisive about using the blockchain in a more everyday way. While there are many reasons for that lack of action, privacy and corporate responsibility are at the top of the list.

“If you are a business, you will always need an element of privacy when we do business,” Adelgren told INN.

Investor takeaway

Large companies continue to explore how they can take advantage of blockchain technology, but generally want to see continued maturity in the sector, as well as clarity around policy before committing.

Adelgren, for her part, is pleased with the level of understanding she sees taking hold in the market – in particular, she sees much less confusion when it comes to blockchain and cryptocurrencies, an encouraging sign for future use.