Blockchain - What's Next: Experts Discuss the Application of Technology
June 9, a three-day conference dedicated to solving real problems using Blockchain technology - Microsoft Blockchain Intensive began in Kiev
Microsoft Blockchain Intensive.
As part of the event, experts gathered for a panel discussion dedicated to the strategic issues of implementing this technology in business.
PaySpace Magazine provides a detailed text of their discussion.
Which of the applications of Blockchain promises great benefits? What projects are worth investing in and what to do?
The expert noted that the potential of Blockchain technology can be realized in the field of combating counterfeiting. Most of the counterfeit products are in two industries - pharmaceuticals and the fashion industry. One of the options for verifying the authenticity of a product can be the creation of a special QR-code that will store information about the origin of the product.
No one has yet found a niche in which to sell products built using Blockchain in a scalable manner. However, there are many ideas on how to apply this technology.
With an example from finance, Pavel outlined a model along which other projects built using distributed ledgers can evolve. So, with the advent of the financial blockchain, which will allow you to quickly transfer data on transactions and account status through the network, business models will appear on which you can earn. There will be no money in the Blockchain itself.
What will be in demand on the market? What opportunities should developers pay attention to?
Facebook feed, people need simple Bitcoin buying and selling solutions. And the blockchain business as such is not yet needed.
Agreeing with the point of view of the previous expert, Stanislav named the key problems associated with the implementation of the technology. First, the emergence of blockchain in one of the parts of the project will immediately require the digitization of adjacent departments. And this is an investment. Secondly, the blockchain principle implies the rejection of intermediaries, which will entail a change in the business model.
Among the areas in which the use of technology will bring the greatest effect, the expert named logistics and aviation. On the contrary, those institutions that today actively advocate the introduction of technology into their business processes (for example, banks) will leave the market altogether because of the blockchain.
There are technologies whose popularity can be predicted in advance. So, the developers of the Siri virtual assistant knew that in two years there would be solutions necessary for the operation of such a service. Therefore, they took up this project.
The same is the case with Blockchain. The expert believes that we have two years to develop projects in this area. That is, in 2019 the time will come for distributed ledgers.
The peak of speculative expectations was replaced by a sharp drop. Over time, we will get practical blockchains that will not look as bright as today's promises. But they will have practical applications.
If smart contracts are made in Ukraine, how will this happen?
Another area that will continue to develop is smart contracts, Sergey added. The demand for them will be huge. However, market participants will have to solve the problem of mutual understanding between lawyers and programmers who deal with smart contracts.
The word consensus is an important metaphor for all of us over the coming decades. It is necessary to define a system of relations between players from different institutions who are working on one project.
What should the developer foresee for the coming years?
Businesses suffer from a lack of standards and consensus-building solutions. Blockchains are different. Market involves the participation of many players who confirm a particular operation. Microblockchain is used to solve processes within companies. Government blockchains aim to accomplish more ambitious tasks.
How these blockchains will interact with each other is not yet clear.
The only service that really works on the blockchain so far is cryptocurrency.
Now a new way of attracting investments is gaining momentum - Initial Coin Offering. It is believed that 90% of ICOs are scams. Is it so?
Imagine that your business has grown 100 times in a day. How will this affect business processes?
The same is with ICO. Companies that try to attract investment in this way may not be able to cope with the volume of financing due to lack of experience.
Of course, the likelihood of fraud cannot be denied either. This is due to the lack of regulation in the industry.
The expert believes that the ICO is associated with one contradiction.
If the blockchain is built on a system that does not require trust, an ICO can only be successful if it is there.
There is a trust behind every token that is sold as part of the ICO. People won't invest in ICOs from companies they don't trust.
Public or Private Blockchain?
Experts agreed that it is incorrect to divide blockchains into private and public.
David considers the format of access to the distributed ledger to be the main parameter for the classification of blockchains. Who authorizes the participants - an automatic system or a person? It is at this stage that the division into public and private blockchains should be sought.
Blockchain participants, whether private or public, should not be able to negotiate among themselves. There is a Bitcoin blockchain. If you break it, you can get millions. But so far no one has succeeded.
Officials will also try to use this technology for their own purposes so as not to lose power.
What to do to make it easier for businesses to implement Blockchain?
We need a blockchain constructor that will allow the technology to be specialized for different types of business.
In general, the first day of the conference was devoted to the discussion of blockchain theory. In the next two days, the participants of the event will delve into the study of the technology itself, right up to working on business cases and presenting their projects.
