Co-founder of an international law firm in the field of fintech - available about blockchain in Ukraine and the world.
To say that blockchain is a universal technology is to say nothing. Chain technology has already been successfully implemented in the most diametrically opposite directions. Today it is applicable in more than 40 areas from communications and political technology to international supply chain management and healthcare.
I am glad to see the dynamics of blockchain penetration in Ukraine. For example, last year it was in our country that the first real estate transaction based on chain technology was completed. The founder of the popular publication about technologies and startups TechCrunch, Michael Arrington, bought an apartment in Kiev, paying with the second most popular cryptocurrency Ethereum. As soon as the extract from the registry indicating the new owner was uploaded to the Propy blockchain platform, the seller received the equivalent of $ 60,000 in crypto.
In June 2020, a draft law "On virtual assets" was registered in the Verkhovna Rada. And the Ministry of Digital Transformation, designed to digitalize the country, has already developed a roadmap for digital assets. In my opinion, for Ukraine, the recognition of blockchain operations means showing the world its fintech ambitions. And secondly, it is an effective way to attract foreign investment: the owners of cryptocurrencies are looking for ways to convert them into material resources.
The technology, which is a chain of "blocks" that are connected into an operation in a special distributed ledger, overturns the established view of the security and transparency of processes.
The corporate, public and private sectors are the flagship in blockchain use after cryptocurrencies and digital finance. And this is quite logical for me: in the era of ultra-high-speed digitalization and commercial flights into space, it was no longer possible to continue “the old-fashioned way” to record everything on paper and contain tons of physical archives. I cannot say that the blockchain is super eco-friendly, because, for example, one transaction on a Mastercard credit card requires only 0.0006 kW of energy, and for one transaction on the Bitcoin network - 980 kW. In comparison, this amount of energy is enough to power the average Canadian home for three weeks. Yet Pricewaterhouse Coopers predicts that technology investment will reach $ 25 billion by 2025.
Typically, technology companies are pioneers in innovating. Multinational giants are successfully covering internal accounting, auditing, IT and information optimization needs thanks to the blockchain. So, according to Gartner, 14% of corporate projects from various fields moved to the stage of industrial implementation in 2020, while in 2019 this share was only 5%.
And at the beginning of 2021, Forbes unveiled the top 50 global giants with income or capitalization of more than $ 1 billion a year, using enterprise blockchain. The list includes the Chinese technology company Ant Group, the Daimler automobile concern, Boeing corporations, IBM and Microsoft. Oracle, PayPal, Samsung, Saudi Aramco, Visa and Walmart were also among the actively implementing "chains". Places on the list went to one of China's largest banks, the Industrial and Commercial Bank of China and the Chicago Mercantile Exchange, which launched Ethereum futures on February 8.
According to International Data Corp, the combined spending of corporations and governments on blockchain in 2019 amounted to $ 2.9 billion, which is 89% higher than in the previous year, and will reach $ 12.4 billion by 2022.
Cases from the food sector are no less impressive. So the international network Walmart and the manufacturer Nestle, together with 12 other companies, founded the "IBM Food Trust", the goal of which is to develop in the field of integrated supply chain systems. Such developments will make it possible to monitor the quality of the movement of goods at all stages: from raw materials to finished products.
The development of military technologies based on blockchain is actively gaining momentum. For example, Russia is developing a defense laboratory that should track and prevent cyber threats using blockchain technology. World renowned tire manufacturer Goodyear announced the launch of a blockchain system in 2020 to supply military components.
It is difficult to overestimate the potential of "chains" in the military sector - the defense industry can safely become a pilot in the industry and serve the good of society.
The always progressive Asia-Pacific region is showing the fastest pace of adoption of chained technology in the world. And most importantly, how? Namely, due to the implementation of the decision in the public sector. There it is designed to simplify complex processes, connect high-tech solutions that combine web development, cloud storage and its own API. For example, in China today there are already 140 government services running on the blockchain. The consulting company PwC has predicted the status of a blockchain state for China, and so far this forecast is coming true: the country has the largest number of blockchain projects in the world.
The EU has a rather cautious attitude towards blockchain, which is globally manifested in the creation of initiatives that regulate technology within the Union. But countries such as Malta, Switzerland, Estonia and the United Kingdom show a great affinity for the blockchain and strongly support its global implementation.
Tracking supply chains of goods and services, as well as information technology and data transfer are, in my opinion, the most successful areas in the United States for implementing blockchain outside of the fintech sector. In the post-pandemic period, these areas have the highest economic potential, which is estimated by PwC experts at $ 962 billion.
Having touched on the topic of the pandemic, I cannot fail to note the importance of using chain technology in healthcare to track the stages of vaccination around the world. For example, the IBM Blockchain-based vaccine distribution network enables manufacturers to proactively monitor side effects and improve vaccine recall management. Pharmacists can optimize inventory management while people learn to trust vaccines and return to social life with confidence. Win-win case: based on the implementation of one solution, all participants in the process win.
Afterword
Digital technologies have become so convenient and safe that they can scale to all areas of our lives from defense to food technology. When you see that the UN is seriously considering the possibility of using blockchain in the context of climate change on the planet and humanitarian programs, you realize the level of technology penetration.
The World Economic Forum estimates that by 2027, 10% of global GDP will be stored using blockchain. Undoubtedly, the greatest impact will be received by the public sector, healthcare, education and the media, which, thanks to the "transparency" of technology, will be able to regain their fair name and prevent the spread of false information. In monetary terms, experts predict the growth of the world economy by $ 1.76 trillion by 2030 thanks to the implementation of blockchain technology. This is confirmed by the opinion of leading top managers of multinational companies: according to Deloitte, 59% of respondents perceive blockchain as a revolutionary technology that can improve the business processes of organizations from any industry.
The success of blockchain technology will of course depend on a favorable regulatory environment, the business ecosystem of each country willing to take advantage of the new technology opportunities, and a suitable industry structure. In many ways, the delay in the implementation of chain technology is due to the legislation of certain states and internal specifics, as in the case of Ukraine, where it is not yet ready to finally say goodbye to the “shadow” approach to management.
I am confident that the most powerful potential for process optimization inherent in blockchain is comparable to the potential of cloud technologies 10 years ago.
To say that blockchain is a universal technology is to say nothing. Chain technology has already been successfully implemented in the most diametrically opposite directions. Today it is applicable in more than 40 areas from communications and political technology to international supply chain management and healthcare.
I am glad to see the dynamics of blockchain penetration in Ukraine. For example, last year it was in our country that the first real estate transaction based on chain technology was completed. The founder of the popular publication about technologies and startups TechCrunch, Michael Arrington, bought an apartment in Kiev, paying with the second most popular cryptocurrency Ethereum. As soon as the extract from the registry indicating the new owner was uploaded to the Propy blockchain platform, the seller received the equivalent of $ 60,000 in crypto.
In June 2020, a draft law "On virtual assets" was registered in the Verkhovna Rada. And the Ministry of Digital Transformation, designed to digitalize the country, has already developed a roadmap for digital assets. In my opinion, for Ukraine, the recognition of blockchain operations means showing the world its fintech ambitions. And secondly, it is an effective way to attract foreign investment: the owners of cryptocurrencies are looking for ways to convert them into material resources.
The technology, which is a chain of "blocks" that are connected into an operation in a special distributed ledger, overturns the established view of the security and transparency of processes.
The corporate, public and private sectors are the flagship in blockchain use after cryptocurrencies and digital finance. And this is quite logical for me: in the era of ultra-high-speed digitalization and commercial flights into space, it was no longer possible to continue “the old-fashioned way” to record everything on paper and contain tons of physical archives. I cannot say that the blockchain is super eco-friendly, because, for example, one transaction on a Mastercard credit card requires only 0.0006 kW of energy, and for one transaction on the Bitcoin network - 980 kW. In comparison, this amount of energy is enough to power the average Canadian home for three weeks. Yet Pricewaterhouse Coopers predicts that technology investment will reach $ 25 billion by 2025.
Typically, technology companies are pioneers in innovating. Multinational giants are successfully covering internal accounting, auditing, IT and information optimization needs thanks to the blockchain. So, according to Gartner, 14% of corporate projects from various fields moved to the stage of industrial implementation in 2020, while in 2019 this share was only 5%.
And at the beginning of 2021, Forbes unveiled the top 50 global giants with income or capitalization of more than $ 1 billion a year, using enterprise blockchain. The list includes the Chinese technology company Ant Group, the Daimler automobile concern, Boeing corporations, IBM and Microsoft. Oracle, PayPal, Samsung, Saudi Aramco, Visa and Walmart were also among the actively implementing "chains". Places on the list went to one of China's largest banks, the Industrial and Commercial Bank of China and the Chicago Mercantile Exchange, which launched Ethereum futures on February 8.
According to International Data Corp, the combined spending of corporations and governments on blockchain in 2019 amounted to $ 2.9 billion, which is 89% higher than in the previous year, and will reach $ 12.4 billion by 2022.
Cases from the food sector are no less impressive. So the international network Walmart and the manufacturer Nestle, together with 12 other companies, founded the "IBM Food Trust", the goal of which is to develop in the field of integrated supply chain systems. Such developments will make it possible to monitor the quality of the movement of goods at all stages: from raw materials to finished products.
The development of military technologies based on blockchain is actively gaining momentum. For example, Russia is developing a defense laboratory that should track and prevent cyber threats using blockchain technology. World renowned tire manufacturer Goodyear announced the launch of a blockchain system in 2020 to supply military components.
It is difficult to overestimate the potential of "chains" in the military sector - the defense industry can safely become a pilot in the industry and serve the good of society.
The always progressive Asia-Pacific region is showing the fastest pace of adoption of chained technology in the world. And most importantly, how? Namely, due to the implementation of the decision in the public sector. There it is designed to simplify complex processes, connect high-tech solutions that combine web development, cloud storage and its own API. For example, in China today there are already 140 government services running on the blockchain. The consulting company PwC has predicted the status of a blockchain state for China, and so far this forecast is coming true: the country has the largest number of blockchain projects in the world.
The EU has a rather cautious attitude towards blockchain, which is globally manifested in the creation of initiatives that regulate technology within the Union. But countries such as Malta, Switzerland, Estonia and the United Kingdom show a great affinity for the blockchain and strongly support its global implementation.
Tracking supply chains of goods and services, as well as information technology and data transfer are, in my opinion, the most successful areas in the United States for implementing blockchain outside of the fintech sector. In the post-pandemic period, these areas have the highest economic potential, which is estimated by PwC experts at $ 962 billion.
Having touched on the topic of the pandemic, I cannot fail to note the importance of using chain technology in healthcare to track the stages of vaccination around the world. For example, the IBM Blockchain-based vaccine distribution network enables manufacturers to proactively monitor side effects and improve vaccine recall management. Pharmacists can optimize inventory management while people learn to trust vaccines and return to social life with confidence. Win-win case: based on the implementation of one solution, all participants in the process win.
Afterword
Digital technologies have become so convenient and safe that they can scale to all areas of our lives from defense to food technology. When you see that the UN is seriously considering the possibility of using blockchain in the context of climate change on the planet and humanitarian programs, you realize the level of technology penetration.
The World Economic Forum estimates that by 2027, 10% of global GDP will be stored using blockchain. Undoubtedly, the greatest impact will be received by the public sector, healthcare, education and the media, which, thanks to the "transparency" of technology, will be able to regain their fair name and prevent the spread of false information. In monetary terms, experts predict the growth of the world economy by $ 1.76 trillion by 2030 thanks to the implementation of blockchain technology. This is confirmed by the opinion of leading top managers of multinational companies: according to Deloitte, 59% of respondents perceive blockchain as a revolutionary technology that can improve the business processes of organizations from any industry.
The success of blockchain technology will of course depend on a favorable regulatory environment, the business ecosystem of each country willing to take advantage of the new technology opportunities, and a suitable industry structure. In many ways, the delay in the implementation of chain technology is due to the legislation of certain states and internal specifics, as in the case of Ukraine, where it is not yet ready to finally say goodbye to the “shadow” approach to management.
I am confident that the most powerful potential for process optimization inherent in blockchain is comparable to the potential of cloud technologies 10 years ago.
