Frederik GregardCEO, Cardano Foundation sailing on the impact of blockchain on global finance and governance.
Whenever I participate in an industry event or meet business leaders or government services, they want to know: what advantages do blockchain technology In fact Give companies, other than reflux and market flows in cryptocurrency?
Here are five real business advantages that blockchain can offer, as well as two key considerations to assess its adjustment.
1. Blockchain for the truth (not confidence)
Confidence is an invaluable asset for any business. Companies spend millions of dollars each year to create and improve confidence with a variety of stakeholders.
Here is the friction: confidence is an intangible asset that cannot be tested with precision. The truth, on the other hand, can be ensured and displayed with each stakeholder with which the company interacts by using the blockchain.
Take, for example, financial transparency. Accountants, auditors, non -profit organizations and businesses may sometimes have trouble presenting the transparency of their finances despite a sincere commitment to. This is an area where blockchain solutions are a ready -to -use companion.
Reeve, for example, a solution of my business, the cardano foundation, helps organizations reducing fraud, improving efficiency by rationalizing reporting processes and audit, making better decisions thanks to information fueled by AI and increasing confidence. Other business players are also moving in this direction. EY OPSCHAIN is used by public sector agencies to ensure traceable and verifiable expenses, without compromising data control.
2. Blockchain for the regulations
Blockchain solutions can allow companies to meet regulatory requirements, such as environmental, social and governance regulations (ESG), social responsibility (CSR) and financial information requirements in a way that few other technologies can.
Using blockchain for regulatory reports and using its function as a set of organizational recordings, companies can take advantage of transparency that is integrated into blockchain and the immutability of its file holding capacities to create and protect a secure and verifiable registration of transactions and data, allowing real -time access to precise information for regulators.
A leader of this is the SAP corporate platform, which began to incorporate the blockchain to help customers comply with global compliance standards, especially in the highly regulated pharmaceutical sector.
3. Blockchain for cost savings
Poor file outfit is a problem for companies – and costly. A study by Global Market Intelligence and Advisory Société IDC showed that the average knowledge worker spends around 30% of their work research information. This loss of efficiency can have other financial repercussions, including lost accounts, the inability to compete and the slow processes that may require consultants or other expensive initiatives to mitigate.
By acting as a large big book to the alteration test where transactions are recorded instantly and transparently, the blockchain can rationalize operations, especially in heavy data areas such as supply chains and audits. This reduces the need to cut into fragmented recordings and allows intelligent contracts to automate routine tasks such as delivery confirmations or payments.
4. Blockchain for traceability
Ensuring traceability and authenticity is one of the most important costs and challenges faced by a variety of industries today. The blockchain can be decisive for both.
Take, as an example, the food industry. Ferch farm practices are increasingly important for ethical consumers who want to be sure that their food is free from genetically modified organisms (GMOs), pesticides, forced labor or other practices concerning. A blockchain traceability solution, such as that controlled by the Cardano Foundation in partnership with Georgia Wine, can show a consumer the whole process of their product, from grape picking to the production of their wine and sale.
Blockchain solutions can also be a boon for authentication. Studies show that counterfeit products currently represent 3.3% of trade worldwide, or around $ 1.7 billion to $ 4.5 dollars for world companies and a loss of consumer confidence. Blockchain solutions can and have been demonstrated to ensure authenticity.
The global conglomerate on LVMH luxury products is an organization that opens the way in this area. As part of the Aura Blockchain Consortium, he uses blockchain technology to authenticate luxury products, offering transparency and reducing counterfeiting on high -end markets.
5. Blockchain for safety and authentication
Data security is an increasing concern, especially with AI -oriented threats. Blockchain safety and authentication solutions can help reduce human errors in fraud and data violations as follows:
• Select the connections by replacing the passwords with a biometric or hardware verification linked to the identity on a user’s chain.
• Decentralized identity (DID) for immutable and verifiable identification information without central authority.
• Self-sovererant identity (SSI) allowing individuals to safely manage their data on all platforms.
• Data access control with integrated blockchain authorizations for limited access.
• Operational resilience by distributing a verification through a network to prevent falsification.
Two things to consider
Despite its promise, blockchain is not a universal solution – and in some cases, conventional technologies can better meet the needs of a business. Here are two practical considerations for any organization thinking of adoption:
1. Public against private channels without authorization
Not all blockchains are built in the same way. The channels without public authorization ensure transparency and decentralization – ideal for verifiability and opening. Private systems without authorization offer more control and confidentiality, but can make compromises on resilience. The choice between them requires assessing commercial needs, regulatory requirements and the level of confidence between stakeholders.
2. Cost, complexity and expertise
The blockchain is not Plug-And-Play. Integration often requires specialized talents, a budget and a cultural adaptation. However, organizations do not have to start from scratch. Many already have rich sets of internal data, compliance needs or audit trails that make good pilot candidates. Take advantage of the existing infrastructure and work with experienced partners or consortia can mitigate the learning curve and reduce risks. Start small – with a clearly defined use case – teams that strengthen confidence and internal capacities without excessive resources.
Where then?
These solutions and advantages are only starting to scratch the surface of what blockchain can offer. While the blockchain is advancing and more organizations and developers realize what it can do, its scope and its conviviality will continue to grow.
An advancement in which I see an incredible potential is the use of agentic AI and blockchain, which constitutes a change to more autonomous and adaptive artificial intelligence systems which can operate independently in complex environments. These AI agents are designed to make decisions, perform tasks and interact with users and other agents without requiring constant human intervention. I predict that it will be the next big boon – and the challenge – for companies worldwide.
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