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Blockchain Transformation for Philippine Businesses

It is undeniable that global businesses are changing as a result of the rapid advancement of frontier technology. Technologies such as Blockchain have allowed consortiums, Fortune 500 companies, and global enterprises to rethink and reimagine how transactions are done.

In fact, according to the executives in the recent Deloitte’s Global Blockchain Survey, 86% have set Blockchain as a priority of their business strategy and transformation in the 2020s. Meanwhile, Forbes Business Insights shares that the Compound Annual Growth Rate (CAGR) of Blockchain-enabled markets will be at staggering 56.1% taking into consideration the current rate of global Blockchain adoption. By then, the global Blockchain market will be worth $69 Billion by 2027 from $2.1 Billion in 2019.

With the acceleration of Blockchain adoption, the market is at the precipice of huge changes: there will be new leaders, new challenges, and new forces that will challenge the status quo. Failing to adapt and transform with the technology will prove to be a major hindrance for businesses in terms of their competitiveness, cost-efficiency, and long-term survival beyond the late stages of the decade.

Blockchain is leading the frontier technology in the business transformation department as the platform is being primed as the essential backbone of business and enterprise information. To date, Blockchain is already making transformative benefits into the world of banking and finance as global banks are in a position to save between $8 to $25 billion annually from infrastructure operating costs. Further, Gartner estimates that the annual business value derived from Blockchain will be worth an estimate of $3 trillion by 2030, and by the same year, Gartner projects that 10% to 20% of the global economy will be running on Blockchain-based systems.

A closer look at the impact of the technology in the day-to-day micro-processes through Blockchain allows businesses to verify and process information seamlessly while significantly cutting down on costs from delays resulting from transactional data needed to be verified by back-office work. As such, the transformative effect follows a broad but extensive market where portability and interoperability are dictating markets and their convergence. It leaves no room for silo and niche as the technology of today is easily ported or retrofitted to fit diverse industries, aligned markets, and used as turnkey factors against even the most unique cases of business needs.

Blockchain Transformation

In just a few years, Blockchain has progressed from a buzzword, to a nascent technology, and to the most sought-after technology in business transformation. The early adopters were the consortia consisting of the world’s biggest banks, the world’s tech titans, and the global leaders in trade and shipping. The promising results of their respective use cases demonstrated new levels of efficiency being reached alongside an optimized process with very little friction as much as possible. It wasn’t long until enterprises began forming strategic partnerships to explore the Blockchain space and how the technology can reinvent their business as well as reach new levels of competitiveness.

PricewaterhouseCoopers (PWC) published a report named Global Blockchain Survey. The report states:

Financial services industry accounts for 46% of the advancement in developing Blockchain, while industrial manufacturing (12%), energy & utility (12%), and healthcare (11%) are trailing.

84% of leaders responded that their companies have some involvement in Blockchain.

30% of the survey respondents believe that China will be the leader in global Blockchain infrastructure by 2023 and 18% believe that the United States will still be the leaders of Blockchain, as 29% of the same respondents stated that from 2018-2021, the United States is the current global leaders.

What is truly astounding is how we went from “Wow to Now” in the business transformation with Blockchain. We are seeing the years grow shorter in between adoption and commercial viability towards Blockchain’s maturity. Since every business-minded person now has a grasp on Blockchain’s process, the question is how businesses – such as SMEs can get started in Blockchain – given the depth of requirements and steep learning curve of the said technology. 

Despite the challenges, the SME market is projected to grow at a higher CAGR from 2020-2025 according to MarketsAndMarkets’ Blockchain Report, in reference to the technology becoming more portable, accessible, and more adoption models emerge out of the solutions market in the coming years. In fact, there are already proven Blockchain framework to follow out of the SME market in the form of the following:

SMEs and Associations banding together to form and fund a Blockchain alliance

Key partnerships with technology and solutions providers

Study and build upon the Blockchain as a Service emerging market where instead of building your own, you can sign up with a provider to enable Blockchain based on your use case.

Blockchain Transformation in the Philippine Economy

The Philippines has always been an early adopter of emerging technologies: from relational servers to cloud computing and virtual infrastructures, the country’s largest businesses, and banks are always the first to adopt key technologies and they are always setting the standards. As the country is gearing up for economic recovery from the pandemic and seeking new grounds to establish new levels of economic opportunities when it comes to frontier technologies, Blockchain transformation is among the prime ventures in which most businesses will make it a priority in this decade.

Today, banks, startups, and strategic partnerships between regulatory bodies and global technology providers are leading the way for Blockchain adoption in the country. Key transformation in the following economic zones will help uplift the country as it roars back as a tiger economy in Asia and the Pacific:

Blockchain in Banking for unprecedented efficiency in operations

Adoption of digital wallets and managing digital identities for economic inclusion

Technological transformation in healthcare and insurance for overall better health outcomes

New tech hubs and tech economic zones to drive in frontier technology investors and capital venture

Adoption of fintech to help businesses and the government save billions annually from

Paper-based and traditional transactions.

Blockchain adoption in shipping, trade, and logistics to enable greater value in the local, regional and global value chain.

The pandemic has stunted the growth of the Philippine economy. From what once a very resilient economy that was able to withstand several global financial contractions, had posted economic losses from last year. Such losses were not seen since the aftermath of the second world war. As a catalyst for recovery, the key economic areas of the Philippines must include process efficiency and cost-efficiency:

Business – Improve overall efficiency of the business and transaction process

Government – Improving efficiency in its overall administrative structure from day-to-day management to the efficiency of its tax collection, mobilization on projects, and lawmaking.

People – Promote an inclusive economy to promote and encourage economic participation from its poorest sectors in order for these sectors to become productive in their economic contributions in areas such as microfinance and tax remittance.

Economic Zones – Create more special economic areas to attract investors on frontier and catalyst technology to help boost the global competitiveness of its province/regions.

DynaQuest: Bringing Global Blockchain Transformation to the Philippines

DynaQuest, an award-winning Blockchain solutions provider, which has been globally recognized in the most prestigious Blockchain expo and forums is a Philippine-based systems integration specialist who specializes in the adoption and integration of frontier technologies into existing business and enterprise systems. Armed with the expertise on change management, knowledgebase, resource management, and technical qualifications to guide businesses in their Blockchain transformation journey. 

The company embeds a Blockchain-centric culture that is conducive to enterprises for their business innovation, new market ventures, and decentralized economic participation.

For more information, you may visit their site here.

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