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The Blockchain Intelligence Imperative - Procurement Evolution
2 months ago
2 min read

The Blockchain Intelligence Imperative - Procurement Evolution

A blockchain represents a distributed database or ledger that is collectively maintained across nodes within a computer network. While blockchain technology has gained recognition for its pivotal role in cryptocurrency systems, where it ensures the security and decentralization of transaction records, its applications extend far beyond the realm of cryptocurrencies. Blockchains possess the capacity to render data immutable in any industry, a quality that signifies its resistance to alterations

The blockchain category is expected to grow at a CAGR of 87.7% from 2023 to 2030. Data traceability and transparency, trust and accountability, decentralization, and immutability are driving the category's growth. Venture capital investment is heavily increasing in technology.

Category growth is expected to be fueled by the increasing global adoption of cryptocurrency. The utilization of blockchain technology in cryptocurrencies like Ethereum and Bitcoin is a key factor driving this trend. The rising demand for cryptocurrency is attributed to its advantageous features, including convenient transactions, protection against inflation, and heightened security.

Companies around the world are actively engaged in partnering and developing cutting-edge technologies. Here are some notable examples:

  1. IBM and Central Bank Digital Currency (CBDC): IBM is playing a pivotal role in the transition from traditional money to Central Bank Digital Currency (CBDC). Central banks are increasingly endorsing digital currencies as an alternative to physical money, aiming to boost digital transactions. This shift promises benefits such as enhanced contactless payments, faster settlement times, reduced complexity, and lower risks. Additionally, CBDCs offer businesses greater control over monetary policy due to built-in programming. IBM's estimates indicate that as of 2023, 87 countries are exploring CBDCs, and 9 out of those have already launched state-owned digital currencies.

  2. MakerDAO and Chainlink Integration: In February 2023, MakerDAO, a prominent player in the decentralized finance (DeFi) sector, successfully integrated Chainlink's smart contract automation. This integration strengthens MakerDAO's Keeper system, which is responsible for maintaining the stability of the DAI stablecoin.

  3. Visa and ConsenSys Partnership: In January 2022, Visa, a globally recognized payment company, entered into a strategic partnership with ConsenSys, an Ethereum scaling firm. This collaboration is aimed at facilitating the seamless integration of central bank digital currency (CBDC) networks with traditional financial institutions. The end goal is to allow customers to use their Visa cards or digital wallets linked to CBDCs at any location worldwide where Visa is accepted, greatly expanding the utility of CBDCs.

  4. J.P. Morgan Chase's Onyx Blockchain System: In June 2023, J.P. Morgan Chase unveiled its blockchain-based system, Onyx, designed for settling payments between banks. This innovative system is geared towards reducing costs and improving overall efficiency in the banking industry.

These examples illustrate the diverse ways in which companies are embracing technology to reshape the financial landscape and enhance the efficiency and security of monetary transactions.

Key companies profiled - IBM, ConsenSys, LeewayHertz, ELEKS Software, Blockstream, Bitfury, Spring Labs, Chainanalysis, Galaxy Digital Holdings, Markovate, Appinventiv, Accenture Plc, and Cubix