The Rapid Emergence of Blockchain in Enterprise
At Northstar we’re thrilled to see the emergence of blockchain in enterprise software applications; it represents the most overlooked but potentially biggest opportunity in the entire blockchain space.
When average investors think blockchain they typically think of a decentralized system. At first glance, a decentralized system isn’t ideal for a corporation looking to protect their data.
However large organizations are flocking to blockchain because of the massive efficiencies and cost savings that private blockchains, or permissioned blockchains enable organizations to achieve.
Rather than storing data in multiple locations or multiple corporate subsidiaries, corporations can leverage private blockchains, giving permission to the relevant entities within the organization.
A great example is the IBM-Maersk blockchain alliance cuts oceanic shipping times by 40% while processing 154 million shipping events per day.
Executives from IBM to UBS have declared the revolutionary implications of blockchain in all corners of industry from financial services to supply chain to healthcare and more.
Fedex CEO Fred Smith went so far as saying “It’s the next frontier that’s going to completely change worldwide supply chains.”
In fact, there have been over 37,000 internal corporate blockchain projects, a number far greater than the roughly 1200 ICO’s. 84% of companies are actively involved with blockchain, however only 15% have something live.
This is a figure which excites us at Northstar, as enterprise blockchain applications is an area we’ve dove deep into via our Advisory Services and our Enterblock Platform.
At Northstar we work with organizations looking to potentially implement blockchain into their company. We focus on understanding and educating ourselves on our customers business, before moving to a Proof of Business Assessment that focuses on the ROI and value creation of implementing a potential blockchain into the existing legacy infrastructure of the company. From there we move to a Proof of Value Assessment which includes the design, prototype and build of an internal blockchain.
With companies like National Bank of Canada, JP Morgan, Goldman Sachs, Canadian Securities Exchange, Bank of America, Maersk, Walmart, Starbucks, Pfizer, Industrial and Commercial Bank of China, American Express, and Alibaba all embracing blockchain; it’s becoming easier to create a list of companies that are simply ignoring the technology, rather than list the companies exploring and utilizing it.
However with only 15% of companies actually having a live blockchain, it’s easy to see that organizations need guidance and support in implementing solutions, from the ideation phase to the design and build, and that’s what we provide them with at Northstar.
It’s also why we are thrilled to be rolling out our Enterblock Platform; which was constructed to enable companies to ‘enter’ the ‘blockchain’.
Gartner forecasts that blockchain will generate an annual business value of more than US $3 trillion by 2030. It’s possible to imagine that 10% to 20% of global economic infrastructure will be running on blockchain-based systems by that same year.
Northstar is well positioned to participate in the emergence of this new sector – stay tuned!