By Stephanie Trefcer
Before the advent of blockchain, strategies were lacking to fully secure and validate ownership of digital assets. Now, blockchain has the potential to enhance many of the systems that organizations have relied on for decades by building greater transparency, speed, reliability, and trust into core operations.
KPMG is helping financial services, healthcare, life sciences, industrial manufacturing and telecommunications organizations learn what blockchain is, and what it is not – providing strategic direction for the successful adoption of the transaction platform.
“Blockchain helps us identify solutions to existing business challenges, but it is not always the answer to a problem,” said Arun Ghosh, U.S. Blockchain Leader at KPMG. “With blockchain, we can determine how to drive economic value through strategy and implementation for organizations across industries, and we expect the impacts of blockchain to continue to be far-reaching, from a reduction in reconciliations, to expediting invoice processing, to combatting fraud.”
The need for a trusted ecosystem continues to be a trend, as blockchain will help prevent unauthorized access. According to KPMG, blockchain will also have the capability to manage information flow, as well as build encrypted ecosystems for more secure data transmission.
Currently, internet of things (IoT) adoption is challenged by limitations in device security and data assurance. In 2019, blockchain’s decentralized systems will help companies overcome those challenges, by improving food traceability, creating safer medical devices, and minimizing the negative impacts of product recalls, among other widespread applications.
“We’ll continue to see several use cases tap into the power of the convergence of blockchain and the IoT to drive value for businesses and consumers,” said Ghosh.
KPMG notes that tokenization will take hold in 2019, and loyalty will be one area to see a significant impact. Brands will tokenize loyalty rewards that can be used to purchase goods, like coffee, to drive better customer experiences.
“We expect there will be a greater investment in applying tokens to drive loyalty, but more so toward the realm of rewarding and incentives,” said Ghosh.
While KPMG is seeing widespread adoption across industries, Ghosh also expects an uptick in blockchain implementation in the government, energy, real estate and TMT sectors, in particular.
“Government agencies are identifying opportunities to achieve greater transparency and efficiency in grant award management, and the energy sector is using blockchain to enhance risk management and compliance best practices – the same uptick will emerge in 18 months within real estate,” said Ghosh. “With the emergence of 5G, we also expect blockchain to play a major role in protecting TMT organizations’ data.”
To speak to Arun Ghosh or another KPMG leader about blockchain, please contact Stephanie Trefcer.