Why Do Governments and Corporations Need Blockchain?

Experts at BlockShow Asia 2019 agree: Bitcoin is just cryptocurrency while blockchain is a new connectivity framework.

Speakers at a conference panel titled “Collaboration in a Decentralized Ecosystem: Why Government And Corporations Need It” included Patrick Yeo, Venture Hub Leader at PwC Singapore; Vinay Mohan, Managing Director of ConsenSys Singapore; Veronica Tan, Director at Infocomm Media Development Authority; Alan Lim, Program Director at IBM Blockchain Technologies; and Yi Ming Ng, Managing Partner of Tribe Accelerator.

All participants pointed out that the main features of blockchain technology go far beyond Bitcoin. They enable ecosystem connectivity by sharing information in trustless, decentralized fashion.

Ming highlighted several use cases where blockchain connects different ecosystems to create new value for the internet, citing IBM's Food Trust network as used by Carrefour, and several other partners connecting supply chains to provide more product transparency.

Vinay pointed out that there is much debate about whether blockchains operated by governments and industries are truly decentralized or not. According to him, it’s not so important — there are several ways to understand centralization versus decentralization.

“We are talking here about an intermediate technology that connects different ecosystems providing a new form of governance,” said Mohan.

On the other hand, Tan stressed that in addition to cryptocurrencies, blockchain enables the creation of a new ecosystem in which industries can work together to share information, creating new use cases, and create new forms of social interaction:

“Beyond cryptocurrency, blockchain technology is about collaboration. It's a collaborative technology that allows different actors to work together sharing and consuming data. That's amazing for governments, private institutions, and how society can create new things,” she said.

In the same vein, Yeo pointed out that blockchain connects different parts of ecosystems and creates a completely different framework for governments and industries. “This is a new value industry. You can share information and set smart contracts for different parts of the ecosystem, this is a completely new framework,” he said.

Lim stressed that collaboration is precisely the path to blockchain and the success of different projects. He believes that the interconnectivity between Hyperledger, Ethereum, and other blockchain projects will increase over the years.

“We have to prove the value of technology and together we are stronger. Blockchain is about connected ecosystems, so increasing collaboration between all of us is very important,” he said.

As Cointelegraph reported earlier, Chief FinTech Officer for the Monetary Authority of Singapore Sopnendu Mohanty discussed the importance of the blockchain for the economy, highlighting its specific usefulness for the development of green finance.