Since its entry into the spotlight around a decade ago, blockchain technology has faded into the background a bit with the rise to prominence of more fashionable IT innovations such as artificial intelligence (AI). 

However, blockchain is and will continue to be a crucial technology tool for business leaders and entrepreneurs alike. The Business Manual talked with Joses Lu, Co-Founder and COO of blockchain solutions specialist Nuxify, for an updated perspective on blockchain, how the technology can be applied, and what industries and sectors will be able to benefit from it.

How would you explain the concept of blockchain technology in the most non-technical way you can?

An analogy I like is to imagine a blockchain as a big notebook that everyone can write in, but no one can erase or change what’s already written. Each page in this notebook is a “block,” and once a page is filled, it’s connected to the previous pages, forming a “chain.”

As an example, let’s say that a group of friends are keeping track of who owes money to whom. Instead of trusting one person to keep the records, everyone writes down the transactions in the notebook where everyone can see. This way, no one can cheat by erasing or changing the records.

The point of blockchain is to make sure that everyone can trust the information in the notebook because it’s transparent and tamper-proof. This helps in situations where trust is important, like in banking, contracts, or even voting.

What problems or issues does blockchain technology solve?

The concept of blockchain emerged to address a significant problem we face today: the centralized ownership of our data by various online platforms we register with.

From social media platforms to banking apps, our personal information and transaction histories are stored on centralized servers controlled by these companies. This centralization creates several issues.

Firstly, there’s the problem of data privacy and ownership. We have little control over how our data is used, shared, or sold, and there have been numerous verified reports of big companies selling our personal data. Blockchain addresses this by allowing individuals to regain control over their own data. Instead of being stored in one central place, information is distributed across a network of computers, meaning no single entity or corporation completely owns the data.

Security is another major concern. Centralized systems are prime targets for hackers, and a breach can lead to massive data leaks affecting millions of users. Blockchain enhances security by distributing data across many nodes in the network, making it extremely difficult for hackers to alter any information without being detected.

While blockchain isn’t perfect and software engineers are still working out the kinks, I personally believe that, when used correctly, it is an amazing solution to the modern questions of data ownership.

What is the importance of knowing about blockchain technology for CEOs, business owners, and entrepreneurs?

Staying informed about the latest technologies and trends is essential for everyone, but it’s even more critical for executives and business leaders. At their core, CEOs and entrepreneurs are problem solvers, and blockchain offers solutions to a specific set of problems.

Understanding blockchain technology expands our toolkit for addressing issues related to transparency, data ownership, and data integrity. This knowledge is particularly valuable in fields like logistics, supply chain management, finance, and other industries where these concerns are paramount. Blockchain provides a novel approach to solving these challenges, making it an option worth considering for enhancing efficiency, security, and trust within business operations.

Moreover, understanding blockchain allows business leaders to identify new business models and revenue streams. For example, the rise of decentralized finance (DeFi) has opened up new opportunities for financial services, while tokenization of assets can unlock liquidity in previously illiquid markets. By being knowledgeable about blockchain, CEOs and entrepreneurs can position their companies to capitalize on these emerging opportunities.

Adopting blockchain technology can also enhance a company’s reputation as an innovator. Businesses that are seen as early adopters of cutting-edge technologies are often perceived as leaders in their industry. This can attract customers, investors, and top talent who want to be associated with a forward-thinking organization.

By learning about blockchain, business leaders can better evaluate its potential applications and benefits, positioning their organizations to leverage this technology for competitive advantage. As the business landscape evolves, those who are knowledgeable about blockchain will be better equipped to innovate and adapt, driving success in their respective fields.

What types of businesses or organizations would benefit from implementing blockchain technology?

Many types of businesses and organizations can benefit from implementing blockchain technology. In the financial services sector, banks and payment providers can streamline processes, reduce fraud, and lower transaction costs. Insurance companies can enhance transparency and speed up claims processing by automating verification and execution through smart contracts.

In the supply chain and logistics industry, manufacturers and retailers can use blockchain to provide transparency and traceability throughout the supply chain, reducing fraud and ensuring product authenticity. Shipping companies can optimize tracking and reduce paperwork, enhancing efficiency and minimizing errors.

Healthcare is another sector that stands to gain significantly from blockchain. Hospitals and clinics can secure patient records, ensuring data integrity and privacy while allowing for easy sharing of information across authorized parties. Pharmaceutical companies can track the authenticity of drugs, reducing the prevalence of counterfeit medications on the market.

Overall, any industry that relies on secure, transparent, and efficient data management can potentially benefit from the implementation of blockchain technology.

How can Filipino IT leaders compete in the global arena?

Filipino IT leaders can compete in the global arena by building and advancing blockchain technology solutions. Despite the buzz surrounding blockchain, it is still in its early stages, with many areas unexplored or lacking thorough implementation. This presents a significant opportunity for innovation and leadership.

Adopting these technologies in everyday operations is crucial because it fosters familiarity and expertise, making it easier to identify and solve real-world problems. The broader the adoption of blockchain, the more others will be interested and willing to integrate these new technologies into their industries.

For example, Metapad, a product developed by my team, verifies the authenticity of smart contracts, a crucial technology in the Web3 space that exists alongside blockchain. We address the rampant misuse of Web3 and blockchain, where project founders often insert malicious logic into their projects, hoping to exploit people unfamiliar with the technology. As IT leaders, we must analyze existing pain points in the industry and build solutions that are user-friendly, scalable, and provide genuine use cases.

We can also leverage collaboration and community building to strengthen their position in the global blockchain arena. By actively participating in international blockchain forums, contributing to open-source projects, and forming strategic partnerships with other tech innovators, they can gain valuable insights and create synergies that drive technological advancements. Networking with global peers can open doors to new opportunities and foster a culture of shared knowledge and resources.

Additionally, prioritizing education and continuous learning is essential for staying competitive. By investing in training programs, workshops, and certifications, Filipino IT leaders can ensure their teams remain at the forefront of blockchain technology. Encouraging a mindset of lifelong learning and curiosity will help them adapt to the rapidly evolving tech landscape and maintain a competitive edge. Through these combined efforts, Filipino IT leaders can position themselves as key players in the global blockchain space.

Nuxify is a Davao-based software development and solutions company specializing in blockchain technology. It has provided solutions to a number of global firms and organizations, including ones in Canada, South Korea, and India.