Companies that use blockchain have a competitive advantage

Companies that use blockchain have a competitive advantage

Oracle study shows that companies that are not using technologies such as blockchain face disadvantage and have lower profits

Companies that use blockchain have a competitive advantage

By Editorial Staff

Companies that are not using emerging technologies like blockchain face a competitive disadvantage, according to a study by cloud computing giant Oracle, published by Bitnotícias. The study interviewed 700 finance and operations managers and executives, who regularly use local and cloud-based services for enterprise planning, performance management, and supply chain metrics.

The study points to technologies such as blockchain, artificial intelligence, machine learning, digital assistants, and Internet of Things (IoT) devices as crucial for organizations to compete in the next decade. According to the study, companies that adopted these technologies have increased their annual net income 80% faster than those companies that do not invest.

Blockchain applications are especially useful for eliminating fraud through monitored and immutable records. The study also said that 83% of organizations using blockchain expect significant value from using blockchain in a year. And in terms of real return on blockchain technology investments, 87% of the companies that use blockchain have not only achieved, but also exceeded ROI expectations.

Companies that use blockchain need to deliver value

Blockchain as a competitive advantage will only succeed if it is used to improve a product that can be used by as many people as possible, said Reputy CEO and business consultant Michael Knobel, in a 2019 lecture at the Blockmaster Forum in São Paulo. In the view of the entrepreneur and also consultant, any blockchain product has to create value for both those who offer and those who use it. According to Knobel, customers will not notice whether or not the company uses the blockchain by chance, they have to realize a value in that use.

Equity investors have already realized that blockchain is promising. The venture capital  Andreessen Horowitz recently launched a second venture capital investment fund in blockchain projects worth US$ 515 million, exceeding its initial forecast of raising US$ 450 million. The funding occurred less than two years after the first fund, of US$ 350 million. And it shows the growing demand for investments in a new cycle of blockchain projects.