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Blockchain Not Ready for Enterprise Use, Says World Economic Forum

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Blockchain Not Ready for Enterprise Use, Says World Economic Forum

In the wake of the global crisis driven by COVID-19, the World Economic Forum has recognized the shortcomings in the global supply chains. And therefore, WEF has published a white paper in collaboration with Deloitte to help enterprises understand how to “develop” and “execute” blockchain-based supply chain management systems.

The white paper which has 7 parts includes parts on data security, verification of digital identities, cybersecurity frameworks, private and public blockchain, and interoperability of blockchains which is essential for enterprise supply chain integration. The white paper also includes a case study from the United Arab Emirates.

Blockchain in Supply Chains Worldwide

This is not the first time, however, that institutional recognition has been given to blockchain in the fight against the changing global political economy after the break out of the COVID-19 pandemic. The Chinese government had been one of the first to recognize how blockchain can be useful in the supply of healthcare essentials, transfer of emergency funds and carrying out other institutional transactions. 

In fact, in terms of enterprise and non-enterprise supply chain management, blockchain had been already used widely in different regions of the world. Indonesian Customs and Excise had joined hands with IBM’s TradeLens blockchain to track containers; Walmart had also geared up to use blockchain technology for the management of its shrimp supply chains from Andhra Pradesh, India.

Many other sectors can also benefit from these technologies, like the farming sector in India. A study suggested the use of blockchain could save $31 billion from food fraud losses. 

Blockchain Interoperability Status Amateur for Enterprise Integration

Part six of the White Paper dealing with interoperability of the blockchains mentions that interoperability among blockchains remains a problem; very few solutions focus on interoperability among permissioned blockchains. Even among public blockchains, the focus is on Ethereum and Bitcoin. While many large interoperability based projects exist they tend to have the same focus.

And this, they believe, can be a large obstacle to industry adoption of blockchain. Yet, they mention certain projects like the Hedera Consensus Service that appears to be “promising”.

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.

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