March 16, 2018, Diamond Hotel, Metro Manila Philippines – The concept of Blockchain and its core feature of self-processing transactions with greater efficiency, is rapidly gaining steam in terms of awareness and adoption. With Blockchain, a number of processes utilized under a block of established paths are automated to function as a chain unit of events when a transaction is initiated. Blockchain removes process stoppages in the form of manual verification or additional paperwork. Under a distributed ledger technology, each transaction can be audited, therefore encouraging transparency within the organization and its shareholders.
Last year, Outlier Ventures reported that the distribution of Blockchain enabled startups in Asia – Pacific was gaining ground in countries such as China, Singapore, Australia, Japan and Vietnam. The Philippines, a globally recognized destination when it comes to Business Process Outsourcing (BPO) and Managed IT services, was not featured in the report due to the many Blockchain enabled fintechs are still trying to find their foothold in the world of Blockchain and breakthrough the Asian market.
To aid the adoption and general awareness of Blockchain and its benefits to the modern organization, Blockchain conferences are being held across the Philippines in order to equip decision makers with the knowledge needed to make an informed decision to take the first steps towards Blockchain adoption. Last month, the Blockchain Conference 2018 was held in the Diamond Hotel and it was a series of panels and talks about Blockchain and its transformative cause in today’s businesses.
Program: Blockchain Conference – March 16, 2018 @ Diamond Hotel Philippines
- An Introduction to Blockchain
- Real world application of Blockchain
- Payment systems powered by Blockchain
- Industrial impact of Blockchain consortiums
- What are Initial Coin Offerings?
- Blockchain Smart Contracts
- How Blockchain is implemented
- Other Blockchain enabled platforms
- Standardization of the Blockchain
- Round table discussion on Blockchain
To formally start the conference, Alorica’s Agile Coach, Chris Cochran gave a detailed introduction to the concept of Blockchain and its distributed ledger technology as well as the outlines involving the Blockchain enabled transactions from start to finish.
Democratising Football Through the Blockchain
Next was DynaQuest President Randy Knuttson’s panel time where he showcased how Blockchain is changing the sports franchise economy with the presentation called “Democratising Football Through the Blockchain” with the prime example of the London Football Exchange, a digital economy that is powered with Blockchain that will redefine the sports fan experience and how commercial teams such as Barclay’s English Premier League (EPL) clubs are able to offer exclusive patronage offers to loyal fans, through cryptocurrency.
In sports, fans are the heart and lifeblood of the club and its affiliated leagues. The London Football Exchange (LFE) aims to take the sports fans experience to another level with a cryptocurrency powered economy built on the fan base for the fan base.
With Blockchain, it gave rise to cryptocurrency where Initial Token Offerings (ITO) are now going mainstream where cryptocurrency is considered as a viable alternative to cash. Example is in the LFE, where fan can purchase LFE tokens to pay for EPL games, travel accommodations and gear from kits to accessories. Unlike regular tickets, LFE tokens offer more value in its patronage through exclusive privileges from content, special access to club events as a VIP. Similar to season pass holders, LFE tokens earn mileage that can unlock rewards and special offers to the loyal fan.
Through a Blockchain and cryptocurrency enabled system, the LFE experience in its economy of buying, selling and exchanging tokens are done securely and efficiently; it highlights Blockchain’s successful use case where commerce is streamlined from the point of purchase where transactions are immediately processed, verified and generates value on demand for customers.
In a digitized world, Initial Token Offerings under cryptocurrency enabled economies carry as much weight in value when compared to their “real money” counterparts. In fact, Fintech and digital currency startups were able to raise record-breaking capital from ITO and it is a break from the traditional Initial Public Offering (IPO) model used by startup Fintechs.
Randy Knuttson, stated that the LFE is just among the many cryptocurrency enabled economies that will change consumer patronage as the movement is underway where cryptocurrency is now being accepted and traded in exchange for real life services, goods and programs.
Payment Systems Powered by Blockchain
Through Blockchain, the payment system is headed for a paradigm shift when it comes to their structure and process. Blockchain allows for a seamless peer to peer exchange as noted by Lorenzo Valdez, the platform manager for Globe Telecom’s GCash. It allows payment systems to shed costly back-office paperwork as a model for optimizing the process for efficiency.
Industrial impact of Blockchain Consortiums
The financial world is made up of titans from banking and financial organizations that facilitate global credit. It is no surprise that the utilization of Blockchain and its maturity will be heavily dependent on the consortiums of financial organizations that are working together as a hive in order to develop a global financial trading system powered by Blockchain. With consortiums such as B3i, Hyperledger and R3, the push for Blockchain to take the lead as the operational structure for global finance is underway. Without the consortiums that are building Blockchain enabled infrastructures in the financial market, Blockchain technology will have a relative sluggish growth towards its technological maturity.
What are Initial Coin Offerings
Next was Karl Landicho’s (Digima Web Solutions) panel time based on Initial Coin Offerings (ICO) for beginners who are just starting to understand the cryptocurrency economy. ICO is a growing model for raising funds, as an alternative to IPOs and how cryptocurrency startups are building a trust and value model for long-term through ICO.
Blockchain Smart Contracts
Blockchain’s impact on Insurance, land titles and other binding agreements are centered on the effective realization and serialization of “Smart Contracts” as Michael Brucal, CEO, Zend Creative Inc., walked us through how Smart Contracts work in the Blockchain enabled insurance markets. Smart Contracts for insurance, under a Blockchain setup, follows a familiar process. The “contract” or known as the insurance policy is still executed for future claims, but instead of having the form of a paper, the contract (insurance policy) is in digital format or as an “insurance token”, similar to Bitcoin. These insurance token still contain the policies and stipulations which are claimable – just as an insurance claim and are known as “smart contracts”.
How Blockchain is Implemented
Next was how Blockchain is implemented as detailed by Jonathan Uy, the director of PricewaterhouseCoopers as he gives a detailed view of Blockchain implementation under an executive point of view based on a number of framework involving decision, development, resolutions, management and continuity:
- IT Services Procurement or Sourcing of Blockchain
- Blockchain First approach by using existing Blockchain tools and services
- Go with the many Development Platforms for Blockchain
- Utilize Vertical Solutions as a Service for Blockchain implementation
- Utilize Special API and Overlays for Blockchain enabled services
Other Blockchain Enabled Platforms
Gaming is a multi-billion dollar industry and Blockchain is also reshaping how modern gaming is done as explained by Peter Philip Pates, the Chief Technology Officer of BlockchainPi. With platforms such as PlayKey, that utilizes Blockchain architecture to enable gaming on the cloud, it makes gaming more accessible even on economic PC builds. The developers note that due to the increasing hardware specification to run the modern games, players are burdened by the need to spend money annually to upgrade their PCs. Through cloud enabled gaming, the server is the one doing the heavy rendering of assets such as graphics, as it allows games to be accessible even on low-end PCs.
Standardization of the Blockchain
Presented by Daniel Adams, CEO, Blockchain Entrepreneur, Ethereum World presents a detailed response on the standardization of Blockchain as a testament to the technology’s maturation in terms of wide-scale adoption across industries. This includes the need for Blockchain to enter operational standards that are recognized or prescribed by the International Organization for Standardization (ISO):
- Defining standards
- Mechanism as a gateway for multiple Blockchain enabled-systems
- Creation of a governance framework
- Ensuring interoperability and cross-platform compatability
- Legal and Regulatory compliance
- Regulatory framework based on a combination of legal and technical rules
Blockchain in the Philippines
Blockchain in the Philippines is growing in movement and with the start of fintech startups engaged on Blockchain utilization. One of the key movers is UnionBank, that has engaged in Blockchain by partnering with Visa’s Blockchain enabled P2P payment system. Through Visa’s system, UnionBank helps to overhaul the efficiency of a number of rural banks when it comes to their payments processing.
Last year, the Philippine’s Bangko Sentral ng Pilipinas (BSP) and Monetary Authority of Singapore (MAS) have struck a landmark agreement to enable cross-border payments using Blockchain through a joint development projects centered around the mobility of Blockchain technology within the respective countries’ financial market.
By using Blockchain, the joint venture seeks to create a faster cross-border payments and streamlining know-your-client (KYC) processes.
With the growing awareness in Blockchain and its benefits to businesses, the challenge for businesses in the Philippines is the concentrated effort in making the transition to Blockchain. This will involve a sound decision framework to determine how:
- How Blockchain will benefit their business
- How do they implement Blockchain
- How do they source a Blockchain specialist, service or partnership
- How will they manage the Blockchain system, moving forward
In the near future, there will be more Blockchain conferences set in Manila that serves to inform, engage and help facilitate the development of Blockchain technology, its adoption and successful use cases to businesses in the Philippines. The benefits are documented by the early adopters and their use cases. The challenge now for businesses is for them to identify how to effectively implement and utilize Blockchain.
DynaQuest is a specialized Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) company in the Philippines that is also pioneering the country’s global position as a shared services destination for emerging technologies such as Blockchain and cryptocurrency powered economies.
We aim to build knowledge, establish a managed partnership and support Blockchain-enabled businesses and their decision makers in transitioning to Blockchain. Contact DynaQuest today to join our participation nn upcoming Blockchain conferences in the near future.
DynaQuest Technology Services Inc.
19/F Uptown Place Tower 2 11th Drive
Uptown Bonifacio 1630 Taguig City
+63 2 2241862
+63 2 403 1495