Blockchain & Digital Assets Innovation has been saved
Blockchain & Digital Assets Innovation
Redefine the rules of your business and industry
At Deloitte, we focus on providing you with targeted insights to navigate through your most urgent blockchain and digital asset questions. We help you rethink the way to create business value, identify ecosystem strategies, increase trust & collaboration with partners, and so much more.
Blockchain igniting innovation
Blockchain is going beyond the hype and is fast redefining the rules of the game. At Deloitte, we see blockchain-based innovations, promoting trust & transparency, popping up across the industries & sectors.
NIKE acquired RTFKT, an innovative brand focusing on digital collectibles and merging culture and gaming. El Salvador became the first country to accept bitcoin as legal tender. Mercedes-Benz launched Acentrik, a decentralized data marketplace for enterprises. BlackRock launched its first blockchain and crypto ETFs. Multiple governments are researching Central Bank Digital Currencies.
These are just some examples to illustrate the impact blockchain technology already has across several industries. And there are many innovative use cases yet undiscovered.
We highlight several (non-limitative) blockchain-based innovations below.
NFTs are non-interchangeable and immutable units of data that are driven by smart contracts and can be used to prove ownership, record rights, and manage obligations. Unlike many digital items that can be infinitely reproduced, each NFT is unique, and its authenticity and ownership can only be verified through the blockchain on which it resides.
As virtual titles of ownership they allow for multiple use cases across different sectors:
- Tracking ownership of goods & assets (incl. characteristics)
- Bridging virtual-physical worlds
- Increasing customer engagement
- Fragmented ownership and security tokens
- Exclusive memberships
- Embedded royalties (music, photo, art, ...)
- ...and many more
Forward-thinking companies are already exploring the opportunities of NFTs, often in combination with the metaverse. Note that from a legal point of view, it is crucial to consider ownership rights, (un)registered IP, and existing commercial contracts, when evaluating NFT opportunities.
Tokenization is the representation of real-world assets (like art, equity, real estate, bonds, etc.) as tokens on a blockchain or distributed ledger.
Tokenization brings strong value in terms of:
- Transparency throughout the asset lifecycle thanks to the immutable record of token ownership;
- Programmability via smart contracts (e.g. automated corporate actions in case of stocks) to drive efficiencies in existing processes.
- Cost efficiency through:
- Reducing the number of parties involved;
- Simplifying the listing / trading processes; and
- Increasing settlement speed combined with reduced counterparty risk.
Looking at those benefits, we believe that tokenization is expected to gain significant traction in the coming years. However, the lack of a uniform classification of different token types as well as a clear legal state is currently hampering wide adoption. The Markets in Crypto Assets (MiCA) regulation might bring a change.
A Cryptocurrency is a decentralized medium of exchange or store of value. Powered by blockchain, they remove the need for intermediaries to carry out transactions.The ‘crypto’ part relates to the use of cryptography to secure and verify the cryptocurrency and its transactions.Stablecoins are cryptocurrencies that are pegged to a fiat currency, such as the dollar or the euro. Currently, we see decentralized stablecoins as well as privately issued stablecoins on the market
An interesting, yet underrated aspect of cryptocurrencies and stablecoins, is that they can be ‘programmed’ through smart contracts. This allows to program a coin (or a token) to stimulate desired customer behavior, reduce administrative complexity, track data of transactions, … All while reducing costs by cutting out the payment intermediaries.
Self-Sovereign Identities (SSI) are digital credentials allowing holders to prove their identity in the digital world without relying on a central party.The identity credential is issued to and held by a Holder (person, organization or machine) in a mobile wallet app and can be presented in a fully self-sovereign manner, without involving any third party providers to store and centrally manage the data.The ecosystem around the Self-Sovereign Identity based credentials is based on a relationship of trust, analogous to the traditional, non-digital world, which is ensured by the blockchain network verifying authenticity.
Decentralized Digital Identities are becoming the foundation of our rapidly evolving technology-based and data-driven economy and society:
- Allows a safe identity verification ensuring a better control of counterfeit identity, without a 3rd party, a card, or a certificate;
- Impacts the Risk and Cybersecurity industries, as well as regulations, allowing the real “privacy by Design” mandated by GDPR;
- Enhances the flexibility and security in the process of identity verification, in all industries, while breaking up barriers, as it can be used crossed-platform and is expandable at low cost
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