• From 2022 to 2026, blockchain solutions for global businesses and governments will exceed a 50% compounded annual growth rate.
  • In late 2023, the C-suite strategic business blockchain use-case planning for an adoption rate will exceed 70%.
  • By 2026, the European Central Bank and U.S. Federal Reserve will create three digital blockchain cryptocurrencies.

Blockchain is in the top five “must-have” strategic technologies, with more than 70% of C-suite executives seeing it as a strategic priority. Trailblazers should apply blockchain solutions to create enterprise value and solve business challenges, yielding a much higher ROI than current technologies.

C-suite Takeaways:

  • Reshape 2022-2024 Blockchain 3.0 Innovation Adoption and Strategic Playbook¬†for enterprise-wide blockchain industry business/ops opportunities with cost savings and ROI
  • Appoint C-suite Executive-in-charge for blockchain business and ops models, ecosystems, and workforce readiness
  • Upgrade Corporate Center of Excellence (CoE)¬†to support Blockchain 3.0 apps for critical vendors and lab/design/test/pilot services
  • Develop Strategic Partnerships¬†with a primary platform(s) and ecosystem of open-source organizations, blockchain providers, and research universities
  • Develop Digital Currencies Impact Plan¬†for digital payment processes using U.S. Fed and ECB CBDCs proposals
  • Identify and apply blockchain innovation¬†transformation¬†targets for adoption and integration with workforce training.

Blockchain 3.0 applies leading advanced cryptocurrencies with massive Ethereum 2.0¬†– run on public and or private blockchains with “advanced smart contracts.” The entire¬†FinTech¬†sector is making blockchain use mainstream.

“Blockchain use is mainstream in FinTech.” – JPMorgan Research, 2021.

Why Blockchain 3.0?

Blockchain 3.0 (B3) is better than earlier blockchain versions; it moves beyond past applications of cryptocurrencies and FinTech to be applied in standard industry/sector business models. B3 is highly scalable and offers many corporations and government transformations early-adaption opportunities for cost-savings with increased ROI, like FinTech. B3 advances data security handling and transparency capabilities and leverages Ethereum 2.0 public and enterprise private platforms for distributed ledgers and blockchain to optimize performance. B3 is a fast-developing emerging technology with virtually unlimited apps in most B2B and B2C products and services.

More businesses should move to advanced smart contracts with newer blockchain AI/ML services. The expected outcomes are improved security and increased private blockchain performance.

“The AI-blockchain market should grow more than 30% in 2026.” –¬† Global Blockchain AI Market Report 2021.

However, applied AI/ML algorithms can be stand-alone and integrated into numerous industry business cases.

Another change ‚Äď B3 enables platforms to validate transactions on a private blockchain with Proof-of-Stake¬†(PoS) by staking, so Trusted Third Parties (TTPs) are not required. Corporations should see significant cost savings. (However, TTPs may apply for other services, such as corporate digital wallets.) Today’s smart contracts with personally identifiable information data easily handle another blockchain node to protect privacy against fraud and misuse with more substantial security enhancements.

Furthermore, today’s blockchain-enabled platforms do not require a lot of data. They use lightweight apps, with the enterprise storing detailed supporting transactions. They provide value by:

  • Using fast transaction performance with 99% less energy consumption over outdated Blockchain’s Proof-of-Work
  • Allowing comprehensive permanent transaction records
  • Removing centralized gatekeepers and approvers
  • Automating complex contracts
  • Allowing for locked personal privacy data
  • Integrating cybersecurity in the app with additional security protocols.

The result for the enterprise is greater efficiencies, cybersecurity, and transparency. The customer enjoys enhanced ease of use and improved customer experience through faster processing and digital channel use.

By B3 adopting Proof-of-Stake (PoS) consensus with a staking protocol, platforms can deliver greater privacy, speed, and scalability.

‚ÄúPoS can significantly boost computational time in terms of transactions per second, which will further incentivize technological adoption‚ÄĚ – Jeff Currie, Goldman Sachs Research

New global standards ensure the quality of the blockchain design, frameworks, platforms, security, and stability for future applications. Recent IEEE-Blockchain Community and NIST-Blockchain have developed leading frameworks and standards for corporations and governments. These organizations, blockchain research universities, and others rapidly improve blockchain-based trends and use cases. The blockchain ecosystem will evolve to include more industry opportunities with robust platforms and better ROI.

Bottom line: 

Blockchain 3.0 can improve B2 in advanced smart contracts with security, transparency, an overall business model for customer service, significant cost-efficiencies, high-volume transaction speed, and increased ROI.

How valuable is B3?

With the incredible success of FinTech, the use of many industries and governmental blockchain apps will accelerate business services for both efficiency, speed, security, and usability. B3 enhances business and consumer value by reducing costs, fraud, execution errors, and risks.

Many blockchain platforms may work as the foundation for your strategic innovation apps. Here is my vendor blockchain platforms and services shortlist for a corporation, government, and nonprofit to consider:

Lastly, leverage industry “best-fit” private blockchain platforms and global ecosystems where possible. However, a blockchain program can have critical challenges or fail without a blockchain executive-on-point, complete business/ops models, and an open ecosystem with training.

Edge Computing Supported

B3 can offer¬†Blockchain Integration¬†value-added. First, it applies in¬†5G edge computing networks¬†for¬†software-defined networking¬†with A.I.’s machine learning and multi-cloud computing. Second, blockchain addresses interoperability, security, mobility, resource allocation, resource sharing and management, and energy efficiency. These are improved, must-have features for edge computing.

Central Bank Cryptocurrencies In-Play

Central bank digital currencies are racing for global reserve currency and stablecoin positions. International central bank’s examples: “Full-Value” or “True” Stablecoins, Deposit Coins, and Digital Currencies (CBDCs) will take off by 2026. China’s central bank has its cryptocurrency playbook with the¬†digital yuan¬†in play. Also, a group of island nations is already using retail digital currencies today.

“The world of blockchain beyond the discourse about cryptocurrency has many things… can create new ways of understanding security protocols,” ¬†– E. Castell√≥, Fellow – MIT Media Lab, 2021.

The Boston Fed Chair and MIT joint research team designed two digital currencies for The Fed Reserve Board’s review and next steps. According to a September 2021¬†Fed conference transcript,¬†Chairman Powell expects its innovation transformation first step to being a¬†FedNow¬†service online in 2023. JP Morgan predicts that by 2025, cryptocurrency revenue opportunities will grow to more than¬†$40B.

Stablecoins – Value vs. Trash?

Corporation stablecoins should be a digital currency with a basket of hard assets-backing, highly liquid, and one dollar-to-dollar equivalent value: for example,¬†JPM Coin¬†is¬†pegged 1:1 USD and used on JPM’s¬†Liink¬†network and others. Notably, the JPM Coin is a global stablecoin market leader.

On a cautionary note, just about any company can issue digital currency called stablecoins these days. Soon, many prominent cryptocurrencies and exchanges will fail for lack of liquidity! Many newer stablecoins fill the “hard-asset” basket with commercial junk paper and other illiquid instruments for fraudulent and illegal activities.

“I think a well-designed US dollar digital currency could put a lot of the stablecoins out of business.” – Sandra Ro, CEO-Global Blockchain Business Council.¬†

Stablecoin users must beware of this, mainly when U.S. Federal Reserve and E.U. banks issue digital currencies. In this scenario, stablecoins could lose adoption appeal fast and be harder to offload in the marketplace.

Industry and Government Opportunities

The current and near-future of business and government blockchain sectors/use cases are here. A sample of applications is provided below:

  • Art/Gems/Music/Precious Artifacts¬†– ownership, fraud, payments, royalties, sourcing, secure assets, transfers
  • Automotive/E.V./Components¬†– smart vehicle delivery control data, maintenance, ownership history and anti-theft, vehicle wallets
  • Bio/Pharmaceuticals/Life Science¬†¬†– clinical trials, supply chain, safety, tracking
  • Energy¬†– carbon emissions credit tracking, peer-to-peer energy trading, renewable tracking ‚Äď all using measurable hard metrics
  • Financial Service/FinTech¬†– entire sector
  • Government¬†– blockchain tokens for cybersecurity, citizen I.D.s, customs and border compliance, digital currencies, citizens benefits, pension, interagency data mgt, secure data, shared services, tax refund payments, voting.
  • Healthcare/Hospitals¬†‚Äď data/video exchanges, medical records security, patient treatment plans
  • Insurance¬†– claims processing, fraud prevention, policies, title fraud
  • Logistics/Transportation¬†– goods supply chain tracking, fair cooperation data, ownership, smart contracts with payments, transfers,
  • Real Estate¬†– decentralized MLS, lending, smart contracts, token ownership
  • Retail/e-Commerce¬†– ownership, sourcing, safety recalls, tracking

User cases are not without limitations. For example, smart contracts are set up to execute automatically until all the funding payments and activities are closed out. In some cases, such as complex real estate deals and other similar agreements, residual assets may be leftover from the smart contract. These cases require the lawyers to settle the final residual payments for the contract closeout.

Second, changing smart contract processes in use is close to impossible. Any smart contract error in the code will be time-consuming and expensive to rectify.

More Innovation Ahead

Many new international digital regulations are afoot. Most governmental organizations’ uptake will accelerate new B3 early opportunities‚ÄĒespecially the U.S. Federal Reserve digital currency as a global adoption game-changer. Up to 10 central banks this decade, should issue national digital currencies for new digital fiat.

“Moving from (blockchain) application islands to interoperability requires global standards and new regulations.” – MIT Sloan Management Review, 2021

Future blockchain innovation requires continued research and reshaping global blockchain use cases with new regulations and standards in critical areas. The international Financial Stability Board is formulating stablecoin-related standards and plans for final adoption in 2023.

The key blockchain areas to watch are cybersecurity AI-enabled algorithms and 5G-edge computing. With a growing global body of blockchain research for industries, it extends your investment lifecycle and value.

Lastly, PoA protocol, Algorand (ALGO) with decentralized apps (dApps), DiFi, and others continue to develop for future proof of useability.

Selected References

Financial Stability, Financial innovation, and structural change,” 2021. Accessed November 30, 2021.

Harvard Business Review, Innovation, “Blockchain Is Changing How Companies Can Engage with Customers,” Tapscott, Don, Vargas, Ricardo Viana, January 06, 2021. Accessed November 30, 2021.

Harvard Business Review, innovation, “How Blockchain Can Simplify Partnerships,” Lumineau, Fabrice, Wang, Wenqian, Schilke, Oliver, Huang, Laura, April 09, 2021. Accessed November 01, 2021.

JPMorgan Insights Research, Bitcoin, Blockchain and Digital Finance: Fintech
Goes Mainstream in the COVID-19 Era,”
 April 27, 2021. Accessed November 27, 2021.

Journal of Internal Medicine, Vol 23, No 11, “Blockchain Integration With Digital Technology and the Future of Health Care Ecosystems: Systematic Review,”¬†November 2021.

The Lowy Institute, “China’s digital currency takes shape,” Freidin, Evan, September 08, 2021. Accessed, November 02, 2021.

MIT Sloan Management Review, “Does Your C-Suite Have Enough Digital Smarts?,” Spring Issue, Weill, Peter, Woerner, Stephanie L., Shah, Aman M., March 03, 2021. Accessed November 15, 2021.

MIT Sloan Management Review, “What We’ve Learned So Far About Blockchain for Business,” February 03, 2021. Accessed, November 15, 2021., “Boston Fed’s first look at digital U.S. dollar nearly done, official says,” Marte, Jonnelle, September 29, 2021. Accessed, November 11, 2021., Journals: Security and Communications Networks,¬†Article ID¬†6126247,¬†“The Applications of Blockchain in Artificial Intelligence,”¬†Luo, Min, et al.,¬†¬†September 28, 2021.

Copyright @ 2021, STEVE HAWALD CEO CIO ADVISORY LLC. DISCLAIMER: This article is entirely my opinion without financial payments. The peer review was by Paolo Magrassi. The editor review was by Regina Lapierre.