Intelligent CIO Africa Issue 08 | Page 24

COMMENT transactions and reduce costs in addition to minimising the risk of document fraud. Barclays sees the biggest beneficiaries here as the shipping industry and financial institutions. But its potential is moving well beyond the financial sector because the distributed cryptographic method it uses can be helpful for all sorts of transactions. Hyperledger, for example, has been helping South African diamond specialist, De Beers, use blockchain to differentiate legitimately sourced diamonds from those that have been sourced from war zones. Start-up Everledger has created a global digital registry of diamonds powered by blockchain in a bid to stamp out diamond theft and fraud. In the defence industry, Lockheed Martin maintains it is the first US defence contractor to utilise blockchain technology. It plans to integrate blockchain into its cybersecurity protection. Blockchain will enable more efficient and secure software development along with supply chain risk management. “These new cybersecurity approaches will enhance data integrity, speed problem discovery and mitigation, and reduce the volume of regression testing, which results in reduced schedule risk,” explains Ron Bessire, Lockheed Martin Aeronautics’ Engineering and Technology Vice President. “The faster our developers can discover issues, the faster we can deliver.” Blockchain is also proving itself in record management. The University of Melbourne, for example, is working with “A digital economy based on blockchain could hold African businesses to a new level of accountability.” 24 INTELLIGENTCIO start-up Learning Machine, affiliated to MIT’s Media Labs, to create a system that will make student records available on a secure system for employee verification. The beauty of the blockchain database is that it will be tamperproof. The Office of the National Coordinator for Health Information Technology (ONC) in the US is also looking at securing and recording medical records using blockchain. Blockchain’s weak links While the technology has great potential, it is not without its limitations. Deloitte recently pointed out that resolving challenges such as transaction speed, Mark McCallum, Country Manager for South Africa, verification processes, and Orange Business Services data limits will be crucial in making blockchain widely applicable. Blockchain and bitcoin also face a hurdle in funds to recipients. In another project, terms of widespread adoption by pre- blockchain platform BanQu is helping existing financial institutions. displaced Somalis in Kenya create financial identities for themselves, Deloitte also pointed out that while providing unbanked people with a solutions exist, including private or footprint in the global economy. permissioned blockchains and strong encryption, there are still cybersecurity Speaking at a recent conference concerns that need to be addressed organised by the MIT Media Lab and before the general public will entrust their MIT Review, Behlendorf drove home personal data to a blockchain solution. the point that blockchain is far more It represents a complete shift to a than finance, “This is an opportunity to decentralised network, which requires the reinvent how much of the world works”. buy-in of its users and operators. Given the developments underway he just might be right. While the technology offers tremendous savings in terms of transaction costs and “For a continent like Africa, where time, the high initial capital costs could security is a growing concern, blockchain be a deterrent to its growth. technology aims to combat fraud by building a traceable history of exchange. A force for good It has the potential to provide more access to essential services for people Blockchain may be pivotal to commerce, living in the most remote areas, and but it is already helping our world for reduce long-standing inefficiencies the better. The United Nations (UN) is and costs within the financial services piloting the technology as part of its sectors in several African economies. World Food Program (WFP), utilising From enabling micropayment systems to cryptographically unique coupons digital identity management, blockchain- at several shops in refugee camps in based solutions could drive a new era of Jordan to ensure the safe transfer of more inclusive growth,” says McCallum. n www.intelligentcio.com