Perhaps you have heard the word blockchain or you must have also heard of cryptocurrencies or bitcoins however, according to experts on the subject, the meaning of the first term is not entirely clear in the heads of Uruguayans and even many companies are wrong when trying to implement the technology but the issue is increasingly present within the Uruguayan business community.
Ignacio Varese, the founder of BlockBear, a company dedicated to providing blockchain solutions, explained to Café y Negocios that this technology is a network with different nodes but without having a central body that functions as a regulator. "The main characteristic is that the information contained in this network cannot be modified or deleted" and only those who participate in it can see it. To simplify the concept, Varese said it is a "special database" because it presents conditions that were previously unthinkable in terms of security and resource savings.
One of the most successful cases is bitcoins, a digital currency that was born in January 2009 and is not regulated by any bank or financial authority. It is operated from person to person without any intermediary. This currency is based on the blockchain concept and all the information is in this "special database".
After bitcoins, which is the first blockchain platform, different business solutions began to be created. "Platforms were generated to develop business applications that are sustained on the blockchain. And that's when a new and very big world was born," Varese said. These software based on the blockchain are called "decentralized applications".
But how can this technology be applied at the business level? One of the markets where blockchain is most used in Uruguay is in product traceability. When it comes to making an export, it is necessary to go through different stages that usually take longer than expected due to bureaucratic issues. "So, if we make a digital platform in which each of these actors store information, we make the process much easier (...) these begin to make sense if they are supported in blockchain," he explained.
Varese is developing a platform for the fashion traceability market. The bet here is for a company that focuses on sustainability and wants to value that in the process the product complies at each stage with all the controls and permits due, but in a way that is not aggressive to the environment.
They are also working on the traceability of high-cost drugs so that everyone involved can ensure that there is no attempt at counterfeiting.
At a general level in Uruguay, Varese said that they are working mostly on the blockchain to guarantee the authenticity of the products and an added value when selling.
He added that in 2019 "many companies are already looking at how to apply this technology". Along these lines, he stated that companies started to realize the benefits that being able to have access to this new tool brings. "More efficiency, cost savings and greater security but it's also saying 'I'm getting on board with the technology that's coming'." The future for those who are developing in this area looks bright, according to Varese. "Projects with this technology are going to grow very strongly in the coming months," he predicted.
Because of its characteristics, those who adopt it will also obtain higher incomes, especially thanks to the savings capacity it generates. "There are many possibilities," he said.
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