BCG Report offers Reality Check & # 39; for Blockchain in commodity trading


The largest US consulting firm Boston Consulting Group (BCG) has published an in-depth report on August 16, which defines a "reality check" for the use of blockchain in the commodity trading sector.

For commodity trading, BCG argues that there is a strong argument for the use of blockchain, while "major drawbacks on several fronts" are taken into account. The report addresses both the "frame", but also many negative "negative perceptions" that distort people's vision of technology. 19659002] According to BCG, blockchain at first glance appears to be "a natural choice for the raw materials business".

Its power to record complex transactions and track goods in an unchanging and transparent manner could significantly reduce the risks of physical delivery and improve trust, standardization and efficiency – particularly for complex and multi-party transactions, notes the BCG report.

Blockchain could also benefit regulatory oversight by eliminating the need for r submitted compliance reports manually and allowed regulators to use "the most accurate, timely and granular information in the register [in order] to make … more interventions. effective. "

However, BCG notes that while greater transparency "leads to fairer prices … they could also be" bad news ", for some, particularly those traders whose profits" are based on inefficient prices to make money ".

BCG also points to the real-world barriers that could be used for mass adoption, as the co-author of the Antti Belt report told Reuters:

" People have spent millions, sometimes over $ 100 millions, on the IT system [an] want to do it again? "

BCG then faces several misconceptions that people transpire from the cryptocurrency space to the underlying technology itself: these include the power-hungry nature of technology, which is mainly known for public blockchain based on calculation-intensive consent algorithms such as work proof (PoW) to obtain security.

Authorized Blockchains – those that would be us for the commodity trade – on the contrary "it entails greater trust among the participants", so that the verification of the transactions is faster, cheaper and less power-hungry.

BCG also issues perceptions of "complexity deficiencies" related to blockchain applications, arguing instead:

"Technology allows multiple registers – for assets, cash positions and securities – to interface one with the This can result in a degree of data transparency and enrichment through value chains that would otherwise be impossible to achieve. "

Whether the blockchain is adopted on a scale, BCG concludes that the disruptive technology could still model the future of the sector of "act [ing] as a Trojan horse" which would stimulate discussions on improving transparency and standardizing commercial terms and mechanisms.

A recent report published by the "Big Four" audit and consulting firm Deloitte has made a similar assessment of the potential of the impact blockchain, this time for the retail and packaged goods industry (CPG).

While emphasizing the fact that individual actors should assess whether their strategic objectives rightfully guarantee blockchain investment, Deloitte has proposed that those who do not consider it at least are likely to lag behind. "

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