Graduated from Montpellier Business School and Paris 1-Sorbonne, with experience in the banking and insurance world, Laurent Pignot maintains such a passion for cryptocurrencies that one day he aims to launch a vehicle dedicated to the disclosure of these alternative assets. What attracts this sports and gastronomy enthusiast? As a good representative of his generation, the decentralized and disintermediated dimension of these currencies. What drives him? Adrenaline is linked to the investment game.
The CEO of Alphabet, the parent company of Google and Youtube, said he is definitely looking at blockchain, calling it an interesting and powerful technology with broad applications. After many companies including Microsoft, Meta, Twitter, Square, Baidu, Tencent among others, are launching into the Web3 ecosystem, Alphabet seems to want to join the dance. If we think directly of the technology gloves when it comes to the integration of new innovations, concerning the blockchain, it proliferates in all sectors of activity. Overview of blocked companies.
Alphabet, the technological giant opens the doors to the blockchain
As an investor you have surely heard or read that the company’s earnings far exceeded analysts’ expectations, demonstrating the resilience of its business in the face of macroeconomic upheavals while the pandemic is still present. With revenue of $ 75.33 billion in the fourth quarter, a 32% increase over the same period last year, net income jumped to $ 20.6 billion, or $ 30.69 per share from to analysts’ estimates of $ 27.35 per share.
In this collective joy, Sundar Pichai, CEO of the American giant, said he was looking to integrate blockchain solutions into its successful services, including Youtube and Google Maps. Answering analysts’ question on how the company is approaching Web3, the head of Alphabet said blockchain could be implemented in various businesses to boost levels of processing. For example, Alphabet’s cloud team, which competes with Amazon Web Services and Microsoft Azure, seeks to “support customer needs through platforms based on blockchain technology.”
“Whenever there is innovation, I find it exciting and I think it is something we want to support in the best possible way”, Pichai said. “The Web has always evolved and will continue to evolve, and like Google we have benefited immensely from open source technologies, so we plan to contribute to that.”
If Alphabet is one of the first to deal with the unique features offered by the blockchain, a good number of companies in various sectors are already well advanced in the matter.
Blockchain is proliferating in all sectors
Technology, telecommunications, agri-food, financial services… Numerous sectors are represented. You must surely ask yourself the following question: “But what kind of blockchain do they use?”. Yes, because there is no single blockchain that everyone uses. Through the magic of programming, different blockchains with distinct characteristics can be created. Let’s take a closer look at these types of blockchains. Here we will limit ourselves to the three solutions that are the most used.
Fabric, an open source solution from the Linux Foundation, offers a scalable and secure platform that supports private transactions and confidential contracts. Put simply, it is a modular blockchain that allows you to adapt the solutions developed by Fabric to any sector. A pro-business solution that uses plug-and-play components to address a wide range of use cases.
Unlike the Bitcoin blockchain, which is inherently open to any user and unconditional, Fabric’s solution has advanced privacy controls so that only the data that companies wish to disclose is shared among (authorized) network participants. A much more manageable and confidential solution than Bitcoin that has won the hearts of a large number of companies: Microsoft, Alphabet, Oracle, Walmart, Samsung, Coca Cola….
Transaction process with Fabric
The second blockchain in terms of market capitalization behind Bitcoin is also the second most used solution by companies. Ethereum is a decentralized and open source platform that allows you to create and execute smart contracts (to better understand these “smart contracts”, I wrote an article that magnifies this technology: Episode 7: Web 3.0, is the smart contract a reality or a digital utopia?)
Ethereum’s infrastructure allows anyone and without conditions, with the exception of an internet connection, to create decentralized applications (Dapps). Thanks to Ethereum’s global decentralized network which helps in the development and execution of transactions on the blockchain, Dapps can operate continuously without the possibility of censorship, fraud or third party intervention in transactions. Ethereum has also been able to attract large companies: PayPal, Nvidia, Bank of America, Amazon …
Quorum is a private blockchain created by Ethereum. In fact, it retains most of its functionalities, in particular its open source aspect that allows any developer to contribute to the development of the blockchain or even to have access to the famous smart contracts. With Quorum, on the other hand, features have been added such as the ability to create private and secure networks, thus allowing greater data confidentiality (unlike Ethereum where everything is visible) and “controlled” access by network participants. Essential “control” capabilities for most businesses. The quorum was adopted by LVMH, SAP, Accenture and JP Morgan.
In summary, we understand that many business giants of this world are exploring blockchain technology. This allows in particular to store, date and time stamps, record and automate transactions, all in a secure way (via the network) thus allowing to do without, to a certain extent, human manipulation (trusted third parties).
We can easily imagine that companies tend to turn to private blockchain solutions because they are more easily controllable. If we put ourselves in their shoes, we understand that having the ability to control new entrants to the network but also to be able to manage the rates applied, authorize certain features to identified people, block or force transactions, among other things, is much more convenient for a company, unlike the Bitcoin network which cannot be controlled by a single entity … Nothing, however, prevents a company from using different blockchains according to its needs. This also applies to a good number of them. If we take the following graph:
We note that Microsoft, for example, leverages Fabric, Ethereum, Quorum and Bitcoin solutions for their business.
If Alphabet is studying blockchain solutions closely, it is a safe bet that the overseas company will turn to private blockchains for most of its activities to optimize its services thanks to the aforementioned features. Count on me to give you a focus on the “blockchain” solutions of the stock market giants, even if a large number of them are still in development.
Stages of development of blockchain solutions