How blockchain can transform business and corporate models

With blockchain now already creating micro-economies, it has the potential to steer the whole economy in a new direction.

At EY VODW, the innovation arm of EY, Simon Anthonis and Lawrence Landeloos are firmly convinced that the future of the technology goes far beyond gimmicks and marketing stunts. Simon Anthonis has been enthusiastic about blockchain technology for some time. “At first it was mainly a personal fascination, but over the last year, EY VODW has become increasingly involved in NFT-related projects. Whether car manufacturers or breweries, more and more companies and more and more sectors are jumping onto the bandwagon. Our role is to help develop these concepts, to see how we can bring them to market, how we can provide traction, how we can create value.”

But Lawrence Landeloos is not only involved in blockchain technology at EY VODW. In 2021 he also founded his own company, OneGrid, with a view to making NFTs more accessible. “I’m convinced that blockchain can transform business models and even entire organizational models.”

“The technology has vast potential, but it’s currently also enormously complex. This is why OneGrid is working on a platform that will allow people to develop and launch their own NFT projects. Just as no-code solutions like WordPress and Wix have democratized website creation, we want to radically lower the barrier to experimenting with blockchain technology. The more we experiment, the more valuable concepts will emerge.”

Believe the hype

Looking at web3, blockchain, NFTs, etc., there seem to be two camps. Does EY VODW belong to the believers’ camp? “My answer is nuanced”, said Anthonis, somewhat surprisingly. “Do blockchain, Web3 and NFTs have lots of potential? Yes. Are they hype? Yes again.”

“Web3 is not a revolution. Basically speaking, it’s just the logical evolution of the Internet.Web1 was ‘read only’, one-way traffic. Web2 made the Internet a two-way street, but with centralized data. Web3 is the era of decentralized Internet, giving users back their own data thanks to smart contracts. Ownership by design. I’ve no doubt at all that Web3 will eventually break through, but it’s currently a wait-and-see game as to the forms it will ultimately take. NFTs? Metaverse?”

“In 1999, one of my great musical idols, David Bowie, gave an interview to the BBC. He talked about the unimaginable potential of the Internet, while the interviewer smugly remarked that the Internet was ‘nothing but a tool’. Bowie countered by calling it an ‘alien life form’. Less than a year after that interview, the dot-com bubble burst. The non-believers laughed up their sleeves. But let’s not forget that the Internet survived the bursting of the dot-com bubble. Companies like Amazon emerged even in the midst of the dotcom bubble. The same thing is set to happen now. Some technologies and tokens will prove to be hype, while others will break through and mature.”

Boosting scientific research

Anthonis also sees blockchain applications gradually emerging in other sectors. “For some, NFTs are a laughing matter. Like people who pay a lot of money for collectibles such as the ‘Bored Ape‘, in the hope of selling them at a profit one day. But given that such digital collectibles tend to fluctuate in value, I can understand the skeptical reactions. And let’s not forget that we are still at a very early stage. We haven’t even got an early majority yet.”

“Indeed, in many cases, NFTs are still nothing more than marketing stunts, just like digital ‘collectibles’ or collectors’ items for a small community of die-hard fans. But companies are quietly looking beyond NFTs, exploring the technology behind them. That’s where things get really interesting. For example, we are speaking to large companies who see the potential of blockchain technology with regard to sustainability. They can use the technology to boost the traceability of their efforts, especially as proof for their stakeholders.”

“Maturity in thinking is evolving fast. I’m already seeing glimpses of what may be technologically possible in the future. A concrete example? One good example is Molecule, a platform that allows researchers in the biomedical sector to fractionalize the intellectual property involved in research on an active ingredient, thereby making it easier to attract multiple investors. It’s an extremely innovative way to accelerate scientific research into new medical treatments and avoid promising active ingredients not being further researched and developed into drugs.”

“For investors/pharma companies, the potential is often too small versus the investment in intellectual property needed to pursue further research on an active ingredient. The financial risk is very high. By breaking up the intellectual property into small pieces and distributing it to many different investors, Molecule makes that investment feasible. Ultimately, such applications can lead to win-win situations. For researchers, the chances of gaining funding increase, meaning that ultimately the chance of active ingredients being further developed into drugs also increases. Are the initiators perhaps too early and too innovative? Time will tell. But there are all kinds of things going on, in many different sectors.”

Talent in open source

So what are the obstacles hindering the breakthrough of Web3 and blockchain technology? “The biggest obstacle to mass adoption is the lack of a legal framework”, said Landeloos. “That might sound a bit contradictory, as the underlying idea is that the users themselves should control the Internet of the future, not governments.

But the current lack of clarity is driving the speculation we are seeing today, with all its consequences. Governments have an important role to play in the further evolution of web3 through developing a clear idea, vision and framework in which to work. We’re currently in the Wild West and that’s not good for anyone.”

“As the technology matures, I think the impact will go beyond products and applications, right to the heart of organizations, changing not just their business models but also their whole way of working. Take for example such issues as attracting talent, distributing roles or tasks, or (gradually) delegating decision-making power. Companies are currently closed eco-systems. Ideas, products, knowledge and manpower are to a large extent shielded.”

“Now just imagine an organization opening up even more, letting internal and external talent collaborate in a project-based manner on developing your product in exchange for, say, exclusive membership (as an NFT) and financial compensation. Members can submit proposals for the community to vote on. Your fans and customers become active collaborators, allowing you to integrate market validation by design into your product development process. Although this way of working is still very experimental and challenging, it opens up a whole range of new opportunities.”