Big tech’s role in blockchain adoption

At the recent London Blockchain Conference (May 30 – June 2, 2023), a panel of industry experts gathered to discuss big tech companies’ approach to blockchain. The discussion shed light on how big tech companies like Amazon approach their blockchain initiatives.

The panellists also discussed key features and use cases of blockchain technology, as well as the challenges and costs associated with integration.

The panel was moderated by Claire Celdran, Reporter for CoinGeek and consisted of:

AWS’ involvement in blockchain technology

The discussion kicked off with a focus on AWS’s current blockchain initiatives and projects. Alex Matsuo shed light on AWS’s active engagement in the blockchain space for the past six to seven years. Internally, AWS aims to onboard the next one to two billion users to the web3 space, with a clear roadmap of product and service offerings tailored to Amazon’s vast user base. Externally, their goal is to serve as a service provider to various Web3 players, both vertically and horizontally, to elevate the entire blockchain industry and ecosystem.

AWS engages with a wide range of blockchain players horizontally, seeking to create synergies and connections among protocols, wallets, NFTs, DeFi projects, exchanges, and market makers. Vertically, they collaborate with startups and traditional corporations looking to enter the blockchain space, facilitating connections and accelerating adoption within established industries.

The importance of web2 transitioning to web3

When asked about the importance of Web2 companies transitioning to Web3, Alex explained that it stems from recognising the benefits blockchain offers, such as decentralisation and a more balanced power dynamic. While the fear of being left behind plays a role, companies like Amazon are embracing the philosophy of a partially decentralised approach within the Web3 space.

Key features and use cases for blockchain

The panellists also discussed the key features and common use cases for blockchain technology in businesses. Marcin Dyba highlighted that blockchain is valuable for immutable data storage, tokenization, and smart contracts, which can enhance business operations and automate processes. Tokenisation currently stands out as the most popular application of blockchain, with emerging use cases for smart contracts, especially when integrated with IoT devices to achieve automation and efficiency.

Henslee emphasised the importance of interoperable data, as blockchain provides a reliable and transparent source of truth when sharing data across integration points. Alex Matsuo pointed out that blockchain use cases vary based on company maturity and geography.

For example, in regions with less developed payment infrastructure, blockchain can offer more efficient and cost-effective solutions for cross-border transactions. He stressed the importance of using blockchain to solve specific problems rather than adopting it for the sake of blockchain itself, involving all stakeholders in the solution.

Challenges and costs of blockchain integration

Moving on to the challenges and costs associated with blockchain integration, Joshua Henslee highlighted that many blockchain use cases lack a strong value proposition, making it difficult to convince companies to integrate the technology. The slow and bureaucratic nature of large companies also contributes to the delay in adoption. Alex Matsuo agreed, noting that motives and success rates vary among big corporations attempting blockchain integration. Despite the challenges, these attempts bring attention to the space and raise awareness.

When discussing big tech companies like Facebook’s Meta and Twitter’s blockchain projects, Alex and Joshua acknowledged that not all initiatives have been 100% successful. However, they credited these companies for trying to attract attention to the blockchain space. Alex also emphasised that even with the right mindset, large companies face challenges in implementing blockchain solutions due to convincing stakeholders and navigating bureaucracy.