Maciej Krasowski, one of the founders of BinarApps, a Polish company creating digital products for companies, an enthusiast of blockchain technology and open banking solutions, talks about the use of blockchain in Polish companies and the prospects for the development of this technology in Poland.
1 Although the origins of blockchain technology date back 20 years, it is difficult to call it a popular solution in the SME sector. How do companies in this sector use blockchain in their operations?
Indeed, blockchain can hardly be said to have mastered this area, which may be due to both insufficient education on the subject, fear of the, after all, rather controversial technology, or lack of funding. On the other hand, we have small and medium-sized companies run by innovators, which often show much more interesting solutions using this technology than many a giant in the market boasting a new blockchain-based product or an investment in NFT. There are many fintech startups that are exploring the possibilities of blockchain and offering alternatives to traditional banking, deferred payments and similar services. Businesses from other industries are also buying into the trend, creating analytics, automation, investment and data storage tools. Alongside this, SME companies are also using blockchain for their own needs and to streamline internal processes. The scale, however, is not yet very large.
2 What problems does blockchain help to solve in SMEs? What areas of business does it support?
Small and medium-sized enterprises often face financial problems, more specifically high operating costs or overwhelming bureaucracy. Blockchain could be the answer here. Blockchain, for example, allows the elimination of intermediaries – it is a distributed, decentralised technology that ensures transparency and immutability of data. Using blockchain-based smart contracts (protocols or computer applications to automatically handle digital contracts, their verification, etc.), SMEs can, without the need to involve a third party, carry out various processes automatically once agreed conditions are met, such as the conclusion of contracts, and therefore minimise expenses as a result. With the help of blockchain, SME companies can effectively secure and store documents, also at a lower cost than with standard solutions. Cryptocurrency transactions are also not insignificant, benefiting both in terms of payment processing fees, but also in terms of speed or availability. This is another area where savings can be made.
3 In which industries is blockchain technology most popular and why?
The biggest use of blockchain can definitely be seen in the financial industry, primarily among fintechs. After the PSD2 directive came into force, the technology is even more readily chosen by the fact that a space for third-party financial service providers has emerged. Blockchain is a great tool for building open banking products, guaranteeing instant financial transactions, including international transfers, with significantly lower fees. Cryptocurrencies play an important role here, although there are also solutions that trade in fiat currencies. However, blockchain offers many more opportunities, which can also be seen in logistics and supply chain, where it allows every stage of the transport of goods to be effectively monitored, even in real time, or information to be securely stored. There are many more such industries – in real estate or healthcare, we will also find interesting applications of blockchain. However, without question, it is finance that reigns supreme when it comes to adapting blockchain technology.
4 What do you think about the pace of blockchain implementation in companies in Poland compared to Europe?
We have quite a few interesting startups and blockchain companies in Poland, and we also see attempts to adapt the technology in larger institutions. For example, banks are working on blockchain projects, replacing traditional documents with digital versions, as well as on the implementation of smart contracts. Still, blockchain has a number of obstacles to overcome in our country, mainly due to legal issues. Doubts about the technology and its regulation have meant that there has not been much progress over the years. There is also currently a lack of good encouragement for blockchain companies in Poland. We stand apart from countries in Europe, such as the Baltic States or Switzerland, which are more active in enabling the development of this technology in their regions. The pace of blockchain implementation in companies in Poland is therefore slower, despite the fact that we have really great IT specialists.
5 What area of blockchain use in business is the most promising?
In any business, time is of the essence, so if you can speed up or automate something, it is ultimately a huge gain. That’s why I think business should see this huge potential in smart contracts. They are an effective automation tool, they can be used to digitally sign documents and minimise paperwork, they speed up contract review processes, and on top of that they are transparent and properly secured. While they are not equivalent to a traditional contract, they can certainly replace at least some part of it and significantly streamline the entire process.
Maciej Krasowski, one of the founders of BinarApps, a Polish company creating digital products for companies, enthusiast of blockchain technology and open banking solutions.
