In its latest report, “Technology Trend Outlook 2024,” McKinsey & Company XEM blockchain as one of the key technological advancements.
The report highlights the transformative potential of blockchain in the digital space and explores its Vai in Tokenize.
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Explore the potential of the intersection of AI and Blockchain
The consulting firm closely links the prominence of blockchain to the topic of cybersecurity. Practical applications of artificial intelligence (AI) and blockchain are some of the points in McKinsey's analysis.
While analyzed separately, several points in the report hint at the potential for intersections between AI and blockchain. For example, blockchain can enhance AI capabilities by providing secure, transparent data storage and facilitating complex transactions. This synergy is evident in applications ranging from AI-driven financial analytics to secure data Chia in healthcare.
Furthermore, the integration of blockchain with AI-generated technologies is driving innovation across industries. Companies like IBM are developing tools to mitigate AI risks, such as bias and privacy concerns, by leveraging blockchain's secure infrastructure. This partnership ensures that AI technologies can operate with greater transparency and accountability.
Nuro Serafim, Managing Partner at 3 Comma Capital, also supports the potential for the combination of AI and blockchain. He added that the synergy between these technologies will significantly impact the energy industry by optimizing the smart grid.
However, there is a clear temptation for entrepreneurs to force an unrealistic convergence of these two technologies in the pursuit of Capital that suits the needs of VC investors at the forefront of advances. . Therefore, investors, specifically professional investors, need to be equipped with the knowledge to filter and appraise all of these additional complexities.”
Serafim explained to BeInCrypto.
Tokenization's financial integration journey
Furthermore, the report highlights Tokenize as one of the applications of blockchain in practice. Tokenize, which involves creating digital representations of real-world assets ( RWAs ) on the blockchain, is moving from pilot projects to widespread deployment.
McKinsey's report looks at how several financial giants are making important developments in this area. For example, Citibank Token Services converts customer deposits into digital Token , enabling instant cross-border payments and liquidation management.
Additionally, Franklin Templeton leveraged public blockchains Stellar and Polygon to create its first tokenized US-registered mutual fund — Franklin OnChain US Government Money Fund (FOBXX). Similarly, the issuance of Société Générale's tokenized green bond on the Ethereum network marks an important milestone. These products have demonstrated the potential of blockchain to revolutionize traditional financial tools.
“Tokenize enhances transparency, composability, and programmability, allowing financial institutions to improve operational efficiency, increase market liquidation , and create new revenue opportunities. […] Growing user awareness and investor demand will further accelerate this trend,”
said Matt Higginson, a partner at McKinsey Values in Boston.
While blockchain's potential is huge, the report acknowledges the challenges associated with its adoption. These include integration with existing systems, regulatory uncertainty and the need for strong cybersecurity measures. However, McKinsey emphasizes that organizations can overcome these barriers with top-down leadership and strategic investments and fully leverage the benefits of blockchain.
Also Read: Blockchain can solve NYSE trading glitches
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