By Jeppe Mølgaard. Graphics: Martin Danty.
One of the four largest consulting houses in the world KPMG has entered into a collaboration with the non-profit organisation Nordic Blockchain Association. The goal of the collaboration is that the two parties can draw on each other’s networks and experiences to promote the use of blockchain technology in Danish and international companies.
“We can see that the Nordic Blockchain Association has threads that go deep into the blockchain environment, and they have also been good at marketing the technology, which has created a lot of interest among companies. We want to be part of that network, so that it is not only ourselves who have to lift the effort, but that we do it together with someone who is really passionate about it,” says Nordic Head of NewTech at KPMG Denmark, Bent Dalager.
Specifically, the collaboration consists of two parts. Firstly, KPMG together with the Nordic Blockchain Association will hold exclusive events where selected companies are allowed to become wiser about blockchain options. Next, interested companies can have pilot projects made that prove how blockchain technology can streamline operations and create more transparency in their particular business.
“Pilot projects prove how blockchain can optimise a carefully selected process as a proof of concept. It should not be equated with an implementation project that takes longer and costs more money. Together with KPMG, we will keep the costs of the pilot projects down, because the purpose is to equip the companies to make the decision on whether it makes sense to invest in a real implementation project, ”says Head of Pilot Projects at the Nordic Blockchain Association, Nicklas Peyk Milgaard.
Today, it makes good sense for many companies to invest in integrating blockchain into their digital infrastructure, because the technology ensures a higher degree of compliance throughout the organisation, emphasises Nordic Head of NewTech, Bent Dalager:
“The trend we are seeing now, and which will only get stronger in the future, is that it is becoming increasingly important for companies in all sectors to be compliant. So what companies say is in line with what they’re actually doing. Blockchain ensures a high level of compliance, and this is one of the reasons why the technology will form the basis for a large part of the business that will take place in the future. ”
Blockchain is also called distributed ledger technology because the technology consists of a network of computers that record transactions and activity on a common database that cannot be manipulated – also called a ledger. When all activity is registered on a shared, unmanipulable database, then, for example, production companies can ensure that no link in their supply chain cheats on the scales. Likewise, finance companies can ensure that all employees draw on the same and most up-to-date information on, for example, loans.
Blockchain is changing the way companies store and exchange data from being centralised to being decentralised. It allows anyone to pull on the most up-to-date information from the same database. So if, for example, banks come together to provide a syndicated loan, then the various departments do not have to constantly exchange information about what the balance of the loan is, who owes what to whom and so on. Blockchain gives everyone access to the same ‘single source of truth,’ ”says Nordic Head of NewTech at KPMG, Bent Dalager.
Another aspect of blockchain technology that companies can get tested in a pilot project is the ability to use so-called smart contracts. Smart contracts are a piece of code that automatically transfers data and value if a number of predetermined criteria are met.
“The Internet created free knowledge sharing. On top of the Internet comes the blockchain, which enables and automates free value sharing. The transparency of technology eliminates the need to have an intermediary to validate transfers of value and data, and it will automate and streamline administration as well as a wide range of other processes tremendously. I do not think there is anyone who has fully understood the extent of the impact that blockchain will have for Danish companies, but we look forward to exploring it together with KPMG, ”says Head of Pilot Projects at the Nordic Blockchain Association, Nicklas Peyk Milgaard.
Last year, the Nordic Blockchain Association carried out a pilot project together with the National Association of Local Authorities and the Local Government IT community Kombit. Here, a case in Høje-Taastrup Municipality proved how to use blockchain technology to validate contracts with residences and residential institutions.
KPMG will hold its first conference in collaboration with the Nordic Blockchain Association on November 3rd 2021. Sign up here.