Kontan: NEM Blockchain for Industry
Empowering through NEM Blockchain
One of the ambitions of Indonesian President Joko Widodo is to encourage a cashless society, one way to do it is to increase the rate of ecosystem technology like fintech. However, this nation is always lacking in adopting new technology, which adds efficiency to a process, in this case the blockchain technology.
From the Indonesian newspaper Kontan, translated by Muhammad Yafi
Blockchain is the basic technology of bitcoin and adopted by other cryptocurrencies such as the ethereum, litecoin, and hundreds of other cryptocurrency. As the pinnacle of digital assets, blockchain not only to create cryptocurrency, but able to make a digital contract, copyright, supply chain management system, Bank settlement and thousands of other possibilities for digital products.
Blockchain enables the data and information to be stored and transferred not in a server but in a decentralised peer-to-peer blockchain network. The data is safer, because a copy of the data can be seen transparently and validated by participants in the network anonymously. It would be impossible for hacker to manipulate data or information, because the data is synchronised and encrypted in all node within the blockchain network. All node also play a role to each other.
In general, according to Melanie Swan in blockchain (2015), blockchain is a great transparent and decentralized ledger. Records of transactions, in a form of a database distributed to all nodes in the network, verified by miners, supervised by all participants, and not owned and not controlled by anyone. blockchain is like a interactive giant spreadsheet that allows access to everyone and verifying digital transaction in it.
Blockchain is open source, it can be easily modified to various strategic needs. By developing blockchain system on its own, providers can sell it as a product services to the user. IBM and Microsoft are two of the many companies that offer blockchain as a service (blockchain-as-a-service / baas). In the world economic forum 2016, blockchain was nominated as one of the ten emerging technologies and has a great potential to change the way of human processes the data and information.
Malaysia is more ready
Many countries and companies have adopted blockchain. In addition to the United States and other European countries, Japan, Singapore and Malaysia are very serious in embracing blockchain. Japan adopts blockchain to increase the numbers of remittance.
Singapore is very friendly about financial industry, they allow the founding of the blockchain company. Indonesia seems really slow, especially anything related to money. Japan’s debt could be a lot larger than Indonesia’s, but in the matter of debt management, Japan is more advanced. Similar with Singapore, since the island country founded, they have established themselves as a world financial hub.
Recently NEM, a blockchain company based in Singapore in cooperation with Malaysia, is about to establish a blockchain Center area of 3.000 m² in Kuala Lumpur. NEM provides blockchain infrastructure that can be used for startups in the country. As a home to NEM blockchain innovation lab, the facility will be used as a Center of the incubator, accelerators and co-working space for startups in Southeast Asia.
Not only for startups, NEM blockchain innovation lab also intended to capture clients from the existing companies who want to use the NEM blockchain platform. This initiative is a results of cooperation between NEM Foundation and the Australian company, Blockchain Global.
NEM Foundation had a good reason to make a great influence in Malaysia because of its financial technology ecosystem and blockchain in Malaysia is mature enough, at least for the past one year. There are various seminars, discussions, and workshop on cryptocurrency and blockchain held in the country. In Malaysia, there is a Malaysia Industry-Government Group for High Technology (MIGHT), which plays a major role support and develop high-Tech programs. MIGHT partnered with bloktex, a blockchain event organiser in Malaysia in order to develop strategies about the blockchain adoption in industrial sector. MIGHT became a bridge for bloktex to provide security services for server computer in various companies.
Through the penetration of blockchain technology by NEM, the Malaysian government started politically to openly support the development of blockchain in their country in order to make use of it economically. Malaysia understands about the efficiency which emerge from the technology, for example to accelerate the money transfer or to create a special blockchain to protect the Copyright of music, so that the work of musicians can spread directly from the creator, which do not allow users to illegally using the intellectual property. Ideas like this is are possible, because the blockchain algorithm is based on cryptography, which eliminates double spending on digital files.
NEM blockchain is also used by a Japanese startup, the Tech Bureau carrying commercial blockchain named mijin and has been tested by Hitachi, infoteria, and Bank (Sumishin net Bank). In addition, there is Dragonfly fintech that focus on the clients from financial industry to ease settlement process and house clearing activities. Also provided an instant liquidity real time transaction settlement (rtts) platform as an alternative RTGS.
In the future, the competition of blockchain technology is estimated to be fierce, because every day the players keep increasing, offering diverse and promising solutions. One thing that is definitely hard for the world to resist is blockchain as an alternative, yet effective top notch technology. On the other hand political will of a country is required, to open the opportunity as wide as possible against the new ideas and place the regulation as a reference.