Philippine Startups Increasingly Implementing Blockchain, Study Finds
Startups in the Philippines are using blockchain technology to improve their business models, a new study has shown.
The Philippines is witnessing a trend for more startups utilizing blockchain technology at full capacity to improve a broader range of systems, according to a study released by digital marketing company Cyberius.
In a report titled Blockchain Implementation In Asia, Cyberius CEO Pawel Tomczyk noted that the technology has tremendous potentials in emerging markets like the Philippines, where institutions want to gain experience in using distributed ledger technology in both the private and public sectors.
The Philippine energy sector is embracing blockchain, and the technology could be of great benefit for a country where an estimated 17% of the population has limited or no access to electricity, Tomczyk said.
The study cited Chinese startup Energo Labs, which has committed to building a microgrid platform in the Philippines to allow local providers to share and sell excess power to one another on a peer-to-peer basis, with all transactions registered on decentralized ledgers.
“Most power plant generation sites in the Philippines are located some distance away from load centers, exploiting long-distance transmission lines that can ‘often be damaged and are risky and costly to operate.’ Energo Labs’s solution according to advocates would be to decentralize energy generation and allow consumers to share electricity more efficiently,” the report said.
Interestingly, the Cagayan Economic Zone Authority (CEZA), the state-run corporation in charge of the Cagayan Economic Zone, announced it had granted licenses to 10 blockchain and cryptocurrency companies to operate within the Freeport. In addition, one of the biggest banks in the Philippines, UnionBank, is cooperating with US-based blockchain software technology firm ConsenSys, which is helping homegrown financial ventures to integrate blockchain-based platforms.
“In an intensely remittance-focused country like the Philippines, any technology that could provide transparency, security, robustness, and efficiency in processing transactions can be pivotal,” Cyberius noted in its report.
ConsenSys and UnionBank have said that blockchain could radically improve the financial infrastructure and ecosystem in the Philippines, helping the country deal with the problem of financial exclusion.