Atix Labs betting on blockchain applications

Blockchain technology will become prevalent in industrial, business and government applications in Latin America over the next three to five years, an executive said.

Although the technology emerged 14 years ago, it is still mostly used for cryptocurrencies in the region.

“I think that those of us in the ecosystem struggled to bring blockchain closer to industries,” Ailín González, CEO of Globant unit Atix Labs, told BNamericas.

And at a panel during the Innovation Forum hosted by the American chamber of commerce (Amcham), González said the focus should be on solutions and improvement opportunities when approaching potential blockchain clients, rather than naming the technology directly.

Regional industry leaders have not yet grasped the opportunities of blockchain, Gónzalez said.

“We are achieving [the use of blockchain in other applications] in other parts of the world, perhaps that are more open to making changes and transformations,” she said. “Transformation has a cost, but I think it’s worth it and I think it won’t take long to reach the region,” she added.

But as Latin America is “a pioneer in the adoption of cryptocurrencies,” many players already understand the subject.

Atix Labs is developing some blockchain projects, although mostly pilots.

“We did a very interesting digital identity pilot in [Buenos Aires neighborhood] Villa 31 together with IDB Lab and NGO Bitcoin Argentina, where we were able to set up a pilot and see some of the benefits it brings. But we need much more support, so that it scales and can be replicated in other neighborhoods,” she said.

This pilot involved blockchain use in developing a digital identity and enhance options for informal workers.

Gónzalez said while cost is a barrier, distrust generates even more problems, including legal ones. “Blockchain attacks social, economic and legal aspects. And sometimes legal problems are the most complicated,” she said.

Atix Labs also ran pilots in the real estate sector, with tokens that represented physical assets. Additionally, it is working on non-fungible tokens for the gaming and entertainment industries and on digital contracts.

“It will be interesting to understand how this gets into much larger companies and much deeper processes. We will be working on that in the coming years,” Gónzalez said.