Farid Shidfar, who holds a Bachelor of Science in Electrical Computer Engineering, embarked on his professional journey with Accenture more than 32 years ago. Currently, he serves as the Chief Innovation Officer, where he is the driving force behind KEO's blockchain strategy and implementation. His forward-thinking approach not only enables near-instantaneous B2B digital payments between buyers and suppliers for recurring inventory but also allows financial institutions to finance transactions on behalf of buyers, helping them generate interest yields.
Farid Shidfar’s deep expertise and forward-thinking approach have been instrumental in developing KEO's B2B digital payments through blockchain technology. His work continues to bridge the gap between buyers, suppliers, and financial institutions, driving efficiency and growth in the industry.
Now, let’s turn to the Q&A to gain even deeper insights into the blockchain and the future of digital finance.
How would you describe the blockchain concept to someone who has never heard of it before?
Imagine a digital notebook where you can record transactions or information in a way that everyone can see, but no one can change. This notebook is shared across many computers, creating a network of copies. Each page of the notebook is called a 'block,' and when one page fills up, a new page is created, linking it to the previous one, forming a 'chain' of pages—hence the name 'blockchain.'
What makes blockchain special is that it's secure, transparent, and decentralized. This means that no single person or organization controls it. Once a transaction is recorded, it’s permanent and can’t be altered without everyone in the network agreeing to the change. This builds trust among users because they can independently verify transactions without needing a middleman, like a bank.
People use blockchain for various applications, such as supply chain tracking, managing contracts etc. Overall, it's a powerful tool that enhances transparency, security, and efficiency in how we handle information and transactions.
What are the benefits of blockchain technology, and what role will it play in the financial industry?
One of the key advantages of blockchain technology is that it provides a trusted and immutable record of transactions. Once recorded, a transaction cannot be disputed, as the information is securely distributed across multiple ledgers. This ensures that transactions are authenticated and verifiable, preventing any party from altering completed transactions.
Additionally, blockchain enhances efficiency by eliminating intermediaries, allowing transactions to occur directly between two parties without any middleman involvement. This direct approach significantly speeds up payment processing. Unlike traditional methods such as ACH, which can take days for settlement, or wires that may incur high fees for same-day transfers, blockchain enables near-instantaneous transactions with minimal transaction costs. This reduction in fees helps lower the overall cost, risk, and complexity associated with both domestic and international payments.
Furthermore, the transparency of blockchain fosters trust among the parties involved, as each participant can access the recorded transactions for auditing purposes. The public ledger allows anyone to verify the occurrence of transactions, promoting greater transparency and accelerating decision-making.
What specific aspects of blockchain implementation should be considered to ensure the security of financial and personal data?
When you initiate a transaction that gets recorded on the blockchain, you retain control over what specific information is registered. This involves making decisions about what data should be public and what should remain private. As the blockchain system is developed, we have the ability to choose which details are included in the records.
In the case of KEO, we prioritize the privacy of both buyers and suppliers by never exposing their personal information. As you design a blockchain solution, these are crucial considerations. They play a vital role in ensuring the security and privacy of financial and personal data.
What is KEO's long-term vision for blockchain implementation?
Our long-term vision is to maintain our leadership in B2B digital payments and financing solutions while fostering ongoing innovation in this space. Looking ahead, we aim to enable lenders to finance cross-border transactions between buyers and suppliers, enhancing our network effect. Furthermore, we intend to introduce a variety of payment options and configurations to meet the diverse needs of our financial institution partners.
What risks and challenges do you anticipate in implementing blockchain at KEO?
The main challenge is encouraging adoption. It is crucial to educate the buyers and suppliers who will be using the system, ensuring they are comfortable with transferring funds between wallets and off-ramping stablecoins into their local currency to support their daily business cash flow. Having said that, we have built capabilities which fully automate invoice approvals and off-ramping.
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