- Andrey Koptelov, Innovation Analyst at Itransition
- 21.12.2022 01:00 pm #Blockchain
Introduced in 2008 as the technology basis for bitcoin, blockchain evolved as the key to building digital economies, enabling trustless data sharing. In the article, we look at examples of using blockchain to push digital transformation. We also discuss how tech initiatives have inspired global businesses to launch their own blockchain projects, often supported by blockchain consultants.
Alibaba uses blockchain to fight food fraud
Brand: Alibaba
Blockchain implementation area: supply chain management
As China’s leading online e-commerce company Alibaba takes the enormous issue of deadly fake food seriously. Blockchain has given the e-commerce giant new hope in the effort to track genuine food throughout the supply chain in real-time.
The vendors on the e-commerce giant’s marketplaces, Taobao and Tmall, verify items’ authenticity using blockchain. In the case of meat, for example, the blockchain may store a cow’s DNA data with a steak package, marking the item digitally to authenticate its quality throughout the whole product lifecycle. This may give consumers a chance to scan QR codes for product safety data like quality metrics and origin information.
Walmart uses blockchain for a smart package delivery tracking system
Brand: Walmart
Blockchain implementation area: IoT and shipping services
Another giant worried about food safety problems is Walmart. In December 2017 Walmart started a food safety partnership with Tsinghua University National Engineering Laboratory for E-Commerce Technologies, a reputable Chinese retailer JD.com and IBM. The alliance aimed to use blockchain applications in retail to help organizations trace food and its safety with support for both online and offline consumers.
Walmart was investing in Dapp development in a slightly new direction having applied to patent a ‘smart package’ featuring a device that could record information about the package contents, its environmental conditions, location, and other data to a blockchain. The smart package was also intended to be used with other high-tech devices like blockchain-based drones. Walmart aims to provide its customers with more control, transparency, and security during the whole shipping process.
Rakuten uses blockchain to introduce cryptocurrency for their points-based loyalty rewards system
Brand: Rakuten
Blockchain implementation area: e-payments
Rakuten, the leader of Japanese e-commerce, launched its own Blockchain Lab partially based on the IP received with the acquisition of Bitbet. The initiative had the ambition to streamline and transform its multinational global businesses using blockchain. Since Rakuten’s portfolio included various businesses, including Ichiba and Viber, banks, golf courses, e-books, and video streaming services, blockchain solutions were created for different implementation niches.
Rakuten, which had already awarded 2.5 trillion worth of points since 2003 through its loyalty program, has announced its own cryptocurrency project as a borderless payment method that could mitigate exchange rate fees. Rakuten has stated the intent to make Rakuten Coin available for use within all its businesses, including its global marketplace, on-demand video service, and mobile messaging service. The company aims to streamline transactions across various services in different parts of the world, and many multinational giants may follow the initiative.
Visa uses blockchain for a B2B payment service
Brand: Visa
Blockchain implementation area: payments
Visa was trying to disrupt the B2B blockchain-based payments niche by developing a platform for processing bank-to-bank transactions, making them more secure, and accelerating cross-border corporate payments processing. The company has begun to process bank-to-bank test transactions with Commerce Bank (US), Shinhan Bank (South Korea), Union Bank (Philippines), and United Overseas Bank (Singapore).
Visa uses architecture based on blockchain to facilitate transactions over its own network from the origin bank to the recipient. Besides offering the benefits of blockchain, Visa was implementing a system design that ensured the company’s data security standards were incorporated into every architecture layer.
Lenovo uses blockchain to verify the validity of physical documents
Brand: Lenovo
Blockchain implementation area: data security
Lenovo was applying blockchain tech to offline items to provide a reliable way to verify the validity of physical documents. Lenovo filed a patent for a blockchain-based solution for physical document validity verification by tagging them with digital signatures.
The system uses digital signatures encoded in physical documents processed by computers to verify a document’s authenticity. By encoding digital signatures into documents instead of a physically printed mark, users can be sure that the document was not changed after creation. Even if there are many fraudulent documents in existence, the system allows users to identify genuine ones.
Porsche uses blockchain to improve the safety and capabilities of driverless cars
Brand: Porsche
Blockchain implementation area: IoT
Porsche was the first automotive industry player to invest in blockchain app development together with the startup XAIN. Using the app, car owners can lock and unlock their vehicles and allow temporary access to other drivers. New business models can also be developed using encrypted data logging. Further improvements could involve autonomous driving capabilities thanks to the blockchain technology. Customer-centric benefits include more trust in cases when temporary access is given to third parties.
Porsche claimed that blockchain features could speed up car opening and locking sixfold. Such improvements were due to the car being on the blockchain, which made it possible to establish a direct connection without diversion through a server. Besides faster opening times, the data is cryptographically encrypted. This way users could be confident all activities visible on the app are documented in the blockchain preventing any modification.
Blockchain also helps assign temporary authorizations for car access securely. The technology helps ensure a protected connection to vehicle data and functionalities, securing communication between all participants. Third-party providers can be added with the help of smart contracts.
Porsche is working on other blockchain-based business models, including data logging, where the data that has to be processed is encrypted locally in a distributed blockchain. Data is controlled by users deciding what actions to take with it, with all actions saved in the blockchain. Autonomous driving can be improved by using local data to acquire regional learning effects securely shared with other cars.
What’s next?
Blockchain and all the opportunities it has to offer are here to stay. However, we should not overhype the technology but try to reap the most benefits for various industries. Blockchain creates new markets and financial instruments but also enhances the ones we adopted long ago. The way blockchain can be applied to business processes shows us that blockchain-driven digital transformation opens new horizons to a company of any size.
