KBA has become a basic companion of R3, the academy has already introduced a developer certification program called Corda blockchain.
FREMONT, CA: A government initiative under the Indian Institute of Information Technology and Management, Kerala Blockchain Academy (KBA), is now an essential companion of R3. It was announced in the month of August that R3, a New York-based enterprise blockchain platform and technology firm enabling blockchain solutions in the financial sector, had selected KBA as the general partner.
Kerala Blockchain Academy has become the first government institution in India to design a developer certification program on Corda blockchain. This program is meant for banking and technology professionals, and also provides in-person training on technologies such as Hyperledger and Ethereum (ETH). According to the reports; many banks in Kerala have already started executing Corda blockchain-based solutions for their core banking systems.
The ambition of the Blockchain Research Group of KBA is to make an academic platform to strengthen the contributions from academia, researchers, industry experts, and Blockchain enthusiasts.
The vibrant ecosystem of KBA was started in 2017. It is providing Certification Programs, R&D activities, and Consultancy, and has attracted international attention. KBA is an Associate Member and Official Training Partner of Linux Foundation Hyperledger Project.
The federal government of the Indian state of Maharashtra is preparing a regulatory sandbox for testing blockchain options throughout numerous functions. It shows that India has been open in the direction of blockchain.
More than three hundred organizations which are working to develop distributed systems for use in fields such as insurance and financial services are led by R3. Many technologists are engaged as part of the R3 community to solve a massive amount of problems across various industries.
Lack of interoperability standards will prevent pervasive blockchain deployment across financial services ecosystems for at least three years, according to Gartner, Inc.
“Blockchain standards for financial services companies are currently fragmented and immature,” said Fabio Chesini, senior research director at Gartner. “We are three to five years until standards mature and settle.”
During Gartner IT Symposium/Xpo, which is taking place in Cape Town through Wednesday, Gartner analysts have been discussing how business and IT leaders can create value from blockchain.
Standards are critical for financial services entities because they are constantly moving assets between clients, partners and other institutions. Today, bank CIOs can choose from numerous blockchains, available from either enterprise-grade approaches such as Corda, Hyperledger, and Digital Asset, or the many public blockchain standards like Bitcoin, Ethereum, Cardano, EOS, and Tezos. They are all trying to become the de facto state machine for value exchange and digital asset representation, smart contracts and decentralized applications. This indicates the fragmentation of the various standards.
“Bank CIOs must be mindful of this nascent and fragmented state of blockchain standards,” said Mr. Chesini. “It is unlikely there will be a single de facto standard like in the Open Systems Interconnection (OSI) model, at all levels. Given how new and fragmented the state of blockchain standards is, we expect no more than four standards to lead the market in the next three to five years.”
In addition to standards, Mr. Chesini warned financial services CIOs of three additional impediments when deploying blockchain projects: governance, integration and interoperability.
Blockchain governance is important because it regulates activities occurring across the ecosystem and provides legal assurances that their arbitrary decisions will not be made as an abuse of power against other participants.
“Governance specifies how value is exchanged, but also how those data exchanges are recognised and recorded, as well as who has access to them and who can exchange value with whom,” said Mr. Chesini.
“Governance and management of private and permissioned blockchains in any form, including consortia, will remain centralised and hierarchical during the next three to five years, making blockchain governance in financial services a key impediment for the same period,” said Mr. Chesini.
To achieve the true potential of blockchain, implementations must be seamlessly integrated with already installed software solutions. However, major software and SaaS providers aren’t offering blockchain solutions as add-on features to their enterprise solutions. As a result, financial services organisations are paying a high cost for continuously maintaining and “reintegrating” blockchain implementations into their new and existing enterprise software solutions.
In the next two to three years, Gartner analysts expect all major ERP and CRM players to offer blockchain capabilities as an add-on feature for their software and SaaS products. Software suppliers, meanwhile, will integrate and upgrade their chosen blockchain versions and ensure compatibility with their own new software releases.
“These efforts will dramatically reduce the cost of deploying blockchain projects across the financial services organisations and their supply chains,” said Mr. Chesini. “In the meantime, the full-lifetime costs of integrating a blockchain solution in an organisation will be millions of dollars in consulting fees, reengineering, development and upgrades. These high costs drastically slow the widespread integration of blockchain initiatives.”
Bitcoin, R3, Ethereum, Hyperledger and others often use differing implementations, data formats, data interchange and directories making interoperability among different blockchains difficult across organisations.
“As financial services companies constantly move financial instruments and assets to other financial services companies and partners, cross-industry interoperability standards are, and will be, critical,” said Mr. Chesini. “Today, they are looking to replace current banking vehicles for payments like Western Union, or international money transfers like SWIFT, with blockchain-based platforms.”
Fixing these types of data exchange standards will enable numerous blockchains to coexist and to share their ledgers, as necessary. However, as blockchains are a moving target and keep evolving, interoperability solutions are still three to five years away.
About Gartner IT Symposium/Xpo
Gartner IT Symposium/Xpo is the world’s most important gathering of CIOs and senior IT executives, uniting a global community of CIOs with the tools and strategies to help them lead the next generation of IT and achieve business outcomes. More than 000 CIOs, senior business and IT executives worldwide will gather for the insights they need to ensure that their IT initiatives are key contributors to, and drivers of, their organisation’s success.
Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organisations of tomorrow.
Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We’re trusted as an objective resource and critical partner by more than 15,000 organisations in more than 100 countries — across all major functions, in every industry and enterprise size.
To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.
Sberbank, known as the largest banking institution in Russia, recently used blockchaintechnology to buy around $15 million USD worth of debt in accounts receivable from Trafigura, a commodity trader based in Singapore.
This transaction was made using the technology of Hyperledger Fabric platform. The announcement was made this week by the bank and a spokesperson confirmed that this tech provides several advantages for companies that want to trade internationally.
With the private collections feature of the technology, the company was able to keep a part of the data confidential between some of the participants. The system use smart contracts written with a Scala programming language and the Aurelia framework. SberCloud, the cloud solution of the bank, was also used at the time.
According to Alexander Vedyakhin, the deputy chairman of the Russian bank, the blockchain technology was very helpful in making the document flow considerably more efficient than it was before. Something that could take up to a day to do before is now done in an hour.
He also confirmed that the pilot project was very useful because all the steps were fully recorded, so the process could be followed and reviewed all along the way.
This is yet another example of how blockchainhas been useful for the financial market. The spokesperson of the bank confirmed that this technology represents an ongoing evolution in the market and that more advanced solutions are set to be used soon.
A Blockchain is a distributed digital ledger. It records transactions in a series of blocks. It exists in multiple copies, spread over multiple computers, which are called anodes. The ledger is secure because every new block of transactions is linked again to previous blocks in such a way that tampering with it is practically impossible. As it is decentralized, it does not depend on any single entity (Eg:Bank) for safekeeping. The nodes connected to the Blockchain network get updated versions of the ledger as new transactions are carried out. According to Netscribes, the global Blockchain in supply chain market is expected to have a significant compounded annual growth rate of 87.0%, and reach a market size of USD 3,314.6 Mn by 2023. North America is expected to dominate the Blockchain in Supply Chain Market during the forecast period.
An increasing need for supply chain transparency and increasing demand for enhanced security of supply chain transactions are expected to drive the market during the forecast period. Supply chains across industries and countries will be reimagined, improved, and disrupted by Blockchain technology. Now, there are safer and more efficient ways to connect with business partners and also to track and exchange any type of asset. The ability to use Blockchain technology to create the next generation of digital supply chain networks and platforms will be central to the success of business.
Based on type of industry, the market is segmented into private, public and consortiums; based on the application of the industry, the market is categorized into contract management, payment system, procurement, provenance, ownership transfer, asset tracking and inventory control. Moreover based on the protocols of the industry it is divided into bitcoin, ethereum, ripple consensus network, hyperledger, R3’s corda, symbiont, distributed ledgers and others.
The segmentation is also based on the types of industries involved and the market is categorized into banking, financial services and insurance (BFSI), telecom and IT, healthcare and life sciences, manufacturing, retail, e-commerce and others. Each and every segment is examined carefully by factoring in sales, revenue and market size, in order to understand the potential for growth and scope.
Key growth factors
Blockchain transactions have become more flexible and many manual tasks are carried out automatically using smart contracts. Some of the major factors which are driving the market growth are raising cryptocurrency market capital, initial coin offering (ICO) and faster transactions.
The technology ensures enhanced transparency for consumers in the supply chain. It allows the consumers to trace and give an assurance of origin in the trade.
Threats and key players
Although the Blockchain in Supply Chain Market is expected to have a positive growth globally, still, there are still a few threats to the market. The market constraints involves threat to personal information and high diagnostic cost as a barrier. Blockchain technology has often been compromised, resulting in the theft of millions of dollars’ worth of cryptocurrencies. The potential risk of hardware or software failure can be another risk in the supply chain. Lack of awareness about the Blockchain and higher cost of investments can restrain market growth during the forecast period.
The Blockchain market ecosystem comprises vendors, such as Abra, AlphaPoin, Bitfury Group Limited, Bloq, BTL Group Ltd, Coinbase, Digital Asset Holding LLC, Ethereum Foundation, Guardtime, Internation Machine Business Corporation, IBM, Blockcypher, Inc., Microsoft, Primechain Technologies Pvt. Ltd, Skuchain, Romit and Provenance Ltd, among others.
1. Overview of the global Blockchain in Supply Chain Market
2. Market drivers and challenges in the global Blockchain in Supply Chain Market
3. Market trends in the global Blockchain in Supply Chain Market
4. Historical, current and forecasted market size data for the global Blockchain in Supply Chain Market
5. Historical, current and forecasted market size data for the types of global Blockchain in Supply Chain Market (private, public and consortium)
6. Historical, current and forecasted market size data by application of industry in global Blockchain in Supply Chain Market (contract management, payment system, procurement, provenance, ownership transfer, asset tracking and inventory control)
7. Historical, current and forecasted market size data by protocol of industry in global Blockchain in Supply Chain Market (bitcoin, ethereum, ripple consensus network, hyperledger, R3’s corda, symbiont, distributed ledgers, and others)
8. Historical, current and forecasted market size data by industries involved in the global Blockchain in Supply Chain Market (Banking, Financial services and Insurance (BFSI),Telecom and IT, healthcare and life sciences, manufacturing, retail, e-commerce, and others)
9. Historical, current and forecasted regional (North America, Europe, Asia-Pacific, Latin America, the Middle East & Africa) market size data for global Blockchain in Supply Chain Market
10. Analysis of the competitive landscape and profiles of major companies operating in the market
11. Key recent developments in the Blockchain in Supply Chain Market
1. Get a broad understanding of the global Blockchain in Supply Chain Market and its segmentation (by type of industry: private, public and consortium; by industry applications: contract management, payment system, procurement, provenance, ownership transfer, asset tracking and inventory control, by industry protocols: bitcoin, ethereum, ripple consensus network, hyperledger, R3’s corda, symbiont, distributed ledgers and others, by industries involved: Banking, Financial services and Insurance (BFSI), Telecom and IT, healthcare and life sciences, manufacturing, retail, e-commerce and others)
2. Get region-specific drivers and challenges affecting the global Blockchain in Supply Chain Market and its segmentation (by type of industry: private, public and consortium; by industry applications: contract management, payment system, procurement, provenance, ownership transfer, asset tracking and inventory control, by industry protocols: Bitcoin, Ethereum, Ripple Consensus Network, Hyperledger, R3’s Corda, Symbiont, Distributed ledgers and others, by industries involved: Banking, Financial services and Insurance (BFSI),Telecom and IT, healthcare and life sciences, manufacturing, retail, e-commerce and others)
3. Devise market-entry strategies by understanding the factors driving the growth of the market
4. Recognize major competitors’ business and market dynamics, and respond accordingly
5. Get stakeholder and technology analysis, relevant companies profiles and also start-ups’ profiles
Ethereum: USD/ETH (ETH=) Client Becomes First Public Blockchain on Hyperledger
Hyperledger has officially adopted its first public blockchain project in the form of ConsenSys’ Pantheon.
The Hyperledger technical steering committee approved Pantheon’s addition Thursday morning, renaming the initiative to Hyperledger Besu (a Japanese term for base or foundation). Pantheon was first proposed as a potential new member of the consortium on Aug. 8, joining the likes of Hyperledger Fabric (which IBM has supported) and Hyperledger Sawtooth (backed by Intel).
Pantheon includes a suite of ethereum-based services built by PegaSys, an engineering team at ConsenSys. These services can operate on top of ethereum’s public, private and test networks. Grace Hartley, strategy and operations associate at PegaSys, said Pantheon is ConsenSys’ only ethereum client in its suite of open-source projects.
“We’ve always wanted to be a gateway for enterprises to public chains while also meeting the needs of private and permissioned networks,” Hartley told CoinDesk. “I think this is a good step in that process.”
Now the Hyperledger staff will work with ConsenSys to transfer Pantheon’s GitHub repository to the consortium and set up email lists and chat channels connected to the project. In recent months, ConsenSys has also donated ConsenSys CAVA to the Apache Software Foundation, which is now being incubated as Apache Tuweni.
“I expect it to be a pretty easy process,” said Brian Behlendorf, executive director of Hyperledger. “It’s already a very active open source project. Before it joined Hyperledger, it had its own life with external contributors working on it.”
Pantheon is interested in finding ways to potentially collaborate with Hyperledger Burrow, a modular blockchain client with a permissioned smart contract interpreter partially developed to the specification of the Ethereum Virtual Machine (EVM), Hartley said.
The Pantheon team is also interested in finding “cross-chain opportunities” with Tendermint, Burrow’s consensus algorithm, and in collaborating with Hyperledger Quilt because of its interledger protocol.
Hyperledger’s foray into ethereum began with Burrow, and the consortium has partnered with the Enterprise Ethereum Alliance to collaborate on common standards for the blockchain space. Hyperledger has also received a proposal from the Trusted Compute Framework, a project that follows the EEA’s standards regarding secure enclaves and other privacy approaches.
ConsenSys has been thinking about adding Pantheon to Hyperledger for the last several months, Hartley said. The company chose Pantheon because of its open-source license and its ability to build enterprise applications on the mainnet. The project’s most active users are within the financial services industry and use it especially for settlement and digital asset use cases.
“We’re eager to include the ethereum community especially when it comes to something like support for private transactions or support for smart contracts that run in a lot of different places,” Behlendorf said, adding:
“What’s going on in ethereum is something that other public blockchains should be tracking. Maybe solidity or an EVM programming language becomes more of the standard.”
Part of the requirements for projects looking to join Hyperledger is to be open-source under the Apache license or re-licensed as Apache. ConsenSys Open Source Chef Jim Jagielski co-founded the Apache Software Foundation with Behlendorf and others.
“The PegaSys team has been a quick study,” Behlendorf said. “A few folks on their team have been a part of other open-source projects.”
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.
LeewayHertz has recently announced the launch of a new blockchain-based platform, TrustExplorer, which brings trust and transparency to TrueUSD (TUSD) stablecoin by allowing users to have a real-time view of the U.S. dollars backing it. Built on the blockchain, TrustExplorer works as a Trust-as-a-Service for TrustToken. The platform connects with escrow bank accounts holding TrustToken’s collateral as U.S. dollars and runs Ethereum nodes to track the supply of TUSD.
TrustExplorer is the first platform of its kind to use blockchain technology itself to solve trust issues for stablecoins, a cryptocurrency backed by fiat held in a bank or trust company. The platform is an Armanino-owned software solution that provides stablecoin projects and their holders with a high level of transparency and trust by offering a real-time view of tokens in circulation and associated collateralized fiat currency backing them.
Armanino is one of the top 25 independent business and accounting consulting firms in the USA. They have been providing audit, tax and consulting services to privately-held companies, nonprofit organizations and public companies for over 50 years.
Armanino worked with LeewayHertz to build a real-time dashboard to monitor the supply of TrustToken’s stablecoin TrueUSD (TUSD). Noah Buxton, Director and a member of the team leading Armanino’s TrustExplorer offering, added, “We looked long and hard for a technology partner that could bring the necessary web application and blockchain experience to bear on this unique problem. The LeewayHertz team understands where we want to go and has helped us get there.”
In TrustToken’s own announcement, Rafael Cosman, TrustToken co-founder and head of engineering and product said, “This sets a new standard not only for stablecoins but for all tokenized assets in the future. With the real-time confirmation of funds provided by one of the world’s leading accounting firms, traders will know at all times that their tokens are backed by real-world value.”
LeewayHertz, one of the leading blockchain development companies, developed a public blockchain platform using Ethereum to allow anyone to track the supply of TrueUSD stablecoins and verify collaterals backing them.
Established in 2007 and headquartered in San Francisco, LeewayHertz was one of the first to deliver a commercial application for the iPhone. The LeewayHertz team of Certified User Experience and Blockchain Development experts has designed and produced over 100 enterprise-grade digital platforms for both startups and enterprises which are being used by millions of users across the world.
The team of blockchain developers at LeewayHertz have potential to work on various blockchain platforms including Ethereum, Hyperledger Fabric, Hyperledger Sawtooth, Hyperledger Indy, Hedera Hashgraph, EOS, Stellar and R3’s Corda. They have successfully deployed more than 80 Smart Contracts and worked on 20+ Blockchain Projects.
Armanino is one of the top 25 largest independent accounting and business consulting firms in the United States. Armanino has been in business since 1953 and is a nationwide leader in serving privately-held companies, as well as, nonprofit organizations and public entities. We have provided audit, tax, and consulting services to crypto-native companies and exchanges since 2013. We provide five main areas of service — Audit, Risk Assurance & Advisory, Tax, Consulting and Business management. We also have a dedicated team that services our blockchain and crypto clients.
TrustToken is creating a more efficient and inclusive global financial system by digitizing assets that can be seamlessly and securely exchanged across liquid markets worldwide. TrueUSD (TUSD), a stablecoin redeemable 1-for-1 for U.S. dollars and the industry’s pioneer in using third-party trust companies and independent accounting firms, is the first product on TrustToken’s platform. TUSD offers the transparency, liquidity and redeemability required in the crypto-economy, and it has the most traded of all fully-collateralized and independently validated stablecoins.
The Blockchain Platforms Software market revenue was xx.xx Million USD in 2014, grew to xx.xx Million USD in 2018, and will reach xx.xx Million USD in 2024, with a CAGR of x.x% during 2019-2024. Based on the Blockchain Platforms Software industrial chain, this report mainly elaborates the definition, types, applications and major players of Blockchain Platforms Software market in details. Deep analysis about market status (2014-2019), enterprise competition pattern, advantages and disadvantages of enterprise products, industry development trends (2019-2024), regional industrial layout characteristics and macroeconomic policies, industrial policy has also be included. From raw materials to downstream buyers of this industry will be analysed scientifically, the feature of product circulation and sales channel will be presented as well. In a word, this report will help you to establish a panorama of industrial development and characteristics of the Blockchain Platforms Software market.
Segmentation by product type: breakdown data from 2014 to 2019 in Section 2.3; and forecast to 2024 in section 10.7.
Segmentation by application: breakdown data from 2014 to 2019, in Section 2.4; and forecast to 2024 in section 10.8.
The Global Blockchain Platforms Software Market from the perspective of all its current trends that are influencing it is important to understand in order to obtain the most rounded solution for business strategies in it. These trends are geographical, socioeconomic, economic, consumer, political, cultural, and their overall effect on client or consumer preferences will have a major data in how this market will form itself in the following years to come. Dynamics and the way they impact the Global Blockchain Platforms Software Market have been studied in absolute precise details in the report.
Qurate Business Intelligence delivers unique market research solutions to its customers and help them to get equipped with refined information and market insights derived from reports. We are committed to providing best business services and easy processes to get the same. Qurate Business Intelligence considers themselves as strategic partners of their customers and always shows the keen level of interest to deliver quality.
Truffle, a popular company that creates dev tools for Ethereum and was backed by the Ethereum accelerator ConsenSys has decided to branch out. Now, the company will no longer be limited to releasing tools for ETH developers.
According to the new announcement made by the company, three new blockchain networks are set to receive development kits as well. The CEO of the company, Tim Coulter, has decided to make the official announcement on TruffleCon, an important conference in Seattle that is focused on the products of the company.
Coulter affirmed that Hyperledger Fabric, R3’s Corda and Tezos will all receive development tools soon and that Ethereum will cease to be the only focus of the group.
Truffle’s vice president and head of global strategies Wesley McVay also present at the conference. He affirmed that they were proud to celebrate again. Last year, they announced that the company had just been able to reach a total of one million downloads. This year, they were proud to announce the new integrations of the product.
If Ethereum was all about open-source development, now the focus of the company may vary a bit. Both Corda and Hyperledger Fabric are very important blockchains which are focused on enterprises.
These platforms were created by big consortiums which were focused on catering to a new market: companies seeking to offer blockchain-related products. They are backed by giants of the technology such as IBM and have a completely different focus than Ethereum.
Tezos, on the other hand, is somewhat more similar to what Truffle was offering with ETH. Tezos is a public blockchain network that currently has a market cap of around one billion dollars. Major companies are developing on top of the technology, which also makes it another interesting choice for developers.
Integration Is The Future
According to Brian Behlendorf, the executive director of Hyperledger, Truffle is making an important advancement for communities which used to be divided before. According to him, by releasing this set of tools for developers, the communities that will be helped by Truffle will be ready for better integration.
He also affirmed that this can be seen as a huge step for compatibility and interoperability between the different protocols. This can bring better smart contracts to the market and ultimately benefit both the Hyperledger and Ethereum developers at the same time.
Truffle’s representatives have also spoken about interoperability as one of the goals of the company. With over 3.4 downloads of its Ethereum-based project, the company is set to grow a lot more by integrating different technologies.
According to the company, the goal for the future is to let developers use their tools to start developing for whatever network they want and then integrate their protocols.
Integration seems, in fact, to be the trend of the future. A recent gaming project called Blockade Games has just started to create a bridge between the Bitcoin Lightning Network and Ethereum, for instance, and it seems that this is just the start. More and more projects are bound to be integrated in the near future, connecting what were once very distinct and unrelated projects.
S7 Airlines, a member of the leading global aviation alliance Oneworld has recently disclosed that it was able to process $1 million USD using its new blockchain payment system during July.
S7 is the second largest domestic air company in Russia, and it is benefiting a lot with the new blockchain platform. S7 Airlines blockchain technology is backed up by Hyperledger Fabric Platform, an open-source technology that is used by some of the blockchains currently.
As per the official press release on July 30, S7 has seen tremendous growth in transactions on blockchain-powered sales network build in collaboration with Russia’s leading private bank, Alfa Bank. The positive figure for July is proof that Blockchain technology can help to boost business sales.
“Thanks to this new technology, now it’s easier for our agents to work directly with the airline, which allowed us to expand our own S7 Airlines sales network. Within this year, we are planning to deploy first online agents, whose work would comply with the NDC standard, on the platform.”
S7 Airlines sold its first ticket over the ethereum-based private blockchain platform built after partnering with the Russian Commercial Alfa bank in July 2018.
Blockchain provided freedom to the airline to safely connect its ticket booking system to the banking system; this helped in speeding up the payment processing time and reducing the amount of manual processing mainly required.
The project indicates that blockchain “creates value and is mainly decisive for the B2B Market,” stated Pavel Ryazanov director of transaction business at Alfa Bank.
Nikolai Mukhanov, who is the executive director at S7 Techlab, stated that the platform has seen significant growth in the number of payments, which increased ten times from January 2019 and also seen an increase in the number of other automated processes. He said that credit for the platform’s success goes to the Hyperledger Fabric Platform.
As per the report shared by the crypto media outlet Forklog, S7’s blockchain platform has transacted a total of about $3.9 million in payments since January 2019.
In July 2017, Pavel Voronin, S7’s deputy CEO, ensured that the firm executed the world’s first flight ticket purchase via an API blockchain to a bank. Later in August 2018, S7 teamed up with state-owned oil giant Gazprom to implement blockchain-based smart-contracts to aircraft fuelling.
Even though 2019 has been dubbed the ‘Year of the Enterprise Blockchain,’ the exploration of this technology by billion-dollar companies has been very limited. Blockchain, in its original and purest form, has yet to be fully investigated.
IBM, Linux foundation’s HyperLedger, AWS, Microsoft, Oracle, and a few other big-name IT solution companies flocked to be able to provide enterprise-grade blockchain services to companies such as those outlined on Forbes’ Blockchain 50 list. More than 50 percent of those companies are using Hyperledger in some form.
These solutions for enterprises are, of course, incredibly attractive as they offer the efficiency and transparency of the blockchain, while still keeping the control of data in the hands of those implementing these private blockchains.
With this level of control, however, is a sacrifice of some of the other, more inclusive and transparent, features of blockchain. This has led to a dividing line being drawn between the private blockchain believers – which encompasses most enterprises – and on the other side, those who would not even dubb a private blockchain as an actual blockchain.
Now the world’s biggest food producer is willing to take a chance on public blockchain for its supply chain. Nestlé, while still working with IBM and the FoodTrust, has announced a partnership with OpenSC to pilot a public blockchain for a few essential commodities.
It is an exciting development, as there is no enterprise on the same scale as Nestlé that is actively pursuing a public blockchain solution for their supply chain, but what makes it even more noteworthy is Nestlé’s reasoning.
Nestlé has said they want to be the example. They want to be the leaders, the ones to prove the viability and power of a fully transparent public blockchain supply chain in the hopes that other enterprises will follow their lead.
If Nestlé can be the successful pioneers of public enterprise blockchain usage, it could well re-shape the entire journey of blockchain’s adoption and usage at the highest level.
The logical next step
Nestlé’s foray into blockchain began roughly two years ago and came as a logical progression to their needs for the supply chain. Benjamin Dubois, Blockchain lead and digital transformation manager at Nestlé, explains how the company first got involved through IBM and the FoodTrust.
“We were looking for solutions to digitize out the supply chain, and at about the same time, we saw the Food Trust with IBM and what they were doing,” explained Dubois. “We discussed with IBM, and Walmart, which is a key customer, and they said, ‘well, join the effort, it is what we want to do, it is what you want to do, so let’s join the industry effort’; that is why we joined food trust as a foundational member.”
Nestlé has been an integral part of the IBM FoodTrust, and they maintain there is a lot of value and growth still to be had by building this private blockchain ecosystem. Dubois notes that the B2B side of FoodTrust is vital for companies like Nestlé, and as the trust continues to grow, the better things are getting.
“The message we had for IBM was to be open; they are open, I mean, you can join, and you have people joining and uploading data, and it works that way, but we are at a stage now where the solution is to grow,” added Dubois.
“It is growing too; there are close to 100 companies in Food trust. So when we were 12 companies, and this was a little too concentrated, now it is becoming something significant, but now it is converging to that philosophy of connected ecosystem.”
“The Food Trust blockchain is also fast, and easy to implement, IBM helps suppliers, they help us, and they make the solution quite mature. Food trust is very advanced compared to what we have seen, but there is still permission, so you still have to be invited, you can’t see all the data which for a B2B application os good, because we still control the data.”
Even though the Food Trust is growing and showing a lot of promise and potential for companies on the scale of Nestlé, it was commitments the company made, relating to its supply chain, that drove this move towards public blockchain piloting.
More so, the potential prize for getting this public blockchain pilot right for Nestlé would not only be help them achieve key commitments, it would give them the the glory of pioneering a new space, with nascent technology, for massive enterprises to come.
Going for glory
Nestlé’s key commitments are leading them towards greater transparency in foodstuffs for their customers. They want data to be transparent and for there to be an elevated level of trust for customers. This is what has ultimately lead them to public blockchains. So, the bonus of pioneering the space for others comes with high rewards, as well as high risk.
Benjamin Ware, manager of Responsible Sourcing, at Nestlé, admits that the company is excited to be one of the more significant enterprises trying to pioneer a successful shift towards public blockchain’s on this large scale.
“Most of the companies have been trialing blockchain, but they have been quite shy and have been avoiding getting in too deep into the public blockchain,” Ware said. “It is really about breaking the ice. That is precisely what we want – we want to be the public blockchain pioneers for enterprises.”
“We believe that it’s not just Nestlé that has the power to transform this entire industry, we need everyone to do the same, this means trying to make things work between different companies and different commodities.”
Dubois also echoed these sentiments.
“There is an aspect that we, as the biggest food producer in the world, we want to show the example and have leadership to say, ‘we are doing it, follow us.’ “Everyone is doing it and that is how you improve the situation for farmers and make the industry more sustainable and better so we believe this could be very powerful.”
A changing face?
If Nestlé was to be successful in its pilot, and its implementation of public blockchain for supply chain on such a vast enterprise level was attractive enough to entice similar companies to follow suit, it could cause a massive shift in the adoption of the technology.
Many are still looking at Libra as the game-changer in terms of cryptocurrency adoption. However, in terms of enterprise adoption, this shift could be even more significant.
The foundations that have been laid thus far by enterprise blockchain offering companies has been an attempt to get an early foot in the door, and to profit. However, if Nestlé pioneers an open-source blockchain supply chain protocol, the capitalist mindset of marketing and profiting off of blockchain may ultimately slow.
Nestlé is still a long way from changing the face of enterprise blockchain usage, but they are envisaging it. They do see the power and potential in private blockchain, but also feel that a whole other side of advantages can come by teaming up with public blockchain. And, perhaps, it is time that a company does prove the value of a fully decentralized platform in this manner.
No Related Posts
The status of your business critical applications and services – Free Tool
Get PCIS Enterprise Mobility Management Tools Now – Sign Up for a Free 30-Day Trial