Blockchain Traceability Overhauls Payments Amid Major Corporations


April 8, 2020 4:39 pm

Blockchain Traceability Overhauls Payments Amid Major Corporations
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According to a new report of the Forbes Blockchain 50, Multi-billion dollar companies are more likely to use blockchain for traceability and provenance than for payments and settlement.

In late February, the annual Blockchain 50 list was published covers fifty of the biggest brands in the world who are adopting blockchain, each with annual revenue above $1 billion in annual revenue. 

Blockdata– Dutch firm, researched and discovered that fifteen have solutions that tackle traceability and provenance, while 13 are utilising blockchain for payments and settlements.

IBM, Nestle, Foxconn, Honeywell, Walmart, Amazon, BMW and Mastercard are the Companies with blockchain traceability solutions. There are five pilot projects, and Ten products are in production, Use cases are diffused across agriculture, mining, aerospace, food and automotive industries.

Advancing business blockchain adoption by global open source collaboration

For traceability- the Linux Foundation’s Hyperledger technologies were the most widely used, followed by Ethereum. Though, several companies use multiple blockchains and distributed ledgers.

Blockdata’s report praised iPhone and Playstation contract manufacturer Foxconn’s use of blockchain technology as a notable example. It is streamlining financing via its Chained Finance program for its suppliers, many of whom are small to medium enterprises. It also highlight’s IBM’s contributions:

“IBM, backers of the Hyperledger blockchain project and its many platforms, makes an appearance because of the Food Trust initiative. This program allows companies to quickly and accurately ascertain the provenance of individual goods in its supply chain. Notable participants include Walmart, Nestlé, and Dole Foods.”

In a recent report, Steve Banker, Forbes transportation contributor warned about Food Trust, just because blockchain is now being adopted widely in traceability does not inevitably mean it will be a success. He said:

“Once the retailer starts to generate data they will have to see how increased costs surrounding Food Trust are balanced by lower costs in recalls; how much prices for produce will need to increase; whether those price costs can be passed along, and similar cost/benefit trade-off questions. In short, the viability of Blockchain for traceability is not assured yet, despite the mandate.”

Products in Payments and Settlements

Payments and Settlements was the next most popular category amid multi-billion dollar companies on the list, which accounted for 13 products followed by trading and exchanges (10), blockchain development (10), identity (7), fraud prevention (6), supply chain management (6), asset tokenization (5), custody solutions (4), marketplace (3), supply chain finance (3) and letters of credit (2).

In the payments category: Facebook, Credit Suisse, JPMorgan, Bakkt, Ripple and Square were highlighted. Hyperledger and Ripplenet were used by a couple of projects each in this category, while Ethereum was utilised by three.

Blockdata highlighted Daimler’s Truck-ID and Truck Wallet products, which intend to allow vehicles to autonomously transact with other machines, apart from traditional finance services. Blockdata closed its analysis with a conclusion:

“It’s clear from the products being built and put into use that the world’s largest firms are using blockchain technology to address real problems. Areas like digital identity and asset tokenization, while less popular in this list, will see massive growth over the next few years as companies figure out how to digitize physical assets. Don’t be surprised if your car starts scheduling its own maintenance (and paying for it from its own wallet), or being able to invest in fractional ownership of real estate projects as easily as you can trade stocks.”

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