Because China will lead Blockchain and 4 related myths

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If there is a country in which blockchain will succeed, it is China, no place has a larger, more underdeveloped or fragmented data to be managed in logistics, supply chains and other sectors, but there are also counterfeit scandals always present from fine wine to [19659005] condoms that fill social feeds and state media, even on booming cross-border e-commerce platforms – promoted as the bastion for legitimate products Purchased directly from fakes of origin are all too common.In fact, 40% of cross-border cosmetics sold during the Singles & # 39; Day of last year turned out to be counterfeited . There is no shortage of reasons why the Chinese are the least confident consumers on the planet.

As a result, hundreds of solutions have emerged to demonstrate ide traceability for a genuine tariff. Unfortunately, few of these have the reach and widespread acceptance of encouraging consumers to download the app or use other tools to legitimize a product. Many of the systems themselves can be falsified, with fake QR codes pointing to fake websites that falsely claim the authenticity of a product.

Blockchain is the first tracking standard that is receiving widespread acceptance by consumers, businesses and government in China. Alibaba and JD are investing large sums in blockchain and President Xi Jinping calls it "technology" . Approximately 41% of Chinese start-ups that received funding in the first quarter of 2017 have been linked to the blockchain. Shanghai, Guangzhou, Shanxi, Henan, Guiyang and Hangzhou all have policies that actively encourage the development of blockchain, with Hangzhou promising investments worth $ 1.5 billion (10 billion yuan) in technology. It was one of the most discussed topics at the Davos World Economic Forum 2017, where it was estimated that 10% of global GDP will be stored on blockchain by 2027 .

It is still important to remember that blockchain is a nascent technology and that adoption, profitability and widespread skills are yet to come. Blockchain will not replace the Internet; it's a data infrastructure that is on it. However, like any new technology, there are countless prospects hoping to cash in, many unanswered questions and many blockchain-related errors. Here are four myths about the blockchain.

1. You can store everything you want on blockchain, cheap

Because blockchain data is stored on thousands of servers, storage is not cheap. Ziga Drev, founder of blockchain solutions provider & nbsp; OriginTrail notes that blockchain was not designed for large amounts of data, but the ultimate goal of technology requires "optimizing the way in which business is done across multiple companies", as with chains supply. This requires some data. Fortunately, OriginTrail has overcome the challenge of costly scalability, storing only "fingerprints" of data on the blockchain itself, which costs cents, or even just a fraction of a penny for low-cost FMCG products (fast moving mobile goods), where fingerprints can be done at the lot level.

2. The use of blockchain in the supply chain concerns only guarantees of authenticity

While blockchain provides traceability for products sensitive to counterfeiting and tampering, it also increases the 39; efficiency that leads to cost reduction. Currently, 10% of all transport invoices contain inaccurate data including duplication, incorrect shipping charges, and incorrect tariffs. This leads to disputes and many other process inefficiencies in the logistics sector. By fueling lean, automated and error-free processes, blockchain can achieve cost savings throughout the supply chain and offer benefits ranging from health care to legal contracts.

The transparency, robustness and decentralized nature of the blockchain will see it expand far beyond the practices seen today. One example is startup blockchain Wings a P2P flight reservation service based in Shanghai that allows travelers to buy and sell tickets to anyone, anywhere. Stephen Yuan, founder of the wings, praises the backbone blockchain "that allows the platform to check every ticket transaction in each store, millions of times a day."

3. I heard everything about the blockchain but I'm not aware of success stories in the real world

The most innovative companies in China were quick to jump on the blockchain bandwagon. There are examples of implementation – such as more than 400 brands and 11,000 SKUs only on JD.com that track blockchain – but success stories are harder to find. They are not afraid, they are coming, like Cheong-Kwan-Jang red ginseng & nbsp; which implemented blockchain tracking on JD this year and saw a sales increase of over 500% per annum from March to May, according to an e-mail from a JD representative. Another JD initiative, supported by AI & nbsp; Running Chicken, allows consumers to scan a QR code on a bird's foot & nbsp; to check the collection days, the supply, as well as the period of time for regular control and disinfection activities, information on the production and testing companies all filed on blockchain. Every game of premium chickens & nbsp; it's sold out. "We are building long-term confidence, starting with the products that customers really care about – they have never really seen the supply chain before, so this is a big deal," says Josh Gartner, VP, International Corporate Affairs at JD. "Blockchain traceability will completely change the confidence standard in global retail."

Yimishiji a Shanghai-based online farmers market that sells blockchain of organic and local products to allow customers to track purchases from the agricultural harvest at the distribution center at the end of the millet delivery. "As a further advantage, by linking data points, blockchain has also shown its potential to efficiently discover any discrepancy in data," says Matilda Ho, founder and CEO. Yimishiji's partner and blockchain, OriginTrail, won an award for innovation from the Walmart Food Safety Collaboration Center in China for the initiative.

4. My companies and suppliers must replace our IT systems to integrate blockchain

We have heard from companies worried about the upsets and expenses related to the replacement of the infrastructure existing to implement the blockchain. Fortunately, as long as the main touchpoints are already digitized, blockchain is agnostic ERP and can be connected and reproduced in existing systems. There are a myriad of companies offering solutions like OriginTrail (mentioned above) and Decent .

Blockchain has many advantages for sale in China, but beyond the fuss, companies that consider blockchain should assess whether there will be legitimate benefits & nbsp; from reductions in costs and efficiencies, and / or if their brand or product will satisfy a consumer's need by ensuring the authenticity of their products. Regardless of whether it is currently suitable for your business, blockchain is something you will hear about a lot more about.

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If there is a country where the blockchain will succeed, it is China: no place has a larger, more underdeveloped or fragmented quantity of data to be managed in logistics, supply chains and other areas – the omnipresent cases of counterfeit fakes fine wines and condoms that filled social feeds and state media, even on booming cross-border e-commerce platforms – promoted as the bastion for legitimate products purchased directly from the fake-source are all too common, in fact 40% of cross-border cosmetics sold during the Singles & # 39; Day of last year turned out to be counterfeited reasons why the Chinese are the least confident nsum ers on the planet.

As a result, hundreds of solutions have emerged to ensure the traceability of the original tariffs. Unfortunately, few of these have the reach and widespread acceptance of encouraging consumers to download the app or use other tools to legitimize a product. Many of the systems themselves can be falsified, with fake QR codes pointing to fake websites that falsely claim the authenticity of a product.

Blockchain is the first tracking standard that is receiving widespread acceptance by consumers, businesses and government in China. Alibaba and JD are investing large sums in blockchain and President Xi Jinping calls it a "revolutionary" technology . Approximately 41% of Chinese start-ups that received funding in the first quarter of 2017 have been linked to the blockchain. Shanghai, Guangzhou, Shanxi, Henan, Guiyang and Hangzhou all have policies that actively encourage the development of blockchain, with Hangzhou promising investments worth $ 1.5 billion (10 billion yuan) in technology. It was one of the most discussed topics at the Davos World Economic Forum 2017, where it was estimated 10% of global GDP will be archived on blockchain by 2027 .

It is still important to remember that blockchain is a nascent technology and that adoption, profitability and widespread skills are yet to come. Blockchain will not replace the Internet; it's a data infrastructure that is on it. However, like any new technology, there are countless prospects hoping to cash in, many unanswered questions and many blockchain-related errors. Here are four myths about the blockchain.

1. You can store everything you want on blockchain, cheap

Because blockchain data is stored on thousands of servers, storage is not cheap. Ziga Drev, founder of the blockchain solutions provider OriginTrail notes that the blockchain was not designed for large amounts of data, but the ultimate goal of technology requires that "optimize the way the business is done through multiple companies "as with supply chains. This requires some data. Fortunately, OriginTrail has overcome the challenge of costly scalability, storing only "fingerprints" of data on the blockchain itself, which costs cents, or even just a fraction of a penny for low-cost FMCG products (fast moving mobile goods), where fingerprints can be done at the lot level.

2. The use of blockchain in the supply chain concerns only guarantees of authenticity

While blockchain provides traceability for products sensitive to counterfeiting and tampering, it also increases the 39; efficiency that leads to cost reduction. Currently, 10% of all goods invoices contain inaccurate data including duplication, incorrect shipping charges, and erroneous errands. This leads to disputes and many other process inefficiencies in the logistics sector. By fueling lean, automated and error-free processes, blockchain can achieve cost savings throughout the supply chain and offer benefits ranging from health care to legal contracts.

The transparency, robustness and decentralized nature of the blockchain will see it expand far beyond the practices seen today. One example is startup blockchain Wings a P2P flight reservation service based in Shanghai that allows travelers to buy and sell tickets to anyone, anywhere. The founder of wings Stephen Yuan praises the backbone blockchain "allowing the platform to check every ticket transaction in each store, millions of times a day."

3. I heard everything about the blockchain but I am not aware of all the success stories of the real world

The most innovative companies in China were quick to jump on the blockchain bandwagon. there are no examples of implementation, such as the over 400 brands and 11,000 SKUs on JD .com only those who have tracked blockchain – but success stories are harder to find. They do not fear, they are coming, like Cheong-Kwan-Jang Red ginseng who implemented blockchain tracing on JD this year and saw sales up more than 500% year-on-year between March and May, according to an e-mail from a JD representative . Another JD initiative, supported by AI Running Chicken, allows consumers to scan a QR code on the foot of the bird To check harvest days, feed, as well as periodic verification period and disinfection activities, information on production and testing companies all stored on blockchain. Each lot of premium chickens is sold out. "We are building long-term confidence, starting with the products that customers really care about – they have never really seen the supply chain before, so this is a big deal," says Josh Gartner, VP, International Corporate Affairs at JD. "Blockchain traceability will completely change the confidence standard in global retail."

Yimishiji a Shanghai-based online farmers market selling organic and local products with blockchain to enable customers to track purchases from the agricultural harvest to distribution center the delivery of the last mile. "As a further advantage, by linking data points, blockchain has also shown its potential to efficiently discover any discrepancy in data," says Matilda Ho, founder and CEO. Yimishiji's partner and blockchain, OriginTrail, won an award for innovation from the Walmart Food Safety Collaboration Center in China for the initiative.

4. My companies and suppliers must replace our IT systems to integrate blockchain

We have heard from companies worried about the upsets and expenses related to the replacement of the infrastructure existing to implement the blockchain. Fortunately, as long as the main touchpoints are already digitized, blockchain is agnostic ERP and can be connected and reproduced in existing systems. There are a myriad of companies offering solutions like OriginTrail (mentioned above) and Decent .

Blockchain has many advantages for sale in China, but beyond the fuss, companies that consider blockchain should assess whether there will be legitimate benefits from cost reductions and efficiencies and / or if their brand or product will meet the needs of the consumer ensuring the authenticity of their products. Regardless of whether it is currently suitable for your business, blockchain is something you will hear about a lot more about.