Arun Ghosh, US Blockchain Leader, KPMG US
While the global transaction platform was created ten years ago as a fundamental technology for bitcoins, its usefulness extends far beyond its links with the phenomenon of cryptocurrency. Indeed, blockchain's ability to create highly detailed, decentralized and immutable distributed registers can increase efficiency and accelerate problem resolution in any company, from advertising to production.
While its bitcoin bonds have allowed blockchain hype levels approaching the status of celebrities, blockchain is not a digital panacea. Other advanced technologies are more appropriate for many problems facing companies today. Blockchain works best when systems are increased and improved, as a technology that improves time, money or experience.
Despite the clamor around what Blockchain is and is not, it's an exciting time for companies looking to exploit this technology. Blockchain is no longer an incoming attraction or even a concept demonstration. It's here, which securely supports transactional data sharing to improve efficiency, reduce costs and improve regulatory compliance. Companies are completing successful pilot projects and in some cases are leading to scalable projects across multiple business functions, passing from evidence-based testing to concepts.
Blockchain protects the integrity of its data and reinforces its commitment to quality
Solving real problems today
Blockchain supports organizations in all sectors, including technology, pharmaceuticals, manufacturing and financial services. A specific example of how the blockchain is currently in use is the development of Singapore Airlines (SIA) of the first airline loyalty program based on blockchain technology. KrisPay digital wallet allows members of loyalty to instantly convert miles accumulated into tokens that can be spent with numerous participants
Not only does the digital wallet make it easier for customers to use miles in their loyalty account, but it allows SIA to integrate new partners and reconcile payments using blockchain technology. Because the blockchain system records all customer transactions in real time, payments are easily reconciled, saving significant labor costs compared to the previous system.
A further example is the use of blockchain technology in supply chain management in viticulture. Pooley Wines in Tasmania, which produces high-quality wines, collects data on soil, climate and temperature, among others, and stores them in a blockchain.
The cloud-based and tamper-proof system helps Pooley Wines maintain expectations about food safety, consumers understand how their wine was created, recreate the legacy products that customers appreciate, and even determine how vineyard resources are allocated. Overall, blockchain protects data integrity and strengthens their commitment to quality.
Here are some additional cases, among many others, that now emerge from the demonstration of the concept to production:
• Trace the route of the aerospace parts. The production of goods involves a complex journey as the parts are created, shipped, imported and exported to more international sites. By allowing near-real-time visibility into the position and status of the parties, manufacturers are increasing efficiency and transparency throughout the end-to-end process, with the added benefit of maximizing tax payments and inventory management.
• Simplification of the management of the device life cycle. A technology company has already generated over $ 2 million in cost savings associated with blockchain-driven process improvements, including monitoring and resource management during product lifecycles that ultimately lead to recycling credits. For example, for global companies with thousands of devices such as iPhones or laptops to manage, blockchain can help you significantly reduce the time and cost associated with tracking these devices.
• Monitoring of the drug supply chain. Pharmaceutical manufacturers today are considering blockchain to help identify and track down certain prescription drugs while being distributed in the United States. In doing so, it will help them more easily comply with the US FDA's drug supply chain security law – designed to discourage counterfeiting and optimize calls – when the law becomes effective in two parts – 2019 and 2023.
These examples show that blockchain is much more than the next brilliant new technological toy: today companies are freeing real value, transparency and efficiency. The possibilities are enormous, with organizations already exploring how to apply blockchain to streamline the taxing methods associated with moving goods across and between companies – bringing new light to a process that is error-prone and time-consuming. And this is only the beginning. We expect to see rapid development of new real blockchain systems in the near future, as business leaders continue to assess how this emerging technology can increase current processes in their businesses.
Successfully implementing blockchain requires an integrated, business-oriented approach that begins by understanding a challenge, prioritizing value-based use cases and configuring cloud-based tools, while leveraging more effective approach to drive and maintain the promise of reliable trade.