OriginTrail Unlocks Blockchain for Global Supply Chains
OriginTrail, a European IT company known for its traceability solutions, announced its development of the first blockchain protocol that is purpose-built for data exchange between organizations along the supply chain.
The company will launch a token sale, or initial coin offering (ICO), in January with a mission to make decentralized data exchange available to every organization and enable mass adoption to increase trust and efficiencies on a global scale.
Supply chain is often described as one of the best use-cases for blockchain as a trusted ledger, but no large use-case has been implemented yet. The main reason is that blockchain was not developed for operations with larger amounts of data. Storing just 1 kB of data on Ethereum blockchain can cost thousands of dollars, and data queries are slow. OriginTrail is now solving this with a decentralized, off-blockchain network, purpose-built for the needs of supply chains. It makes blockchain-supported data operations fast and cost-efficient, and addresses the $525 billion world supply chain market.
A decentralized, off-chain peer-to-peer network that safely combines supply chain data from different IT systems, OriginTrail’s protocol can bring together the best of both worlds by connecting with any blockchain and any company IT system. This makes for a low adoption barrier, and stores only fingerprints of data on a blockchain. Original data is kept encrypted on a decentralized network, which enables development of decentralized apps on top of it. The protocol supports GS1 global standards for data exchange and can include Internet-of-Things data.
“Our vision is to bring data integrity and transparency to supply chains worldwide,” said Tomaz Levak, co-founder and CEO of OriginTrail. “We are proud that our innovative, blockchain-based data integrity solution was already recognized by the global leaders who share our vision for transparent supply chains as a precondition for protecting consumers and brands, as well as increasing efficiencies on a global level.”
The team, which has prior experience in implementing supply chain traceability and data interoperability projects for leading European food producers, will hold a token crowdsale starting in January. The roadmap envisions the development of a decentralized network and a plug-and-play solution, suitable for all product supply chains, based on a mission to bring interoperability and information integrity to the fragmented supply chain world.
Blockchain technology has huge potential to decentralize trust in supply chains and bring enormous benefits. “We are currently implementing pilot projects in food supply chains in China that will help consumers in the world’s largest market verify the provenance, authenticity and journey of their quality products,” explained Ziga Drev, co-founder and COO who manages operations in Shanghai, China.
Further implications of the protocol are much broader. OriginTrail also enables the development of business applications based on interorganizational data, such as optimization of supply chain, inventory management, or getting certified.
The pilot project with the Chinese online food store Yimishiji was awarded by the Walmart Food Safety Collaboration Center in November and admitted into its Innovation Pipeline. The project is being implemented to enhance transparency, safety, fairness and trustworthiness in food supply chains by empowering customers to verify the traceability of every item sold online.
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