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How Blockchain and AI have improved the World?

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How Blockchain and AI have improved the World?

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In one way or another, both blockchain and artificial intelligence have laid the groundwork for a new commercial era. Have you ever considered what would transpire when these two technologies converge, though? Keep reading to know further. 

Real Perks of Powering Artificial Intelligence with Blockchain 

The fundamental objectives of blockchain are to update, safeguard, and guarantee the authenticity of all records. However, AI is required for decision-making, evaluation, and the simplification of independent interaction. Future development of more reliable intelligent systems will be made possible by the seamless integration of these two technologies. Here are the main advantages that businesses will gain from the combination of blockchain and AI.

  • Security- Business organizations are looking for a potential solution to strengthen the security of the online data amid fears of cybersecurity breaches. Information theft and hacking are on the rise. Blockchain technology can help these businesses, especially banks and insurance providers. Their data can be kept secure by creating the blockchain network’s transactional procedures. These businesses only need to utilize their current security protocols. When designed to act autonomously, machines need a higher level of security. The problems with internet security can be solved by blockchain.
  • Decentralized Control and Data Sharing- A decentralized network of nodes powers the blockchain. When these networks cooperate, they can solve difficult algorithms. AI functions on a similar mechanism. The AI-based systems consider all the potential solutions before making a decision. Before selecting the optimal option, the system assesses all the options. Blockchain, on the other hand, splits the task across all the nodes rather than completely solving it. These are widespread around the world and number hundreds. Thus, the procedure significantly accelerates. For secure and intelligent systems, experienced mobile app development companies are cooperating with business enterprises prepared to create strong AI-based solutions on blockchain.
  • Open Data Market- As AI develops, it depends more and more on the data that is accessible, which comes from various sources. Although major corporations like Amazon, Google, & Facebook have access to vast data sources that can be useful for creating AI applications, these resources are not readily available on the open market. By incorporating peer-to-peer connectivity, the blockchain technology and AI will work together to quickly solve this problem. As a distributed & open registry, the data is readily accessible to all network members. Thus, the data oligopoly that is currently visible in cyberspace will vanish.
  • Handling Data on Higher Scale- Scaling data is the most difficult challenge once it is available. An estimated 1.3 zettabytes of the data flow across cyberspace each year. One specific branch of artificial intelligence, known as artificial general intelligence, can be used to provide feedback in a control system. Autonomous agents in fact will be capable to communicate with the physical environment more effectively as a result. At the moment, blockchains are being used to store a ton of data. Business organizations gain a variety of advantages from this over the conventional decentralized storage system. The data won’t stay in one place in the event of a crisis or a natural disaster affecting the company. Large volumes of data are protected in the decentralized system because of this. These are less susceptible to corruption since they are resilient to hacks.
  • Control Data Use and Models- When blockchain and AI are combined, it’s crucial to think about how to control data consumption and models. For instance, if someone wants to submit anything to Facebook or Twitter, they must first seek the necessary permissions when logging into their accounts. For AI data & models, a same idea applies. Due to the authorization required during the procedure, you can encounter some limitations when creating data for the model. AI will be able to use blockchain technology, which will streamline the process.

Effect of the Convergence of AI-Blockchain on Various Industries 

In practically every industry, blockchain technology and artificial intelligence are being used in similar ways. To make the process easier, let’s examine the effects of blockchain and AI collaboration on each industry separately.

Healthcare

Blockchain and artificial intelligence in the healthcare sector are both creating new prospects for patients and independent healthcare service providers. But after everything is said and done, patients and healthcare organizations will receive services at a new level. The intersection of blockchain and AI in healthcare will provide the chance to protect medical records from cyberattacks, access the data in a decentralized layer, and give people ownership of their data. It will also eliminate the monopolistic power of the top tech giants like Google and Apple, and it will enable patients to share the data with anybody on their terms and receive tailored responses.

Retail 

The influence of AI on the retail industry will be increased by combining it with blockchain technologies. If their marketing strategy is unsuccessful, it will enable retailers to record the entire process and save customer insights in immutable blocks so they can identify the contributing elements. Additionally, it will improve payment procedures and eliminate fraud risk.

Supply Chain 

Combining blockchain with AI benefits will create a brand-new universe. The technologies will work together to optimize the supply chain in a way that is more secure and efficient and will also provide better understandings into what should be eliminated in the first place. As a result, everyone’s experience will be improved, and business earnings will increase.

Finance 

AI and blockchain integration will also speed up financial sector procedures. AI will reduce reliance on humans to know human emotions and forecast the next course of action, which will ultimately improve automation and performance level, whereas Blockchain will instill industry trust through Smart Contracts.

Government

To redefine democracy, blockchain and AI are merging their respective fields of expertise. By using technology, it will be possible to retain data security and quality while transferring control over the data from a large group of people to the general public. Additionally, e-voting processes will be tracked by AI and Blockchain technologies, making them instantly available to all citizens.

Mobile Applications 

In essence, combining blockchain with AI can speed up response times and boost efficiency. For instance, a payment needs to be made. Blockchain will therefore improve speed by making the payment route streamlined and transparent. AI will simultaneously determine which payment gateway should be used and how the client plans to complete the transaction. By accelerating the payment page in this manner, both technologies will improve the checkout process.

Bottom Line 

The idea of fusing blockchain technology and artificial intelligence is still in its infancy. While the integration of such technologies via AI development companies and blockchain development companies has seen some success, it is still in its early stages. As a result, we must still wait before we fully grasp the opportunities this integration presents and how to seize them.

 

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Ushering in a New Era of Efficiency for Trade Finance   

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Trade finance has earned a reputation for an industry reluctant to adapt in the face of change. Characterized by unwieldy and cumbersome legacy processes, the industry has seemingly remained stagnant whilst other sectors have steamed ahead with digitization. But, the pandemic has prompted the call for change that the trade finance industry has sorely needed for years, and steps towards technological innovation have been seen, most notably across the Asia Pacific. These technological advancements are helping to revolutionize the trade finance space and, hopefully, trigger a coordinated, global approach to creating more efficient trade.  

The list of challenges that trade finance faces, point to an industry reliant on paper. Incorrect documentation and KYC, non-interoperable systems and manual reconciliation could all be overcome with appropriate technological input. These issues are now finally being addressed by various progressive digital solutions. 

One of the technologies which seem most encouraging is enterprise blockchain. Trade is a fundamentally decentralized system. The industry is heavily intermediated – predominantly by banks that help to facilitate transactions and provide the financing behind them, but also by insurers, customs officials and other market participants. Firms have tried countless times to apply centralized solutions to this decentralized system, but, unsurprisingly, none have really worked. 

The decentralized nature of blockchain makes it a perfect fit for trade finance. For the first time, the entire industry is getting behind technology and moving it into real-world deployment at a record pace. 

Meanwhile, regulators are working with technology providers to understand how to audit and gain insight into the transactions taking place on these new blockchain-based platforms, and ensuring suitable laws are in place, including those relating to electronic documentation and electronic signatures. 

The architecture underpinning the entire ecosystem of trade is undergoing complete digital transformation – but how are participants benefiting from this change? 

Sizing up the challenge  

Many of the processes and technologies underpinning trade finance have not been modernized in decades. The result is that those transactions continue to rely on paper-heavy processing, unsuitable for the current digital age. Traditional technology required corporates to log into multiple portals and juggle relationships and documentation for each shipment. 

These inefficiencies in trade finance mean that nearly USD $1.5 trillion of demand for trade finance is rejected by banks, according to the Asian Development Bank (ADB), with 60% of banks expecting this figure to increase over the next two years. Developing markets that rely heavily on access to trade can be severely hindered through these outdated processes. 

In addition, businesses all over the world must navigate the growing threat of cyber-attacks, changing regulations, and ever-changing sanctions lists. Despite this complexity, cumbersome and time-consuming paper-based exchanges are still commonplace.  

Take, for example, invoice financing. While a common activity, managing invoice payments and terms can be slow and inefficient for companies and their trading partners. They must navigate different currencies and jurisdictions, each with unique requirements in terms of contract terms and payments.  

By digitizing these manual processes and superseding aging legacy systems, technology such as blockchain has a real impact on reducing the costs, risks and delays to participants involved in trade finance.  

If applied effectively, the technology has the potential to unlock the potential $1.5 trillion opportunity in global trade finance. Companies of all sizes will benefit from better visibility into trading relationships and easier access to financing options, beyond point-to-point relationships, to a global network of trading parties.  

Calling for a decentralized network  

Blockchain’s integration across the financial services ecosystem has delivered some encouraging results so far. While the rollout has been more gradual than some of the more over-enthusiastic predictions, many see it as a brilliant innovation capable of remedying a lot of the operational pain points perturbing financial services. As such, there is growing debate about how blockchain can provide decentralized solutions to solve many of the problems facing trade financing.  

One such solution is real-time visibility, which is available via permissioned access to authorized network users and gives buyers and sellers unprecedented transparency into the status of their transactions.   

This single source of truth and use of smart contracts could remove a number of inefficiencies in the paper-heavy processes that exist in trade finance, such as negotiations of letters of credit. In addition, settlement finality removes the need for intermediaries to perform reconciliations. All of these applications could streamline the entire process.   

Coordinated action  

In order to move towards a truly digitized and connected ecosystem for trade finance, mass adoption on a global scale is essential. This elusive network effect can only be achieved if technology players prioritize forward-thinking and inclusive integration solutions that lower the barriers to entry for all types of companies involved in the trading process.   

If only a handful of firms adopt a blockchain solution for invoice financing, for example, the solution is useless if one company needs to trade with another that is outside this circle of early adopters. All the other benefits of blockchain such as speed, efficiency and lower costs mean nothing if you cannot use the platform to connect with the necessary counterparties.   

Marco Polo is a key example of a solution built for its market. The Marco Polo Network provides an open enterprise software platform for trade and working capital finance to banks and corporates and allows for the secure exchange of data and assets between participants. The network leverages blockchain to provide a rapid and secure way to access working capital and efficient solution to provide trade finance. When it launched in 2017, it introduced to the market an integrated solution to overcome critical trade finance challenges including lack of connectivity, time-consuming processes and high onboarding costs.  

Although blockchain has the potential to revolutionize trade finance, it is unrealistic to expect an industry that is still one step behind to adopt new technology in a ‘big bang’ moment. In reality, most businesses will continue to use their long-standing legacy systems throughout this transition to a fully digitized space. Blockchain platforms that offer high levels of interoperability with existing infrastructures will therefore prove themselves to be the best fit for purpose in the move to digital.  

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As Head of Trade and Supply Chain at R3, Alisa is responsible for trade strategy, standards and governance design. Alisa was previously a senior economist at the Asian Development Bank and holds a PhD from MIT.

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Archives, Banking, Global Trade Daily

Solving Supply Chain and Security Problems with Blockchain Technology

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In the last few years, blockchain has become a buzzword in the tech industry. The concept entered the public consciousness through Bitcoin, which uses a specific blockchain as a core component of its consensus algorithm. Back in 2017-2018, many experts were proclaiming “blockchain, not Bitcoin,” while today, Bitcoin’s latest meteoric rise and ensuing crash has flipped that narrative on its head. But while blockchain technology is often associated with cryptocurrencies, its application is powering the fourth industrial revolution and mainstreaming applications. In cybersecurity, blockchain technology can help improve security and resiliency, at a cost.

To understand blockchain-based cybersecurity, one must first understand some basic principles of how a blockchain works. A blockchain is one form of distributed ledger technology (DLT), meaning that it is used in distributed systems. Distributed systems offer greater resiliency than centralized systems since a decentralized network has no single point of failure, but that resiliency comes at a cost. Without a single source of truth for the network, reaching consensus can be difficult. A blockchain typically serves as part of that consensus mechanism—establishing a reliable record for the system to use.

Implementations vary between different blockchains, but in general, a blockchain takes some chunk of data and connects it cryptographically to the previous chunk of data, forming a chain of data blocks—a blockchain. That data can itself be encrypted using public-private key pairs so that only authorized users (or owners) can access the records.

Typically, each block of data includes a header, which summarizes the contents of the block. That header includes a cryptographic hash of the previous block’s header, and that hash forms the link between each block. Because each block builds on and explicitly references the contents of the previous block, a properly implemented blockchain is extraordinarily difficult to alter. In order to change a block’s data, every block after that block must also be edited to build on the new hash of the altered block. Consequently, older blocks are much harder to change than newer blocks.

The immutability and decentralization of a blockchain make it well-suited to certain applications. For example, financial institutions can benefit from unambiguous, cryptographically provable ownership records. Bank of America recently announced that it joined the Paxos network to speed up settlement times for stock trades, while JPMorgan has settled billions of dollars of transactions on a private version of Ethereum. From healthcare records to private genetic data, blockchain technology is also revolutionizing the medical industry. Legally, blockchain implementations could help businesses by providing a reliable, auditable data record.

As we digest the takeaways from the late spring 2021 crypto-crash, gas fees required to process transactions over Ethereum blockchain networks and environmental costs associated with Bitcoin mining need to be reexamined. But what are gas or transaction fees? While “gas fees” refers to the computing power required to securely execute a transaction on the Ethereum blockchain, they can be analogized to the transaction fees to process any crypto-currency transaction. On the Bitcoin blockchain, fees are required to pay the network’s miners to accept and verify a transaction.

While these gas fees and mining fees are an essential part of the security behind the scenes, they have become substantial deterrents to the growth of the digital asset marketplace. Startups that can create cost-savings in gas or mining fees to process transactions will be well-positioned to lead the next generation of blockchain security solutions.

If your company is considering implementing blockchain technology, consider carefully what information needs to be stored. My advice is to evaluate whether you need to use a blockchain. It is a powerful and useful technology, but it is not the right tool for every job, regardless of how popular it is. Unlike a traditional database, data stored on a blockchain effectively cannot be altered, so you need to make sure that whatever records you include compliance with all applicable laws and regulations. A mistake here could be extraordinarily difficult to fix. In some industries, the benefits will be well worth the risks. In other industries, the transaction costs need to first come down.

Some solutions to consider for industries where blockchain makes sense today:

-Bide your time. Wait it out. The market is evolving rapidly, decentralized and dynamic. With so many costs with no consolidation, new competitors are entering the market every day, and chances are that fees will reduce as a percentage of the transaction over time.

-You could also look for new blockchains or wrappers that “wrap around” existing blockchains to support more transactions, relieving congestion and offering lower fees.

-Partnering with value-priced wallets offering scaling technologies enabling lower fees is also an avenue to explore.

In the end, blockchain cybersecurity simply leverages the immutability and decentralization of a blockchain to make tampering with data more difficult while reducing centralized points of failure and giving users more control over their data. Ignore the hype, and evaluate whether this technology is right for your use case. Periodically reevaluate. This is a dynamic technology, and so is the market.

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Louis Lehot is an emerging growth company, venture capital, and M&A lawyer at Foley & Lardner in Silicon Valley.  Louis spends his time providing entrepreneurs, innovative companies, and investors with practical and commercial legal strategies and solutions at all stages of growth, from the garage to global.

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Blockchain Technology: What Is it and How Does It Work?

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What is Blockchain Technology?

Transactional records are stored in Blockchain technology which is known as the term “blocks”, of the public in multiple databases, which are known as “chains”. They are connected in a network through peer-to-peer nodes. “Digital ledger” is what this storage is typically referred to.

Each transaction is authorized by a digital signature from the owner, which safeguards and authenticates the transaction from tampering. So the information that the “digital ledger” contains is very secure.

Simply put, the digital ledger is just like a Google Spreadsheet that is shared with several computers in a network, where the transactional records are based on purchases that happened. The interesting fact is that everyone can see this data, but no one can’t corrupt it.

Blockchain Technology: Explained

Let’s suppose that you are transferring money to your friends and family from your bank account to theirs. You would have to log in to online banking and then transfer the amount you wish to the other person, all this by using their account number. When the transaction is finished, your bank updates the transaction records. It seems fairly simple, right? But there are potential issues that most people neglect.

These transactions could be tampered with. A lot of people who know the truth are wary of using these transactions. That’s why there have been more and more third-party payment apps. But this is the main reason why blockchain was created.

It’s true that Blockchain, technologically, is a digital ledger that is receiving a lot of attention recently. But what are the other reasons why it has become so popular?  Let’s try to understand the whole concept.

Keeping a record of data transactions is very important for the business. Most of the time, this information is passed through third-party brokers like lawyers increasing time, the cost for the businesses. or brokers, or it is handled in-house. But fortunately for everyone, Blockchain avoids this long process and helps to make the transactions very quickly, saving money and time.

Most people assume Bitcoin and Blockchain can be used interchangeably, but that is not the case in reality. Blockchain is a technology that supports different applications that are related to industries like supply chain, manufacturing, finance, and more. Bitcoin uses Blockchain technology in order to be more secure.

With many advantages, Blockchain is an emerging technology, in an increasingly digital world:

Highly Secure: To conduct fraud-free transactions, it uses digital signatures, making it impossible to change the data and corrupt it.

Decentralized System: You would need the approval of regulatory authorities like banks or the government for transactions, but with Blockchain, transactions are done with the consensus that is mutual between users. This results in safer, smoother, and faster transactions.:

How does Blockchain Technology Work?

Recently, it is possible that you might have noticed that Blockchain technology is being integrated by a lot of businesses. But we need to understand, how does this technology work? Is this a simple addition or a significant change? The advancements of Blockchain have the potential to be revolutionary in the future, but as for now, they are very young. Let’s begging to explain this technology:

Three leading technologies are combined for forming Blockchain

1. Cryptographic Key

2. Peer-to-peer Network with leading technologies.

Cryptography keys – consists of two keys. One of them being the Public Key and the other Private Key. These keys make sure that the transactions are successful between all the parties included. Every individual possesses these two keys. They help to secure digital identity references which is the most important aspect of Blockchain technology. Digital Signature is what is what this identity is referred to.

A peer-to-peer network is merged with the digital signature, a huge number of people who act as authorities, use digital signatures to reach an agreement among other issues on transactions. When the deal is finalized, by a mathematical verification it gets verified, which does result in a successful and safer transaction between two network-connected parties.

The Process of Transaction

The way it confirms and authorizes the transactions is one of blockchain technology’s best features. For instance, if two people wish to perform a transaction with a public key and private key, respectively, the first individual party should attach the transaction information to the public key of the second individual. This information is gathered into a block.

This block does contain a timestamp, a digital signature, and other relevant and important information. It should be noted that the block does not include any of the identities of the parts included. Block is later transmitted across all of the network nodes, and when the right person uses his private key, the transaction gets completed. For the transaction, a digital wallet is needed.

A Bitcoin wallet is a software program in which Bitcoins are stored. Bitcoin wallets facilitate the sending and receiving of Bitcoins and give ownership of the Bitcoin balance to the user. Besides that, wallet, Ethereum Wallet is also very popular.

How Blockchain works:

Hash Encryptions: This technology uses hash encryptions in order to secure the data, using mainly the SHA256 algorithm to secure the information. The receiver’s address, the transaction, the address of the sender, and his/her private key details are all transmitted via the SHA256 algorithm. This encrypted information is called hash inception and is transmitted all over the world, and after the verification, it is added to Blockchain. This algorithm makes it impossible to hack the information.

Mining: The process of adding transactional detail to present digital/public ledger, in Blockchain Technology is called “mining”. Even though it is associated most with Bitcoin, it is used to refer to other Blockchain technologies as well. What mining does is generates the hash of a block transaction, which is very tough to forge, ensuring the safety of the whole Blockchain, and it does all that without needing a central system.

Conclusion

Blockchain Technologies can be set up to operate in different ways, by using different mechanisms for the transactions, which is seen only by individuals who are authorized to, and everyone else is denied. The most well-known example of this technology is Bitcoin. It just shows how huge this technology has become. Blockchain founders are always researching other applications in order to expand the level of technology and influence of Blockchain. It seems that blockchain will rule the future world of the digital world.

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Blockchain: Everything You Need to Know

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Blockchain has transformed the way information can be shared on the internet because the data can’t be modified or deleted. Blockchain is also the foundation technology that manages the transaction entries for bitcoin.

Blockchain technology hasn’t yet been universally adopted, but it can be used to reduce expenses, speed up transactions, and improve safety for financial institutions, health care providers, companies, and more. It has the potential to dramatically change the way we do business by offering a trusted system for exchanging information.

Bitcoin is probably the most widely known application of blockchain, however, we can call that just the beginning.

But What Is Blockchain?

From the way the Blockchain stores transaction data – the name came in. Blockchain and bitcoin were first introduced in 2008.

Blockchain technology might as well be called a “book” that contains a list of transactions that should be viewed by a group of people of a network. This way, every member of the network or group has a copy of the book. Each page of this book could be called a “block” of data, and “hash” is what you could call a whole page of that book. “Hash” is a unique number. So, the “chain” links all the pages of transactions together.

But Bitcoin currency and Blockchain technology are two different things. The first one is a type of digital currency that is still uncontrolled – and those transactions are maintained by blockchain technology.

But How Does Blockchain Work?

-Every copy of the blockchain is the same or must be the same – that means members have the same information.

-New information can be added if all the network members agree that the block that is shared is valid. ‘Consensus mechanism’ is what this is often called.

-Once a new copy of the blockchain is added, all the members can see whether it matches with the old copy. If it happens that the old blocks don’t match, the current members won’t accept the new copy.

The members constantly process transactions into new sections of data. When a new section is filled, each member in the network has to verify if the block is valid by using a mathematical formula. Only when all the members agree that a certain block is valid via a consensus mechanism, then the new block is added to the chain. This process, which by the way is very complex, is the reason why blockchain transactions cannot be changed.

This complex process is the reason why blockchain transactions can’t be changed.

Blockchain technology prevents what is called “double-spending”. This is one of the reasons why it is used by most cryptocurrencies, and especially Bitcoin. No one can keep a bitcoin once they have spent it; The hackers can’t change the data blocks – as the transaction can’t be changed too.

To make data more useful, Blockchain works with protocols. The protocols are used to automate the transactions, like payments and invoices.

To reduce transactions possible errors and processing time is used a tool called ‘Smart Contracts’. That means lower costs and higher profits.

Types of Blockchain 

There is one important thing for public blockchains: anyone can join the network and can process their transactions anonymously. So, the data will be visible to all members of a public blockchain.

Using the ‘miners’ mechanism is the thing that characterizes members of a public blockchain network. The so-called miners are members who constantly validate data blocks on the public networks. They are always competing with each other to validate data blocks.

Public networks are used for cryptocurrency because transactions are direct between individuals without needing a financial bank. But since the transactions are anonymous, they are a subject of attracting criminal activity.

Once they have validated the transactions, Blockchain miners are awarded in bitcoin of another relevant cryptocurrency.

On the other hand, a private blockchain requires members to be identified. Credentials are what they need in order to validate data blocks and submit transactions. Data might be limited by a private blockchain. But this only will occur to some users and at times it could give access to other members. Private blockchains are proven to be more suitable for an individual business.

Can Blockchains Be Hacked?

Since every member has a copy of transactions, it’s proven that Blockchains are very difficult to hack, but they are still not completely secure.

To create false transactions and having them accepted – hackers should have access to multiple members – that is why is so difficult to hack.

One thing that is considered a flaw: protocols. Hackers can potentially use a weakness in the way protocols are operating, and ‘hack’ the system, but still, it is very difficult.

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The Impact of Blockchain Technology and COVID-19 on the Global Banking Industry

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Over the past few years, the transformation and digitalization of the banking and financial sector have been among the most-discussed topics. Most industries have adopted blockchain technology and it’s slowly making its way towards the global banking industry. It can be said that the future of the global banking world could be shaped by the emergence of blockchain technology.

Blockchain technology, also known as the Distributed Ledger Technology (DLT), is being peddled as the next-big-thing after the creation of the internet. The major benefit of this technology is that it provides a way for untrusted parties to come to an agreement on the state of a database, without any need of a middleman. One area where blockchain technology is likely to have a major impact is the banking & financial sector. Though the technology has disrupted the banking industry, it has also benefitted it. According to a report published by Research Dive, the global blockchain market is expected to greatly benefit the banking and financial sector in upcoming years, mainly because banking & financial service providers are increasingly utilizing blockchain applications in payment procedures to secure transfers and offer international exchanges at lower costs.

Impact of Blockchain Technology on Banking Industry

Blockchain technology in the banking industry has the potential to outshine the need for manual processes involved in the banking fund transfer system and assure clients a safer way of fund transfer. Although blockchain technology is currently not well accepted in the banking industry, the idea is slowly changing. This is mainly because blockchain technology has shown success in many industries and it has the potential to provide numerous benefits to the banking and financial sector. Listed below are some reasons how blockchain technology is impacting the banking industry.

1. Saving on Transaction Costs

Blockchain technology has the capability to enable banks to save a lot of money in terms of transaction costs. Blockchain is offering the option of fund transfers from one region to another without any paperwork and extra costs that banks apply. This has been the source of the upsurge of blockchain implementation by various banks since the savings on transaction cost can result in profits of millions.

2. Fraud Reduction

The heavy jump-in into blockchain technology in the banking industry can be because of the increasing rate at which normal transactions are being exposed to fraudulent activities. Blockchain technology has the capability of reducing fraudulent activities through the removal of intermediaries. Money laundering is one of the most fraudulent activities that happen within the transaction system where intermediaries, such as the stock exchange, play a major role. Blockchain technology is projected to have a great impact on the banking industry where it will also protect banks against fraud and cyber-attacks on bank databases.

3. The New Millennial Customers

Current and future generations are expected to rely heavily on technology compared to millennials. At present, the young generation of clients is growing in a well-networked environment with enough knowledge of online transactions and crowdsourced funding. This has made the banking industry adjust to Fintech in order to deal with millennials. With blockchain technology in banking and financial sector, millennials will be able to perform their business transactions easily.

4. Trade Finance

Trade finance activities mainly compose of paperwork transactions in the banking industry, such as billing and factoring with some international transfers in imports and exports. This area is witnessed to be most efficient when transactions are done with blockchain technology. The movement of trading and financial transactions all around the world can be quickly accelerated using blockchain technology under the smart contracts that overpowers the role of documentation and digitizes the transactions.

Impact of COVID-19 on Banking Industry

The lockdown imposed by various governments across the globe to prevent the spread of the COVID-19 has halted economic activity across many sectors. The banking sector is majorly affected but in an indirect way. While banking services do not rely on direct consumer contact and can be provided remotely, the connection of the sector with the real economy as provider of payment, credit, savings, and risk management services extends the adverse effect of the COVID-19 pandemic to banks and other financial institutions. Listed below are some negative effects of COVID-19 crisis on the banking sector.

1. Revenue Loss

Firstly, firms that have stopped working miss out on revenues, and thus these firms might not be able to repay loans. Likewise, households with members who are furloughed have less income or lost their jobs during the COVID-19 crisis might not be able to repay their loans. This has ultimately resulted in lost revenue and losses and has negatively affected banking capital and profits. And as rapid recovery becomes less likely, banks can presume further losses that will result in the need for additional provisions and will further destabilize their profitability & capital position.

2. Lost Value of Bonds and Trades

Secondly, banks are negatively affected during the COVID-19 crisis as bonds & other traded financial investments have lost value, which has resulted in further losses for banks. Also, there might be some losses from open derivative positions where the derivative has moved in unpredicted directions due to the crisis.

3. Increasing Demand for Credit

The banking industry has faced increasing demand for credit during the pandemic, as particular firms require an additional cash flow to meet costs in unprecedented times of reduced or no revenues. In some cases, this rising demand has presented itself in the drawdown of credit lines by borrowers.

4. Lower Non-interest Revenues

Lastly, the banking industry has faced lower non-interest revenues mainly due to lower demand for their different services during the crisis. For instance, there are fewer transactions and payments to be done with lower economic activity, and lesser security issues by corporates cuts down the fee income for investment banks.

However, blockchain technology can be adopted by and rescue the banking industry during the COVID-19 crisis. According to the World Economic Forum, although at very least, blockchain could tortuously help to mitigate the COVID-19 pandemic’s impact by refining the visibility of supply chains that have been hugely disrupted. The sharp increase in the number of employees accessing enterprise data and systems remotely will amplify concerns of data security, confidentiality, and privacy, creating a need for vigorous authentication and access control. This can be possible with blockchain, as the technology can protect data from being tampered with or stolen. Banks invested in blockchain technology can now leverage it to secure data & applications on their network.

Moreover, banks that find it difficult to provide financing on their own in the unprecedented times can participate in a blockchain technology-based shared lending network. Banks also have an option to use their blockchain trade finance platform in order to provide remote or distant advisory services to corporate customers that need assistance with meeting their current loan obligations, or other sources of financing.

A Step Forward with Blockchain Technology

Blockchain technology is steadily advancing into the world of payments to change the transaction environment. It has reshaped the financial services by:

-Driving efficiency and removing incorruptibility by establishing new financial processes & services infrastructure.

-Enabling the inflow of liquid cash and allowing participants to convert fiat currencies to support foreign exchange through smart contacts.

-Instigating cross-border payments in real-time

Blockchain technology has made small payments reasonable, taking the required labor out of the process, which makes broker intervention pointless with shrinking processing time. In the trade finance market, blockchain technology can boost the efficiency of import/export by streamlining access to documents related to trade, quicker settlement, and better capital efficiency.

The Bottom Line

The banking industry is one of the major sectors that is going to be impacted by blockchain technology. This technology will continue to impact the banking industry due to the increase in innovation in the IoT, which is revolutionizing many industrial sectors. Blockchain seems to open up new opportunities for cost reduction. It can vividly improve the customer journey and facilitate a more secure form of data transaction & identity. However, solving all the regulatory and technological hurdles required to fully realize the potential of the blockchain technology in banking industry seems only to be a matter of time.

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Abhinav Chandrayan has worked in the Writing industry for 2 years, gaining experience in Media & Advertising and Market Research Industry. As a seasoned writer, he is passionate about advancing his writing skills by reading and working on versatile domains. In addition to writing, he is also involved in filmmaking, where his film has won the Gold Film of the Year Award in the year 2016 at India Film Project. Outside of the office, Abhinav enjoys traveling, sports, and exploring different movie niches.

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The Next Revolution in Gaming is Blockchain

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According to a recent industry report, there are nearly 3 billion gamers in the world today, and – in 2020 alone – they will spend nearly $160 billion on games.

These numbers reinforce one inescapable fact: people love playing video games.

No corporation knows this better than video-streaming giant Netflix. In a letter to shareholders last year, Netflix told investors it wasn’t looking over its shoulder at the competition coming from other streaming services like Hulu or HBO Max. No, Netflix said it is far more concerned about competing with Fortnite, a shooting game that now commands the attention of 200 million players.

The raging success of Fortnite – and its parent company Epic Games – not only has Netflix a little nervous; it has also put other gaming giants on notice.

It might explain why Ubisoft – the company that introduced Assassin’s Creed, a gaming franchise valued at more than $300 million – recently announced it is now recruiting blockchain startups in its incubator program.

Why would a gaming company want to expand into blockchain? According to Ubisoft, “We … see a nascent ecosystem flourishing in many different directions exploring new possibilities to envision the relationships with the gamers, and between them, virtual assets ownership and exchanges, transaction security, and all what a cryptocurrency can allow.”

Exactly. Blockchain gives gamers something they have never had: the opportunity to take total ownership of the many rewards they earn or purchase while playing games. Ask any gamer, these items are costly – both in terms of money and hard work – but they have little value outside of the centralized game.

Blockchain is about to change all that.

Full transparency: I come at this from two different perspectives. One, I am a tech entrepreneur who incubates blockchain gaming startups.  But, two – and maybe more importantly – I am the father of five gamers.

Because I’ve raised a family of gamers, I have developed an understanding of gaming that goes beyond earnings reports. I’ve watched my kids get swept up in a wide variety of games over the years. I saw exactly why Sims (the most popular game of all time based on unit sales) captured their attention. I also understand why Call of Duty, a first-person shooter game introduced in 2003, mushroomed into a franchise now valued at $130 billion.  Mega-gaming hits like Minecraft and Halo were also big hits in my living room.

How does watching kids play games enhance my understanding of the gaming industry? Because I saw how each of these highly successful games won over gamers: they leveraged the latest technology to deliver a completely engrossing experience.

And that is what is happening right now with blockchain games; because they can be powered by non-fungible tokens (NFTs), they hold the potential upend the entire gaming industry.

Blockchain-based games can deliver an unprecedented, fully immersive experience. Those costly, hard-earned rewards I mentioned earlier can suddenly take on real value in a blockchain environment. That’s because a gaming collectible purchased or won in one game can now be transferred to another blockchain game. That means, for the first time, those rewards become the property of the gamer, not the game.

This transferability means gaming rewards can accumulate genuine value. They can be bought and sold in blockchain-supported marketplaces for fiat dollars, cryptocurrencies – or exchanged for other NFTs. And guess what. That also means – for the first time – gamers may even earn real money playing games.

And, as a parent of gamers, that last value proposition is music to my ears. Conservatively speaking, I estimate I’ve spent about $50,000 in gaming over the years. Blockchain games represent the first potential opportunity I have seen to recoup some of that investment.

This potential is already coming to fruition. CryptoKitties – a 2017 blockchain game where users are invited create, trade, and sell digital cats – already has more than 1 million users who have completed $40 million worth of transactions.

As an entrepreneur, the success of CryptoKitties validates my enthusiasm for blockchain games, but so does the experience of watching my 16-year old daughter play another blockchain-based game – Axie Infinity – the other night. She couldn’t put it down and I knew I was witnessing the future of gaming.

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Brad Robertson is the founder and CEO of Polyient Labs, an early-stage blockchain startup incubator. He has been an entrepreneur in the tech field for more than 20 years and he earned his JD from Pepperdine University. 

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How Blockchain Could Save the Music Industry from the Threat of Technology

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Did you know that there was a time, not so long ago, when the only way to listen to music was live and in-person? No, I’m not talking about a live stream from your favorite band on Facebook or YouTube, but listening to the music at a venue congregated alongside a small or large group of similarly-minded folks who liked the same kind of music you did. In pre-historic times like the year 1984, the concert was the only way we consumed our favorite tunes and supported the musical artists of our choice.

With the advent of recording technology, we have gone from the live concert experience to the phonograph and jukebox, the eight-track, cassette-tape, and CDs, to recent years with the onslaught of the mp3 and all digital streaming abilities. In the wake of these massive technological strides forward, the music industry has consistently been in catch-up mode; always having difficulty keeping pace. In the same way that technological changes have shaped the way we consume our favorite music, it has also played a huge part in other aspects of the industry, transforming the first and original way in which we consumed our music: LIVE.

Through technological advancement, the concert-going experience and the revenue created from these live performances have also seen a massive control shift out of the hands of the artists and the investors who deserve it.

Finding fair and legal means to regulate the consumption of music by the masses to taking back control of a rising secondary ticketing market and governing the concert experience are major issues that have united the music industry.  Together, record labels, venues, streaming services and artists fight to get ahead of the technological curve and retain earnings for people that make the music possible in the first place. Technology changes and it changes fast. It has been the central force that has thrown the music industry into decades of chaos, and it’s the very thing to set it back on its feet again.

ALL ABOARD THE DIGITAL TRAIN

In the annual Global Piracy Report, 2017 saw music theft grow 14.7%. It was the most prevalent in the United States. Technology and its maturity have played a major role in people’s ability to steal and download tunes that don’t belong to them, but this technology did not appear yesterday.

Think back to 1997. This was the year that two guys created a system by which you could swap songs with your friends at no cost. They called their technology, Napster. This was the beginning of illegal music downloading. Technology spread like wildfire through college campuses and within months had over 20 million users on the platform uploading and downloading songs from across the decades to the biggest radio hits that came out yesterday.  Major artists came together to speak out against the platform and the Digital Media Copyright Act  (DMCA) was signed into law by President Clinton in 1998 but did little good as Napster gave way to a swell of music piracy sites including Limewire and BitTorrent among many others.

While the music industry fought to control these illegal downloading sites, it was blindsided by a number of game-changing technological advancements over the next decade, including the introduction of streaming services (Spotify launched in 2001) and the introduction of digital music library through Apple’s iTunes. With Spotify and Apple Music leading the charge and giving the listener the ability to instantly devour an array of music genres and artists through a single subscription service, music streaming services (accounting for 50% of total recorded music revenues in 2017) has become the preference of most consumers looking to broaden their musical horizons or just get the song that their favorite artist released last week.

THE EVOLUTION OF MUSIC CONSUMPTION – THE TIMELINE

1877

Thomas Edison invents a device to record and play music on. The Phonograph.

1887

Emile Berliner invented the Gramophone, the invention to record on flat discs (The Record)

1948

The first LP is invented and was also known as the album.

1963

Cassette Tapes become the most popular form of music media and it’s the mobility factor made music portable.

1982

The first CD (Compact Disc) ever made was ABBA’s ‘The Visitors’ album.

1997

The first Mp3 player is released.

June 9th, 1999

NAPSTER is invented, developing the idea of free online music sharing and leading to a huge drop in music recording sales.

2001

NAPSTER is shutdown through a court order.

APPLE introduces the iPod

Streaming services like SPOTIFY begin to pop up giving way to the modern-day streaming music service

2003

iTunes and the advent of the digital music library managed from your computer come to market.

ACCESS BEFORE OWNERSHIP

With the introduction of streaming technology and services by Pandora, Rhapsody, Spotify and Apple Music, music consumers now had the ability to gain access to multiple artists all at once and for one low price per month.  Though some consumers still preferred the music quality of the CD, it was only a matter of time before streaming music became the popular choice.  Physical formats of music consumption like the CD were officially out and digital music was the dominant form.

Record companies could no longer work outside the system and fight the digital age as it cost the industry millions of dollars yearly, so over the next decade, they began to work alongside these digital streaming services building the systems and infrastructure that facilitate the authorizing of over 380 digital music services and more than 40 million tracks.  In 2016, the music industry saw its first increase in revenue by 5.9% after 15 straight years of loss or about 40% of the industry’s revenue.

So the industry as a whole is on the up and up, but It is important to note here that very little of the money that record companies receive for the digital downloads make it to the actual artists themselves. In the current business model, the label takes about 70 percent of the purchase price and this leaves the artist with only pennies from each download.

RECORDING ARTISTS COMPENSATION ISSUES EXTEND BEYOND THE RECORD

‘Access’ is also the prevailing issue when it comes to the live performance sector of the music industry’s business model but in a very different way. Still, from both the sales of their recorded music and the ticket sales to their live performances, artists are not receiving the compensation due to the creative force behind what are now big-name brands created by and profited off of by the record companies alone.

But if it is the streaming service technology and the easy access to the music keeping artists from their due on the recorded music side of the industry, what are the major industry issues and technologies that are keeping them from gaining money deserved from their concerts and tours and other live performances?

SPOTLIGHT ON THE LIVE MUSIC TICKETING INDUSTRY

The secondary market is the issue that is plaguing the current live ticketing industry. More specifically, the bot technology that is created to buy up what is usually 60% of the tickets to any given live performance. These tickets, which are usually priced on the low side by the primary markets for organizers and artists to maximize attendance of their target audience are quickly bought by secondary market resellers (with this bot technology) and then sold for sometimes triple or quadruple the original ticket price to the fans based on the demand of the artist.  So when tickets are bought and then resold at astronomical prices, only the companies and individuals (you call them scalpers) that comprise that secondary market sees the profit. Once again, the artist (and now the fans of the artists) are the ones that lose.

Both technology and legislation have been created to try to correct the fundamental issues at the heart of this industry, but both methods have fallen short of truly getting at the root of the problem.

BLOCKCHAIN TECHNOLOGY CAN SAVE THE TICKETING INDUSTRY

There is a bright spot on the horizon for artists (and fans) in regard to the issues plaguing the live concert ticketing industry and that bright spot is a new technology that has seen a recent rise in popularity across multiple business sectors called a blockchain.

By allowing digital information to be distributed but not copied, blockchain technology is the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the creators quickly found potential uses for the technology across many sectors.

Yellowheart is a start-up company out of New York City that is building a brand new ticket-selling protocol, harnessed by blockchain technology and specifically geared to control end-to-end ticketing, solving an issue that artists and ticketing providers have battled for years while enabling fans to buy the best tickets at face value.

In a recent interview with Billboard magazine, Yellowheart CEO Josh Katz explained how this technology is the key to YellowHeart’s success.

“The plague of the scalping industry is something I’ve talked to artists and friends about for years, and with the unprecedented growth of this underground system, we knew it was time to find a real solution,” he explains. “While technology and secondary ticketing sites are to blame for the growth of scalpers, we believe that technology is also our solution. Blockchain offers us the unique ability to track the entire ticketing lifecycle, which means the tickets end up in the hands of the fans, and no one else.”

Billboard went on to report that YellowHeart is just the latest startup to target the secondary market. London-based live ticketing company Dice, which recently partnered with Primavera Sound, and San Francisco-based online ticket exchange Lyte are also working on technology to take on the secondary markets and get the creative artists behind these live events the revenue percentages that they deserve.

CONCLUSION

Whether it be the revenues allocated from the digital sales of their music or the cash streams created by the sales of their most recent tour, artists and creatives are getting the short end of the stick with the current systems and technology created by the live streaming industry and the record labels to correctly and fairly compensate each for the value that they add to their label or service.

The artist and the music deserve their due and, though it is with the use and through the creation of technology that the music industry’s inequalities for artists were created, it seems that it is technology-driven platforms like YellowHeart and its use of the blockchain open ledger that give artists and investors the most hope of seeing the systems change and their true value upheld.

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Josh Katz is the Founder and CEO of YellowHeart. Founded in 2018, YellowHeart is the first socially responsible live event ticketing platform. The YellowHeart platform is autonomous, fully decentralized and runs on public a Blockchain – which enables artists and teams to identify, market and sell directly to their fans. Josh is also the Founder of El Media Group (EMG). Established in 2005, EMG is the premier subscription music provider for business, servicing over 5000 of the premier luxury brands in hospitality, food and beverage, airports, casinos, and retail. From 1996 – 2004 Josh worked within the music industry spending time at Arista Records, Jive Records and BMG Entertainment. Josh was responsible and assisted in the launch, development and marketing for many of the biggest stars in music today. Artists include Britney Spears, Buddy Guy, Gwen Stefani/ No Doubt and many more.

Archives, Global Trade Daily, Software

4 Challenges Blockchain Must Overcome To Achieve Mass Appeal

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When most people think about blockchain, they likely associate it with Bitcoin or other types of cryptocurrency.

But the blockchain technology introduced a decade ago to serve as a secure database for transactions in the cryptocurrency world has plenty of uses beyond that – and potential for even more. Around the world, blockchain can be or already has been used in such areas as energy, tourism and financial services.

Yet, plenty of people still have little knowledge of this technological breakthrough that could transform how they do business and live their lives. That raises a couple of questions: Is blockchain ready for the masses? And are the masses ready for blockchain?

“Despite renewed investor interest, blockchain technology still needs to evolve to overcome some challenges before adoption reaches people who are not early adopters or who are not very tech savvy,” says Kirill Bensonoff (www.kirillbensonoff.com), a serial entrepreneur and an expert in blockchain.

Those challenges include:

–Interaction with other systems. Blockchain’s growth depends on the technology’s ability to scale and interact with other systems and networks, Bensonoff says. “Right now, blockchain as a service is limited in performance because of slowed transaction processing times and the inability to have various blockchain platforms interact with each other,” he says. Just one way this challenge is being addressed is by developers creating consensus mechanisms, Bensonoff says. Consensus mechanisms refer to how participants in a blockchain network agree that the transactions recorded in the digital ledger are valid. “This mechanism creates a trust and validity in the transaction between participants who aren’t familiar with each other,” he says.

–Cost and usability.  The cost of creating and implementing blockchain networks remains a significant barrier, Bensonoff says. One possible solution could be the introduction of cloud-based blockchain technology from tech giants such as IBM, Microsoft and others. “These companies have made cost reduction and scaling the crux of their business offerings,” he says. For blockchain to evolve, the average user experience also needs improvement, Bensonoff says. “The good news is that developers and blockchain companies are catching on, and working to create a more welcoming look and feel for consumers,” he says.

–Regulation. If there’s a grey area in the blockchain world, regulation is it, although some states, such as Wyoming, and countries such as Malta, Estonia and Switzerland, are attempting to change that. “In the meantime, this regulatory limbo is affecting adoption, with many waiting for some finality in legislation before they implement their own blockchain solution,” Bensonoff says. As some states pass blockchain bills, hopes are high that others will follow suit, he says.

–Privacy. Blockchain’s transparency is one of its strengths – and a weakness. Bensonoff points out that blockchain acts as a public ledger, which is necessary for the technology to provide trust and to verify transactions. But that can make use of blockchain troublesome for some industries, such as healthcare, which needs to protect the privacy of much of its data. Some solutions on the horizon, Bensonoff says, include making use of new developments like stealth addresses, ring-confidential transactions and state channels.

“Blockchain is definitely going to become more useful and more popular,” Kirill says. “But it must overcome these hurdles to get where it needs to be.”

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Kirill Bensonoff (www.kirillbensonoff.com) has over 20 years experience in entrepreneurship, technology and innovation as an advisor and investor in over 20 companies. In the information technology and cloud services space, Kirill founded US Web Hosting while still in college, was co-founder of ComputerSupport.com in 2006, and launched Unigma in 2015. As an innovator in the distributed ledger technology (DLT) space, Kirill launched the crypto startup Caviar in 2017 and has worked to build the blockchain community in Boston by hosting the Boston Crypto Meetup. He also is the founder of the Boston Blockchain Angels, producer and host of The Exchange with KB podcast and leads the Blockchain + AI Rising Angel.co syndicate. Kirill earned a B.S. degree from Connecticut State University, is a graduate of the EO Entrepreneurial Masters at MIT, and holds a number of technical certifications. He has been published or quoted in such national business, blockchain and technology media as Inc., Hacker Noon, Huffington Post, Bitcoin Magazine and CoinTelegraph.

 

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How Blockchain Can Fight Counterfeiting and Fraud

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A recent report by the Organization for Economic Cooperation and Development and the European Union’s Intellectual Property Office shows that imported counterfeit goods raked in $509 billion in 2016 — nearly 3.3% of all global imports for that year. To fight back against the rising tide of knockoffs threatening their brands, companies are turning to blockchain technology to create more transparent supply chains.

Blockchain is a distributed, decentralized ledger technology controlled by smart contracts and regulated by a consensus protocol. The ledger automatically records every transaction, and every record it creates is unalterable. Depending on exactly how one uses the ledger, it can be classified as permissioned, public, or fit for purpose.

Within a brand’s supply chain, a blockchain ledger can manage a variety of activity from automating contract compliance between entities via smart contracts to tracking products from manufacturing to distribution. The ledger eliminates supply chain ambiguities and creates transparency that ensures companies and customers get the quality for which they pay.

Blockchain’s Value in Existing Supply Chains

The value of modernizing supply chains with blockchain isn’t just theory. Major brands have already begun partnering with tech firms and other entities in response to rising demands for improved brand protection. LVMH (Louis Vuitton SE), for instance, working closely with Microsoft and ConsenSys, has created Aura Ledger to provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to the used-goods markets.

Throughout the retail industry, companies like eBay are starting to offer product authentication as a value-added service. Currently, the company authenticates only handbags due to rising concerns from customers about their authenticity. However, eBay plans to expand authentication to additional luxury items that might be subject to counterfeit.

In agriculture, the blockchain-based Grain Discovery streamlines transactions between farmers and buyers, making it easier for them to form new partnerships. In the pharmaceutical industry, distributors have formed the MediLedger consortium to track the provenance of pharmaceuticals and stem the counterfeit drug market worth more than $75 billion annually.

In virtually every industry, suppliers and distributors are turning to blockchain technology to lower their risk of fraud. A decentralized, immutable record of every product’s journey can help verify authenticity — or lack thereof.

Blockchain as a Force Against Fraud

Companies that worry about counterfeit versions of their products have options to address the issue. When implemented together, the following steps can help mitigate risk and inspire confidence among companies and consumers alike:

Establish a secure supply chain network.

For blockchain to successfully transform a company’s supply chain, every business entity along the chain must agree to participate. That makes establishing a network of trusted partners the most important step toward securing products.

For example, the jewelry consortium TrustChain, which operates on IBM’s blockchain platform, only works because the group includes the mines that produce jewels, manufacturers that refine them, and retailers that sell them.

Given the rise of counterfeit purchases, most companies with strong brands are looking to work with their suppliers to prevent fraud. The momentum of such efforts increases when every stakeholder in the supply chain sees the value and signs up to actively participate in the efforts.

Choose the tags most suited for the brand and product.

Only with the right tagging technology can blockchain technology track every product along its journey. Through various IoT devices, tags can detect diversions, liquid leaks, vibrations, package openings, tilt, excessive force, and more.

Companies have several options, such as smart tags and high-resolution signatures that digitally relate products to the blockchain. Purpose-fit tags that have been developed to track shipments at the container, pallet, and package levels further help. Companies can also employ decentralized identifiers (DIDs) that are universally resolvable and globally visible to stakeholders throughout the supply chain.

This topic holds great interest across many industries. The RFID Lab at Auburn University recently announced the Chain Integration Project (or CHIP) launch, a project focused on finding ways for retail and apparel companies to communicate with their suppliers about tracking product inventory at the item level using radio frequency identification tags and blockchain. The project has attracted global companies across many industries due to the applicability across supply chains outside of retail and apparel.

Some products don’t need to be tracked with such intricate detail, while others should be tagged to track every moment of their journeys. Determine what tagging technology makes the most sense, adds business value, and is easiest to manage along the entire supply chain.

Encourage customers to be part of the solution.

When customers clearly and directly benefit from a company’s use of a blockchain-enabled supply chain, getting more partners to join the consortium becomes easier. However, brands can’t expect all end users to automatically jump on board.

When eBay released its authentication program for handbags, it did so in response to a need its customers had expressed. To entice sellers to participate, it offers several incentives if they sign up to authenticate their products.

Before long, the streamlined processes and unprecedented transparency that blockchain provides will be more than enough to encourage participation. Until then, make it more attractive through bonuses and other rewards in order to incentivize users and increase customer stickiness.

Unleash IoT, AI, and ML to actively fight fraud.

Protecting against counterfeiting and fraud isn’t always a passive exercise. With blockchain, companies can unleash the potential of IoT, artificial intelligence, and machine learning to actively prevent fraudulent transactions.

For instance, customers can scan product tags to verify their authenticity or compare images of the product against its stored signatures. Proof of purchase and other transaction details can be cryptographically linked to the buyer and product and then subsequently uploaded to the blockchain.

Any product that bears a brand’s name but can’t be tracked to its manufacturer would be considered counterfeit. A company can ensure, in real time, that it receives compensation for every product sold with its name on it.

The reported value of fraudulent goods that hit the global market is expected to continue rising, but companies are no longer helpless in the face of counterfeiters. As more industries and their supply chains embrace blockchain technology, counterfeit goods will no longer have a place in any market.

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Mohan Venkataraman is the chief technology officer of Chainyard, a blockchain consulting company focused on delivering production solutions that address supply chain, financial services, transportation, government, and manufacturer pain points. With more than 20 years of proven experience, Mohan has extensive skills in software engineering, governance best practices, and industry models. With exposure to more than 70 clients, he has a clear focus on understanding client needs and aligning technology and business priorities to deliver value. His current interests include blockchain, cloud solutions, big data, service-oriented architecture, governance and integration competency center establishment, and enterprise architecture, with a focus in telecom media, technology, insurance, retail, healthcare, and life sciences industries.