PepsiCo recently conducted a blockchain-based trial in order to enhance its supply-chain efficiency which resulted in a humongous 28% boost. As reported in the news, the main focus of the project was programmatic advertising and the initiative was named “Project Proton”.
Well-renowned blockchain platform Zilliqa was used in the experiment and its smart contracts were utilized to automate the programmatic supply chain. Zilliqa’s smart contracts were employed to conduct the ad campaign and costs were calculated for viewable impressions with and without the usage of these contracts. Overall, a 28% boost in price is quite significant for a corporation of such an international strength as that of PepsiCo. The Asia-Pacific region was selected to conduct the trial back in March.
Mindshare, which is PepsiCo’s project partner and media agency, stated:
These smart contracts reconcile impressions that are delivered from multiple data sources with payments facilitated using an internal Native Alliance Token (NAT) all in near real time, resulting in major efficiency gains and complete transparency for the brand owners.
Other projects involved in this programme included MediaMath, Integral Ad Science and Rubicon Project. So is it the first time a blockchain solution is being looked out for in the supply-chain niche of the industry? The answer, no. But before looking at how blockchain solves the supply-chain efficiency issue, there is need to understand the benefits that it bestows to this area.
Blockchain provides a decentralized, peer-to-peer system of operation where the record of every process happening on the network is visible to every node participating and maintaining the network. It also provides a native payment framework in the system in the form of a crypto token. Since transactions are recorded accurately with every peer having access to the record, a trustless system of operation is established where the trust is put in the code and math, not in a centrally controlling force.
Supply chain benefits from blockchain as it solves the vital requirements of transparency, efficiency, and communication by eliminating middlemen and making the system more streamlined. In the complex supply-chain frameworks of the modern world, where big corporate giants use raw materials imported from various countries, with numerous stops in between, tracking of goods often becomes a big problem. But not under a properly-employed blockchain framework’s watch.
Recently, LVMH, a French Luxury brand conglomerate headquartered in Paris with brands like Fendi, Christian Dior SE, Luis Vuitton under its belt, explored the prospect of using blockchain in order to curb the prevalence of fake items. For such a big brand, fake items selling is a monstrous issue and blockchain technology solves it with a snap. For blockchain, the use-cases go as far as tracking luxury items and even beef.
Corporate giants BMW Group Asia, Intel and Nielsen recently became corporate partners of the Singapore-based blockchain accelerator Tribe. The main drive behind partnering with such initiatives is to develop new projects that are ready for industry 4.0, which sees field-mergers between data science, machine learning and ever-growing artificial intelligence. The well-renowned German car manufacturer and innovator, Mercedez Benz, also partnered with Icertis to develop a sustainable transaction book with the aid of blockchain technology.
The influx of corporate giants like LVMH, BMW, Mercedez, PepsiCo. into the world of blockchain clearly signals that the role blockchain is going to be big in the future industrial world. Blockchain presents unique technological cushions to the problems posed forward by conventional industrial practices. Supply-chain seems to be just the first stepping stone in the stream of changes that can be seen in the areas such as logistics as blockchain further integrates into the industry. Industry 4.0 is incomplete without proper implementation of blockchain. Previously stated by Andre Luckow, the blockchain technology lead at BMW Group:
…blockchains enable us to improve cross-organisational and crossindustry collaboration by increasing efficiency and transparency.
But behind blockchain’s success in the industry and the financial world, hangs the possible fate of another entity, bitcoin.
Bitcoin boasted the prime use-case of the nascent technology of blockchain as it erupted out as the alternative to the centuries-old but not perfect system of banking. The debt-based banking system has its own uncertainties associated with it as the reasons behind the global economic recession of 2008-09 are still being explored in detail by experts. The banking system is not at all fool-proof. While some economist recently predicted that we might see another economic recession in the near future, cryptos are gearing up both in terms of technology and legislation to rise up to the occasion and prove their mettle.
Blockchain, in particular, is progressing at a very rapid pace with a lot of investment and capital flowing in. Since it is the exact technology lying underneath bitcoin, the digital asset’s future hangs largely in balance with the fate of this technology. As issues like scalability and problems like the 51% attack on a blockchain are solved, a larger layer of trust regarding both blockchain and its biggest use-case bitcoin will be established among the institutions and the general public. Bitcoins needs its underlying technology to succeed to get more public confidence and so far, it’s all going smooth for the world’s leading cryptocurrency in terms of market capitalization. Irrespective of the price, technological security and perks carry extreme importance if bitcoin is to rival the fiat system of money.