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Samsung Delves Deeper into Crypto Exploring Blockchain for Its Logistics

· April 16, 2018 · 5:00 pm

Samsung Electronics Co. is the latest big name to show a keen interest in the powers of blockchain technology, specifically, how it can be incorporated into their supply chain management processes.


Even though cryptocurrencies may still be getting critiqued, it’s supporting technology is being more readily adopted. The advantages of blockchain such as security and immutability, are major drawcards for companies that rely heavily on record keeping, such as healthcare, finance, and even art.

Blockchain to aid in shipping

However, it is also a viable option for supply chain management, an option that massive electronics corporation, Samsung, is ready to explore. According to Bloomberg Quint, the company’s logistical and information and technology branch, Samsung SDS CO., could use a blockchain ledger to monitor their billion-dollar global shipments sector.

Song Kwang-woo, the blockchain chief at SDS, touched on how the technology could revolutionize other businesses:

It will have an enormous impact on the supply chains of manufacturing industries. Blockchain is a core platform to fuel our digital transformation.

A cost-effective way of working

A part of this digital transformation is working towards a paperless way of doing business. Not only are physical documents annoying, they’re expensive too. In fact, according to International Business Machines Corp., the documentation costs for container shipments is more than double that of other modes of transportation.

When it comes to Samsung shipments, this equals a substantial amount of money. For this year alone, SDS projects that the company will transport 488,000 tons of air cargo and one million 20-foot-equivalent (TEU) shipping units. The SDS has said that by implementing blockchain technology, the company could save as much as 20% in shipping fees.

It’s not just about saving money though. Blockchain technology could actually impact on overall customer satisfaction. This is because efficiency associated with this technology could mean a shorter time span between product launches and product shipment. Not only will that keep Samsung customers smiling, it will also give the company a competitive edge over their industry rivals.

Cheong Tae-su, who is a professor of industrial engineering at Korea University, explained a bit further:

“It cuts overhead and eliminates bottlenecks. It’s about maximizing supply efficiency and visibility, which translates into greater consumer confidence.”

What’s more, Samsung appears to be going all-in into cryptocurrencies in general as it recently announced manufacturing mining chips. This move that puts them in direct competition with the Taiwan-based company, TSMC, a preferred ASIC chip supplier to Bitmain.

Samsung joins an ever-growing list

Samsung isn’t the only global company big on blockchain. Mastercard recently announced that they will soon be hiring blockchain experts to help drive innovation with regard to payment solutions.

Governments are also realizing its benefits, with China financially contributing towards blockchain-based startups. In addition, the European Union has launched the EU Blockchain Observatory and Forum, which aims to foster blockchain promotion.

The blockchain business is definitely booming. The US-based research company, Gartner, has predicted that the technology will add $176 billion USD worth of value to businesses by 2025. This number is set to increase to over $3 trillion by 2030.

What do you think of yet another big corporation using blockchain technology? Let us know in the comments below!


Images courtesy of Shutterstock, Bttcoinist archives

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Mastercard Blockchain Now Open for Payment Processing

· October 21, 2017 · 8:30 pm

Mastercard has opened up their own blockchain to allow payment transactions to be carried out between selected banks and merchants, but this process uses fiat currency and not Bitcoin or other cryptocurrencies.


Quite a few companies have taken a keen interest in what blockchain technology has to offer, and one of these corporate entities is Mastercard, the massive credit card provider. Mastercard has spent the last few years developing its own blockchain, and now the Mastercard blockchain has been opened up as an alternative method of paying for goods and services. The major difference found in the Mastercard blockchain is that it does not use its own cryptocurrency. Instead, it uses real world money.

Mastercard Blockchain Open for Business

The Mastercard blockchain is now open for specific banks and retailers to use as a payment processing system. So far, participation in this blockchain is by invitation only. The last week has been a busy one for Fortune 500 companies and blockchain technology. IMB opened up their own blockchain earlier in the week. Probably the most intriguing aspect of the Mastercard blockchain is that it does not use its own cryptocurrency, which is something that even the IBM blockchain does.

Justin Pinkham, a senior vice president at Mastercard Labs, says:

We are not using a cryptocurrency, and we are not introducing a new cryptocurrency, because that introduces other challenges—regulatory, legal challenges. If you do a payment, then what we can do is move those funds in the way that we do today in fiat currency.

Why the Mastercard Blockchain Could be Very Successful

Some people may look at the Mastercard blockchain and shrug, but there are some factors in why it could be very successful. The first such reason is that Mastercard is lord and master of a vast financial empire, so to speak. It has a settlement network that counts 22,000 banks and financial institutions from all over the world. Few other entities have such a global reach. Another important factor is that the Mastercard blockchain only uses fiat currency, which reduces costs as there’s no need to convert one form of cryptocurrency into another and then, eventually, cash.

This reduction in cost is also amplified by reducing fees for cross-border payments. Normally, a payment that crosses national borders would have to pass through different sovereign banks, racking up fees with each step. The Mastercard blockchain would remove those steps entirely, thus making the payment less expensive and probably faster. Eventually, Mastercard’s blockchain could be used for other items, such as luxury goods to provide “proof of provenance.”

Overall, this is an interesting development. Could the lack of a cryptocurrency tie-in fire a shot across the bow of other blockchains? One also wonders how the energy use for a single transaction on the Mastercard blockchain compares to current credit card transactions and Bitcoin. A Dutch bank recently reported that the average energy cost for a Bitcoin transaction was 200kWh, and the cost for an Ethereum transaction was 37kWh. By comparison, a credit card transaction only incurred an energy cost of 0.01kWh.

Do you think the Mastercard blockchain will have a major impact? Does the fact that it does not use a cryptocurrency have long-lasting ramifications? Let us know in the comments below.


Images courtesy of Wikimedia Commons, Pixabay, and Flickr.

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