● Blockchain in a nutshell
Blockchain is a transparent, tamper-resistant distributed ledger or database for recording transactions. Before the blockchain can be updated, the transactions must be verified by other parties of the blockchain network. Everyone who is participating in the blockchain has a synchronized record of all transactions that have ever occurred. Thus, information can be shared quickly and cannot be changed without the network participants knowing. This makes it a revolutionary way to authenticate and verify all the transactions that happened in the chain.
Blockchain technology creates the backbone for a new type of internet for transactions.
"What the internet did for communications, blockchain will do for trusted transactions"
Though blockchain got its start with Bitcoin, it is not just a financial services technology. Opportunities for blockchain is endless as the technology is adopted across various industries for Digital Transformation.
Business-to-Business (B2B) transactions involve lengthy, paper based processes and third-party intermediaries. For those seeking to disrupt their industry by changing the way people and businesses currently transact, blockchain is a game changer.
From establishing the provenance of goods in a supply chain to healthcare records, tax collection and digital identity management, blockchain can be used to increase transparency, facilitate trust among participants in a business network, and remove friction as assets are sold, traded or shared.
● Is Bitcoin and Blockchain the same thing?
In a word, no! Bitcoin is just an application that runs on blockchain technology.
A business blockchain, such as IBM Blockchain running on Linux Foundation’s Hyperledger Project, provides a permissioned network with known identities. Unlike Bitcoin, there is no need for cryptocurrency exchange in a private blockchain.
● IBM’s leadership in Blockchain space
IBM is successfully helping corporations with Blockchain implementations. The main reasons blockchain has got big companies excited are the opportunities it offers for transparency, security, low-cost, and lack or reduction of intermediaries in the tracking process.
In global shipping, the IBM blockchain provider is working with Maersk, Dow Chemical, and DuPont. In mid-January, IBM and Maersk started a blockchain platform to boost trade processing and cut costs.
IBM’s blockchain technology is also implemented in the finance industry, with Societe Generale, HSBC, WeTrade, Unicredit, and Santander being top partners. The US tech giant is also working with payment providers like VISA, BBVA, CIBC, EarthPort, and Polynesian payments platform KlickEx.
● How does the Middleeast landscape of Blockchain look like, right now?
Dubai is known for being at the forefront of technological innovation. As one of the first governments to engage with blockchain, Dubai’s story is inspirational. It provides a road map for creating smart cities by transforming transactions with the distributed ledger technology.
Dubai Blockchain Pilots announced by Global Blockchain Council
Global Blockchain Council which consists of a wide range of members, including government entities, leading United Arab Emirates banks, blockchain technology firms and international companies such as IBM has announced 7 Pilots
1. Digitize health records on blockchain to provide patients and care providers with secure access to medical data.
2. Digitize and transfer Kimberley certificates on blockchain to secure the diamond trade.
3. Transfer titles of illiquid assets on blockchain to increase trade efficiency.
4. Streamline ID verification to reduce business registration times.
5. Use blockchain-based wills and contracts to ease transfer of ownership.
6. Boost tourism in Dubai through a blockchain-based program that would allow visitors to better earn and spend loyalty points.
7. Apply blockchain to trade finance to more effectively exchange goods and the financing for those goods.
Dubai would implement and go live with 20 blockchain-based projects in 2018.
Its government had previously formed Smart Dubai, an agency created with the aim of making Dubai the most technologically advanced, and smartest city in the world. IBM has entered into strategic partnerships with the agency in advisory roles in order to help realize the goals of Smart Dubai.
How can I harness the power of blockchain technology in my business?
Working with blockchain requires planning. You need evolve your blockchain strategy and adoption. Even if you’ve been experimenting with the technology, there are a lot of factors to consider when you decide to move to production.
SBM can help you understand the power of the blockchain and distributed ledger technology and how it can be implemented into your business model. Talk to one of our dedicated experts today to learn how your organization can use blockchain technology to cut costs, boost sales, track your supply chain and shore up your security in a digital world.
For more information please contact
Dinny Peter | IBM Software Growth Business Leader | DPeter@sbm.com.sa