The first application of the blockchain technology was on the cryptocurrency space. However, this has changed over the years, and people are now exploring more applications in this space. The insurance industry has not been left behind as it seeks to explore the benefits of this fantastic technology.
The insurance industry has been in existence for centuries, but the blockchain technology is still in its infancy stages. The following are some of the applications of the blockchain technology on insurance.
If you have ever switched healthcare providers or insurance companies, then you understand they take time to process your data and get you started. Most of the customers also have a fear that they will lose control over their personal data.
The blockchain is providing a solution to both the security and control issues. Customers now have control over their data while the verification process is conducted on the blockchain platform.
Detect and prevent fraud
Insurance companies are very susceptible to fraudulent claims. About 5-10% of the claims that insurance companies receive every year are fraudulent.
The blockchain technology is providing a validation platform that will help insurance companies detect and prevent such occurrences. Different players such as the consumers, manufacturers and the insurers need to come together to make this a reality.
Improve claims processing through smart contracts
Some insurance companies take months or even years before they compensate a client. There are a lot of intermediaries and data is scattered all over which makes processing of claims tiresome and very involving. Smart contracts are the solution to this problem as everything will be automated.
The blockchain will provide some conditions that need to be met before the contract self-executes. The blockchain is transparent and will ensure that the insurer pays only for valid claims.
The good thing with the blockchain network is that it will detect if there are multiple claims submitted for the same occurrence. Human intervention will be very minimal when settling claims which will speed up service delivery process. With smart contracts, all the players will get real-time information from different sources which make processing of claims fast.
The service industry depends on trust. Insurance companies perform a tedious process of verifying their potential customers and what they want to insure through documents. Cases of underinsurance are very rampant which makes insurers lose large chunks of money every year.
The blockchain platform provides a solution to this problem as the insurer can verify all the information before a client takes a cover. It is also effortless to detect cases of double insurance whereby some of the customers take more than they are supposed to when an accident occurs.
It is quite evident that the blockchain technology is already mainstream. One of the biggest beneficiaries of this disruption is the insurance industry, and it is only a matter of time before everyone realizes it.
Huawei is among the leading technology giants with its wide range of products. The company has been a principal investor in blockchain technology.
In 2016, it joined Hyperledger. The open source platform is hosted by Linux Foundation and is among the best of its kind. Huawei plays a significant role in maintaining the Hyperledger and is the only company from Asia to hold such a responsibility.
According to the official website, this service which was launched in November 2015 helps developers and global enterprises to manage, create and deploy blockchain applications at a minimal cost.
This service can be used for various cases such as Internet of Things, data, identity authentication, remote healthcare, proof of information, IoT device management and food source training among more other applications.
During the launch, an official from the company commented that this service provides substantial assistance to establish a technological ecosystem and transform industries digitally.
Some of the advantages of using Huawei Cloud include:
Open and easy to use;
Huawei promises a platform that allows users to deploy in minutes and with a simple configuration. This is made possible because the platform is built in compliance with Hyperledger Fabric.
Privacy protection with robust security;
There are complete isolation and management of users, permissions, and keys. This is made possible by multilayer encryption which is not possible to manipulate.
Compared to other enterprise solutions, Huawei Cloud is cheaper as it charges on a pay-per-use basis. This implies that you will only pay when you use the platform.
The company believes that blockchain
technology is not something new but just only logical reconstruction of some
technologies that have been in existence. Some of the technologies that this company
notes include cryptography, smart contracts and distributed ledgers. In a bid
to avoid duplication of its efforts, Huawei patented an idea that allows
verification function of P2P content on the blockchain platform.
According to a company representative, Huawei aims at providing blockchain solutions in the following fields:
Digitalization – Multi-party distributed ledgers will help optimize processes and efficiency in government offices, transport sector, energy industry and finance sector.
Artificial intelligence – The blockchain provides verifiable data which makes it easy to analyze and apply in vertical markets.
Network – Create a self-organized Internet of Things network that supports M2M secure communication, resource sharing and M2M transactions.
The blockchain phone
Huawei is the 3rd largest manufacturer of mobile phones in the world and is even looking for ways to perform better. Huawei revealed its intention to develop a blockchain smartphone in early 2018. The company has been in talks with Sirin Labs as it seeks to use the SIRIN OS in the new line of phones powered by the blockchain technology. This is the first move from mobile phones manufacturers, and others might follow suit. According to inside sources, the smartphone will also come with a cold cryptocurrency wallet. The company also has plans to create a register that will record ownership of its phones on the blockchain.
HUAWEI IS INVESTING IN BLOCKCHAIN TECHNOLOGY - HERE'S WHY - YouTube
Bank of America is the 2nd largest financial institution in the US and one of the earliest adopters of blockchain technology. The bank has patented more than 50 ideas on the blockchain space which is the highest at the moment among banks.
The big question is, will BofA utilize all these patents or will it just lock competitors from realizing the full potential of the crypto space?
Wire Transfers Using Cryptocurrency patent
Its first application was recorded as “Wire Transfers Using Cryptocurrency.” The patent application did not mention the use of blockchain technology, but it is obvious that there will be the use of blockchain technology because you cannot separate the two.
The move was the first of its kind in the US as no other bank had expressed interest in patenting an idea on the blockchain in the past. It was not surprising that it comes from the Bank of America as it was one of the first banks in the US to give bitcoin some mainstream coverage.
According to “Bitcoin: a first assessment,” a paper compiled by its strategists in 2013, bitcoin has the possibility of becoming a major means of payment. The paper also states that it could bring real competition to the traditional money markets.
Cryptocurrency exchange system patent
Among the patents that BofA has won is the ‘Cryptocurrency exchange system.’ The digital currency exchange will allow automatic conversion of one digital currency to the other and external data feeds will determine the exchange rate. The proposed system will collect and gather information from external sources and use this data to determine its optimal rates.
ATM as a service patent
BofA’s application suggests that we can have a network of ATMs that are powered by the blockchain technology. According to the application, the blockchain technology will speed up transactions and also diversify what ATMs can do. ATMs will thus handle transactions such as gift registry on top of cash withdraws and deposits which are the main functions.
The Bank of America became a member of R3 in 2015 which brings together various players such as banks, traders and fintech companies to work towards developing blockchain solutions.
Talking to CNBC in a past interview, Catherine Bessan who is the chief technology operations officer had the following to say;
“Technology is fascinating, and I can confirm this because I am a technologist. We as a bank have tried to be at the forefront, and I know a good number of people will be surprised that we have so many patents on this field.”
However, some officials had in the past referred to bitcoin as ‘Troubling.’ As if that was not enough, the bank had banned its customers from buying bitcoin using its card. As the bank continued learning the crypto world, it lifted the ban on May 2018.
Bessant was of the idea that cryptocurrencies do not provide the transparency that blockchain claims to promise. For instance, one can use a pseudonym while transferring bitcoins, unlike a bank that registers the customer details.
BANK OF AMERICA HAS MORE THAN 50 BLOCKCHAIN PATENTS - YouTube
Crypto Regulatory Developments Around The World - YouTube
The beginning of the year has brought some important regulatory news for crypto from the US, the UK and the EU.
In the crypto-friendly and dynamic US State of Wyoming, two new legislative bills have been filed in January. The first one aims at classifying digital assets as “intangible personal property” within the applicable Uniform Commercial Code as well as introducing an opt-in framework for banks to provide custodial services for digital asset property.
The second one proposes
to allow Wyoming corporations to issue “certificate tokens” and substantially
recognizes “certificate tokens” as equivalent to normal stock
certificates. Of course these are not enacted legislations and we will see how
the process evolves before those bills can become law.
In Europe, the English FCA has issued a consultation paper on its proposed Guidance on crypto assets which I have recently commented here.
Luxembourg´s initiative seems to go a step ahead of the above mentioned recognition of the effects of DLTs time stamping by the Italian Senate.
Will Italy Be the First Country to Enforce Smart Contracts? - YouTube
legislative moves do not seem to deal comprehensively with the issue: on the
one side, Luxembourg recognizes the transfer of financial instruments using
DLTs but does not expressly gives legal validity to the data embedded in DLT´s
(time-stamping). Italy, on the other
side, recognizes the legal validity of DLTs time stamping but does not
expressly acknowledges the circulation of financial instruments via DLTs. Both
seem to fall short of the objective. This is more material to analyze legal
comparative aspects at ThinkBlockTank.
The token represents a debt instrument paying an annual interest of 4% per year, plus a variable interest amount equivalent to 60% of the profits realized by Bitbond GmbH in its business activities.
Two important points are worth noting:
The token holder is paid interest in Stellar Lumens (XLM) thereby always bears the exchange-rate risk with Euro or other accepted Crypto such as BTC or ETH;
In the Light Prospectus here Bitbond Finance claims that it will buy back the token at the original price of €1 at maturity after 10 years, therefore the token holder seems not to bear the exchange-rate risk on the principal. In the meantime, with the German colleagues at ThinkBlockTank, we are looking into this Prospectus and I will soon report to you additional details on this interesting topic.
On the EU
regulatory side, the ESMA and the EBA have released 2 long awaited reports on
ICOs and crypto-assets.
report is aligned with the ESMA report but specifically analyses crypto-assets
in the light of the Payment Services and Electronic Money Directives (PSD2 and
EMD2). The results can be summarized as follows:
I. A crypto-asset qualifies as “electronic money” only if it:
is electronically stored;represents a claim on the issuer;
has monetary value;
is issued on receipt of funds;
is issued for the purpose of making payment transactions;
is accepted by persons other than the issuer.
In all such
cases, authorisation as an electronic money institution is required to carry
out activities involving e-money, unless a limited network exemption applies in
accordance with Article 9 of that Directive.
II. PSD2 will then apply only to crypto-assets that qualify as e-money as clarified above under (I).
III. Regarding the secondary market services
i.e. crypto-asset trading platforms and custodian wallet providers – the EBA voices again its concern about money laundering risks and risks to the consumers.
IV. Finally, the EBA shares ESMA´s conclusions about the EU Commission´s need to create a regulatory level playing field across the EU.
report is based on a survey
carried out by 28 European NCAs (National Competent Authorities) on 6 different
ICOs completed in 2017-2018, which tokens have differing characteristics that ranged
from investment-type, utility-type, to hybrids and payment-type. Pure payment-type
tokens were not included in the sample set on purpose, as they are unlikely to
qualify as financial instrument.
The results of
this survey can be summarized as follows:
The crypto-assets sector remains modest in size and ESMA does not believe that it currently raises financial stability issues. However, ESMA is concerned about the risks it poses to investor protection and market integrity.
2. The outcome of the survey highlighted a NCA majority view that some crypto-assets, e.g. those with profit rights attached, may qualify as transferable securities or other types of MiFID financial instruments.
3. However, because of differences in the implementation of MiFID at national level, the definitions of what is considered a “financial instrument” differ among member states. This leads to confusion and jurisdiction arbitrage by the players.
4. If the “financial instrument” test is positive then the whole set of EU financial rules will apply such as MiFID II, the new Prospectus Regulation, MAR etc.
5. If instead the “financial instrument” test is negative then such set of rules do not apply. In this case however ESMA advises that all operators shall be subject to AML regulations.
6. ESMA is concerned that the strategy of certain member states to regulate individually crypto-assets does not provide for a level playing field across the EU and therefore proposes that the EU commission steps in to coordinate an EU-wide approach.
European Union 2050 Energy Strategy and VeChain Digital Carbon Platform - YouTube
if one bothers to look into the Annex of the NCA survey, the discrepancy in
what constitutes for NCAs a financial instrument and then a security under
different EU jurisdictions appears pretty clear. Take in fact the CRPT (Crypterium)
token for instance: for 15 NCAs it is a security, for 10 it is not and 3 do not
even know the answer.
No doubt that some consistency is needed at EU level.
Crypto Regulatory Developments Around The World - YouTube
Mastercard is one of the biggest payment platforms in the world. The company has not been left behind by the technological wave as it has been exploring various innovations to make its processes better and more efficient.
The blockchain technology is one of its best explorations so far. The company even patented an idea that partitions a blockchain to allow it to store transactional data in various types and formats. Mastercard aims at using the blockchain technology in the following areas.
One of the biggest challenges that face international payment platforms such as Mastercard is the use of false identity. The blockchain provides an immutable platform which makes it hard to manipulate data.
The identities of various players will be on the blockchain which makes verification easy and fast. The blockchain will prevent irregularities because the fabrication of data will be a thing of the past.
Blockchain at the point-of-sale
People lose money from their credit cards in a mysterious way just because someone duplicated the card details at a point of sale. Globally, people lose more than $2 billion every year to credit card skimmers. Mastercard wants to solve this predicament using the blockchain.
The platform will first encode the image of the payment card and then store it on the blockchain. There will be encryption of the card using both private and public keys. When a customer wants to pay using the card, he or she will make a retrieval request. The blockchain will then decrypt the image of the card using both the private and public key. The cardholder does not need to use the physical card which prevents ‘skimming’ at the point of sale.
Problems and Solutions
According to Mastercard’s official website, the current world does not have an efficient and effective system that proves that goods and services are what they claim to be. Such products can be forged or manipulated, and the end consumer will never know.
The website goes on further to highlight that the Mastercard Blockchain offers ‘new commerce opportunities for financial institutions and business owners to transfer digital assets on a distributed ledger’.
To show its commitments and believe in the possibilities of blockchain technology, Mastercard has joined and invested in many courses. It is a member of the Enterprise Ethereum Alliance which is known to connect Fortune 500 companies with academicians, blockchain experts, and FinTech startups.
The company has also invested in Digital Currency Group that incubates cryptocurrencies such as Bitcoin and Ripple. In April 2018, the company hired more than 175 technology developers who include blockchain experts to work in its Ireland office.
The main challenge of the blockchain technology in payment systems is its sluggishness. For example, the bitcoin blockchain platform can take up to 10 minutes to process a single transaction. On the other hand, Mastercard can handle up to 24,000 transactions every second. The scalability issue is something that developers need to look into before blockchain becomes fully mainstream.
Facebook might be headed to a new direction to adopt blockchain as its CEO, Mark Zuckerberg confirmed on a new video he released on February 20. Talking to Jonathan Zittrain who is a law professor at Harvard University, Mark discussed the idea of making Facebook more decentralized by applying the blockchain technology.
During the interview, Mark stressed that Facebook was a significant force in decentralizing the world. He believes that most people joined the platform because it gives them power. Mark explains that the best application of blockchain technology can be on user authentication during the login process.
Facebook has been working so hard to ensure data privacy after the Cambridge Analytica case where people believe their data was exposed to 3rd parties.
Mark highlighted that individual data could be stored in a decentralized platform, the blockchain, and the user will have to log in without involving a 3rd party.
However, he notes that the decentralized system will give users better control of their data while at the same time raises the stake of more abuse. He bases his argument on the fact that it is easier to hold big companies such as Google and Bing accountable than a series of 3rd party apps.
Zuckerberg’s talk with Zittrain is the first talk within the series he wants to hold this year discussing the future of technology and its impact on society. Zittrain mentioned Solid which is a project led by Professor Tim Berners-Lee who is known as the inventor of the World Wide Web.
Solid is working towards having a platform that stresses on “true data ownership.” User data will be decoupled from many apps and then stocked in one ‘locker.’ It is only the user that will have access to this data, and no one else can log into the ‘locker.’ Professor Zittrain asked Zuckerberg of what he thought about the idea, and he responded by saying that we should focus on the philosophical goodness of such a system rather feasibility soon.
He highlighted that they were working on an encryption service for its messaging platforms and make it decentralized. He was quick to highlight the benefits of encryption as privacy and security. Mark is the opinion that people ‘expect Facebook to prevent people from exploiting and abusing their children or even terrorists from recruiting more people’.
Mark stated that he has an interest in blockchain and has been thinking about it a lot recently. He was quick to state that he has not yet figured out how to fully tap into it, but they are in the process. He notes that making Facebook fully decentralized will take massive computations. However, he notes that their focus is on decentralizing user authentication because it will be beneficial to both parties and also easy to implement at the moment.
We expect more from Facebook on the blockchain field as we all know that it acquired Chainspace early this month. This social media giant aims at benefiting from the expertise from Chainspace employees in the blockchain field.
Mark Zuckerberg Considers Applying Blockchain - YouTube
Samsung is just about to release its flagship smartphone, Galaxy S10. But that is not big news.
The news is just a confirmation of the rumors that have been around the internet speculating that Samsung is about to make adoption of cryptocurrencies mainstream.
What is fascinating is the fact one of its main features is that it will store private keys which makes it a cryptocurrency wallet for various coins.
The new smartphone will have four variations which include Galaxy S10, Galaxy S10E, Galaxy S10 Plus, and Galaxy S10 5G. Some of the most striking features of this phone include three rear cameras, a single front camera, ultrasonic fingerprint scanner, and a 6.1 display.
According to company’s statement about the phone, it will provide groundbreaking innovations for those consumers who want ultimate mobility, fastest speeds available, digitized data experience for movies, music, messages, images, and money.
The new smartphone will also have ‘intelligent Wi-Fi’ that enables switching between LTE and Wi-Fi. Its Artificial Intelligence capabilities will also allow the smartphone to learn the apps that a customer uses most and enable fast launch.
Early rumors highlighted the smartphone would only support Ethereum on its wallet. However, the presale picture featured bitcoin, and some people argued that it must be a hitch of some kind.
To clear the air, Samsung issued an official statement which indicates the flagship phone will feature Samsung-Knox and secure storage which is backed by hardware and will house private keys for mobile services that are powered by a blockchain platform.
Samsung Knox is all about the security of the phone and its components.
According to reports, it will verify the integrity of the smartphone constantly by conducting numerous security checks at both the Operating System and hardware levels.
The device will come with the Exynos 9820
chip and back it up with PUF technology. The Exynos 9820 chip is the ideal
processor if Samsung opts to have a native cryptocurrency. Samsung has not yet
confirmed whether it will feature a native wallet or will allow 3rd party
However, Samsung cannot brag to be the first smartphone manufacturer and supplier to produce a device with blockchain capabilities. HTC manufactured Exodus 1 and marketed it as a ‘smartphone built for this new internet.’
Sirin Labs also late last year built Finney after a successful ICO. This smartphone as well comes with a full-scale crypto wallet. The good thing with Samsung is that it will feature crypto support in its flagship model. Its competitors like Huawei are speculating manufacturing a blockchain smartphone which can be a game changer.
Samsung S10 – Gamers corner
Galaxy is not for crypto enthusiasts alone but gamers as well. It will feature AI-based on-device software that optimizes gaming performance. It will also come with premium hardware such as Dolby Atmos that supports gaming mode and a cooling system on the vapor chamber. Of all the mobile devices created on the Unity platform, Samsung S10 will be the first one that is optimized for gaming.
FedEx ranks among the world’s biggest logistics management firms. It operates in an industry that is known for trust issues, difficulties in clearing and involvement of a lot of intermediaries, especially for international shipping. This company has found a solution to its core problems through various blockchain platforms that it has joined.
How FedEx Is Benefiting From Blockchain - YouTube
In mid-2018, Fred Smith who is the CEO of FedEx was quoted saying that “blockchain is the next frontier that will change and revolutionize the world of supply chains.”
True to his statement, the company has joined various frontiers and partnerships that aim at bringing blockchain to the supply chain and logistics industries.
FedEx is a member of Blockchain in Transport Alliance.
FedEx and Hyperledger
FedEx’s first move towards adopting blockchain technology was joining Blockchain in Transport Alliance in early 2018. BiTa is a commercial blockchain alliance that brings together different players in the freight logistics, and transport industries.
FedEx is among the founding members of BiTa and also the BiTA standard board as it seeks to partner with other players in this industry. BiTA aims at developing common standards through the blockchain technology for all the players in the transport industry.
FedEx is already a member of an open-source platform that seeks to improve cross-industries’ blockchain technologies. Hyperledger is hosted by Linux and gives companies like FedEx a platform where they can create blockchain applications and systems for their businesses. Hyperledger will provide all the information that different players need while goods are on transit.
FedEx partnership with Good Shepherd Pharmacy
One of its department, the FedEx Institute of Technology partnered with Good Shepherd Pharmacy to provide solutions to underserved cancer patients.
The Good Shepherd Pharmacy intends to trace and retrieve the unused cancer medications and then redistribute them to the unprivileged patients in different parts of the world. The partnership will make it possible for cancer patients who are poor to afford the medications.
Both parties agree that the use of blockchain technology will ensure that medical history sharing is done confidentially and also cannot be manipulated.
How FedEx is applying blockchain technology
The company has observed that it takes time to come to a consensus when there are disputes. Firms does not have all the information at its disposal which makes it hard to make decisions. The company notes that customers on the blockchain platform can speak in one language which makes it easy to resolve disputes. The blockchain will have all the data that the logistics management company needs to fix the conflicts and speed up delivery.
Enhance security of its transactions
In 2016, its TNT Express branch in Europe was attacked by a high profile cyber-attack which has made the company work so hard to enhance the security of its systems.
The impermeability nature of the blockchain platforms makes it the perfect system to avoid such attacks in the future.
FedEx is still investing and learning how to unlock new possibilities in the blockchain platform. We expect more collaborations and other applications to be rolled out in the future.
JPM coin to be released by J.P. Morgan Bank - YouTube
J.P. Morgan Chase has given hope that the crypto world is here to stay after announcing that it will introduce its first coin, the JPM Coin as reported by CNBC. The move by this bank which is the largest in the US and sixth in the world can legitimize blockchain as the vehicle for cryptocurrencies.
JPM Coin is a stable coin. One JPM Coin is equal to one dollar; that means that for every one JPM Coin in circulation, there will be a backup of one US dollar held by the bank. According to initial reports, the currency will not be traded freely like bitcoin. J.P. Morgan’s focus is on its clients and not a universal currency at the moment.
J.P Morgan Chase which controls a cash flow
of about $6 trillion in a day will be the first US bank to roll out a cryptocurrency.
According to the company, it will roll the application of its new coin in a few
months and allow several large corporations to test it.
Initial applications of JPM Coin
Talking to CNBC, Umar Farooq who is the
head of blockchain projects at the bank said the applications of this coin are
‘endless.’ The bank believes that the coin will lower the client’s costs by
making transfers instant and secure. According to Farooq, this coin will
achieve the following;
International payments for large corporations
At the moment, international transfers
occur through wire transfer which is characterized by delays due to time zones
and deadlines. The new coin will allow the completion of transactions in
real-time irrespective of the time of the day or location of the sender and the
For secure transactions
Through the blockchain, there is an
assurance that no one can hack the payments because the blocks cannot be
manipulated. Institutional investors can thus send and receive money instantly.
Store of value
The bank notes that some of its clients
hold dollars in its subsidiaries across the world. The coin can replace those
reserves and give its clients a universal currency for such instances. We
expect more applications in future.
The move by this bank is a significant headline because its chairman and CEO, Jamie Dimon has had negative views on the cryptocurrency world.
Precisely according to Bloomberg in September 2017, he said that bitcoin is worse than tulip bulbs and termed it as a fraud. He said that if he found out that his employee was trading in bitcoin, he would fire them in a second.
However, in January 2018 Jamie was interviewed by Fox business and regretted his outbursts on bitcoin. He said that he believed in blockchain and its capabilities.
J.P. Morgan has contributed and invested heavily in blockchain research.
The bank has the ‘Blockchain Center of Excellence’ which leads efforts for application of a shared ledger within its banking system. The bank already has a payment solution known as quorum which according to its website aims at increasing efficiency, streamline global payments, enable payment settlement and status tracking on a 24/7 basis.
How VeChain is Changing The Management of Luxury Brands - YouTube
The millennial generation is promising to continue growing the trend of the growth of this market. However, some challenges need to be addressed if this is to be achieved.
The luxury products market has tripled in size over the last 20 years and as of 2018 was 254 billion euros. The US remains to be the biggest market for luxury products at a growth of about 60% per year while the global rate is at 57%.
Challenges facing the luxury products industry
Counterfeits. Luxury brands lose sales up to $30.3 billion every year to counterfeits.
Lack of luxury experience. An image of a luxury product on the internet does not give potential customers what they need to make a decision.
Producing customized product. Luxury brands watch out the trends and build products that they ‘think’ will fit the customers.
What is VeChain and how it can solve problems in the
Luxury Goods market?
Quoting the official website, VeChain is a
public platform that aims at connecting blockchain technology to the real
world. VeChain achieves this by providing a robust economic model, a
comprehensive governance structure and IoT integration at an advanced level.
Application on the luxury market
Fight counterfeits. VeChain has smart chips that luxury brands can embed on their products. A potential buyer can thus use a mobile phone application to determine the authenticity of the product. All the information of the product will be displayed on the blockchain and therefore no room for counterfeits.
Those who can afford luxury products may want to customize such products. VeChain has some in-built tools that can analyze the behavior of customers and send offers based on the gathered information. It also creates room for user-generated content where customers post their experience with the luxury products on the blockchain.
Track information within the supply chain
VeChain puts control back into the hands of luxury brands. The current supply chain is so disorganized which makes it vulnerable to counterfeits. It is effortless to insert fake products on the supply chain because it is not transparent and fool-proof. It thus means that brands will know the number of orders placed, products released and their state while on transit. The supply chain will thus become data-driven, transparent and seamless.
Most customers cannot tell if the luxury product is compromised in any way during its lifecycle. The blockchain can show all the information from the raw materials, manufacturing process up to the distribution. The customer can thus pinpoint if there are any mistakes that will affect the quality of the final product.
Who controls the nodes on the VeChain?
By now you already know that most transactions on the blockchain network are validated through consensus. VeChain uses Proof-of-Authority to verify transactions on the blockchain.
Let us take for instance if Rolex decides to use VeChain. Rolex can become the exclusive validator on the network, and thus customers will be able to confirm the authenticity of the products. Proof-of-Authority puts back the power in the hands of Rolex and any other luxury brands that use VeChain.