Digital transformation, as the term suggests is a total shift from the traditional form of operating businesses through the means of digitalization. Technological advancements and recent techniques are paving way for our economy to make a switch from conventional to a modern framework. This means completely changing the basic structure based on which our businesses work by letting go of the old processes and accepting the new ones. Digital transformation is all about experimenting with technology for a better future, even if that means a complete divergence from the way your business has worked till now.
Transforming your business digitally requires a redo, where it’s not just the actions that need to change, but the thinking, too. Doing away with rudimentary thinking of running a business is the first step towards digitalization. Second, comes structural changes that demand learning and acquiring, here the onus is on the leaders, who would make the shift possible by adapting and implementing the brought changes. Later comes the rest of the digitalization process that unfolds in steps and at different levels.
Digital Transformation and Blockchain
The entire course of digital transformation becomes unchallenging and swift with the help of different technological processes like blockchain. Blockchain was initially evolved as a structure to support bitcoins, but its advantages has led to its use in various sectors of the economy including healthcare, infrastructure, investment etc. Now, blockchain and digital transformation go hand in hand, where the former is speeding up the latter’s process. Consumers and their expectations from a business have changed the way businesses formerly worked. Businesses nowadays need to follow a more consumer-centric approach to take their business forward in such a competitive era. And since consumers have gone digital, businesses too need to make a switch from analogue to digital. As Greg Verdino says “Digital transformation closes the gap between what digital customers already expect and what analog businesses actually deliver.” Blockchain becomes a great aide here, as it provides immediate assistance in resolving problems relating to digital transactions.
Another help that blockchain provides is by affirming security and privacy online to both businesses and consumers. With the consumer from one part of the world, connecting with a business in another part of the world, the threats of cybercrime increase manifold, blockchain addresses such security issues and help create transparency between businesses and their customers. The information shared through blockchain is private and can be seen and used only by the involved parties, thus reducing the risk of frauds to few or none. Digital transformation cannot do without blockchain in the long run, but we need to keep in mind a few facts about blockchain too. First and foremost, blockchain is still in its evolving stage, so there are many unknowns that we might deal with in the future. There are questions that need answers and doubts that would require clearance. There are no standard rules and regulations, policies both national and international still have to be made, and thus it becomes significant to implement blockchain technology with utmost care. While there is a long way for blockchain to evolve fully, even at this stage, it is proving to be crucial for digital transformation. The security benefits of blockchain have given an edge to digital transformation process, reducing the threats online. The benefits of blockchain are more than the danger of its failure, making it a certain part of digital transformation in the future too.
Like the pharmaceutical industry, the food sector faces increased regulatory pressure from government bodies such as the US Food and Drug Administration (FDA) and Federal Trade Commission (FTC) with standards being introduced to enforce food safety protocols and waste disposal procedures and provide visibility over food-management activities across the product life cycle. The FDA’s Food Safety Modernisation Act (FSMA), introduced in 2011, was an effort to shift food companies’ focus from responding to food contamination to preventing it. Players should be ready to quickly analyse information and endlessly track all data to confirm they are creating optimum and safe food decisions. Based on client and market experience, various companies are recognizing that restaurants, retailers, wholesalers, and even suppliers may not always be able to effectively trace their food products and identify and manage the individuals they have direct and indirect relationships with across each product’s lifecycle.
In addition, consumers are using smart devices more often for researching, purchasing, and reviewing food products from manufacturers to retailers to restaurants. Instant access to just about limitless data has impacted consumers’ expectations, demand for types of food products, and buying decisions. The creation of a shared marketplace, using blockchain technology, can provide users with full transparency of their inventory levels along with real-time data updates on restaurant supply and demand.
Reducing Food Waste While grocers and even fast-food restaurants often catch flack for throwing away “perfectly good” food, statistics show us that consumers probably would have ended up throwing away excess or barely-expired food, anyway. According to the New York Times, around 40% of wasted food in developed countries is thrown out by the consumer, not the seller. While food waste is sometimes unavoidable, that’s in part because our systems for planning picking, shipment, and purchase are often not nearly strategic or data-driven enough. Monitoring product more closely by utilizing a blockchain record of customer buying patterns, a product’s life course before and after it is in a grocer or restaurateur’s possession, and even more insightful intent will help those in the food-service industry make informed decisions to minimize food waste.
Restaurant Management Processes Automation is ready to essentially alter the food-service sector. The incorporation of smart contract technology could underpin transactions between humans and kiosks and a network of sensors could provide data about customer purchase patterns and food quality standards. The standardized information could also be stored on the blockchain for analysis by decision-makers within a company regardless of their location. The rise of completely-automated restaurants such as Spyce Kitchen is, as they describe, an almost direct response to the likelihood that chefs, servers, bussers, and other restaurant employees are almost certain to account for greater shares of the operating budget going forward. These are just two examples of how the blockchain may come to play a role in increasingly automated processes in the food service’s sphere.
With customers becoming more knowledgeable and demanding transparency, it is imperative for organizations to make data—such as of price, source, authenticity, or even social obligations—accessible. Blockchain-based solutions will give assurance to not solely millennials, but also digital generations, as access is granted to trusted, secure and unaltered information. By using the blockchain platform, restaurants and wholesalers would have end-to-end visibility over the supplier relationship with real-time access to monitor and manage all supplier relationships. As restaurants become further technologically savvy, the incorporation of such applications into their service offerings would impact their customer base.
Voting is a fundamental part of democratic systems; it provides people in a community the ability to voice their opinion. In recent years, voter turnout has diminished while concerns regarding integrity, security, and accessibility of current voting systems have escalated. e-voting was introduced to address those concerns; however, it is not cost-effective and still requires full supervision by a central authority. The blockchain is an emerging, decentralized, and distributed technology that promises to enhance different aspects of many industries. Expanding e-voting with blockchain technology could be the answer to alleviate this issue in voting. e-voting with blockchain technology preserves voter privacy and increases accessibility while keeping the voting system transparent, secure and cost-effective.
The Democracy and Governance Context
The integrity of electoral processes is of increasing global concern even in stable democracies, with Freedom House characterizing 2017 as the “most serious crisis” in decades for democratic governance. In alternative blockchain implementations, legitimate voting depends on the ability of governments to verify citizens’ identity. Once verified however, votes via tokens on a blockchain can be completely traceable and instantly countable. Blockchain can address many security and even logistical practices of government data exchange.
Citizens’ data is harder to incorrectly or illegally erase or edit when it’s stored across blockchain-like networks, and these networks can prevent multiple agencies from having to repeatedly request an individual’s information. In the absence of a central system, hackers, or even hostile nation-state actors, lack the main target for attacks. Also, if governments don’t need to invest in major data centres, maintenance costs can be greatly reduced. With new additions to blockchain technology, systems can cross-verify that they contain the same information or correspond to the same individual (like a Social Security number) without transmitting or viewing the underlying information itself. So-called zero-knowledge proofs offer positive implications for privacy: Sensitive data can be verified without being transmitted, or even seen, by observers or accessed by a government employee. Crowdfunding and citizen participation efforts could be completely transformed by the blockchain. Blockchain takes the ubiquitous online up-or-down vote to a new level, where reviewers, curators, and implementers of projects build trust over time and follow through on proposed projects. This system of trust allows for verified, public actions to define individuals and groups.
• High costs related to ballot printing, electronic voting machines, maintenance, etc. • Increasing threats of cyberattacks compromising election results • Lack of transparency due to a centralized process of election results audit • Voting delays or inefficiencies related to absentee voting
Blockchain value proposition:
• Potential cost savings through blockchain-enabled voting • Potential for enhanced security and audibility of votes • Potential for greater participation in elections, including remotely • Greater transparency meeting citizens’ needs
With the help of blockchain system in function, citizens would be able to cast votes the same way they initiate other secure transactions and validate that their votes were cast or even verify the election results. Potential solutions are currently working to blend secure digital identity management, anonymous vote-casting, individualized ballot processes (for example, a vote “token”), and ballot casting confirmation verifiable by the voter.
No doubt, India is the fastest-growing economy worldwide. According to stats India has achieved 7th position in global GDP rankings. And yes, saying this won’t be wrong, India is marginally just following the Uk and France, says world bank data.
Blockchainis seeing a great deal of traction in India majorly in Banking, Insurance, and Cards trade. In most of these industries, players square measure coming back along to create a pool to comprehend the advantages of Blockchain at an industry level. However, a number of the business conglomerates have evinced interest to explore Blockchain for rising their business processes across their subsidiaries and business partners in addition.
A lot of Indian players have tested usage of Blockchain within the areas of Trade Finance, Cross- border Payments, Bill Discounting, Supply chain financing, Loyalty and Digital Identity areas. Some of the Indian banks, business corporations, and one stock exchange are among the forerunners for exploring Blockchain in India.
Blockchain Use cases in India
Trade Finance: A private sector bank in India and a leading banking group in the Middle East successfully executed transactions in international trade finance and remittance using blockchain.
Supply chain financing –An Indian conglomerate has designed a cloud-based application to remodel supplier-to-manufacturer trade finance transactions through a permissioned distributed ledger. A lighting instrumentality manufacturer in India experimented with Blockchain to scale back the cycle time of the Bill Discounting method for paying its suppliers from five days to nearly period.
E-KYC Document Management: A leading stock market exchange in India is exploring blockchain for the management of KYC documents in collaboration with some of the leading banks in India.
Cross-border Payments: Stellar has partnered with four monetary establishments to change affordable world cash transfers to the Philippines and cross border payments to and from India, Europe, Kenya, Ghana, and Nigeria.
Two of the private sector banks in India are put together testing Blockchain transactions, centered totally on cross-border remittent and trade settlements.
Advantages of Blockchain in the Indian Economy
Cost-Cutting: A blockchain an enormous range of intermediaries regarding value. For example, the State Bank of India (SBI) approximates a reduction of 7% with the adoption of the blockchain and 15% cost reduction in network and storage requirements.
Speed & Mapping: A blockchain group action, that involves any intermediaries would profit the blockchain. Take for instance the case of a supply chain. A supply chain mechanism is taken into account because it goes through numerous stages of supply. You are not tuned in to whether or not the merchandise has extremely passed onto every stage. However, with the employment of a blockchain, every step of the supply chain can be mapped.
Ecosystem: Whereas the adoption of the blockchain continues to be in its budding stage, most analysts believe that banks can begin embedding blockchain solutions in their entire scheme. Its adoption by a variety of giant companies illustrates a bigger vision of Digital India and therefore the Government’s efforts for conversion. The country has witnessed a dramatic increase in Bitcoin adoption by the financial organization and can thereby facilitate within the growing Indian Bitcoin community.
Blockchain has the potential to create processes additional democratic, secure, clear and efficient. The immutability of a Blockchain makes it nearly not possible for changes to be created once established, which increases confidence in data integrity and reduces opportunities for fraud.
Streamlining the cross-border payments, while the traditional process takes up to three business days in transferring funds across borders, Blockchain expedites the same process within 20 seconds, thanks to its decentralized aspect. Not only the economy but the Blockchain is also now the fastest-growing skill set demanded on job sites, with job growth rates at 2,000-6,000 percent and salaries for Blockchain developers 50-100 percent higher than regular developer jobs, therefore, creating a big contribution towards India’s GDP.
With the introduction of blockchain in the Indian Economy, the operations have become pretty safe and streamlined, transactions have become safe and records are easily accessible. In case, you are looking to understand blockchain’s implications in your business in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.
Every part of the multifaceted automotive business environment from components suppliers and manufacturers to customers and safety regulators depends on a network of transactions and knowledge that starts long before a vehicle is manufactured and extends far beyond its purchase. From support for evolving hardware and services to understanding the provenance and location of defective or counterfeit parts, the amount of data that automotive industry players must keep track of is exploding. Blockchain can help build efficiency, transparency, and trust with a shared, permissioned record of ownership, location, and movement of parts and goods. The versatility of Blockchain Applications in Automotive Domain records makes them perfect for keeping up with innovative new business models.
Mobility Services Today’s cars don’t seem to be simply standalone transportation devices they’re complicated, networked software platforms on wheels. Vehicles progressively have to be compelled to integrate secure, seamless mobility services, handling micropayment and other interactions with ride-sharing services, smart vehicle registration, smart transportation infrastructure, and electric vehicle charging.
Supply Chain Auto manufacturing is truly global. Parts are sourced worldwide and completed vehicles might be driven anywhere on earth. To contend with counterfeit parts and defect-driven product recalls, traceability is crucial in understanding a vehicle’s post-sale movements. To maintain safety and reliability, manufacturers should be able to track vehicle movements for regulators and purchasers.
Finance From parts orders and fleet-purchase financing to managing letters of credit and arranging insurance coverage, every step of the automotive supply chain is underpinned by payments. Blockchain’s traceability and transparency make it perfect for keeping track of transactions that drive purchases, shipping arrangements, dealer transactions and millions of micropayments in mobility services. Blockchain backed smart contracts go far beyond tracking and visibility to include funds released only on satisfactory delivery.
Role of blockchain applications in automotive domain
Smart Contracts The new forms of automated transactions can be initiated and regulated by smart contracts, which are computer programs that execute automatically on behalf of predefined conditions and enable complete and conclusive verification without an intermediary e.g. a financial institution. Therefore, smart contracts facilitate to drive automation to a brand new degree within which assets start to move by themselves under the constraints set by their users.
Leasing and other Digital services By allowing an automatic yet continually recorded and verifiable transaction, the blockchain apps in automotive domain will dramatically change the way one insures and leases its car in the future. Combining the technology with the steady growing connectivity and process capabilities of moder automotive creates a vehicle with all the quality upsides of a regular car while integrating the security, integrity and validity aspects of a contract into its automatic transactions.
Transaction Finalizes the service check by initiating a payment process and documenting the service check-in the blockchain, therefore making it a tamper-proof transaction. Choosing this way of documentation offers government authorities a simple, transparent and validated access to important car information. Linking this information directly to the car and its underlying blockchain ensures a nearly forgery-proof documentation over the whole vehicle’s lifecycle.
Smart assembly and Supply chain Trusted suppliers are thoughtfully designated and managed, as well as checked and certified for quality, reliability, and consistency. Blockchain allows the development of secure digital product memory records from the sourcing of material, to how and where they were manufactured, including their maintenance and recall history.
Any transaction or record can be made part of the blockchain, so its use can extend to digital communications, product identification or even customer claims. Smart contracts allow automating complex multi-step processes. Blockchains might considerably contour processes, particularly those who place confidence in regulative and compliance approvals. Blockchain applications in automotive domain can assist you in addressing a wide range of automotive supply chain challenges, paving the approach for innovative consumer and fleet-oriented services.
The emergence of blockchain technology, as the promise of the foundation for the next-generation global commerce infrastructure for frictionless transactions has resulted in numerous countries placing greater emphasis on investing and innovating in this space. Governments from several nations have developed mission and vision statements regarding distributed ledger technology and have taken steps to reduce or remove regulatory hurdles for their technology industries. Strong trade agreement exists around the belief that blockchain technology are the vanguard of the “Next Internet” economy. It is imperative that the government and blockchain work along to continue and strengthen technological and market leadership during this new space and to deal with potential policy and regulative incompatibility that may constrain the growth of the emerging digital-blockchain economy.
Risks and Challenges:
Early Stage: Blockchain is in its initial stage and is still evolving and improving for enterprise use. There is no prior implementation of the technology for large scale multi-department government blockchain applications. The technology is yet to prove its ability to handle multi-layered, multi-disciplinary and large volume transactions.
Interdependencies: As the technology is conceived to facilitate multi-party collaboration on one single platform, the implementation process involving all the stakeholders/decision-makers is complex, slow and costly. Any breach in the ledger data or any vulnerability in the smart contract has running on the blockchain has the potential to impact all participating entities as the committed blocks are interconnected.
Technology: Technology know-how and experts in this field to develop and maintain the blockchain applications are still limited. Regulatory and legal environments are still under development and as such are open for interpretation. A lack of real-world enterprise testing and the rapid development of Blockchain platforms make it difficult to stay ahead of the curve.
Contractual Risk: There will likely be multiple service level agreements between the administrator of the network and various nodes and between the nodes, requiring a stringent compliance policy. The consensus protocol requires that all contributors in the network can view and have a copy of the committed transactions in the ledger. While a permissioned network does not reveal all data to all participants, certain metadata will always be available to network participants.
Blockchain in Government – Use Cases
Healthcare: In Estonia, the government is rolling out a technology named Keyless Signature Infrastructure (KSI) to safeguard all information. Electronic health records of all Estonian citizens are managed using KSI technology. KSI creates hash values that represent larger quantity of information as much smaller distinctive values. KSI allows officials to monitor changes within databases — who changes a record, what changes are implemented and when are they made, hence, any unauthorized tampering of the records can be detected and prevented.
Asset Registry: Another often-used application of the blockchain technology is in maintaining asset registers, e.g. property, vehicle and other documents such as contracts. In recent times, given the propensity for fraud in property transactions, property or land registration using blockchain has come into prominence. It does not solely provide a sure mechanism of storing and transferring information but also provides transparency across the system. Several countries and states like Sweden, Ghana and Georgia in USA are exploring blockchain-based solutions for digitizing registration of land and property transactions.
Voting: Voting, another critical and legitimacy granting public operate, has been the source of much activity among those working with blockchain. Citizens can cast votes the same way they initiate other secure transactions and validate that their votes were cast or even verify the election results.
The Digital India campaign launched by the Government of India in 2015 is also focused on digital empowerment of citizens through a combination of building digital infrastructure, providing digital services and implementing e-governance in an accessible manner and using technology as a driver of change. The NITI Aayog is working on building the country’s largest blockchain network — IndiaChain, in a bid to reduce frauds, speed up enforcement of contracts and increase the transparency of transactions. Given blockchain technology’s broad applicability and transformative potential, policymakers may find it worthwhile to explore the range of possibilities available within their respective departments. A blockchain-based approach might increase the efficiency of the transaction process and cut back, if not entirely prevent, fraud. However, to unlock the complete potential of this technology, the government will need to work as a facilitator, by providing an enabling environment to interested players. There is additionally a necessity to develop uniform standards, assess infrastructure necessities, allay security concerns, raise awareness and build trust inside the system as a whole.