Blockchain has been equated with the complex world of crypto-currencies. However, the applications of blockchain go beyond the mining of Bitcoin and other virtual currencies. Presented as transparent, secure and totally decentralized, the blockchain is a revolution, particularly because of its computing power. Faster transactions, emergence of new marketplaces and forms of exchange... Did you know that blockchain technology can also have interesting applications for your company?
Blockchain to guarantee product traceability
A record year. In 2020, 5 million counterfeit products were intercepted by French customs. That's 20% more than the previous year. While luxury brands are the first to be affected, counterfeiting affects many sectors. Leather goods, textiles, car parts, high-tech products... A real loss of earnings for companies.
Faced with this scourge, blockchain, by allowing cryptographic tracing, could be the solution. Indeed, several initiatives have emerged. One of them: the AURA project of the LVMH group. The world's No. 1 luxury goods company is using blockchain to issue digital certificates of authenticity to its customers. "With AURA, we are leading the way in transparency and traceability," said Toni Belloni, CEO of LVMH. This is a strategic choice to fight the counterfeit market. But not only that. Because each certificate is linked to a good, the blockchain allows the brand to track resales and see, in real time, the most popular products on second-hand marketplaces.
This concern for traceability goes beyond the world of luxury to conquer other more unexpected sectors. Even large retailers, such as Carrefour, are using blockchain to track their products in the supply chain. This is called the "food blockchain". From the retailer's point of view, this technology meets the need for more transparency from consumers, and also allows it to react more quickly in case of a health problem, by locating the batches to be withdrawn in a few minutes.
Various uses of blockchain, different players but the same objective: to allow consumers to be sure that the product they buy is genuine.
The blockchain: faster and more secure transactions
This is the flip side of the digital transformation coin. Cyberattacks against companies are constantly increasing: their number has increased sixfold since 2020. Faced with these threats, the question arises as to the integrity and security of financial information. How can we make transactions more secure?
Here again, the answer may lie in blockchain. Several companies have already taken the plunge. In the field of insurance, this technology is used for new forms of exchange. It allows, for example, to automate the creation of certain contracts or to facilitate the declarations of the insured.
A gain of time and efficiency. Thanks to its computing power, the blockchain allows to limit intermediaries and to obtain faster transactions. So it's no surprise that blockchain is part of the solution chosen by BNP Paribas for international payments. "Blockchain eliminates certain costs, simplifies and accelerates procedures" according to the French bank, convinced by this technology.
Blockchain to fight against the spread of false information
Infox, deep fakes and conspiracy: disinformation would be "the evil of the century" according to the media. It does not spare companies.
In 2016, the Vinci group was the victim of a false press release. It reported alleged accounting irregularities that led to losses and the dismissal of its financial director. The reactions were immediate: in a few minutes, Vinci's shares plunged by 20%. A real damage for the company, but also for the media having relayed the false information. Indeed, the American agency Bloomberg - the first ones to have taken back the press release - will be then sanctioned by the Autorité des marchés financiers (AMF), up to 3 million euros.
Sharing false releases can lead to chain reactions. By allowing companies to protect their content, blockchain is a real defense weapon. Enedis, Société Générale, Groupe Renault... Several companies have adopted the blockchain to certify their releases with cryptographic keys. Its use is simple, no need to be a developer: a digital "fingerprint" is assigned to each document to ensure its authenticity. A good way to fight against the dissemination and the resumption of fake news.
Its efficiency was already proven for Bitcoin mining. From now on, the blockchain is no longer reserved only for crypto developers and goes beyond the world of virtual currencies. It has become the new ally of companies. The latter are targeted on different aspects by actors who seek to destabilize them: notoriety, economy... Blockchain is a solution to regain control. It responds to a current imperative: more transparency and traceability. The conditions of trust.
Emma Alcaraz