In this issue:
• Blockchain for Supply Chain: SAP, FedEx See Opportunities
• Enterprise Ethereum Alliance Presents New Blockchain Standards
• Cryptocurrency Custody: Security on the Blockchain Scales Up
Blockchain for Supply Chain: SAP, FedEx See Opportunities
Established firms in the U.S. and abroad continue to move forward with initiatives to leverage blockchain to provide transparency, speed and security to supply chain management. Multinational software firm SAP recently announced plans to implement a blockchain solution to streamline agricultural supply chain management in support of farm-to-consumer programs. Meanwhile, FedEx is testing blockchain for use in tracking large, high-value cargo, and is working with the newly formed Blockchain in Transport Alliance toward setting industry standards for using blockchain in transportation. In a recently issued survey by Deloitte, 53 percent of respondents reported working on blockchain use cases involving supply chain.
The ability of blockchain to provide an undisputed, commonly shared and time-stamped record of products moving through complex supply chains is one of the most discussed nonfinancial use cases for the technology. In general, the supply chain and logistics industries face less regulatory hurdles than many other industries experimenting with blockchain solutions do. When combined with the relatively straightforward benefits of reducing time and money spent on disputes, freeing up working capital and enhancing consumer confidence, the supply chain and logistics industries may be among the first to realize the true benefits of blockchain.
To read more about this week’s articles on blockchain for supply chain, see the following:
- SAP Launches Blockchain Supply Chain Initiative
- FedEx’s Smith Sees Blockchain as ‘Next Frontier’ for Logistics
- Deloitte Survey: For Blockchain-Savvy Executives, Movement Expected Over Next Year and ‘Pragmatism’ the New Mindset
Enterprise Ethereum Alliance Presents New Blockchain Standards
The Enterprise Ethereum Alliance (EEA) released Enterprise Ethereum Client Specification 1.0 (the Specification) during the CoinDesk Consensus 2018 conference earlier this week in New York. The Specification is the result of an 18-month-long project that involved input from a wide variety of corporations and blockchain industry players. The Specification is one of the largest and most significant products released by the EEA since its creation in 2017. The Specification aims to supply common standards and improve the collaborative development of the EEA’s Ethereum-based initiatives, which include promoting the use of smart contracts. Among its many goals for the program and others based on the Enterprise Ethereum Architecture Stack, the EEA is hoping that the Specification will make business transactions and models more efficient while cultivating trust in smart contracts developed and housed on the Ethereum blockchain.
The Specification comes at a time when the use and development of blockchain technology are moving at an extraordinarily fast pace. In light of this high-speed innovation, however, key players in the industry are recognizing the need to take note of more traditional governance techniques. Traditional governance models informed by the unique characteristics and functionality of blockchain may prove critical to realizing the technology’s true potential in the context of enterprise applications.
For more information about the EEA’s efforts and Enterprise Ethereum Client Specification 1.0, see the following articles:
- Enterprise Ethereum Alliance Unveils Common Blockchain Standards
- Enterprise Ethereum Alliance Releases Client Specification 1.0
- The Specification is available for public download on the EEA’s website.
Cryptocurrency Custody: Security on the Blockchain Scales Up
By: Brian Bartish
As cryptocurrencies continue to attract more-sophisticated institutional investors, custodial service providers could be in for a significant increase in demand. The security and compliance concerns of these enterprise-level investors is spurring the development of new product and service offerings capable of meeting the needs of institutions of varying risk tolerances. These development efforts now appear ready to bear fruit following major product launch announcements this week by Coinbase, one of the largest cryptocurrency exchanges, and BitGo, a Palo Alto-based startup, of custodial services aimed specifically at institutional investors. If successful, these product launches could result in further investment in custody and security services, which have generally been overlooked. Ledger, the French manufacturer of hardware cryptocurrency wallets, announced in January the development of a similar enterprise storage solution for banks and hedge funds, Ledger Vault, in a press release regarding the $75 million it raised in Series B funding.
While these announcements are significant in their own right, they may also be representative of an ongoing shift in the public perception of cryptocurrencies, which have often carried associations with the criminal underworld. When announcing the formal launch of Coinbase Custody, Coinbase reported that it would be partnering with a U.S. Securities and Exchange Commission-regulated broker-dealer to offer auditing and financial reporting validation in addition to Coinbase’s experience with secure cryptocurrency storage. Similarly, BitGo’s announcement of its enterprise offerings follows the company’s pending acquisition of Kingdom Trust, a U.S. qualified custodian of traditional financial assets. No longer relegated to the dark web, cryptocurrency technologies are scaling and adapting to meet the needs of Wall Street clientele.
To read more about cryptocurrency custody, please see the following: