To CEO of Nestle
Why We Should Adopt Blockchain Into Our Business?
First of all, what is Blockchain?
In short, Blockchain is a public ledger whereby every transactions can be traced and tracked. It is impossible to erase. Think of history written in stone. Everyone on the network have to verify and approve every transaction; transparency.
Allow me to guess some of the questions in your head right now.
-Transparency sounds nice but is it practical?
-What about our company’s private and sensitive data?
-How can Blockchain help our company to make more money?
Quoting Don and Alex Tapscott from their book-Blockchain Revolution. “In the past businesses dress up for success. In today’s era businesses undress to success.”
An example: Our company’s dairy supplies are sourced from many farmers around the world and all farmers will try to make the most profit margin possible. Farmer A claimed their cows are fed top grade organic grains hence their milk cost more than farmer B’s.
In some cases the purchasers trust the words of the farmer. A more careful purchaser will maybe ask for some proves ( eg: Invoices for proof of purchase, which can easily be fabricated.) However, on a blockchain trust is not needed because every transactions can be trace and track. This bring us to the next question of data privacy.
Privacy & Sensitive Data
-On-chain Zero Knowledge Proofs. Is a method whereby one party (Prover) can prove that a specific statement is true to the other party (Verifier) without disclosing any additional information.
-Off-chain technology to handle computation on hard and software systems.
-Creating private channels so that only selected group of people can have access to selected data.
-Directories of business partners and their blockchain addresses.
Blockchain is fast, scalable and efficient in handling transactions. The key word here is scalability to ensure smooth processing. The various methods includes:
-On chain layer one (sharding)
-On chain layer two (state-channels)
-Off chain layer two (compute)
Sharding allows data to be split into different sections/nodes to be stored separately when they are not required to lessen system’s burden for effeciency,
Layer two solutions do not require changes to the base protocol layer. They are implemented at the app protocol layer.
-There are apps for easy visualization and keeping track off processes with user-friendly interface.
-There are also blockchain solution which allows integration and connectors to combine different off chain system.
Lastly, the most important part of what blockchain can do is its ability to issue tokens and build deFi apps that work on tokenizing assets. Purposes of tokens as follows: