Exploring blockchain innovations and their real-world breakthroughs

What do DeBeers and blockchain have in common? De Beers - world’s leading diamond company, sees diamonds as a storehouse of timeless value. Similarly, blockchain's records can't be changed or destroyed like diamonds' enduring worth.

Interestingly, DeBeers uses the blockchain to ensure its diamonds are authentic and ethically sourced before they are studded in an engagement ring. TracrTM ensures 100% of their diamonds' provenance, tracking them from the source to the store.

This is one of the thousands of other ways blockchain innovations are transforming how we conduct businesses. And it's not surprising enterprises are lapping up the technology to improve their supply chain transparency, as in the case of DeBeers, or provide banking services to the marginalised.

In 2022, the global market size for blockchain technology was approximately USD 4.8 billion. Forecasts anticipate a growth rate of 85.7%, reaching around USD 2.3 trillion by 2032. Over 85 million blockchain wallets were registered worldwide by July 2023.(Source: Precedence Research)

What is driving the expansion of blockchain technology? Despite the bear market, ongoing development persists, and the technology is increasingly embraced across various industries and sectors. IBM has worked on blockchain-based solutions for distributing the Covid-19 vaccine. Two U.K. hospitals use a blockchain system to track the distribution of chemotherapy drugs.

While the practical applications seem endless, let's delve into blockchain technology innovations that make it possible to adopt in the real world.

Innovations in blockchain

1. Interoperability

There are lots of different blockchains doing different jobs, like handling payments or smart contracts. But they often don't work together efficiently. One big trend is making them "talk to each other." For example, the Cosmos Network uses the Interblockchain Communication Protocol (IBC). This helps different blockchains communicate so we get the best from each one.

Case study: How Nestle streamlines supply chain with blockchain

In today's global supply chains, teams like manufacturers, suppliers, and retailers team up to get products to consumers. But, as these supply chains get bigger, they also get more complicated. Usually, they use old-fashioned paper systems and separate data systems, making it hard to track products and causing delays. The lack of clear tracking and transparency is a big problem, causing mistakes and higher costs.

Leveraging blockchain for supply chain enables the comprehensive visibility that modern supply chains require. This technology provides transparency to the entire production process, enhancing automation for increased efficiency.

One of such solutions is Amazon’s Managed Blockchain used by Nestlé Oceania. The technology helps build supply chain solutions that give a complete view of data. This means everyone involved can check and verify transactions, like production and transport updates, quickly and securely. It's a game-changer for today's supply chains, making tracking products through the entire process way more efficient.

Armin Nehzat, Digital Technology Manager, Nestlé Oceania stressed how important transparency is for consumers who want to know where their food comes from. While Nestlé is already sharing some supply chain info, using Amazon Managed Blockchain makes tracking more precise. “With Amazon Managed Blockchain, we are able to set up our Hyperledger Fabric network and easily invite our partners to collaborate in our supply chain transparency efforts. Amazon Managed Blockchain will enable our customers to track their products on the blockchain from the farm all the way through to consumption,” he says.

2. IoT with Blockchain infrastructure

The Internet of Things (IoT) is all about smart devices talking to each other. But sometimes, it's not very safe or secure. Blockchain is stepping in to help by making things more secure. The market for blockchain in IoT has grown from $30 million to $113 million since 2018. It's expected to grow fast, reaching over $3 billion by 2024. This combo makes things like tracking shipments, checking the environment, and following handling rules much safer.

Case study: IOTA powering the “Economy of things”

The manufacturing industry is experiencing a transformative shift. In smart factories, intelligent, connected machines will autonomously organise and optimise, enhancing efficiency, reducing waste, and boosting production. Each product will be accompanied by a digital twin—an evolving digital profile that captures historical and real-time data throughout its lifecycle. This integration of the physical and digital realms is popularly called Industry 4.0 or the 4th Industrial Revolution. These new age technologies provide streamlined processes and proactive issue prediction, fostering a more agile and transparent manufacturing approach.

At the heart of Industry 4.0 is a global communication and payment network facilitating reliable data exchange and economic relationships between machines.

IOTA is one example of how distributed ledger technology integrated with IoT is taking the manufacturing industry to the next level. In collaboration with leading academics, standardisation bodies, and enterprises, IOTA has introduced the Industry Marketplace—a vendor- and industry-neutral platform automating the trade of data, goods, and services. Within this marketplace, devices act as autonomous economic agents, collaborating and trading resources and services based on supply and demand.

The Industry Marketplace is based on Plattform Industrie 4.0 (Germany’s central network for digital transformation in manufacturing) specifications, incorporating a decentralised identity system and standardised machine-readable contracts. This system facilitates decentralised exchange, utilising IOTA's distributed ledger to enable secure communication, data exchange, goods and services trading, and payments.

3. Tokenisation of Assets:

Now, you can turn real things like houses or art into digital tokens. These tokens represent ownership and can be traded digitally. This is handy for the real estate sector, where you can buy a piece of a fancy property instead of the entire estate. It's making investing way easier and open to more people.

Companies like Roofstock in the U.S. are doing this with real estate. They say, "Buy real homes on the internet with just one click" through their web3 subsidiary, Roofstock onChain.

4. Blockchain with built in regulations

The Scallop Chain is the world's first regulated public blockchain, offering users a regulated environment to interact. It is an interoperable blockchain built on Cosmos and uses Zk-rollups for added security and scalability. Scallop chain uses an innovative biometric bridge that links biometric data to a user's digital identity on the blockchain. Thus offering a more secure and efficient method for accessing and overseeing data.

Scallop Chain’s unique feature lies in combining traditional banking services with blockchain capabilities. This powerhouse chain fuels another significant blockchain innovation - creating digital coins as analogs to fiat money. These are known as e-money tokens. Scallop's e-money tokens exemplify this breakthrough, facilitating quick and low-cost transactions. They offer direct access to the crypto world without converting fiat money into crypto-stablecoins, eliminating detours and associated costs.

Besides a robust Scallop Chain to develop new age dApps, Scallop offers a complete ecosystem of products and services. An example is the Scallop app, recognized as the world's first regulated neo-banking app, offering users a secure platform to manage both crypto and fiat currencies. With features such as an IBAN account, Scallop Card, and Banking account, it provides comprehensive crypto and fiat financial management.

Speaking of cards, the introduction of crypto cards is another notable innovation. The Scallop Card serves as an all-in-one debit or credit card, enabling users to spend both fiat currency and cryptocurrency seamlessly. Its Auto Top-up feature automatically converts crypto to replenish the bank account when the fiat balance is low, ensuring convenient fund management.

Conclusion

Blockchain is making its mark across sectors and industries. As global forecasts predict exponential growth, the real-world applications of blockchain continue to unfold, driving a new era of transparency, efficiency, and accessibility across domains.