Introduction
According to a report published by PwC(Price WaterhouseCoopers), “The trillions-dollar reasons to rethink the block chain,” the market with block chain technology will mark the beginning of massive growth in 2025, and will grow by $1.76 trillion in 2030, or 1.4 percent of global GDP.
In particular, the report predicted five promising markets, including product tracking and history management as the areas that will drive the biggest growth. The market is expected to grow to 961.6 billion U.S. dollars over the next 10 years. Other markets are expected to grow by 433.2 billion U.S. dollars in financial services and settlement, including 224 billion dollars in the field of identification and certification, 73.5 billion dollars in contract and dispute settlement, and 53.7 billion dollars in the industry of customer participation and compensation programs.
The areas of product tracking and history management, where the biggest growth is expected, have already been dominated by DBMS-based systems for a long time, including SCM. These systems will grow greatly by introducing blockchain technology. Let’s see how product tracking and history management will develop using the characteristics of blockchain technology.
Important technology for COVID-19 pandemic : Blockchain
Due to the recent high-intensity social distance caused by the COVID-19, digital transformation and non-contact promotion of the economy and society have become common. This change should be based on trust between people. In this respect, the blockchain is an important technology that can contribute to the realization of a trust-based society by giving transparency and immortality to the data at the center of all economic activities.
Blockchain is a technology that enables the integrity and reliability of information by saving the process and results of transactions in distributed ledger without a third party. The information saved on the blockchain is verified by the network participants together, and each information is recorded and saved within the block based on a hash that cannot be modified. These features allow you to record events between online non-contact services and verify them to build a more reliable system. These blockchain-based history management technologies are available in various fields such as finance, logistics, distribution, health care, energy, and public services, and are the most effective areas of the blockchain.
Apply Blockchain technology to electronic contract systems
The electronic contract system records events such as creating, sending, inquiring, signing, and completing a contract document online. Because it has the same effect as the actual contract, you can manage the contract at a low cost. For example, if Gil-dong Hong and Gam-chan Kang make an electronic contract, the following data are recorded in the database and can be used as evidence in the event of a dispute over future contracts.
These electronic contract systems have the potential to manipulate or tamper such as data modification, manipulation, and deletion, because event data generated in document contracts are recorded in a common database.
These problems can be easily solved by using blockchain technology. First, by simultaneously recording and managing relevant data in the blockchain and database, the possibility of forgery and tampering for a transaction can be prevented. For example, the database records the blockchain transaction hash and manages them by integrating with the blockchain as follows: If you want to change the data recorded on the blockchain, it is virtually impossible because you should change not only the data but also all the blocks that were created afterwards.
Blockchain-based event tracking service
The blockchain-based event tracking is required to use these functions in various fields, like using blockchain to prevent forgery in electronic contract systems. It consists of Event Trace Application, Event Trace Service, database and blockchain to save events.
The Event Trace Application is an application that uses Event Trace Service, which refers to applications such as electronic contracts, work evaluation systems, and logistics management systems. When a user generates a specific event in the application, the Event Trace Service categorizes and starts tracking them. The Event Trace Service provides the REST(REPresentative State Transfer) API required for recording event data, inquiring and verification, making it easy for existing Event Trace applications to use the following features:
- Log events to the database and to the blockchain at the same time.
- Events that need to be recorded in the blockchain are requested to record using Event REST (REpresentive state transfer) API of the Event Trace Service.
- Record transaction hash of the blockchain in the database to connect the events in the database to the blockchain events.
Use Case
- Unlisted Stock Trading Service
There was hassle to trade unlisted stocks such as finding buyers or sellers online, or meeting offline to actually trade. In the case of non-unification stocks, each company has different trading methods, so it is easy to abuse them and cause damage. Also, there is a fatal problem that it is difficult to trust a trading partner.
In addition, non-unification stocks, which account for a large portion of unlisted stocks, are inefficient and more errors as they are managed by the company as Excel such as issuing certificate of sovereignty and changing shareholders.
(Read related article : Over-the-counter stock market, damage to individual investors due to illegal sellers)
In order to reduce the risks, the parties to the transaction need to know related laws personally, and from the company’s point of view, efforts such as using stock trading services or establishing anti-fraud processes were needed to improve them, but fundamentally there are limits to guarantee safety and integrity.
To overcome these limitations, the unlisted stock trading (non-unification sovereignty) service is preparing for managing changes in sovereignty in transactions(shareholder list management) by using the Luniverse ‘Trace’ service . Leaving unmodifiable transaction records, all events such as the company’s capital increase audit and exercising stock option are recorded in the blockchain, thereby increasing confidence in unlisted stock trading and further dematerializing shareholder list management. It makes both the parties and the company more convenient.
In Conclusion
As more and more projects utilize the blockchain, they are often asked, “Why should we record the data in the blockchain?” The essence of the blockchain is that it transparently manages all information on the on-chain, which makes data reliable for everyone. Therefore, in an era when the importance of data is highlighted, the blockchain has played a great role to prevent various crimes and social problems in advance. In the future, the blockchain must be applied to all industries that need data trust. The existing database doesn’t have to be replaced by the blockchain, but it’s time to prove the integrity of all data present in the database by utilizing the blockchain.
For example, it increases in confidence of food through real-time history management of distribution of agricultural and livestock products in smart farms. A system can be established that conveniently issues and submits electronic documents of various institutions by saving official documents and certificates together in the blockchain.
In addition, it resolves information asymmetry between sellers and buyers when managing the history of used cars to manage regular inspection results and maintenance history in the blockchain. It also simplifies the transshipment cargo process in the import and export logistics transportation.
To take advantage of the blockchain in the all-defense industry, we need a system that anyone can simply use. Lambda256 will soon launch a service called ‘Trace’, providing APIs and dashboards for easy to save and inquire sensitive data in the blockchain.
