Samsung Electronics considering blockchain to manage global shipments
The use of blockchain technology could cut Samsung’s worldwide container shipping costs by one fifth.
Electronics giant and popular smartphone manufacturer Samsung is examining use cases for blockchain, the technology behind cryptocurrencies, with a particular focus on handling the company’s global supply network.
Samsung SDS blockchain chief Song Kwang-woo told Bloomberg that the company is mulling the implementation of distributed ledger technology (DLT) to keep track of global shipments worth tens of billion of dollars annually. Song added that this blockchain system has been estimated to reduce shipping costs by 20%. Samsung SDS is a subsidiary of Samsung Electronics and provides information technology services.
“It will have an enormous impact on the supply chains of manufacturing industries… Blockchain is a core platform to fuel our digital transformation.”
Samsung SDS blockchain chief Song Kwang-woo on the power of blockchain technology
SDS anticipates almost 500,000 tons of international air cargo and one million 20-foot-equivalent shipping units to be delivered in 2018. This includes the latest Galaxy S9 phones, smart televisions and other products.
Bloomberg reports that documentation for global container shipments typically incorporates more than twice as much paperwork and coordination with port authorities than regular parcel transportation.
In January, Samsung entered into a contract to manufacture specific-use cryptocurrency mining hardware in order to supply an unnamed Chinese company, growing competition in a monopolized market. Crypto mining serves as key component in unearthing new value and keeping the bitcoin blockchain secure.
New research by Moody’s Investor Service has revealed how blockchain technology could potentially improve the United States’ housing industries and significantly diminish costs for the mortgage sector.
Online lenders, banks and other financial technology companies last week expressed interest in using blockchain technology as part of their business practice during the LendIt Fintech USA conference.
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