The announcement by Alibaba on the move to implement Blockchain in its subsidiary, Lynxx Logistics International Company, had been met with lots of anticipation and excitement about Blockchain’s mainstream uptake. The future expectation of Alibaba looks to be set for an uptrend, with more transparency and secure data recording systems for online-bought goods.
According to Beijing News, Tand Ren (the Technical Manager of Lynxx) is quoted as saying,
Although the concept of Blockchain has only recently started to emerge, it has a very wide range of applications. We firmly believe that this is an Internet-based technology, not a tool for speculating on currencies.
Beijing news further reported that the fact that blockchain is immutable and therefore impossible to hack makes it an attractive technology for companies such as Alibaba and its subsidiary Lynxx international since “Through the logistics data uploaded by businesses, customs, and other parties, consumers can cross-certify their own information about purchasing goods”.
By this logic, logistics entities will see an improvement in the transparency, traceability, and security of their data as a blockchain network is capable of maintaining a high and sophisticated level of security, thanks to cryptography.
Will Alibaba Move Into the Cryptocurrency Space After This?
Well, even though there have been a huge number of cryptocurrency speculators banking on future possible uptake of Bitcoin and other cryptocurrencies by large e-commerce entities like Amazon and now Alibaba, it still remains uncertain whether this will happen anytime soon. In fact, the Founder of Alibaba, Jack Ma, is quoted in an interview in December 2017 to have zero personal interest in getting into the crypto space. After all, the giant Chinese e-commerce entity currently dovetails two more e-commerce platforms that include Aliexpress and Taobao (both offer online payment procedures). So far the introduction of blockchain technology to the company’s subsidiary logistics activities still stands as an effective use of this new technology towards gaining more trust from consumers.
Blockchain implementation is already underway
If statements by the company’s technical leader are anything to go by, logistic activities of the company are set to improve as the implementation of blockchain in the shipping of goods overseas to and from China is already underway. The data to be included on the blockchain will be the country of origin, the country of departure and the loading port. Also, the mode of transport as well as the entry port, the customs declaration, storage and the inspection warehouse. As a result, the consumer will be able to easily verify all the steps in the supply chain, thus the blockchain will be giving consumers better transparency and faster access to products purchased online.
Although Alibaba is still building ties to make its blockchain technology implementation work, there is no doubt that the recent developments are an improvement to the overall blockchain industry as the company boasts of being an influential e-commerce entity in the East. After all, this new endeavor will encourage more trust from consumers and possibly lead to the growth of the company.
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What do you think will be the future of Blockchain technology in the e-commerce industry? Share your thoughts and opinions with us in the comments section.