Bitcoin, Cryptocurrency And Blockchain News

Audi: Blockchain System in the Works, PoC Already Released


German automobile company Audi is planning to discard traditional methods of processing physical and financial distribution by adopting blockchain technology. Cointelegraph reported on March 30th that the company plans to “increase the security and transparency in its global supply chains.”

Progress Through Technology

Audi’s motto “Vorsprung durch technik”, which translates to “progress through technology”, shows that the company is always looking for ways to improve its services. This time, the company has chosen blockchain technology, which is the front runner in innovative businesses.

In fact, Audi published a press release on November 21st 2017, stating that it will train employees in “big data” areas including blockchain technology and artificial intelligence. Audi has almost 11 production sites and facilities in Ingolstadt, Neckarsulm, Hungary, Belgium, China, Brazil, India, Indonesia, Russia, Slovakia and Spain. Additionally, it consists of 91,231 employees and 99.55% of its shares are owned by Volkswagen AG. Evidently, the company needed a reliable and automated network to handle product distribution, finances and other transactions worldwide. So, last year, the company ran some tests for its own blockchain system using Hyperledger Fabric. When the results proved to be successful, Audi published the Proof-of-Concept (PoC) and explained that they were looking at ways to secure data transfers online and manage digital organizations.

The “open source engine” developed by IBM is a perfect fit for businesses with a huge distribution network. Hyperledger Fabric provides some important solutions for businesses: permissioned membership with known identities, optimized network scalability and performance, data availability for selected users and “rich queries”, among others. These conditions helped Audi proceed from the concept stage to the development stage. According to Cointelegraph, Audi AD’s Head of Group Treasury, Alexander Dietmeier, explained that “Blockchain has potential to change various operating principles within industrial companies and opens up new possibilities.” He also mentioned that cryptocurrencies will soon be listed under the different payment options.

Image Credit: Deposit Photos