Companies Currently Use Blockchains Technology?
We’ve compiled a list of 37 Companies Currently use Blockchains, fascinating blockchain-related examples from companies in the United States. While some are purely blockchain businesses, others are well-known brands that have embraced the new technology.
When people talk of the value of cryptocurrencies and other digital assets, they are really referring to the underlying blockchain technology that makes that cryptocurrency or asset possible in the first place.
Without blockchain technology, Bitcoin and other altcoins would not be possible.
And it’s not just the crypto world that has embraced the distributed ledger technology of blockchain.
According to a survey from Blockdata, 81 of the world’s top 100 companies by market capitalization are either experimenting with blockchain technology or have a fully functioning live product.
It should be noted, however, that the majority of these companies are using centralized blockchains, which have wholly different use-cases than decentralized blockchains (Bitcoin for example).
Centralized vs. Decentralized Blockchains
If major companies can just embrace blockchain technology, then why do we need cryptocurrencies?
Herein lies the difference between a decentralized, permissionless, trustless blockchain, and a centralized, private, and permissioned blockchain.
Cryptocurrencies or tokens power decentralized blockchains by acting as a reward for participating in the system, whether it be through mining or staking and governance.
This reward incentivizes individuals to commit their time and resources to maintain the blockchain. However, no single individual or group of individuals can change the blockchain’s protocol, incentive structure, or other aspects of the system.
Centralized, permissioned blockchains, on the other hand, are developed and operated by centralized companies and organizations. They are often sold as a service (blockchain as a service, or BaaS) and receive profits in fiat money for the sale of their blockchain software.
Alternatively, some companies are using blockchain technology to facilitate their internal operations, and do not sell them to the public.
Mainstream institutions like IBM, Amazon, Tencent, Nvidia, J.P. Morgan, Walmart, Alibaba, PayPal, Samsung and the Bank of China are examples of companies that have launched fully functional blockchains.
Let’s take a look at how some of these corporate giants are using blockchain technology.
Blockchain as a Service (BaaS)
IBM, a multinational tech and hardware company, has released their own enterprise blockchain on the Hyperledger Fabric platform.
As a BaaS model, IBM encourages companies to use their blockchain software for many use cases, such as supply chain transparency, trade finance, contactless ticketing, and digital identity tracking.
IBM is specifically targeting fields in healthcare, like vaccine distribution, as well as logistics companies, suppliers, and farmers.
One company using IBM’s blockchain is retail giant Walmart, which is urging its suppliers of farmed goods to track their produce on the blockchain to promote transparency and trust between customers.
Other companies like Microsoft, Alibaba, Baidu, Salesforce, Amazon, and Oracle offer BaaS as well.
Service leverages open-source blockchain frameworks like Hyperledger Fabric and Ethereum to create their own privately managed blockchain that companies can pay to use.
Instead of relying on a decentralized ecosystem of individuals who are rewarded with cryptocurrency, Amazon gets paid to manage the blockchain and its information.
Other companies like Samsung and PayPal are adopting blockchain adjacent technologies; each have launched blockchain wallets that can manage crypto addresses from a variety of blockchains to support crypto transactions.
Improving efficiency in internal operations
In addition to companies selling blockchain technology services or related products, some are creating their own internal, private blockchains to improve the overall efficiency of their internal operations.
Global investment bank J.P. Morgan, for example, has recently launched their own internal blockchain Confirm to increase international payment transaction efficiency by reducing rejected transactions and lowering costs. The blockchain was first rolled out in Taiwan.
According to a press release, the blockchain is expected to improve processing rates, enhance transparency, and improve customers’ end-to-end payment experience.
The state-owned Bank of China, the fourth largest bank in China, is also heavily invested in blockchain technology. The bank recently released a $2.8 billion bond on their blockchain, and has launched an insurance blockchain using Hyperledger Fabric that stores millions of insurance policies in electronic files.
Government-backed CBDC uses digital ledger technology
The use of digital ledger technology is not limited to companies, but governments themselves.
China has been slowly rolling out their digital yuan central bank digital currency (CBDC) on digital ledger technology, and is one of the first countries to actively promote the use of digital currencies.
So far, their CBDC has been used in $9.7 billion worth of transactions, according to Coindesk. The e-yuan project is expected to be rolled to the majority of the public by the 2022 Olympics.
CBDCs are state treasury-controlled digital currencies stored on a private, centralized, permissioned digital ledger, which may or may not be a blockchain. While blockchains are maintain anonymity using cryptographic encryption, digital ledgers like the one China is using are fully transparent.
The Chinese public will access their funds via digital wallets on payment apps like Alipay and WeChat.
Conclusion With many of the top Fortune 500 companies using blockchain technology and products and selling related services, it’s fair to say that the technology has already been adopted by the mainstream and has proven itself to be valuable. That being said, like all technologies, blockchain and digital ledger technology is vulnerable to mis-use. Centralized control of a blockchain defeats the original value and purpose of the blockchain – to guarantee anonymity and decentralization.
This utopian idea of a blockchain has also been turned on its head by governments like China, who, inspired by the idea of a digital currency and the success of blockchain, have decided to use a centralized digital ledger that gives them more control than ever before.
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