• More and more companies are using blockchain
• The blockchain has many areas of application – from NFTs to gold– Supply chains
• Blockchains are not only useful for cryptocurrencies
A report by the data analysis platform “Blockdata” published on October 6, 2022 revealed an interesting fact: according to it, almost half (44 percent) of the largest 100 listed companies in the world use blockchains. What is blockchain technology used for? How is their use an advantage?
These companies use blockchain
The areas of application for blockchain are very different and therefore beneficial for many companies from different industries. Not surprisingly, most of the 44 companies (36 percent) come from the US technology industry. These include tech heavyweights such as Apple, Meta Platforms, Alphabet, Amazon, NVIDIA and German software giant SAP. But also consumer and retail groups (20 percent) such as Nike, LVMH, Walmart and McDonald’s as well as industrial and logistics groups (20 percent) such as UPS or Honeywell are prominently represented in the ranking. Banks (11 percent) such as JPMorgan, Wells Fargo and Bank of America, energy companies (9 percent) such as Shell and ExxonMobil or pharmaceutical companies (2 percent) such as Roche are found elsewhere. Most of the 44 companies are located in the United States (63 percent), followed by China/Hong Kong (12 percent).
Blockchain technology can be used in a variety of industries
As the study shows, blockchain is not only important for digital businesses, but is also being used more and more in other areas of the real economy. This includes developing customer loyalty programs, improving supply chain transparency, and developing and commercializing non-fungible tokens (NFTs). Distributed Ledger technology is also increasingly being used to prove product provenance, including in the gold industry. The blockchain enables unfalsifiable tracing of the areas of origin of the yellow precious metal. In this way, black market activities and the importation of gold obtained through child labor could be prevented, the gold industry hopes.
The blockchain is used for these applications
The companies are using blockchains for various projects. For example, Meta is using blockchain to develop an NFT platform for Instagram. Salesforce launched a pilot that allows users to manage NFTs for marketing and branding, while telecom giant Verizon has developed a Guardtime-based blockchain platform for large international companies, Finbold reports.
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PayPal uses blockchain to enable its users to buy, hold and sell Bitcoin, Ether & Co. The payment service provider also offers the transfer of cryptocurrencies to external wallets. Walmart uses blockchain to reduce conflicts and manual work in accounts payable and accounts receivable. Visa has also introduced a number of crypto-backed credit cards to Latin American countries.
A pioneer in German industry regarding the use of blockchain is Mercedes-Benz. The automotive group from Stuttgart is using blockchain to improve efficiency in various business processes, from capital raising to production.
Blockchain: mega trend or gimmick?
In addition, according to “Finbold”, many other companies have filed applications with the United States Patent and Trademark Office (USPTO) for NFT and Metaverse-related trademarks, which are among the more than 6,000 NFT and blockchain-related. There are also trademarks that have only been registered in the United States since January 1, 2022. These figures prove that despite this year’s crash of blockchain-based currencies such as Bitcoin, Ether or Dogecoin, innovations related to distributed ledger technology will continue in 2022. The use of blockchains is therefore not limited to the cryptocurrency sector, which is why they are increasingly delinking themselves from the development of digital coins.
Many technology fans also highlight the many advantages of blockchain technology, such as decentralization or enormous data security. They expect the blockchain to be the megatrend of the coming years – a kind of double-entry bookkeeping in the 21st century. Other observers, on the other hand, dampen the euphoria. Guido Zimmermann, senior economist at Landesbank Baden-Württemberg (LBBW), emphasizes to “Sparkassen” that “a blockchain is ultimately only necessary if real assets are to be mapped digitally and transferred via so-called tokens. For example, digital transfer shares. in an illiquid real object like a hotel, where each token represents one square meter,” says Zimmermann. “For everything else, you can basically use a conventional, decentralized database that is encrypted,” reads the LBBW economist’s forecast. In addition, there are still many technical issues to be resolved before blockchain will find its way into mass business.