Blockchain technology is having its greatest impact in the financial sector. However, other sectors like insurance, marketing, logistics, and supply chain management are fast catching up. Amid all these blockchain uses, one thing is becoming very common. It’s the number of partnerships being agreed upon.
Partnerships are not a new phenomenon in the world of business. Every other day this or that company joins hands with this or that conglomerate to further their business ventures. Competition and cooperation therefore are two very common aspects of world economics. Perhaps that’s why this new kind of cooperation and partnerships between established tech companies, financial institutions among others and blockchain-based startups should not surprise you.
Blockchain innovation to revolutionize industries
Innovations often have one thing in common: they come in and completely change the landscape, revolutionizing the way things are done. This is exactly what blockchain technology is doing.
The use of open-source and decentralized ledgers means that all data is stored public ledgers that can be verified by anybody at any given time. Blockchain also helps to eliminate the middleman, potentially saving millions of dollars for companies. Of more importance too is the ability for blockchain to considerably improve resource utilization. This happens when transactions are handled faster, thereby saving time.
For example, transactions on the blockchain can be instant, removing the hurdles of having to wait for up to five days to confirm a bank transaction. Blockchain technology companies like VeChain leverage the above technology to transform and revolutionize various industries.
The rumor that VeChain was to partner with BMW was confirmed by the cryptocurrency’s CEO at the rebranding meet late February. It put straight a debate among excited VEN holders who viewed the deal as the biggest in the startup’s match towards real-world application.
Last month’s partnership between BMW and the blockchain start-up VeChain wasn’t the biggest of surprises. Yet it still represented an element of the extra-ordinary. Why is that the case? Look at BMW and what it could do, and think of the fact that it had faith in a startup of VeChain’s stature. It says a lot about what VeChain represents and brings to the carmaker’s table. It also is a statement about the role of blockchain technology and cryptocurrency in today’s tech-world. From a layman’s view, this is BMW saying “Hey, we’ve had a good look at your technology and mechanism and believe it’s a great idea.”
Partnership could be a game-changer for both companies
From a business point of view, it appears that VeChain’s supply chain technology would be most beneficial to the German auto giant.
BMW (Bavarian Motor Works) is a market leader in the automobile industry. The multinational company also produces motorcycles that are shipped to various parts of the world. Although headquartered in Munich, the company has motor vehicle production factories and assembly lines in several countries around the world. Vehicles are produced in far-flung countries like Brazil, India, the United States, China, South Africa, and the United Kingdom.
The details of the partnership have not been made public yet, but it’s easy to guess what it could entail. As indicated above, BMW produces its respected brand of motor vehicles in several countries and then ships them all over the world. VeChain, on the other hand, aims at using blockchain technology to revolutionize supply chain management.
The two companies have one common denominator: they are both not contented to sit and watch counterfeiting destroy genuine business. In this deal, BMW would be looking at using VeChain’s distributed ledger technology model to track the movement of its auto-car parts from production lines to assembly lines across the globe.
It also could be that VeChain will benefit from the carmaker’s extensive logistical network to develop its own operations. Viewed from this angle, it actually looks like VeChain stands to propel itself to the world via an established company.
VeChain began as a blockchain-as-a-service cryptocurrency that aimed at building a decentralised supply chain management framework. With its technology, a company can track goods throughout the supply chain, from production to the consumer. It can also be employed in maintaining a quality control check as items move from one section to the other.
The VeChain platform utilizes blockchain technology and unique VIDs (VeChain Identification) chips to keep track of every item in its system. For more on how VeChain works, visit https://www.abitgreedy.com/vechain/ .
Though VeChain is relatively new on the blockchain scene, it is among the few projects that have a viable product that is working. It is evident from the high profile partnerships the cryptocurrency is getting that it is one of those to watch in 2018 and beyond.
The Internet of Things (IoT)
The Internet of Things (IoT) could be a factor in this deal as VeChain will use its unique VeChain Identification technology to get data to the German behemoth. The utilization of QR codes, RFID and NFC will ensure that information is relayed quickly and in real-time. Authenticity of products would be safeguarded and as a result, safety of end users guaranteed.
For instance, BMW can use VeChain technology to track car parts manufactured in far flung factories from their suppliers. For example, the cooperation could help avoid problems occasioned by supply chain like what happened in 2017. So, every part used to assemble their luxury cars would be genuine. This is very important to avoid cases of auto parts being discovered to be defective, leading to massive recalls and consumer panic.
Other automakers are also into cryptocurrency integration.
BMW isn’t the only carmaker to get bitten by the cryptocurrency bug. Companies like Porsche and VW are also in the hunt for a suitable cryptocurrency to integrate into their car technology. Porsche, for example wants to use Ripple to power transactions involving the tech in their cars. Therefore, BMW’s deal with VeChain is not the last one we are going to see. Its but among many that will transform the car industry. If the partnership works, it would be one more step to seeing IoT work.