INTRODUCTION

Blockchain or distributed ledger technology (DLT) is identified as an uprising technological protocol that is perceived as both high impact and uncertainty. It has a potential to change the way on how we arrange, record, and verify transactions in nowadays; from centralized structure to a decentralized system. Other than the financial sector, mining and energy sector could receive a big transformation through the benefits of the blockchain.

The blockchain is expected to lead a much more direct relationship between buyers and suppliers. It strengthens the market participation opportunities for smaller suppliers. In the decentralized system, blockchain could enable smart contracts to be made directly between the buyers and the suppliers, and for them to be carried out automatically. It is a strong benefit by opening the business models that do not require central intermediaries.

DEVELOPMENT PURPOSE

Creating a user-friendly blockchain for multi-levels sectors to manage, trade, transfer data and funds in a secure and convenient environment.  

WHY CHOOSING BLOCKCHAIN INSTEAD OF OTHER CLOUD-BASED SYSTEM?

Benefits include reduced costs, elimination of data duplication, increased transaction speed and greater resilience. Key capabilities of blockchain technology spring from its potential to provide tamper-proof record keeping, replace central authorities with decentralized processes and to facilitate “smart contracts”.

  • Cybersecurity – Blockchain digital ledger and decentralize of database decrease the possibility of being hacked and server down. The uniqueness of blockchain can prevent current cyber-attacks from hacking private information, hijacking intellectual property, or knocking an M&A off course

  • Transparency– as digital ledger is involved, blockchain is immutable; once a transaction is written it cannot be erased and, along with multiple copies, this means that the ledger’s integrity can easily be proven. This may cut down on fraud, theft, and insurance costs during a transfer or trade of information.

  • Cost Reduction– the expense of cross-border payments is high due to remittance cost and time. Blockchain may process payment in a fast and secure environment. In which, it may reduce the cost of payments to buyers and suppliers.

WHERE CAN BLOCKCHAIN BE UTILIZED IN THE SECTOR?

A blockchain is a decentralized tamper-proof ledger of all transaction in a network. Participants in the network can confirm transactions without the need for a third-party intermediary (middleman).

The sector can be benefited in the following areas:

  • Sales & Marketing

  • Procurement

  • Research

  • Business Operations

  • Peer-to-Peer Trading

NECESSARY CONDITION FOR BLOCKCHAIN AS A SOLUTION

  • Multiple parties share data
    multiple participants require to view common information

  • Multiple parties update data
    multiple participants are required to take actions that need to be recorded and change data

  • Requirement for verification
    participants need to trust that the actions that are recorded are valid

  • Intermediaries add cost and complexity
    removal of “central authority” record keeper intermediaries have the potential to reduce cost and complexity

  • Interactions are time sensitive
    reduce delay

  • Transaction interaction
    transactions created by different participants depend on each other

HOW DO WE PROCEED IN DEVELOPING BLOCKCHAIN SYSTEM?

  • Identify the industrial’s hierarchy models
    who would be involved within the Blockchain system? What permission levels would they require?

  • What platform will the Blockchain system be used on
    Desktop, mobile devices, or both

  • Functionality
    what specific function(s) does the blockchain requires? Transfer of data? Transfer of funds? Token generation? Etc.

  • Consensus Algorithm
    Which algorithm will the blockchain to be processed by? Proof of Work? Proof of Stake? Proof of Authority?

EARLY-STAGE OF DEVELOPMENT

  • Data management

  • Peer-to-peer trading platforms

  • Payment system 

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