APPLICATION OF BLOCKCHAIN IN RETAIL INDUSTRY

BLOCK CHAIN:
Blockchain is a shared, immutable ledger that facilitates the process of recording
transactions and tracking assets in a business network. An asset can be tangible (a house,
car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually
anything of value can be tracked and traded on a blockchain network, reducing risk and
cutting costs for all involved.

1. A blockchain is a database that stores encrypted blocks of data then chains them together
to form a chronological single-source-of-truth for the data
2. Digital assets are distributed instead of copied or transferred, creating an immutable record
of an asset
3. The asset is decentralized, allowing full real-time access and transparency to the public
4. Blockchain’s inherent security measures and public ledger make it a prime technology for
almost every single sector

APPLICATION OF BLOCK CHAIN:

Tackling counterfeit goods:
Data is stored in blocks that are all linked to each other, timestamped, and considered as
unforgeable. When paired with NFC and IoT technologies, blockchain provides the ability for
consumers to access a product’s entire history, whether it’s new or second-hand. They can
also contribute to its verifiable history by scanning product tags or including proof of
purchase details that are then uploaded to the blockchain.

Eg: IBM, which developed Trust Chain Initiative with Helzberg Diamond and Richline Group.
The blockchain solution involves the mines that produce jewels, the manufacturers that
refine them and the retailers that sell them. Blockchain has also helped jewellers certify that
their products are ethically sourced, e.g. that no blood diamonds were used.
Access to a network of loyal customers:

By using blockchain to create a network of partnerships where consumers can use their
tokens, a business gains access to an ecosystem of potential customers. Blockchain could be
a solution to the low-redemption challenge most loyalty programmes face by allowing
customers to store all their points, rewards, and coupons in a single digital wallet, rather
than trying to manage multiple programmes. On top of that, blockchain offers real-time
allocation and redemption of rewards to consumers, making loyalty programmes between
consumers and across retailers, brands and stores more flexible.

Case study:

 Pioneer in the world of blockchain rewards is Chanticleer Holdings an investor in

several chain burger restaurants including BGR, Little Big Burger, and American
Burger Co. In January 2018, they announced a collaboration with MobivityMind, a
blockchain architecture platform.
 As part of their new loyalty program, customers who eat at one of their restaurants
now receive a type of cryptocurrency called Mobivity Merit which can be redeemed
across brands and traded with no fraud concerns.
 As Chanticleer Holdings CEO Michael D. Pruitt explains: “We’re excited to see how
consumers respond to the idea of getting real, transferable, secure value in
exchange for their loyalty to our brands.”

Supply chain tracking

The ability to track products through the supply chain is one of the most popular uses of
blockchain technology in retail to date. Not only is it helping to verify the origin of goods and
eliminate counterfeit goods, but it’s also having an impact on food safety.

 Eg: Walmart is pioneering the use of blockchain technology in the food supply chain
to reduce waste, cut tracking times, and improve contamination management and
transparency. The retail giant filed a number of patents related to blockchain
technology, including one for a “Smart Package” system, or devices that contain
information about the contents of a package, its environmental conditions, its
location, and more.
 Starbucks is working with Microsoft to develop a blockchain-based supply chain
tracking system and mobile app that will allow customers to track the supply chain
journey of the beans they buy and the coffee they drink.In March, Starbucks
announced a "digital transparency plan" that would let it verify their coffee beans as
100% ethically and sustainably sourced.

Submitted by,

Y.Navina

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