Posts Tagged ‘Transparency Market Research’

IBM Continues Cranking Up Blockchain

August 16, 2018

 

 

Somehow between quantum computing, AI, and hybrid clouds IBM is managing to squeeze in blockchain as an active, growing business. For instance, a previously unnamed collaborative effort between the world’s largest shipping company, Maersk, and IBM has now grown to 92 participants and been dubbed TradeLens.

IBM has 92 participants in the TradeLens blockchain network

DancingDinosaur long considered blockchain as a natural for the Z due to its zero downtime reliability and high certified levels of security (EAL4+). The most recent models include IBM’s automated pervasive encryption. No more wasting time making decisions about what to encrypt. The Z just encrypts it all with minimal overhead penalty. Your applications and workloads won’t even notice and compliance audits become a breeze.

TradeLens is emerging from its beta to accept early-adopter applications and announced a new custom contract service for executing complex shipping orders with fewer middlemen. “We have seen a lot of skeptics talk about the validity of blockchain solutions,” said Marie Wieck, IBM general manager and head of blockchain. “And I think with over 90 organizations and more than 150 million events captured on the system, “we really are seeing the proof,” she adds.

The initiative now includes Germany-based Hamburg Sud, which Maersk bought last year for $4 billion, and U.S.-based Pacific International Lines, along with numerous customs authorities, cargo owners and freight forwarders. Collectively, the shipping companies account for more than 20% of the global supply chain market share, with 20 port and terminal operators in Singapore, the U.S., Holland, and more serving 235 marine gateways around the world.

TradeLens, in practice, gives users access to their own blockchain node similar to those on the bitcoin blockchain that lets users send money without the need of banks. In the case of TradeLens a shipper can cut out as many as five middlemen, even for simple queries such as identifying the location of a shipping container.

At stake is what Transparency Market Research expects will be a $32.9 billion global supply-chain software business by 2026. As far back as 2015, the World Trade Organization estimated that simplifying the global supply chain could reduce costs among users by as much as 17.5%, with developing nations expected to see as much as a 35% increase in exports as they leapfrog over legacy technology platforms.

The cooperative effort between Maersk and IBM still needs to make money. To do so, the two companies have shifted the business model from a stand-alone joint-venture to the intellectual property that comprises TradeLens being co-owned and jointly developed.

But the new cooperative structure could unnerve some potential customers. To offset concerns, the CEO of Maersk’s New Jersey-based TradeLens operation, Mike White, says a number of barriers have been put in place, including contractual restrictions on sharing data and technical barriers in the form of the independently managed blockchain nodes.

If successful, TradeLens might literally embody the common refrain among blockchain users that “all ships will rise” when they use a shared, distributed ledger. Facing decreasing global freight rates, Maersk last quarter became just the latest container shipper to cut profit forecasts.

Among competitors aiming to cut those costs and increase profits is the former head of blockchain at accounting firm Deloitte, who earlier this year announced he was raising $100 million to launch a supply chain platform using the ethereum blockchain. Similarly, blockchain startup Fr8 is preparing to raise $60 million via an initial coin offering to build its own blockchain logistics platform.

“The value proposition is for all ecosystem participants,” said White. “The ability to get better access to more real-time data, to have better visibility end-to-end, and to be able to connect one-to-many in a more efficient and effective way, makes the cost of getting that information lower, makes the ability to manage your own business better, and makes the ability to service your customers that much stronger.”

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Follow DancingDinosaur on Twitter, @mainframeblog. See more of his work at technologywriter.com and here.

 


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