After years of being dismissed as a “slow technology,” and illegal money transfer mechanism, the general outlook for the blockchain and cryptocurrency industry is largely positive in 2018. While the rising interest can be attributed to financial institutions, governments, and regulatory authorities displaying their intentions to adopt the decentralized technology, ‘core’ industries deserve much credit, as they are readily testing and implementing the blockchain over their existing framework.
Blockchain Swiftly Gaining Relevance
According to a report in South Korea’s Yonhap News, the IT subsidiary of electronics giant LG, called LG CNS, is all set to launch its native, privately built blockchain; “Monachain.”
Described as an enterprise-only blockchain platform, Monachain would find use in a plethora of industries, such as finance, telecommunications, manufacturing, and public administration. Furthermore, the private blockchain will have three salient functions – digital certification, digital community currency, and digital supply chain management.
As per the report, the digital certificate serves to verify a user’s identity using personal or biometric information, using a personal identification number (PIN) of a personal portable device or a fingerprint respectively. Another advantage is that the certificate can be linked with other systems by applying international standard DID (Distributed Identification) technology.
Speaking about the digital certificate system, LG CNS said:
“When we pay for medical expenses at the hospital using the digital certificate of Monachain, we will be automatically billed for the insurance claim. Related information is quickly shared with insurers and hospitals. “
Second, the aptly-termed “digital community currency” works towards ensuring timely distribution of welfare benefits and local currency issuances from the government. However, LG CNS made clear that it only provides community platform to banks, and not be responsible for the actual distribution or issuances. However, LG CNS said that it “is preparing a community banking business with commercial banks.”
Finally, the Digital Supply Chain Management function handles integral functions of an industry’s supply chain, from product production to customer delivery to each stakeholder. Using the blockchain, industries can shorten production time, maintain proper inventory, and minimize transportation errors.
(Source: Yonhap News)
LG a Blockchain Believer
LG CNS has previously released many products utilizing the blockchain and is indeed not a newbie in the area.
In April 2018, LG CNS became a full member of the Open Blockchain Industry Association (OBCIA), and looking forward to joining Hyperledger by July 2018. An open-source blockchain project, Hyperledger focuses on sectors like supply chain, technology, banking and finance, and manufacturing. The Linux Foundation launched the platform in 2015, and counts industry heavyweights like IBM, Daimler, JPMorgan, and Airbus amongst its members.
LG CNS was also responsible for one of the world’s earlier large-scale blockchain implementations. In 2015 the company issued electronic stocks of unlisted companies unregistered at Korea Securities Depository Services via Korea’s first blockchain based platform.