A recent study found blockchain technology is having an $80 million effect on retailers. In five years it will be $2.3 billion.
In an analysis of the factors behind this mega-growth, financial technology executive Monica Eaton-Cardone looked at that $2.3 billion projection, originally found in a June research report from MarketsandMarkets. Specifically, she looked at five major retail applications: supply chain management, inventory management, authenticity verification, auto-renewal and subscription services, and customer data and loyalty programs.
For supply chain management, for example, she cited Walmart’s use of IBM’s blockchain to track the food supply system. Blockchain is faster, she said. It can identify the origin of produce in about 2.2 seconds. It takes more than a week using non-digital systems.
“Today’s retail applications are proving that blockchain definitely lives up to its hype,” said Eaton-Cardone, who is chief information officer of Global Risk Technologies. “Distributed ledger technology has moved from theoretical possibilities to practical uses, and the implementations we’re seeing now are just the tip of the iceberg in terms of what blockchain can do for retailers.”