Q: How does the blockchain traceability determine information on chain?
A: I think two major principles are important:
(1)You are willing to pay certain cost to maintain it, because the contents on the chain are valuable.
(2)We must put user’s project requirements in the first place, and never be technology-oriented to consider the problem. The user must be better than everyone knows which type of information need to be traced and tampered with.
As long as the user thinks the data is not necessary, the all steps above make no sense to be on the chain.
So in response to these two principles, let me give you two practical examples.
If mentioned traceability, there are two successful projects in worldwide that I suggest you should learn, one is SKUCHAIN and the another is BIGCHAIN.
Q: Can you give more examples about traceability application.
A: I can take SKUCHAIN as an example. I’ve talked about it before in some meetup and online talks.
They took the same list of legal processing, starting from food to IT accessories to aircraft manufacturing, increasingly began to practice and improve.
The first case of is SKUCHAIN. At that time, there was a big coffee bean manufacturer, the advertising budget of marketing each year was 10% of the annual net profit. It looks good and meet the sustainable growth of normal manufacturing firms.
However, after the problem came, the manufacturers found that they invested 10% of the net profit every year, but the average annual growth rate of the market has always been only 1.2% to 2%. In this way, 10 years later, the company will immediately become a company that just earns a box meal.
They also asked Accenture to analyze whether there was something wrong with the advertisement.
For example, should we invite beautiful girl to advertise instead of young charming boy? Or is there something go wrong with their coffee taste, Or other aspects of sales problems.
Finally, Accenture’s analysis results are super unexpected, the advertising is effective, because obviously the consumer population is skyrocketing! So, in the end, I found that there is only one place, that is channel sales. Some coffee dealers are mixing some fake products in the sales process.
SKUCHAIN will go to meet with coffee manufacturers, as long as coffee manufacturers pay 10 percent of the advertising costs each year, blockchain can achieve a unique anti-counterfeiting packaging chain from the manufacturers to the sales environment, if it cannot earn more than twice the profit of blockchain service fees. Get your money back!
The net effect was a 60 percent increase in sales in the first year, and even arrests several illegal coffee agents.
We should be pay more attention to those are followings:
Firstly, the process and content of on the chain is not all information, which is very different from the original ideas of ordinary people. The first step is to understand the needs of the client. The purpose of anti-counterfeiting packaging is to hope it can be safer. Only manufacturers can cheat themselves, but not the following sales agents.
Secondly, the cost of completing a blockchain project is not too much between 4 million and 5 million. Then you should be able to figure out how to make more money by using the blockchain.
Q: What problems should we attention when blockchain traceability landed?
It should be noted that a new technology come out, its development will certainly decrease the traditional industry interests. In fact, in the short term, the biggest problem faced by blockchain landing is not the technical, but the user.
Who are you expect to pay for a blockchain projects company? Ordinary people, or B end customers. If you are a B client, all your data on the chain is not realistic.
As I talked recently about a cannery that exports to foreign countries, they don’t allow all of them to go up the chain. Because if the chain will be fully divulged some trade secrets, it certainly cannot earn money as before.
We all know that sugar is cheap all over the world, however, the volatility of fluctuation is still strong. Sometimes, they are willing to buy sugar from Brazil and send it to China for processing instead of producing directly in China because of a higher profit margin.
If the put all products on the chain, then raw material trade secrets of manufacturers are not kept, how do they do business.
If you the user can access to of all the data on blockchain.
Well, all the B-terminal enterprises and intermediate channels will not agree and cooperate with you.
