Alibaba Implements Blockchain Technology

Alibaba is the biggest online retailer in China, and according to certain metrics, the entire globe. Millions of users utilize its three main websites, Taobao, Tmall, and Alibaba.com, which also serve as home to millions of retailers and enterprises. The B2B e-commerce market is dominated by Alibaba.com. This platform has been utilized by buyers and suppliers from all around the world to grow and manage their businesses.

Alibaba and Blockchain:

Alibaba has shifted to blockchain technology. The purpose is to create solution model that can be used by SC participants. Alibaba’s international market Tmall Global tracks and monitors food products using blockchain and product labeling with unique QR codes and makes the data available to consumers. Alibaba provides extensive and comprehensive data records of the SC goods history, including those relating to manufacturing, shipping, customs, inspection, and ownership transfer. The blockchain platform has improved transparency and security in food supply chains.

Solution for the Retailers:

Companies were suffering problems with retail fraud and counterfeits a few years ago, which cost them a lot of money. For instance, PwC claimed in 2016 that food fraud is a $30-40 billion concern globally. Meanwhile, the Organization for Economic Cooperation and Development estimates that the global trade in counterfeit goods is worth $461 billion (OECD). According to the same survey, China and Hong Kong account for 63.2 percent and 21.3 percent of the fake items, respectively. However, they discovered a solution in blockchain technology that ensures transparency and traceability.

Alibaba and Healthcare:

Alibaba announced in 2017 that Ali Health is collaborating with the Chinese government on an initiative to enhance patient privacy and guarantee the immutability of medical records. In order to provide patients with easy medical services, the idea allowed hospitals to securely communicate data on a blockchain and allowed doctors to instantly check medical information. Ali Health will leverage blockchain, in particular,

• To create tamper-proof technology,
• Install data security nets,
• Securely store medical data in ciphertext
• Ensure traceability.

Additionally, Ali Health and Malaysia-based PUC inked a memorandum of understanding in March 2018 to work together on Doctor2U, a medical mobile app, and other healthcare-related solutions. Blockchain enables a more time- and cost-effective solution serving a variety of objectives for its business associates, including permission-based data exchange, data integration, internal performance assessment, regulatory or insurance-related verification work, and big data analysis.

Blockchain and Logistics Operation

A subsidiary of Alibaba, Lynx International, in March 2018 successfully incorporated blockchain technology into its logistics activities. With the use of blockchain, the business is capable of maintaining an unalterable record of all important information regarding international shipping and logistics. Alibaba with blokchain technology is increasing transparency and traceability, which will ultimately increase customer trust and reduce the possibility of fraud.

Alibaba and Food Trust Framework

The Food Trust Framework, a blockchain-based system for food tracking, was created by the company in April 2018. It announced a test programme to track foreign shipments to China marketed on its online marketplace T-Mall provided by the Australian healthcare supply company Blackmores and the New Zealand dairy product maker Fonterra. Products from Australia and New Zealand are sold on Tmall Global. Each product is labeled with a unique QR code that, when scanned, gives the following information:

• Area of origin
• Transaction record

Counterfeit Wuchang’s Rice

One of the case is counterfeit versions of Wuchang rice, which is renowned for its high quality and small production. The Wuchang municipality in China’s Heilongjiang province and Ant Financial, a part of Alibaba that handles online payments, signed a strategic collaboration agreement in August 2018 to track the SC for rice.

A blockchain-as-a-service application was made available to participants in the supply chain that can read QR code with an individual identification number visible on each sack of Wuchang rice marketed on the Tmall platform. Before purchasing the rice, customers can use a smartphone app to scan this code. The information offered includes the precise the particular field from where the rice was harvested, the seeds and fertilizers used to cultivate the rice, and shipment information.

Blockchain for High-sale brands

The Hyperledger Fabric-based technology makes it possible to trace products at any point in the supply chain. Alibaba’s Tmall Luxury Pavilion, a site devoted to the purchase of high-end Brands, is offering a new blockchain option. Tmall Luxury Pavilion can track the following via blockchain:

• Circulation of the product
• The supplies used
• Marketing techniques

The authentication and timestamp are then added to each item’s specific blockchain identity along with the data points for query and verification. Customers of the Tmall Luxury Pavilion can also use the website’s item tracking feature or a QR code scanner to see:

• Blockchain code
• Origin of product
• A declaration number
• Declaration time, and the entry.

Blockchain as a Service

The Hyperledger Project received an official announcement from the Alibaba Cloud subsidiary in December 2018 that it had joined. Prior to that, the company unveiled the Container Service on Swarm and the Container Service on Kubernetes, two blockchain solutions. Alibaba released a beta version of its Blockchain as a Service in China in July 2018. The service was introduced worldwide in September 2018. In order to promote safe driving and prevent accidents on the road, the company is assisting clients in using blockchain. To create a reliable digital marketplace for the trade of digital content and copyright protection, they are collaborating with an AI team. Additionally, they are collaborating with the Internet of Things team to provide a platform for reliable data and reliable device assets for the Industrial Internet.

Alibaba and Health Insurance

In 2018, Jack Ma, a co-founder of Alibaba, began utilizing blockchain to process and store data at ZhongAn, an insurance firm. Statistics support insurance, and blockchain helped integrate this vast and diverse data. It helped in controlling risk and raise prices. Older generations relied on brokers and independent salesmen to sell insurance, whereas younger generations favor online shopping. Insurance customers are no longer required to submit paper records as proof. Instead, individuals can simply state when as well as which hospital they visited, allowing the insurer to reduce risks and enhance pricing structures. 

Final words:

However in 2019 Blockchain technology was utilized by the internet giant to drive a record-breaking $30 billion day of sales during Single’s Day shopping event. Unsurprisingly, Ant Group, Alibaba’s fintech division, will own the most blockchain patents in 2020. Applying blockchain technology to actual, Alibaba would probably receive a significant nod from both government and public if it is able to demonstrate the potential of blockchain fueling its fortunes.