The logistics sector has become the first area in Korea to employ a blockchain technology. Samsung SDS has inaugurated a blockchain consortium for shipping and logistics at its campus in Pangyo, Gyeonggi-do, on May 31 and decided to apply a blockchain technology to import and export transactions during the period between June and the end of this year. Also participating in the consortium are the Korea Customs Service, the Ministry of Oceans and Fisheries, the Busan Port Authority, and other government agencies as well as companies, including Hyundai Merchant Marine, and IBM Korea.
Blockchain is an innovative technology that keeps track of every transaction within a business network for full end-to-end transparency. Chains of data blocks are shared with participants throughout the network, guaranteeing data integrity without third party verification.
Application of the blockchain technology to the logistics sector will enable transparent management of the whole spectrum ranging from production to processing, storage and transportation from producers to end-users. Fabricating of documents on the country of origin, the altering of the period of circulation, and false advertisement will not be allowed since the blockchain technology blocks data fabrication and alternation.
Information being obtained via the IoT will be registered in blockchain to share information on the location of freight, thus improving visibility, Samsung SDS said.
Logistics officials will be able to share related information in a real-time and paperless fashion, thus not only reducing costs, but also speeding up work process, a Samsung SDS official said. Participants in the consortium agreed to conduct a joint research and promote collaboration into the technology issue of applying blockchain technology to logistics and legal systems.
“If this pilot project is settled down successfully, a procedure of submitting attached documents in the case of export and import declaration can be eliminated,” a KCS official said. Samsung SDS has developed “Nexledger™,” a permission based blockchain model that is composed of trusted participants. The architecture has been designed to block potential access from unspecified nodes whose trust is not guaranteed. Nexledger™ incorporates Fast IDentity Online (FIDO), Customer Experience (CX), Cloud infrastructure, and other technologies to deliver global scalability as well real-time process handling on its shared data network.
Samsung SDS, 1st Korean Member to Join EEA
Samsung SDS became the first Korean company member to join the Enterprise Ethereum Alliance (EEA) during the Consensus 2017 Blockchain Summit held in New York from May 22 to 24.
The EEA is a global alliance established to work on the joint development of corporate blockchain solutions based on the blockchain key protocol “Ethereum” technology. About 30 members of the alliance include Microsoft, Intel, JP Morgan, and ING.
Samsung SDS has been selected as a member of the EEA as the company has been credited with developing digital identification and payment services based on the enterprise blockchian platform Nexledger and actual application of Samsung Card’s digital payment service. With its participation in the EEA, Samsung SDS targets to expand the technology competitiveness of the Nextledger and explore new business opportunities in the global blockchain market through cooperation with global players, the company said.