Brands from healthcare to seafood have seen sales shoot up dramatically after they started to use the blockchain technology-backed traceability solution provided by a Chinese website, testifying to the business potential of this new technology.
According to statistics in a report jointly released by JD Digits and the Centre of Innovation in Supply Chain and Service under the China Europe International Business School on Tuesday, sales of healthcare products soared by 29.4 percent, while those for maternal and baby products increased by 10 percent after brands used the blockchain-backed traceability solution provided by jd.com, one of the largest e-commerce websites in China.
By the end of 2019, the solution had been used by over 800 brands and managed over 70,000 products, the report showed.
With the help of blockchain technology, brands can record and show their customers detailed information about a product, including manufacturing details, transportation process and sales, helping customers understand the “source” of the products.
“It is a substitute for the traditional identifying code or laser label but can provide a more accurate, convincing record of transactions,” Cao Yin, managing director of Digital Renaissance Foundation, told the Global Times.
This is due to the fact that blockchain data is not adjustable, and the registered information on the blockchain platform is often overseen by multiple parties including local governments and companies, he said.
According to Cao, China leads the world in the application of blockchain technologies in e-commerce business scenarios, with industry giants like Alibaba and jd.com embracing use of the technology.
It can be used more, such as in online payment settlement and checking website IDs, Cao said. Currently, it is mostly used to track product sources.
“I think the majority of Chinese customers still lack understanding and trust in the technology. Its market potential is yet to be discovered,” Cao said.