Big companies want to ride the decentralized computing wave; it is a big trend after all, with both corporate and government sectors — as well as end users — looking to benefit from blockchain.
As a tech-savvy company, Samsung wants a piece of the action too, and is pursuing this market on multiple fronts. Today we’ll talk about a few projects the Korean giant is involved in, starting with…
Using blockchain for Samsung’s own blockchain
One of the best use cases for blockchain is in the supply chain management, so we were not surprised when Samsung announced its intention to use the technology to bring together all the various suppliers and partners under a single decentralized system.
The work will be conducted by Samsung SDS, the company’s IT subsidiary, which expects the technology will help cut costs by as much as 20%, according to vice president and Blockchain chief Song Kwang-woo.
“It will have an enormous impact on the supply chains of manufacturing industries,” Song told Bloomberg. “Blockchain is a core platform to fuel our digital transformation.”
If everything goes as planned, Samsung’s entire global supply network could transfer to Blockchain. That’s a lot of goods, with 2018 volumes set to include 488,000 tons of air cargo and one million shipping containers.
Samsung is also making ASIC chips…
An ASIC chip, which stands for Application-Specific Integrated Circuit, is a specialized piece of hardware designed to only mine cryptocurrencies based on a specific hashing algorithm, such as SHA256 or Scrypt — the former being used for Bitcoin and the latter for Litecoin mining.
The company is reportedly working alongside the Taiwanese manufacturer TSMC to mass produce these chips for the Chinese market.
This new product could slightly increase profitability of Samsung’s semiconductor manufacturing division, though it is unclear just how big of a dent it will make on the bottom line.
“Samsung Electronics could increase its revenues through ASIC chip manufacturing but because the foundry only accounts for a small portion of the company’s semiconductor manufacturing plant, it is difficult to predict that the firm’s mining venture will have a significant impact on the company’s revenues,” Hwang Min-seong, an analyst at Samsung Securities, told the Korean news outlet The Bell.
And is building a blockchain solution for the public sector
Finally, Samsung SDS will also be developing a blockchain-based solution for the public sector, having scored a lucrative agreement with the Korean government to create a wide ranging platform for welfare, public safety and transportation by 2022. The idea behind such big project is to increase transparency for the government services.
While the nation has banned ICOs, they have been embracing blockchain technology and cryptocurrencies like there is no tomorrow. And Seoul doesn’t want to miss the big trend of decentralized computing.
“Samsung SDS’ Blockchain technology and consulting capabilities will contribute to Seoul’s leap as a top-rate global city,” Hong Won-Pyo, CEO of Samsung SDS, said in a statement.
Samsung SDS has already commercialized its Nexledger platform and applied it to the Samsung Card. The company has also suggested that the same technology could be used for other sectors, such as shipping logistics, and has tested those capabilities as well.