Japan’s ITOCHU Corporation Set To Develop A Blockchain Solution For Raw Material Traceability
ITOCHU Corporation, one of Japan's largest trading domestic trading firms, has started a proof-of-concept (PoC) which will enable it to develop a distributed ledger technology (DLT) based solution for tracing the entire raw materials supply chain, according to a press release on February 1, 2019.
ITOCHU Joins The Blockchain Bandwagon
As stated in its press release, ITOCHU Corporation has started a proof-of-concept (PoC) targeted at making it easier for the firm to create own blockchain system which will ensure a stable procurement and supply of raw material for its investment firms and trading partners.
Reportedly, the PoC will be carried out at the Aneka Bumi Pratama natural rubber processing firm, which is a wholly owned subsidiary of ITOCHU and the company has also hinted that its technology-focused subsidiary, ITOCHU Techno-Solutions Corporation will be in charge of creating the necessary smart contracts to make the PoC hugely successful.
Transparency Is Critical In The Natural Rubber Supply Chain
Explaining the reason behind its decision to integrate the revolutionary blockchain technology into its operations, ITOCHU noted that although natural rubber is an essential commodity in the life of man the world over, the fact remains that there are a lot of illegalities going on in the industry, including violations of the fundamental human rights of members in host communities.
Against that backdrop, ITOCHU says it has become inevitable for it to put in place a DLT-based system that would help in fostering transparency in the natural rubber supply chain, while also assuring the public that it operates in strict adherence to the law and demonstrate strong respect for both the environment and human rights.
The ITOCHU PoC will allow Buyers and Sellers to Verify the Authenticity of Goods easily.
ITOCHU has also pointed out that, at current, various entities are involved in the natural rubber supply chain, making it very complicated and shady.
However, the PoC will be based on a blockchain-powered smartphone app which will allow buyers and sellers to seamlessly carry out product authentication procedures and record other essential details concerning the raw materials, including date, time and location.
“This initiative will promote transparency in the natural rubber supply chain, from farm to the processing plant,”
declared ITOCHU, adding that it would also create a reward mechanism for market participants who accurately record the relevant details on the distributed ledger.
Additionally, ITOCHU says its blockchain initiative will help it in transforming its business, while also enabling it to contribute to the 17 Sustainable Development Goals for 2030 adopted by the United Nations.