Tobacco Maker Philip Morris Is Working On Unique Public Blockcain Features, Predicts Huge Savings
The Tobacco giant Philip Morris International is interested in blockchain technology. The company is currently working on a public blockchain but with some features that make it different from others. The information was released by Nitin Manohara, Philip Morris’ global head of architecture and tech innovation.
Philip Morris Works With Blockchain Technology
The firm will be using the technology in order to tax stamps on cigarette boxes. Each of these papers is worth around $5.50 per packet and can be easily counterfeited. The industry has been losing millions of dollars a year due to fraudsters copying them. With the implementation of blockchain technology, the company could save $20 million off the bat. With this new technology, it will be possible for the company to improve traceability and transparency.
At the moment, companies are usually working with their own blockchain networks that tend to be permissioned. That is, only approved parties are allowed to participate. However, this blockchain Philip Morris is trying to create will be widely accessible. During a conversation with CoinDesk, Manoharan explained that the industry wants to allow interested stakeholders to come in and subscribe to it and ultimately benefit from it.
About this, he commented:
“We want to make sure that the minimum viable ecosystem we put in place is attractive to all the stakeholders who participate in this particular ecosystem. So there needs to be a value proposition, there needs to be a reason for taking part. Because if there’s not sufficient value on the table they will not engage. So the only way to make it sustainable is to ensure stakeholders benefit from this blockchain.”
Nonetheless, this does not mean that they will be working on its own virtual currency. They want to use the Ethereum (ETH) and MultiChain Coin networks in order to build their own blockchain platform and network. Moreover, they are also talking with the Hyperledger Consortium.
As Manoharan commented, open networks are the ones that hold the greatest promise. He said that permission blockchains are simple and that multiple players can enter the ecosystem and participate from it in a trustless manner.