Crypto and blockchain space, being a nascent industry, there is a lot of scope for innovation, experiment, and creativity. Businesspeople and developers are leveraging this scope to come up with different ideas/products.
There is one American cigarette, and tobacco MNC named Philip Morris International which sells products in more than 180 countries except for the United States. This company produces the popular tobacco product named Marlboro. There is a reason why this name is mentioned here. This cigarette and tobacco giant Philip Morris International is planning to create a public blockchain, but it is not the way you are expecting, one executive said.
The news was announced at the London Blockchain Expo. Company’s Top level executive, who takes care of architecture and technological innovation for the MNC at a global level, Mr. Nitin Manoharan said that the company is willing to create a public blockchain.
The objective seems to use this technology in their own industry to make the working and operations easier and faster with the least amount of flaws. The company would use this technology to keep track of tax stamps on cigarette boxes. This plan may sound irrational, but one pack of cigarette costs $5.50. These packs get counterfeited which disrupts the industry as it costs it $100 million/year.
The company believes that by using this technology, it would save $20 million. The process of tracking would be automatic, plus, the chances of fraud will be least. This would be a public blockchain, and would not be restricted to any permission. It would be accessible to all, unlike other enterprise blockchains.
He said, “The aspiration is an industry-wide blockchain that interested stakeholders can come in and subscribe to it and benefit from it. If they see no value, they can just leave.” When asked if anybody can create node without permission, he said yes, but they would require an incentive to be able to do this.
He added, “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.”
However, the company is not going to stick to only one use of blockchain (Tax stamp tracking); it has many other things in mind. Everything will be done gradually. There are other five uses the company is considering; they in process and under exploration. These new use cases would go live next year, as per Manoharan.