Real Implementation of Blockchain in Various Industries

When discussing blockchain technology, most articles circulating discuss the technical side, which not everyone understands how it works.

The last issue of blockchain's #TuesdayStartup session presented Zoo Blockchain Co-Founder Pandu Sastrowardoyo as a resource person. Unlike the discussion in general, Pandu brings a blockchain technology approach from the operational side of the company. How is it implemented and the impact on companies for each industry, both before and after adopting blockchain in its operational process.

According to Pandu, the implementation of the first blockchain product is bitcoin, which is related to global financial conditions. That's why in the early stages many banks considered blockchain a threat to them. In fact, blockchain can actually help banks in company operations.

"One of the functions of the bank is to ensure that there is no counterfeiting of money and double spending. Precisely with blockchain, the technology can be used as a underlying to prevent fraud and counterfeiting. Not only banks, other industries can also take advantage of blockchain as long as they have business valuesher," he said.

There are several business values ​​of blockchain technology for companies that can be raised. These include simplification of SLA (Service Level Agreement), process automation through Smart Contracts and Smart Transactions, topology benefits, cryptography, identity integration, and consensus.

"Blockchain is seen based on mathematical calculations, not just a system. Moreover, blockchain is not a new technology but a new combination of existing technologies. These include encryption, p2p networks, databases, and consensus."

Briefly, Pandu gave real examples of the results of blockchain implementation in various industries. What was the initial problem and what was the end result after utilizing blockchain technology.

Company audit and compliance department

In the audit and compliance divisions in each company, there are usually complexities that occur when sharing data between divisions. When the IT division disrupts the server, of course it will have an impact on all divisions. The potential for errors is also great.

However, when using underlying blockchain, the IT division is no longer dependent on the server, because each division holds one blockchain node with the same control.

Implementation by geography

Take, for example, several ATM machines in one area experiencing problems because the server is damaged causing people in the area to be unable to transact. The solution is to embed urge into each ATM machine. So ATMs can still be used even though there are delay which is likely to happen until bugs resolved.

"This solution has been used in China, applied by UnionPay. There, when the ATM machine is turned off, it can still be accessed like checking balances."

Financial industry

Prevent fraud

Indonesia has more than 1.000 BPRs. This large number of BPRs certainly has the opportunity for potential fraud and money laundering because they do not have access to BI Checking so what is most likely to happen is the potential over-financing.

If each BPR has a blockchain note that is embedded outside them, then this potential can be suppressed. The process is that banks build the same blockchain technology and can match hash from each KYC without looking at the contents of the KYC itself.

There is no central server for this system, because the blockchain solution is distributed throughout the bank. Each bank has a node with a complete blockchain copy of hash every KYC. No bank can access another bank's copy of KYC, but they can match from hash-New.

Accelerate the issuance of Letter of Credit (L/C)

L/C initial issuance process invoice usually involves four or more stakeholder. Each stakeholder must provide written documents to the next, create feedback, and cycle amendments. All cycles must be cleared before the bank issuing the L/C can turn on the green light to start the payment and delivery process.

This process takes quite a long time. In Indonesia, it usually takes about 90 days to issue an L/C. In Singapore about 14 days. Using blockchain, there is the creation of a system where all stakeholders can digitize the document and send feedback to each other before creating the original document.

"We are helping with this issue in Singapore. As a result, they can speed up the issuance of the L/C to two days."

Medical and bioinformatics industry

Electronic based medical records

Patient medical records are very difficult to share from one hospital to another. Generally when referred to another hospital, the doctor only provides a medical resume on a piece of paper. Patients are finally forced to bring their own data, which is generally through paper documents.

This problem occurs because hospitals compete with each other. They feel there is a risk when an old patient is left behind and all data is passed on to competitors.

With the presence of blockchain, the patient's medical data remains with the hospital in the form of their own node. Patient data is ensured to remain undisturbed as a Single Point of Truth, so it is based on consensus. Hospitals are not allowed to access patient data unless the KYC of the patient has been carried out at the hospital as well.

Thus, the patient experience and the quality of hospital services are guaranteed. Even though they moved hospitals, all medical records remained intact.

Blockchain genomics

Blockchain also allows anyone to sequence their own genomic information and create hash which can be directly linked to personal identity. Companies can purchase each person's genome as part of another genome for research material.

Once a drug or treatment is created from the research, a royalty is paid to the person selling it. On the plus side, companies have large data sets and higher quality research because genome providers are incentivized.