How does blockchain bring trust and security to startups, If you are aware of the challenges ahead of launching a successful startup, you probably know that just having a great idea, even if it is a revolutionary idea, is not a guarantee of success?
In a recent article written by Ron Argent, the founder of Cognition Foundry, IBM addressed the role of the blockchain in building trust and security for startups. It helps startups meet the challenges they face.
The mission of the Cognition Foundry is to encourage, empower and equip people to fulfill their dreams of making the world better. One of the big startups that the company is helping to achieve its goals is the Plastic Bank project.
Of all the technologies that have the potential to change the world, blockchain ranks the top. The blockchain can be summed up in just a few words: eliminating trust in intermediaries by trusting the blockchain. This is seen in one of the best startups we’ve ever worked with. Startup Plastic Bank, co-founded by David Katz and Shaun Frankson, came up with an incredibly powerful idea to tackle two major problems in the world: plastic pollution in the ocean and the dire poverty that exists in our developing world.
Katz and Frankson’s idea was to use virtual currencies to create local ecosystems that survive on their own without relying on external factors. By giving people tokens in exchange for the collection and delivery of plastic waste. On the one hand, this approach can help reduce plastic pollution from the source of waste in people’s homes, so it differs from other approaches (such as collecting waste from large ships from the ocean) that are all merely temporary solutions. On the other hand, many people can have a secure and trustable bank account, something that the wealthy population of the world, both rich and middle class, enjoy but the poor lack.
Building confidence where we need it
This is where trust comes in. For the success of the bank’s plastic business model, people who save virtual currency as money need to be confident that no one can steal or embezzle their money. Likewise, socially responsible companies such as Henkel and SC Johnson who want to participate in programs to buy recycled plastic will be confident that the corruption that rages in many third world countries will not find its way into this process.
The solution to this problem is the blockchain. When people sell plastics at a plastic waste collection center like Plastic Bank, they get digital tokens. These tokens are stored in the digital wallet on their mobile phone. But what makes their savings safe? The process by which the account balance and all transactions with this account will be recorded in a distributed blockchain center is not only transparent but also immutable. This means that no one except the money owner can access it.
Undeniable system security
What makes the bank’s plastic rewards system stronger is its performance on the IBM LinuxONE cloud platform. Using LinuxONE and blockchain can guarantee a level of security not seen in any other business.
The founders of Plastic Bank, like any other startup that has big goals, are aware of other IT issues including scalability and costs and know that they must solve these problems if they want to change the world successfully. One of the best solutions to these problems was LinuxOne, as it has much lower operating and maintenance costs than its counterparts, in addition to its ease of use, flexibility, and vertical scalability.
Changing Life with Blockchain
One of the co-founders of the project acknowledges IBM’s plans and role in its development:
“While using these solutions at Plastic Bank, we decided, with the help of IBM’s Innovation Team Specialists, to design a special Thinking Model (IBM’s own three-step design thinking model) to visualize a blockchain technology-based solution. IBM had a team of architects, developers, and designers specializing in the blockchain field that we needed to validate our solution.
Finally, we created a blockchain banking platform, a highly secure and scalable rewards system. It uses the open-source project Hyperledger Fabric, developed by the Linux Foundation. The project is implemented and managed as part of IBM’s Blockchain platform and runs on IBM’s LinuxOne cloud servers. The system is now fully implemented and operating well in Haiti, Indonesia, and the Philippines. Recently, we have again asked the Blockchain and Innovation teams of IBM to help us plan for the current and future growth of this platform and extend it to more countries. Besides, as we improve the platform’s features, we also explore the latest features of its core technologies, the Hyperlayer Fabric and the IBM Blockchain platform.
Confidence is a prerequisite for change
Foundry Cognition company focuses on helping other companies make big changes. From this perspective, blockchain technology has created a whole new world of opportunities where trust and security are crucial. But where is it that these two components are not crucial?
In the end, it must be said that whether we are in a new digital ecosystem, such as plastic banking, or big financial institutions, the supply chain or the manufacturing sector; it doesn’t matter; trust and transparency are the cornerstones of any change. That’s why as we help startups work to create a more open and powerful world, we expect the Blockchain technology to be at the center of our efforts.
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