Blockchain PoC For Traceability Announced By Japanese Trading Giant Itochu

News | February 1, 2019 By:

Japanese general trading company Itochu Corporation will be conducting a proof of concept (PoC) to develop a blockchain traceability system.

Itochu, one of the largest Japanese general trading company, engages in trading and importing/exporting various products worldwide. It has six major operational divisions specializing in textiles, metals/minerals, food, machinery, energy/chemicals and ICT/general products/real estate.

The goal of the PoC, which will take place in the natural rubber supply chain of Indonesian-based Pt. Aneka Bumi Pratama, is to develop a blockchain traceability system that will ensure stable procurement and supply of raw material for Itochu’s investment companies and trading parties. Itochu Techno-Solutions Corporation will be tasked to develop a technology solution for the PoC.

“Itoch will work on “Reinventing its Business,” one of the basic policies set out in the medium-term management plan that aims to achieve continuous growth using a “reinvented sampo yoshi” approach (“Good for the seller, Good for the buyer, and Good for society”),” the company said. “It will also contribute to the achievement of the 17 Sustainable Development Goals listed in “The 2030 Agenda for Sustainable Development” adopted by the United Nations.”

The PoC will reportedly use a smartphone app that will allow buyers and sellers to conduct mutual authentication as well as to record transaction details in the blockchain including date, time and location. The company also plans to provide a system to offer an incentive for accurate recording in order to promote cooperation from the suppliers.

“Currently, multiple operators (local collectors and raw material dealers) are involved in the supply chain from the production to the delivery to tire manufacturers, and greater transparency in the distribution of natural rubber is required,” the company said.