E-commerce marketplace Alibaba, announced on August 27, 2018, that it going to implement the incorporation of open ledger technology by releasing a blockchain service through its cloud computing division, Alibaba Cloud.
In report by local media outlet, The Asia Times, Yi Li senior software engineer acknowledged that Alibaba is aware of the potential of blockchain in order to offer “the next most reliable infrastructure” for its services. With the combination of cloud computing and blockchain technology, this fusion has the ability to enhance productivity as well as innovation for their multinational logistics and manufacturing.
Jack Ma, CEO of the giant e-commerce company. has been critical of cryptocurrencies such as the flagship virtual coin, Bitcoin in the past, he has been shown his interest in exploring the utilization of blockchain technology for business processes. Back in May 2018, Ma joined the ranks of the “blockchain not Bitcoin” mindset.
Ma made his stance clear due to Bitcoin’s due to the cryptocurrency’s massive fluctuations over the last year. However, Ma expounded that blockchain could be the solution to the various issues of scaling and privacy of clients for his company’s processes.
Alibaba is looking to utilize the adaptability as well as storage capacities of the cloud and linking it with the security provided by blockchain. This will give the company the ability to store client information confidentiality as well as securing the logistics behind the transportation and delivery of its products.
Integrating blockchain technology into Alibaba’s system provide a precedent for other companies see the viability of the endeavour . With a company that needs to vast amount of information in order to provide competent business services, this adoption could be a game changer.
Jack Ma has gone on to state that the revolution of the e-commerce sector will come about with the adoption of blockchain technology, the Internet of Things, and smart manufacturing.