SDS applies blockchain to contractsSamsung’s IT service unit Samsung SDS will apply its blockchain technology to the digital contract system used by affiliated battery maker Samsung SDI, the company said Thursday.
While Samsung SDS applied its blockchain platform - dubbed Nexledger - to the financial and logistics sector earlier in the year, it is the first time a local company has applied blockchain technology to the manufacturing industry, the company said in a statement.
Blockchain is a technology that verifies and encrypts transactions to store them in distributed ledgers. It is best known for its application to digital currencies such as Bitcoin. The system ensures transparency and security of digital contract documents while slashing costs of storage as it does not require expensive servers.
Blockchain prevents any party from breaking a contract by keeping copies of the deal transparently available in multiple ledgers.
The IT service unit aims to establish a standardized global blockchain platform for digital contract management.
The blockchain technology will first be tested on Samsung SDI’s Chinese corporation, before being rolled out to the battery maker’s other international operations. As business laws differ by country, the system will be rolled out gradually, allowing time to adapt it to meet local laws.
“We aim to complete implementation of our blockchain platform in China within this year and expand implementation in other countries,” said Song Kwang-woo, vice president and leader of Samsung SDS’ finance business team.
Samsung SDS has been focusing on blockchain technology since 2015. It created a separate team dedicated to developing the technology.
It started commercial blockchain services in the finance sector in partnership with Samsung Card at the beginning of this year and in May the company joined a consortium with local logistics and IT service companies as well as government agencies such as Korea Customs Services and the Ministry of Oceans and Fisheries to apply blockchain technology to shipping and logistics.
BY KIM JEE-HEE [email@example.com]