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Why Do IT Service Providers Focus on Blockchain Service Development?
Focus on Blockchain Services
Why Do IT Service Providers Focus on Blockchain Service Development?
  • By Cho Jin-young
  • June 19, 2017, 04:00
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Local IT service companies are developing blockchain-based solutions based on their experiences and partnerships with various companies.
Local IT service companies are developing blockchain-based solutions based on their experiences and partnerships with various companies.

 

Recently, information technology (IT) service providers are focusing on developing and spreading blockchain services.

IT service companies believe that they will be able to effectively provide blockchain-based solutions based on their experiences in building corporate solutions and partnerships with various companies. According to market research firm Gartner on June 16, the global blockchain market is expected to rapidly grow to US$10 billion (11.4 trillion won) by 2022. Accordingly, IT service firms, which have expertise in numerous IT solutions, are making an effort to introduce and spread blockchain technologies.  

A blockchain is a decentralized and distributed digital ledger that is used to record financial, medical and logistics transactions after encoding the records. It can secure both safety and transparent management of data.

Samsung SDS formed “shipping blockchain consortium” on May 31 in order to apply blockchains to the logistics sector for the first time in the nation. The company also developed Nexledger, a blockchain platform for enterprises and business, blockchain identification card and payment services. Nexledger can be applied to not only financial but also other industries.

Recently, Samsung SDS has become the first Korean company to join the Enterprise Ethereum Alliance (EEA), an organization established to jointly develop blockchain solutions for businesses. With the participation in the EEA, the company plans to improve the technology competitiveness of the Nexledger platform and develop new business opportunities.

SK Holdings C&C recently revealed its blockchain logistics service. Unlike the existing method that records logistics data at the centralized servers, the new service allows ship owners, ground transportation service providers and shippers to access, share and manage all logistics data.

In addition, LG CNS formed a partnership with R3, a world’s leading blockchain consortium specializing in finance, and is planning to provide blockchain services targeting the domestic financial market.