How Alibaba (NYSE:BABA) is Making Gains in Blockchain

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Alibaba (NYSE: BABA) operates online and mobile marketplaces in retail and wholesale trade. As one of China's internet giants, it most closely resembles Amazon (NASDAQ: AMZN) in its business model, and also includes cloud computing and logistics services. Alibaba's (NYSE: BABA) great strength is in its technological infrastructure, which helps businesses use the internet to establish a presence and transact. Now, Alibaba (NYSE: BABA) is at the forefront of a small group of companies in China that are engaging with blockchain technology.

Experiments in Supply Chain

Recently, the company announced a new initiative to improve the authenticity of its products and the integrity of its supply chain. It has recently announced the launch of the Food Trust Framework in its small business, a pilot project that will help suppliers and customers track the ingredients in a selection of fish oil products from Blackmores. The blockchain will be used to track the country of origin, shipping port, shipping method, arrival port, and custom report, of goods between countries, and will give both customers and distributors far greater oversight into how their products are moved across borders, giving greater confidence that they are buying what they paid for.

Previous Blockchain Experience

Alibaba (NYSE: BABA) also has experience in previous blockchain projects. It has a controlling stake in Cainiao, a Chinese logistics firm, which handles all of the shipping from Alibaba�s (NYSE: BABA) online marketplace. Cainiao has been engaged in blockchain development for some time and has formed a Blockchain Alliance with Tmall. Under the arrangement, customers on Tmall can now trace their products as they move through the supply chain, and the independence of the ledger means this information is always available to them. Given the prevalence of counterfeit goods in Chinese e-commerce, the move will help to protect consumers from fraud by putting more information at their disposal.

Big Investment in R&D

Finally, Alibaba (NYSE: BABA) has a heavy emphasis on research and development to deliver high performance, energy-efficient products. As of 2017, the company employed over 22,000 research and development personnel, investing CNY17bn (around $2.6bn) in its R&D activities. Alibaba (NYSE: BABA) is a company whose success owes a lot to robust R&D, and enables the company to stay abreast of developments in its markets, often delivering a first mover advantage as it now has in blockchain.

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I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

Comments (3)

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The political tension between China and US is very tense at this moment. A lot of anti-China sentiment.

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    • John R
    • ,  Contributor
    • 17 May 2018, 01:05 pm

    Spectacular. AMAZON of China.. very cheap at these levels\n

       0   Reply (0)   Follow(0)  

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      • Scott
      • ,  Contributor
      • 17 May 2018, 01:05 pm

      Baba cloud will be the truly exciting story in the coming decade, it has just scratched the tip of the iceberg in China and Asia.

         0   Reply (0)   Follow(0)  

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