A leading manufacturer of tobacco products turns to blockchain to improve the process of tracking tax stamps on cigarette boxes. It is reported by CoinDesk.
Nitin Manoharan, global head of architecture and tech innovation department at Philip Morris, said at the London Blockchain Expo conference that the company is currently working on creating its own solution for the blockchain. According to Manoharan, the tobacco giant will use technology to track tax stamps as verification of tax payment.
As the manager explained, making tax stamps in the traditional way is a slow and outdated process. Moreover, the price on one such stamp is about $5.50, and it costs the industry about $100 million per year. Instead, he proposes to automate these processes in order to carry out transactions in a digital distributed ledger, thereby not only reducing the number of cases of fraud but also saving up to $20 million per year.
Nitin Manoharan said that their company wants to create a public blockchain accessible to all interested parties.
“We want to make sure that the minimum viable ecosystem we put in place is attractive to all the stakeholders who participate in this particular ecosystem. So there needs to be a value proposition, there needs to be a reason for taking part. Because if there’s not sufficient value on the table they will not engage. So the only way to make it sustainable is to ensure stakeholders benefit from this blockchain.”
Tax stamps are one of six potential cases when a company uses distributed ledger technology, but other options have not been unveiled by the tobacco giant. It is unlikely that the company will develop its own cryptocurrency, but, most likely, Philip Morris will launch its product on the Ethereum blockchain, thanks to which it will continue to keep pace with innovations in the rapidly developing world.
We want to remind you:
Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/