The adoption of blockchain technology is on the rise with companies cutting across the industry segment vying for its usability to drive up time and cost efficiencies. In the latest development, the Chinese e-commerce major Alibaba has entered into strategically important cooperation with Aerospace Information Co. in the space of cloud computing, technological services, and blockchain among others. The deal is considered significant from the viewpoint that both these well-known organizations in their respective fields are seriously contemplating to develop their competence in the area of blockchain technology which is bound to have a good impact on overall adoption of this open ledger format. This news was reported by Securities Daily, a financial publication based in China on March 21, 2019.
Coming Together for Blockchain Solutions
Elaborating further on the details, the publication reviews that both of the companies have decided to come together to leverage their competence in the field of technology and integrate their respective resources for developing cloud computing, taxation and finance, blockchain technology, and government affairs among others. Aerospace Information, according to the publication, is going to join hands with Alibaba for developing, integrating, and promoting new products and technologies in suggested fields. In terms of specifics related to blockchain technology, both companies will together develop cloud solutions that will, in turn, help the blockchain industry to provide specific solutions to a wide range of industries across the globe.
We have already come across the specific announcement of Alibaba group earlier this month regarding the company’s intention to develop blockchain solutions for supply chain and logistics. More specifically, the company is looking forward to developing this solution for cross border distribution system. Alibaba is also exploring the possibility of linking the whole supply chain ecosystem with local governments to further enhance the usability of the blockchain solution. Just so you know, in October 2018 last year, Alibaba filed a patent request for a system related to blockchain smart contract.
It must be noted that regulations regarding cryptocurrency and blockchain technology are not very friendly in China as the overall tone of the government officials continues to remain hostile towards these emerging technologies. Despite these unfriendly practices, we are witnessing a strong interest from big names in the industry especially when it comes to the adoption of blockchain solutions. The various initiative taken by Alibaba group is a testimony to the fact that blockchain is transcending across the borders and its usability in terms of saving cost, time, and money while providing more safe and secure transactions is well recognized by companies. Now, it remains to be seen how far the blockchain adoption goes in 2019 as the year has started off on a good note. Even the cryptocurrency industry is witnessing good momentum with all major cryptocurrencies including Bitcoin finding traction among investors in 2019. More importantly, many countries are coming up with regulatory mechanisms that are expected to bode well for the crypto industry.