{"id":42790,"date":"2019-04-27T19:18:19","date_gmt":"2019-04-27T16:18:19","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=42790"},"modified":"2024-08-22T20:18:29","modified_gmt":"2024-08-22T17:18:29","slug":"alibaba-aims-to-prevent-retail-fraud-with-blockchain","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/","title":{"rendered":"Alibaba Aims to Prevent Retail Fraud with Blockchain"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Fraud_in_retail\" >Fraud in retail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Fighting_food_fraud\" >Fighting food fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Cross-border_logistics\" >Cross-border logistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Tracking_luxury_goods\" >Tracking luxury goods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Not_only_retail_healthcare_and_insurance\" >Not only retail: healthcare and insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Blockchain_as_a_service\" >Blockchain as a service<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Blockchain_patents\" >Blockchain patents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Large_retailers_join_forces\" >Large retailers join forces<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Want_details_Watch_the_videos\" >Want details? Watch the videos!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#Further_reading\" >Further reading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/#About_the_expert\" >About the expert<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Fraud_in_retail\"><\/span>Fraud in retail<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Fraud is one of the biggest challenges in the <a href=\"https:\/\/www.altoros.com\/blog\/tag\/retail\/\">retail<\/a> industry when it comes to both food and luxury goods. In 2016, PwC reported that food fraud is a <a href=\"https:\/\/preview.thenewsmarket.com\/Previews\/PWC\/DocumentAssets\/417163_v2.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">$30\u201340 billion problem<\/a> globally. Even more concerning is that contaminated food causes <a href=\"https:\/\/www.who.int\/news\/item\/03-12-2015-who-s-first-ever-global-estimates-of-foodborne-diseases-find-children-under-5-account-for-almost-one-third-of-deaths\" rel=\"noopener noreferrer\" target=\"_blank\">420,000 fatalities<\/a> annually, according to the World Health Organization.<\/p>\n<p>Meanwhile, the global trade in fake goods amounts to <a href=\"https:\/\/www.oecd.org\/industry\/global-trade-in-fake-goods-worth-nearly-half-a-trillion-dollars-a-year.htm\" rel=\"noopener noreferrer\" target=\"_blank\">$461 billion<\/a>, as stated by the Organization for Economic Cooperation and Development (OECD). According to the same report, 63.2% and 21.3% of these fraudulent goods originate from China and Hong Kong, respectively.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/OECD-fake-goods-breakdown.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/OECD-fake-goods-breakdown.png\" alt=\"\" width=\"600\" height=\"400\" class=\"aligncenter size-full wp-image-41804\" \/><\/a><small>A breakdown of counterfeit products in 2016 (<a href=\"https:\/\/www.oecd.org\/newsroom\/trade-in-fake-goods-is-now-33-of-world-trade-and-rising.htm\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>With a large concentration of counterfeit goods originating from these two regions, Alibaba (China&#8217;s largest retailer) is adopting blockchain to provide its customers with product traceability and transparency.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Fighting_food_fraud\"><\/span>Fighting food fraud<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In China, fake, tainted, or contaminated food is a common problem. Aiming at giving its customers transparency and traceability of food, Alibaba is developing a model for food quality and safety standards.<\/p>\n<p>In 2017, Alibaba <a href=\"https:\/\/www.nzherald.co.nz\/business\/alibaba-teams-up-with-fonterra-on-food-safety-project\/2S45KUITENFIXO7XXIC3E5SSMQ\/?c_id=3&#038;objectid=11827017\" rel=\"noopener noreferrer\" target=\"_blank\">teamed up<\/a> with PwC, Blackmores, Fonterra, New Zealand Post, and Australia Post to develop the <strong>Food Trust Framework<\/strong>, a system for tracing food based on blockchain.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/china-fake-eggs.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/china-fake-eggs.jpg\" alt=\"\" width=\"500\" height=\"375\" class=\"aligncenter size-full wp-image-41828\" \/><\/a><small>Manufactured fake eggs (<a href=\"https:\/\/organichealthytips.com\/top-10-toxic-fake-food-items-produced-in-china\/\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>Under the project, products such as fish oil from Australia and dairy from New Zealand are sold through Tmall Global, Alibaba&#8217;s cross-border marketplace. Each product is tagged with a unique QR code, which reveals the following information when scanned:<\/p>\n<ul>\n<li>place of origin<\/li>\n<li>transaction history<\/li>\n<\/ul>\n<p>With the success of the Food Trust Network, Alibaba now applies the same blockchain model across its other markets\u2014for instance, luxury goods. (Similar to Alibaba, other major retailers such as <a href=\"https:\/\/www.altoros.com\/blog\/blockchain-at-walmart-tracking-food-from-farm-to-fork\/\">Walmart<\/a> are also using blockchain to secure their supply chains and add transparency to food provenance.)<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cross-border_logistics\"><\/span>Cross-border logistics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In March 2018, Lynx International (a subsidiary of Alibaba) <a href=\"https:\/\/www.ccn.com\/alibaba-subsidiary-reports-successful-use-blockchain-technology-logistics-data\/\" rel=\"noopener noreferrer\" target=\"_blank\">announced<\/a> the successful integration of blockchain into its logistics operation. With the adoption of blockchain, the company can keep an immutable record of all pertinent details relating to shipping and logistics across borders.<\/p>\n<p>With blockchain, Alibaba aims to improve traceability and transparency, which will not only improve customers&#8217; trust but also minimize the risk of fraud.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-business-application-scenarios-for-blockchain.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-business-application-scenarios-for-blockchain.png\" alt=\"\" width=\"640\" class=\"aligncenter size-full wp-image-42558\" \/><\/a><small>Blockchain business applications in Alibaba (<a href=\"https:\/\/static.sched.com\/hosted_files\/hgf18\/ed\/HGF_Fabric_Storage%26Network_Deepdive_v1.2.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>In the case of food fraud, blockchain helps in the detection of food with fake ingredients, food that has been substituted, and food that has spoiled. When it comes to fake luxury goods, blockchain enables Alibaba customers to quickly trace the origin of products in order to verify authenticity.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tracking_luxury_goods\"><\/span>Tracking luxury goods<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In April 2018, Alibaba <a href=\"https:\/\/www.alibabacloud.com\/blog\/tmall-blockchain-traceability-solution-powered-by-alibaba-cloud_593973\" rel=\"noopener noreferrer\" target=\"_blank\">launched<\/a> a new <a href=\"https:\/\/www.alibabacloud.com\/help\/doc-detail\/60755.htm?spm=a2c65.11461447.0.0.7bc61be2Ykc4z3\" rel=\"noopener noreferrer\" target=\"_blank\">blockchain solution<\/a> for its Tmall Luxury Pavilion, a website dedicated to the sale of high-end brands. Using blockchain, Tmall Luxury Pavilion can record:<\/p>\n<ul>\n<li>raw materials used<\/li>\n<li>circulation<\/li>\n<li>marketing processes<\/li>\n<\/ul>\n<p>These data points are then included into each item&#8217;s unique blockchain identifier, with the digital signature and timestamp for query and verification purposes.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/alibaba-tmall-traceability-QR-code.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/alibaba-tmall-traceability-QR-code.jpg\" alt=\"\" width=\"640\" class=\"aligncenter size-full wp-image-41813\" \/><\/a><small>Scanning a product&#8217;s QR code reveals production details (<a href=\"https:\/\/www.alizila.com\/alibaba-ups-food-safety-via-blockchain\/\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>Additionally, Tmall Luxury Pavilion customers can trace an item on the website or scan a product&#8217;s QR code in order to see:<\/p>\n<ul>\n<li>a blockchain code<\/li>\n<li>product origin<\/li>\n<li>a number of declaration for the entry<\/li>\n<li>time of declaration for the entry<\/li>\n<\/ul>\n<p>The system is based on Hyperledger Fabric and enables products to be tracked at any stage of the <a href=\"https:\/\/www.altoros.com\/blog\/tag\/supply-chain\/\">supply chain<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Not_only_retail_healthcare_and_insurance\"><\/span>Not only retail: healthcare and insurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Alibaba&#8217;s activities also go beyond retail. In 2017, it was <a href=\"https:\/\/www.ccn.com\/alibaba-partners-chinese-govt-trial-blockchain-healthcare\/\">annouced<\/a> that Ali Health is working with the Government of China on a blockchain project to improve patients&#8217; privacy and ensure immutability of medical history. The project will allow hospitals to securely share data on a blockchain, as well as enable physicians to quickly verify medical information.<\/p>\n<blockquote><p>&#8220;Ali Health&#8217;s blockchain technology connects information by using our current equipment and systems. With blockchain, health centers and district hospitals are interconnected so that the people can enjoy convenient medical services.&#8221; \u2014Zhang Zhihong, Zhenglu Town Health Center<\/p><\/blockquote>\n<p>In particular, Ali Health will use blockchain to:<\/p>\n<ul>\n<li>install data security nets<\/li>\n<li>store sensitive medical data in ciphertext<\/li>\n<li>provide traceability and implement tamper-proof technologies<\/li>\n<\/ul>\n<p>In March 2018, Ali Health also <a href=\"https:\/\/www.puc.com\/wp-content\/uploads\/2018\/12\/PRESS-RELEASE-PUC-Berhad-Signs-MoU-with-Ali-Health-Sdn-Bhd-to-Promote-Blockchain-Solutions-in-the-Healthcare-Industry_FINAL_20180328_forwebsite.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">signed<\/a> a memorandum of understanding with Malaysia-based PUC to collaborate on Doctor2U\u2014a medical mobile app\u2014as well as other solutions pertaining to healthcare. According to <a href=\"https:\/\/sg.linkedin.com\/in\/cheong-chia-chou-5ab1a136\" rel=\"noopener noreferrer\" target=\"_blank\">Cheong Chia Chou<\/a> of PUC, the collaboration is a step toward digitalizing the healthcare system. The two organizations will work together to:<\/p>\n<ul>\n<li>provide blockchain solutions to medical institutions and health insurance providers<\/li>\n<li>build a medical information sharing platform<\/li>\n<\/ul>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/04\/blockchain-ali-health-doctor2u.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/04\/blockchain-ali-health-doctor2u.jpg\" alt=\"\" width=\"640\" class=\"aligncenter size-full wp-image-42800\" \/><\/a><small><a href=\"https:\/\/www.linkedin.com\/in\/garvybeh\" rel=\"noopener noreferrer\" target=\"_blank\">Garvy Beh<\/a> of Ali Health and <a href=\"https:\/\/sg.linkedin.com\/in\/cheong-chia-chou-5ab1a136\" rel=\"noopener noreferrer\" target=\"_blank\">Cheong Chia Chou<\/a> of PUC (<a href=\"https:\/\/www.puc.com\/wp-content\/uploads\/2018\/12\/PRESS-RELEASE-PUC-Berhad-Signs-MoU-with-Ali-Health-Sdn-Bhd-to-Promote-Blockchain-Solutions-in-the-Healthcare-Industry_FINAL_20180328_forwebsite.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<blockquote><p>&#8220;While many may think that the blockchain technology mainly applies for finance or cryptocurrency at first, it is noteworthy that the same principles are applicable for many other industries. By\u00a0holding a highly secured database\u00a0of\u00a0health\u00a0information over the platform of Doctor2U,\u00a0 blockchain facilitates a more time\u00ad- and cost\u00ad-efficient solution serving different purposes for its business partners, including permission-based data sharing, data interoperation, internal performance evaluation, regulatory or insurance related verification works, and big data analysis.&#8221; \u2014Cheong Chia Chou, PUC<\/p><\/blockquote>\n<p>Another case relates to health insurance. In 2018, ZhongAn, an insurance company co-founded by Alibaba&#8217;s co-founder Jack Ma, <a href=\"https:\/\/www.ccn.com\/tencent-and-alibabas-insurance-giant-is-using-blockchain-with-100-hospitals\/\" rel=\"noopener noreferrer\" target=\"_blank\">started using blockchain<\/a> to store and process data. According to <a href=\"https:\/\/www.crunchbase.com\/person\/wei-chen-3\" rel=\"noopener noreferrer\" target=\"_blank\">Chen Wei<\/a> of ZhongAn, this enabled the insurer to minimize risks and improve pricing models.<\/p>\n<blockquote><p>&#8220;Insurance is backed by statistics and blockchain will help to connect that massive and varied data. It will be used to manage risk and improve pricing. Insurance sales used to rely on agents and individual salespeople, however younger generations prefer making online purchases. Insurance clients no longer need to file paper documents as proof. Instead, they can just say when and which hospital they attended.&#8221; \u2014Chen Wei, ZhongAn Online Property &#038; Casualty Insurance<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Blockchain_as_a_service\"><\/span>Blockchain as a service<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In December 2018, the Alibaba Cloud division <a href=\"https:\/\/www.hyperledger.org\/announcements\/2018\/12\/11\/hyperledger-adds-alibaba-cloud-citi-deutsche-telekom-we-trade-and-12-more-new-members-at-hyperledger-global-forum\" rel=\"noopener noreferrer\" target=\"_blank\">announced<\/a> that it had officially joined the Hyperledger Project.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-blockchain-hyperledger-journey.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-blockchain-hyperledger-journey.png\" alt=\"\" width=\"640\" class=\"aligncenter size-full wp-image-42710\" \/><\/a><small>Alibaba started working with Hyperledger in 2017 (<a href=\"https:\/\/static.sched.com\/hosted_files\/hgf18\/ed\/HGF_Fabric_Storage%26Network_Deepdive_v1.2.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<p>According to <a href=\"https:\/\/hgf18.sched.com\/speaker\/yushan.ys\" rel=\"noopener noreferrer\" target=\"_blank\">Shan Yu<\/a> of Alibaba, the organization released two blockchain solutions a year before that: <a href=\"https:\/\/www.alibabacloud.com\/product\/kubernetes\" rel=\"noopener noreferrer\" target=\"_blank\">Container Service on Swarm<\/a> and the <a href=\"https:\/\/www.alibabacloud.com\/product\/kubernetes\" rel=\"noopener noreferrer\" target=\"_blank\">Container Service on Kubernetes<\/a>. In July 2018, Alibaba launched its <a href=\"https:\/\/www.alibabacloud.com\/product\/baas\" rel=\"noopener noreferrer\" target=\"_blank\">Blockchain as a Service<\/a> in China as a beta release. In September 2018, the service was launched globally.<\/p>\n<div id=\"attachment_42646\" style=\"width: 140px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Shan-Yu-Alibaba.jpg\"><img decoding=\"async\" aria-describedby=\"caption-attachment-42646\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Shan-Yu-Alibaba-150x150.jpg\" alt=\"\" width=\"130\" class=\"size-thumbnail wp-image-42646\" \/><\/a><p id=\"caption-attachment-42646\" class=\"wp-caption-text\"><small>Shan Yu<\/small><\/p><\/div>\n<p>In addition to the services mentioned, Shan noted a few more examples of the new business lines made possible by blockchain.<\/p>\n<blockquote><p>&#8220;We&#8217;re helping our customers use blockchain to encourage safe driving and avoid traffic accidents. We&#8217;re working with our AI team to build a trusted digital platform for copyright protection and the trading of digital content. We&#8217;re also working with our Internet of Things team to build a platform for trusted device assets and trusted data for the Industrial Internet.&#8221; \u2014Shan Yu, Alibaba<\/p><\/blockquote>\n<p>Alibaba&#8217;s adoption of blockchain wasn&#8217;t without challenges. As more users started using their blockchain solutions, it also caused storage problems as data grew too fast. These issues were then resolved with the use of Alibaba Cloud NAS and Alibaba Cloud Disk, which both offered high reliability. In addition, <a href=\"https:\/\/www.altoros.com\/blog\/tag\/kubernetes\/\">Kubernetes<\/a> provided good abstraction of storage resources through persistent volumes and persistent volume claims.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-cloud-storage-blockchain.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Alibaba-cloud-storage-blockchain.png\" alt=\"\" width=\"640\" class=\"aligncenter size-full wp-image-42648\" \/><\/a><small>Example of Alibaba&#8217;s cloud storage for blockchain architectures (<a href=\"https:\/\/static.sched.com\/hosted_files\/hgf18\/ed\/HGF_Fabric_Storage%26Network_Deepdive_v1.2.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Image credit<\/a>)<\/small><\/center><\/p>\n<blockquote><p>&#8220;We use persistent volumes and persistent volume claims to request and mount storage into Fabric without caring about the details of the storage.&#8221; \u2014Shan Yu, Alibaba<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Blockchain_patents\"><\/span>Blockchain patents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to <a href=\"https:\/\/www.forbes.com\/profile\/eric-jing\/\" rel=\"noopener noreferrer\" target=\"_blank\">Jing Xiandong<\/a>, CEO of Alibaba\u2019s financial company Ant Financial, the corporation is \u201c the most patented company in the world of blockchain technology.\u201d In particular, on March 23, 2018, Alibaba filed a <a href=\"http:\/\/appft.uspto.gov\/netacgi\/nph-Parser?Sect1=PTO1&#038;Sect2=HITOFF&#038;d=PG01&#038;p=1&#038;u=%2Fnetahtml%2FPTO%2Fsrchnum.html&#038;r=1&#038;f=G&#038;l=50&#038;s1=%2220180285837%22.PGNR.&#038;OS=DN\/20180285837&#038;RS=DN\/20180285837\" rel=\"noopener noreferrer\" target=\"_blank\">patent<\/a> for an administrative intervention system for blockchain transactions at the United States Patent and Trademark Office.<\/p>\n<p>While smart contracts enable two or more parties to transact through an automated process, the self-enforcing nature of smart contracts makes it impossible to stop from executing should there be any malicious activity involved.<\/p>\n<p>This scenario is explained in the patent as follows, <em>&#8220;in real life, however, there is a type of administrative intervention activities in the category of special transactions. For example, when a user performs illegal activities, a court order may be executed to freeze the user&#8217;s account. However, this operation activity conflicts with smart contracts in existing blockchains and cannot be carried out. Therefore, there is a need for a blockchain-based transaction processing method that enables special transactions like administrative intervention in a blockchain.&#8221;<\/em><\/p>\n<p>Though the system proposed by the patent goes against the decentralized nature of blockchains, it does provide designated administrators the means to put a stop to illegal transactions.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Large_retailers_join_forces\"><\/span>Large retailers join forces<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Alibaba can be seen as one of the early adopters of blockchain and members of the Hyperledger ecosystem, but other major retailers are following suit. In 2018, eBay <a href=\"https:\/\/usethebitcoin.com\/ebay-and-foxconn-enter-the-blockchain-world-after-joining-the-enterprise-ethereum-alliance\/\" rel=\"noopener noreferrer\" target=\"_blank\">joined<\/a> the Enterprise Ethereum Alliance to further explore blockchain. Similarly, Amazon <a href=\"https:\/\/cointelegraph.com\/news\/amazon-how-e-commerce-giant-chose-blockchain-over-bitcoin\" rel=\"noopener noreferrer\" target=\"_blank\">announced<\/a> a partnership with R3 in December 2018, placing the Corda platform as one of the first blockchain solutions in the AWS marketplace. (Amazon is offering blockchain as a service, as well, under their <a href=\"https:\/\/aws.amazon.com\/managed-blockchain\/\" rel=\"noopener noreferrer\" target=\"_blank\">Managed Blockchain<\/a> program.)<\/p>\n<p>While the benefits of blockchain in supply chain scenarios are readily apparent, it can also provide organizations with new business opportunities. We will likely see other organizations follow the trend of improving their retail chains with blockchain and using the technology to create new digital services.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Want_details_Watch_the_videos\"><\/span>Want details? Watch the videos!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><small>In this video, <a href=\"https:\/\/hgf18.sched.com\/speaker\/yushan.ys\" rel=\"noopener noreferrer\" target=\"_blank\">Shan Yu<\/a> explains how Alibaba uses blockchain to expand its business. The slides used in his presentation can be found <a href=\"https:\/\/static.sched.com\/hosted_files\/hgf18\/ed\/HGF_Fabric_Storage%26Network_Deepdive_v1.2.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">here<\/a>.<\/small><\/p>\n<p><center><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/NJb518txwUw\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/center><\/p>\n<p><small>This news clip provides an overview of what Alibaba is doing in the blockchain space.<\/small><\/p>\n<p><center><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/EL6QpyVRY4A\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/center><\/p>\n<p><small>The next video featuring Alibaba&#8217;s co-founder Jack Ma briefly explains how the company uses blockchain to fight fraudulent goods.<\/small><\/p>\n<p><center><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/3SYrkxY8urU\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/center><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/blockchain-at-walmart-tracking-food-from-farm-to-fork\/\">Blockchain at Walmart: Tracking Food from Farm to Fork<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/a-close-look-at-everledger-how-blockchain-secures-luxury-goods\/\">A Close Look at Everledger\u2014How Blockchain Secures Luxury Goods<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/iot-meets-blockchain-building-a-supply-chain-app-on-microsoft-azure\/\">IoT Meets Blockchain: Building a Supply Chain App on Microsoft Azure<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"About_the_expert\"><\/span>About the expert<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/hgf18.sched.com\/speaker\/yushan.ys\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2019\/03\/Shan-Yu-bio.png\" alt=\"\" width=\"130\" class=\"aligncenter size-full wp-image-42651\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/hgf18.sched.com\/speaker\/yushan.ys\" rel=\"noopener noreferrer\" target=\"_blank\">Shan Yu<\/a> is Staff Engineer at Alibaba Cloud in China. He is currently responsible for the development of the company&#8217;s blockchain service. Before joining Alibaba, he worked in IBM for 10 years, gaining experience in service-oriented architectures, cloud messaging, microservices, Kubernetes, and Hyperledger Fabric. Shan has delivered several presentations in QCon, Alibaba&#8217;s Computing Conference, IBM&#8217;s IMPACT conference, Hyperledger Hackfest, KubeCon, and CloudNativeCon.<\/small><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<hr\/>\n<p><center><small>The post is written by Carlo Gutierrez and <a href=\"https:\/\/www.altoros.com\/blog\/author\/alex\/\">Alex Khizhniak<\/a> with assistance from Sophia Turol.<\/small><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fraud in retail<\/p>\n<p>Fraud is one of the biggest challenges in the retail industry when it comes to both food and luxury goods. In 2016, PwC reported that food fraud is a $30\u201340 billion problem globally. Even more concerning is that contaminated food causes 420,000 fatalities annually, according to the World [&#8230;]<\/p>\n","protected":false},"author":32,"featured_media":47170,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[26],"tags":[672,884,978],"class_list":["post-42790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-use-cases","tag-blockchain","tag-retail","tag-supply-chain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Alibaba Aims to Prevent Retail Fraud with Blockchain | Altoros<\/title>\n<meta name=\"description\" content=\"Blockchain can provide transparency and traceability to fight fake goods. It also enables Alibaba to expand with a digital platform for blockchain services.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/alibaba-aims-to-prevent-retail-fraud-with-blockchain\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alibaba Aims to Prevent Retail Fraud with Blockchain | Altoros\" \/>\n<meta property=\"og:description\" content=\"Fraud in retail Fraud is one of the biggest challenges in the retail industry when it comes to both food and luxury goods. In 2016, PwC reported that food fraud is a $30\u201340 billion problem globally. 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