Blockchain is literally used in every industry and sector now. If a company knows how to add value through blockchain, then it surely do so given the advantages that the technology offers.
The latest of the corporate giants to be eyeing blockchain is the cigarette and tobacco manufacturing company Philip Morris. As reported by press, the company’s global head of architecture and tech innovation, Nitin Manoharan, commented during an event in London that the company wants to go into blockchain.
While the idea for Philip Morris is to develop a public blockchain, its intended use will be quite different than what most companies use it for. According to an info memo from CoinDesk, Philip Morris will strive to use blockchain to track tax stamps on its cigarette boxes.
While this may sound very “unorthodox” and strange, Mr. Manoharan explained that these tax stamps are actually very valuable, where each one stamp has a worth of around $5.50 for cigarette packet. These stamps are dealt with manually and can be very easily counterfeited, so the cost of dealing with tax stamps is very high (a rough estimate of $100 million per year).
Mr. Manoharan also said that the company can save around 20% of this amount on an yearly basis just by taking advantage of automation, traceability and transparency – features all offered by blockchain.
Philip Morris is reportedly even thinking of opening its blockchain to the public so that more people can benefit from the innovation. In fact, the tracking of tax stamps is only one of reportedly six planned blockchain uses that Philip Morris is currently eyeing. The earliest date by which the product can go live is some time next year.